ValiCert, Inc. Reports Record Revenues for First Quarter of 2001

Company Exceeds Projections as Revenues Increase 170% From Prior Year



Apr 25, 2001, 01:00 ET from ValiCert, Inc.

    MOUNTAIN VIEW, Calif., April 25 /PRNewswire/ --
 ValiCert, Inc. (Nasdaq:   VLCT), a premier provider of trust solutions for
 electronic business transactions, today reported record revenues for the
 first quarter of 2001.  Total revenues for the quarter were $5.1 million, a
 170% increase from revenues of $1.9 million in the quarter ended
 March 31, 2000, and a 22% increase over revenues of $4.1 million in the
 preceding quarter ended December 31, 2000.
     Pro forma net loss for the quarter ended March 31, 2001, excluding
 amortization of intangibles, stock compensation and other non-cash charges,
 was $7.8 million or $0.33 per pro forma share.  The net loss for the quarter,
 including such amortization of intangibles, stock compensation and other
 non-cash charges was $9.2 million.  Deferred revenue grew 22% to $3.8 million
 from $3.1 million in the preceding quarter ended December 31, 2000.
     "I am pleased with ValiCert's record revenues and continued momentum and
 growth in the first quarter," said Yosi Amram, president and chief executive
 officer of ValiCert.  "Despite a tough economic environment, ValiCert was able
 to meet and exceed expectations.  We are further delighted that our focus on
 solution selling in targeted vertical markets and application areas, where we
 have demonstrated compelling ROI, is working well.  With 20 new accounts in
 the quarter and nearly half of our pre-existing customers doing follow-on
 business with us, we are pleased with the breadth and depth of results."
     Today, ValiCert also announced it will consolidate and streamline the
 organization to increase focus and reduce costs.  This will result in a
 reduction in its workforce of approximately 10% in the second quarter.
     "We remain optimistic about the future and, to ensure we can meet or
 exceed our path to profitability objective, we are taking a number of measures
 to lower our cost structure," continued Amram.  "With these steps and a strong
 balance sheet, we believe we are well positioned to continue our growth and
 implement our plans."
 
     Quarterly Highlights:
 
     New Products/Solutions
     ValiCert m-Commerce Express(TM) -- February 20, ValiCert announced
 m-Commerce Express, a strategic initiative designed to provide legal-grade
 security for enterprise wireless transactions.  Several partnerships were
 announced that supported the ValiCert m-Commerce Express initiative,
 including:  Certicom, CMG Wireless Data Solutions, GemPlus, Diversinet Corp.,
 and Covigo.
 
     ValiCert Trust Services(SM) -- April 9, ValiCert announced ValiCert Trust
 Services (VTS), a new set of offerings that builds upon ValiCert's proven
 experience and enables companies to more quickly and easily, conduct
 real-world business electronically.  To support this new product launch,
 ValiCert announced several new customers that have adopted the VTS solution.
 
     New Affiliates
     Affiliate Program -- During the quarter ValiCert made two new additions to
 the ValiCert Affiliate Network(TM):  These newest members of the ValiCert
 Affiliate Network will now offer ValiCert trusted transaction solutions as
 part of their e-Business security infrastructure.
 
     Select Customers
     During the quarter, ValiCert added 20 new customers including Cap Gemini,
 Equitable Insurance, Hoffman LaRoche, and Merita Bank.  Additional customers
 announced during the quarter were:
 
     Visa U.S.A. -- April 9, ValiCert announced a deal in which Visa U.S.A.
 will utilize ValiCert Trust Services to support its recently unveiled
 Visa Payer Authentication Service.  The ValiCert Trust Services solution is
 expected to allow Visa U.S.A. to quickly deploy the necessary infrastructure
 to provide proof management services to Visa member banks worldwide through
 the new Visa Payer Authentication Service.
 
     Symantec -- April 9, ValiCert announced a deal with Symantec Corp., a
 worldwide leader in Internet security.  Symantec has adopted a ValiCert Trust
 Services solution that will allow Symantec to provide a secure file and
 document exchange for employees, suppliers, and customers of pre-release
 software.
 
     Partnerships/Strategic Alliances
     Baltimore Technologies -- April 11, ValiCert announced a strategic OEM
 alliance with Baltimore Technologies that will combine the ValiCert Validation
 Authority(TM) (VA) solution with the Baltimore UniCERT(TM) offering.
 
     TIBCO Software -- February 14, ValiCert announced that TIBCO Software
 would bundle support for key components of ValiCert B2B Express(TM), including
 the ValiCert Validation Authority and ValiCert Digital Receipt Solutions(TM).
 
     CMG Wireless Data Solutions -- February 20, ValiCert announced that
 CMG Wireless Data Solutions would integrate and distribute the ValiCert
 m-Commerce Express solution.
 
     Certicom -- February 21, ValiCert announced a strategic alliance with
 Certicom that will provide certificate authority (CA) and ValiCert Validation
 Authority services for the wireless market.
 
     GemPlus - March 20, ValiCert announced a multi-industry agreement with
 GemPlusto combine ValiCert m-Commerce Express, including ValiCert Validation
 Authority and ValiCert Digital Receipt Solutions with GemPlus' wireless
 services and products.
 
     ValiCert will host a conference call to discuss its first quarter results
 on Wednesday, April 25, 2001 at 2:00 p.m. Pacific time.  Investors are invited
 to listen to a live audio webcast of ValiCert's quarterly conference call on
 the investor relations section of our website at www.ValiCert.com.  The web
 cast will be available at approximately 2:00 p.m. Pacific time.  The web cast
 replay will remain available for five business days after the call.  An audio
 replay of the conference call will also be available approximately one hour
 after the call ends, and can be accessed by dialing 800-633-8284 or
 858-812-6440 for international callers and entering reservation number
 18463429.
 
     About ValiCert
     ValiCert is a leading provider of trusted transaction infrastructure
 products and managed services for conducting business safely over the
 Internet.  The company's open and neutral security solutions are designed to
 enable enterprises and service providers to protect all phases of the
 transaction lifecycle regardless of the type of credentials that are used for
 authentication purposes.  ValiCert's products and services are available
 through its direct sales force, resellers and global affiliate network.
     ValiCert has technology and marketing alliances with a range of security
 and e-Commerce and wireless companies, as well as systems integrators.  The
 company's customers include Global 2000 organizations in financial services,
 telecom, healthcare and government sectors.  ValiCert is headquartered in
 Mountain View, California and has offices through out the U.S., Canada, Europe
 and Asia.  ValiCert is available on the World Wide Web at www.valicert.com.
     NOTE:  ValiCert, ValiCert m-Commerce Express, ValiCert B2B Express,
 ValiCert Affiliate Network, ValiCert Validation Authority, and
 ValiCert Digital Receipt Solutions are trademarks of ValiCert, Inc.
 ValiCert Trust Services is a servicemark of ValiCert, Inc.  All other product
 and brand names are trademarks or registered trademarks of their respective
 owners.
     Except for historical information, this press release includes
 forward-looking statements that involve risks and uncertainties, including,
 but not limited to, the Company's fundamental position, continued success of
 certain strategies, significance of specific relationships to the Company's
 future success, as well as risks as detailed from time to time in the
 Company's Securities and Exchange Commission filings.  Such statements are
 indicated by words or phrases such as "believes," "expected," "designed" and
 similar words and phrases.  Actual results may differ materially from
 management expectations.  The Company's revenues could decline significantly
 if the market does not continue to accept the Company's products and services,
 if the Company's relationships with its affiliates or its strategic alliances
 fail or are terminated, or if the Company's technology contains undetected
 bugs or defects.  For a further discussion of the risks associated with
 ValiCert, see the Risk Factors described in ValiCert's filings with the
 Securities and Exchange Commission, particularly the Company's Form 10-K for
 the year ended December 31, 2000, filed with the SEC on April 2, 2001.
 ValiCert assumes no obligation to update the forward-looking statements in
 this press release.
 
                                 ValiCert, Inc.
                Condensed Consolidated Statements of Operations
                     (in thousands, except per share data)
                                  (Unaudited)
 
                                                         Three Months Ended
                                                              March 31,
                                                         2001           2000
 
     Revenues:
      Software licenses                                $3,375         $1,396
      Subscription fees and other services              1,694            480
       Total revenues                                   5,069          1,876
 
     Cost of revenues:
      Software licenses                                   265            153
      Subscription fees and other services              2,288          1,041
       Total cost of revenues                           2,553          1,194
 
     Gross profit                                       2,516            682
 
     Operating expenses:
      Research and development                          3,563          1,911
      Sales and marketing                               5,637          2,404
      General and administrative                        1,296            686
       Total operating expenses                        10,496          5,001
 
     Operating loss                                   (7,980)        (4,319)
 
     Interest and other income, net                       162            128
 
     Loss prior to amortization of intangibles
      and stock compensation                          (7,818)        (4,191)
 
     Amortization of intangibles and stock
      compensation                                      1,377          1,267
 
     Net loss                                        $(9,195)       $(5,458)
 
     Basic and diluted loss per share                 $(0.42)        $(2.31)
 
     Shares used in computation of basic and
      diluted net loss per share                       21,770          2,364
 
     Pro forma fully diluted net loss per share       $(0.33)        $(0.28)
 
     Shares used in pro forma fully diluted
      net loss per share                               23,585         15,135
 
     Note:  Pro forma share information assumes conversion of preferred stock
 into common stock at the beginning of the periods presented and the exercise
 of stock options and warrants under the treasury stock method.  In addition,
 the pro forma fully diluted net loss per share is calculated based on the loss
 prior to amortization of intangibles and stock compensation.
 
                                   ValiCert, Inc.
                     Condensed Consolidated Balance Sheets
                                 (in thousands)
                                  (Unaudited)
 
                                                     March 31,       Dec. 31,
                                                        2001           2000
 
     ASSETS
      Current assets:
       Cash and equivalents                           $28,905        $37,523
       Accounts receivable, net                         4,914          3,771
       Prepaid expenses and other current assets        1,376          1,333
        Total current assets                           35,195         42,627
 
     Property and equipment, net                        5,766          5,417
     Goodwill and other intangible assets, net         10,511         11,297
     Other assets                                         529            465
 
        Total assets                                  $52,001        $59,806
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
      Current liabilities:
       Accounts payable and accrued liabilities        $6,995         $6,958
       Deferred revenue                                 3,801          3,113
       Short term notes and current portion of
        long-term obligations                           1,133          1,122
        Total current liabilities                      11,929         11,193
 
      Long term liabilities                             1,708          2,056
        Total liabilities                              13,637         13,249
 
     Stockholders' equity
      Common stock and additional paid-in capital     101,941        102,014
      Deferred stock compensation                     (6,178)        (7,263)
      Notes receivable from stockholders              (2,043)        (2,033)
      Accumulated deficit                            (55,356)       (46,161)
 
       Total stockholders' equity                      38,364         46,557
 
         Total liabilities and stockholders' equity   $52,001        $59,806
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X84242483
 
 

SOURCE ValiCert, Inc.
    MOUNTAIN VIEW, Calif., April 25 /PRNewswire/ --
 ValiCert, Inc. (Nasdaq:   VLCT), a premier provider of trust solutions for
 electronic business transactions, today reported record revenues for the
 first quarter of 2001.  Total revenues for the quarter were $5.1 million, a
 170% increase from revenues of $1.9 million in the quarter ended
 March 31, 2000, and a 22% increase over revenues of $4.1 million in the
 preceding quarter ended December 31, 2000.
     Pro forma net loss for the quarter ended March 31, 2001, excluding
 amortization of intangibles, stock compensation and other non-cash charges,
 was $7.8 million or $0.33 per pro forma share.  The net loss for the quarter,
 including such amortization of intangibles, stock compensation and other
 non-cash charges was $9.2 million.  Deferred revenue grew 22% to $3.8 million
 from $3.1 million in the preceding quarter ended December 31, 2000.
     "I am pleased with ValiCert's record revenues and continued momentum and
 growth in the first quarter," said Yosi Amram, president and chief executive
 officer of ValiCert.  "Despite a tough economic environment, ValiCert was able
 to meet and exceed expectations.  We are further delighted that our focus on
 solution selling in targeted vertical markets and application areas, where we
 have demonstrated compelling ROI, is working well.  With 20 new accounts in
 the quarter and nearly half of our pre-existing customers doing follow-on
 business with us, we are pleased with the breadth and depth of results."
     Today, ValiCert also announced it will consolidate and streamline the
 organization to increase focus and reduce costs.  This will result in a
 reduction in its workforce of approximately 10% in the second quarter.
     "We remain optimistic about the future and, to ensure we can meet or
 exceed our path to profitability objective, we are taking a number of measures
 to lower our cost structure," continued Amram.  "With these steps and a strong
 balance sheet, we believe we are well positioned to continue our growth and
 implement our plans."
 
     Quarterly Highlights:
 
     New Products/Solutions
     ValiCert m-Commerce Express(TM) -- February 20, ValiCert announced
 m-Commerce Express, a strategic initiative designed to provide legal-grade
 security for enterprise wireless transactions.  Several partnerships were
 announced that supported the ValiCert m-Commerce Express initiative,
 including:  Certicom, CMG Wireless Data Solutions, GemPlus, Diversinet Corp.,
 and Covigo.
 
     ValiCert Trust Services(SM) -- April 9, ValiCert announced ValiCert Trust
 Services (VTS), a new set of offerings that builds upon ValiCert's proven
 experience and enables companies to more quickly and easily, conduct
 real-world business electronically.  To support this new product launch,
 ValiCert announced several new customers that have adopted the VTS solution.
 
     New Affiliates
     Affiliate Program -- During the quarter ValiCert made two new additions to
 the ValiCert Affiliate Network(TM):  These newest members of the ValiCert
 Affiliate Network will now offer ValiCert trusted transaction solutions as
 part of their e-Business security infrastructure.
 
     Select Customers
     During the quarter, ValiCert added 20 new customers including Cap Gemini,
 Equitable Insurance, Hoffman LaRoche, and Merita Bank.  Additional customers
 announced during the quarter were:
 
     Visa U.S.A. -- April 9, ValiCert announced a deal in which Visa U.S.A.
 will utilize ValiCert Trust Services to support its recently unveiled
 Visa Payer Authentication Service.  The ValiCert Trust Services solution is
 expected to allow Visa U.S.A. to quickly deploy the necessary infrastructure
 to provide proof management services to Visa member banks worldwide through
 the new Visa Payer Authentication Service.
 
     Symantec -- April 9, ValiCert announced a deal with Symantec Corp., a
 worldwide leader in Internet security.  Symantec has adopted a ValiCert Trust
 Services solution that will allow Symantec to provide a secure file and
 document exchange for employees, suppliers, and customers of pre-release
 software.
 
     Partnerships/Strategic Alliances
     Baltimore Technologies -- April 11, ValiCert announced a strategic OEM
 alliance with Baltimore Technologies that will combine the ValiCert Validation
 Authority(TM) (VA) solution with the Baltimore UniCERT(TM) offering.
 
     TIBCO Software -- February 14, ValiCert announced that TIBCO Software
 would bundle support for key components of ValiCert B2B Express(TM), including
 the ValiCert Validation Authority and ValiCert Digital Receipt Solutions(TM).
 
     CMG Wireless Data Solutions -- February 20, ValiCert announced that
 CMG Wireless Data Solutions would integrate and distribute the ValiCert
 m-Commerce Express solution.
 
     Certicom -- February 21, ValiCert announced a strategic alliance with
 Certicom that will provide certificate authority (CA) and ValiCert Validation
 Authority services for the wireless market.
 
     GemPlus - March 20, ValiCert announced a multi-industry agreement with
 GemPlusto combine ValiCert m-Commerce Express, including ValiCert Validation
 Authority and ValiCert Digital Receipt Solutions with GemPlus' wireless
 services and products.
 
     ValiCert will host a conference call to discuss its first quarter results
 on Wednesday, April 25, 2001 at 2:00 p.m. Pacific time.  Investors are invited
 to listen to a live audio webcast of ValiCert's quarterly conference call on
 the investor relations section of our website at www.ValiCert.com.  The web
 cast will be available at approximately 2:00 p.m. Pacific time.  The web cast
 replay will remain available for five business days after the call.  An audio
 replay of the conference call will also be available approximately one hour
 after the call ends, and can be accessed by dialing 800-633-8284 or
 858-812-6440 for international callers and entering reservation number
 18463429.
 
     About ValiCert
     ValiCert is a leading provider of trusted transaction infrastructure
 products and managed services for conducting business safely over the
 Internet.  The company's open and neutral security solutions are designed to
 enable enterprises and service providers to protect all phases of the
 transaction lifecycle regardless of the type of credentials that are used for
 authentication purposes.  ValiCert's products and services are available
 through its direct sales force, resellers and global affiliate network.
     ValiCert has technology and marketing alliances with a range of security
 and e-Commerce and wireless companies, as well as systems integrators.  The
 company's customers include Global 2000 organizations in financial services,
 telecom, healthcare and government sectors.  ValiCert is headquartered in
 Mountain View, California and has offices through out the U.S., Canada, Europe
 and Asia.  ValiCert is available on the World Wide Web at www.valicert.com.
     NOTE:  ValiCert, ValiCert m-Commerce Express, ValiCert B2B Express,
 ValiCert Affiliate Network, ValiCert Validation Authority, and
 ValiCert Digital Receipt Solutions are trademarks of ValiCert, Inc.
 ValiCert Trust Services is a servicemark of ValiCert, Inc.  All other product
 and brand names are trademarks or registered trademarks of their respective
 owners.
     Except for historical information, this press release includes
 forward-looking statements that involve risks and uncertainties, including,
 but not limited to, the Company's fundamental position, continued success of
 certain strategies, significance of specific relationships to the Company's
 future success, as well as risks as detailed from time to time in the
 Company's Securities and Exchange Commission filings.  Such statements are
 indicated by words or phrases such as "believes," "expected," "designed" and
 similar words and phrases.  Actual results may differ materially from
 management expectations.  The Company's revenues could decline significantly
 if the market does not continue to accept the Company's products and services,
 if the Company's relationships with its affiliates or its strategic alliances
 fail or are terminated, or if the Company's technology contains undetected
 bugs or defects.  For a further discussion of the risks associated with
 ValiCert, see the Risk Factors described in ValiCert's filings with the
 Securities and Exchange Commission, particularly the Company's Form 10-K for
 the year ended December 31, 2000, filed with the SEC on April 2, 2001.
 ValiCert assumes no obligation to update the forward-looking statements in
 this press release.
 
                                 ValiCert, Inc.
                Condensed Consolidated Statements of Operations
                     (in thousands, except per share data)
                                  (Unaudited)
 
                                                         Three Months Ended
                                                              March 31,
                                                         2001           2000
 
     Revenues:
      Software licenses                                $3,375         $1,396
      Subscription fees and other services              1,694            480
       Total revenues                                   5,069          1,876
 
     Cost of revenues:
      Software licenses                                   265            153
      Subscription fees and other services              2,288          1,041
       Total cost of revenues                           2,553          1,194
 
     Gross profit                                       2,516            682
 
     Operating expenses:
      Research and development                          3,563          1,911
      Sales and marketing                               5,637          2,404
      General and administrative                        1,296            686
       Total operating expenses                        10,496          5,001
 
     Operating loss                                   (7,980)        (4,319)
 
     Interest and other income, net                       162            128
 
     Loss prior to amortization of intangibles
      and stock compensation                          (7,818)        (4,191)
 
     Amortization of intangibles and stock
      compensation                                      1,377          1,267
 
     Net loss                                        $(9,195)       $(5,458)
 
     Basic and diluted loss per share                 $(0.42)        $(2.31)
 
     Shares used in computation of basic and
      diluted net loss per share                       21,770          2,364
 
     Pro forma fully diluted net loss per share       $(0.33)        $(0.28)
 
     Shares used in pro forma fully diluted
      net loss per share                               23,585         15,135
 
     Note:  Pro forma share information assumes conversion of preferred stock
 into common stock at the beginning of the periods presented and the exercise
 of stock options and warrants under the treasury stock method.  In addition,
 the pro forma fully diluted net loss per share is calculated based on the loss
 prior to amortization of intangibles and stock compensation.
 
                                   ValiCert, Inc.
                     Condensed Consolidated Balance Sheets
                                 (in thousands)
                                  (Unaudited)
 
                                                     March 31,       Dec. 31,
                                                        2001           2000
 
     ASSETS
      Current assets:
       Cash and equivalents                           $28,905        $37,523
       Accounts receivable, net                         4,914          3,771
       Prepaid expenses and other current assets        1,376          1,333
        Total current assets                           35,195         42,627
 
     Property and equipment, net                        5,766          5,417
     Goodwill and other intangible assets, net         10,511         11,297
     Other assets                                         529            465
 
        Total assets                                  $52,001        $59,806
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
      Current liabilities:
       Accounts payable and accrued liabilities        $6,995         $6,958
       Deferred revenue                                 3,801          3,113
       Short term notes and current portion of
        long-term obligations                           1,133          1,122
        Total current liabilities                      11,929         11,193
 
      Long term liabilities                             1,708          2,056
        Total liabilities                              13,637         13,249
 
     Stockholders' equity
      Common stock and additional paid-in capital     101,941        102,014
      Deferred stock compensation                     (6,178)        (7,263)
      Notes receivable from stockholders              (2,043)        (2,033)
      Accumulated deficit                            (55,356)       (46,161)
 
       Total stockholders' equity                      38,364         46,557
 
         Total liabilities and stockholders' equity   $52,001        $59,806
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X84242483
 
 SOURCE  ValiCert, Inc.