Last10K.com

Cyren Ltd. (CYRN) SEC Filing 10-Q Quarterly report for the period ending Wednesday, September 30, 2020

SEC Filings

Cyren Ltd.

CIK: 1084577 Ticker: CYRN

Exhibit 99.1

 

 

 

PRESS RELEASE

 

Cyren Reports Third Quarter 2020 Financial Results

- - -

Cyren Inbox Security continues to gain momentum supporting company’s growth strategy

 

McLean, Va. – November 16, 2020 – Cyren (NASDAQ: CYRN), a provider of email security and threat intelligence solutions, today announced its third quarter 2020 financial results for the period ending September 30, 2020.

 

“The third quarter was our first full quarter in the market with our next generation email security product, Cyren Inbox Security, and we are very pleased with product-market fit and customer wins within the quarter,” said Brett Jackson, Chief Executive Officer of Cyren. “With most employees working from home, there has been an uptick in compromised email and phishing attempts, and increased demand for innovative solutions to combat these attacks. During the third quarter, we closed a number of new enterprise customers in the US and Europe, ranging from 3,000 to 20,000 users. It is clear to us that the phishing problem is widespread, the addressable market is large and Cyren Inbox Security has the potential to be a significant new enterprise revenue stream for our company.”

 

Third Quarter 2020 Financial Highlights:

 

Revenues for the third quarter of 2020 were $9.1 million, compared to $9.5 million during the third quarter of 2019. Revenue declined year-over-year as a result of the wind-down of retired legacy products, while recognition from new enterprise offerings introduced during Q2 have not yet had a material impact on quarterly results.

 

GAAP net loss for the third quarter of 2020 was $4.9 million, compared to a net loss of $3.5 million in the third quarter of 2019. GAAP net loss includes lower R&D capitalization from prior quarters and a one-time adjustment for previously capitalized technology development totaling $0.7 million.

 

GAAP loss per basic and diluted share for the third quarter of 2020 was $0.08, compared to a loss of $0.06 per basic and diluted share for the third quarter of 2019.

 

Non-GAAP net loss for the third quarter of 2020 was $2.9 million, compared to a Non-GAAP net loss of $3.5 million for the third quarter of 2019.

 

Non-GAAP loss per basic and diluted share was $0.05 for the third quarter, compared to a Non-GAAP loss of $0.06 per share in Q3 2019.

 

Cash and cash equivalents balance as of September 30, 2020, was $12.9 million, compared to $11.6 million as of December 31, 2019.

 

 

 

 

Operating cash usage during the third quarter of 2020 was $3.6 million, compared to operating cash flow of usage $1.7 million during the third quarter of 2019.

 

Net cash flow for the third quarter of 2020 was negative $3.2 million, compared to negative $2.9 million during the third quarter of 2019.

 

For information regarding the non-GAAP financial measures discussed in this release, please see “Use of Non-GAAP Financial Measures” and “Reconciliation of Selected GAAP Measures to Non-GAAP Measures.”

 

Recent Business Highlights:

 

During the third quarter, Cyren continued to experience strong market reaction to its next generation email security product focused on the phishing problem for enterprise users of Microsoft 365. At the end of the third quarter, Cyren Inbox Security was protecting over 60,000 mailboxes and analyzing over 15 million suspicious emails on a weekly basis.

 

Also in the quarter, Cyren launched its incident response service which provides 24x7 expert support for phishing investigation and remediation. Cyren Incident Response Service is a complementary add-on service to Cyren Inbox Security that relieves the burden on IT and security teams from complicated and time consuming threat investigation and response.

 

Cyren’s CIS and email security offerings attracted the attention of industry analysts and were highlighted as innovative cloud-based phishing solutions in Gartner’s 2020 Market Guide for Email Security as well as Forrester’s ‘Now Tech’ Report on enterprise email security providers.

 

Financial Results Conference Call:

 

The company will host a conference call at 4:30 p.m. Eastern Time on Monday, November 16, 2020 to discuss third quarter results.

 

U.S. Dial-in Number: 1-877-407-0312
Israel Dial-in Number: 1-80-940-6247
International Dial-in Number: 1-201-389-0899

 

The call will be simultaneously webcast live on the investor relations section of Cyren’s website at https://ir.cyren.com, or by using the following link: https://www.webcast-eqs.com/cyren20201116/en.

 

For those unable to participate in the live conference call, a replay will be available until November 30, 2020. To access the replay, the U.S. dial in number is 1-877-660-6853 and the non-U.S. dial in number is 1-201-612-7415. Callers will be prompted for replay conference ID number 13713213. An archived version of the call will also be available on the investor relations section of the company’s website at https://ir.cyren.com/events.

 

About Cyren:

 

More than 1.3 billion users around the world rely on Cyren’s cloud security solutions to protect them against cyber attacks and data loss every day. Powered by GlobalView, Cyren’s global security cloud that identifies emerging threats on a global basis in real-time, Cyren (NASDAQ: CYRN) delivers fast time-to-protection with embedded threat detection services, threat intelligence and enterprise email security products for leading email providers, cybersecurity vendors, service providers and enterprises. Learn more at www.cyren.com.

 

2

 

 

Blog: http://blog.cyren.com

Facebook: www.facebook.com/CyrenWeb

LinkedIn: www.linkedin.com/company/cyren

Twitter: www.twitter.com/CyrenInc

 

Use of Non-GAAP Financial Measures:

 

Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: stock-based compensation expenses, amortization of acquired intangible assets, and deferred taxes related to acquisitions, adjustments to earn-out obligations, and capitalization of technology. The purpose of such adjustments is to give an indication of the company’s performance exclusive of non-cash charges and other items that are considered by management to be outside of the company’s core operating results. The company’s non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with the company’s consolidated financial statements prepared in accordance with GAAP.

 

Company management regularly uses supplemental non-GAAP financial measures internally to understand, manage and evaluate the business and make operating decisions.

 

These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. The company believes this adjustment is useful to investors as a measure of the ongoing performance of the business. The company believes these non-GAAP financial measures provide consistent and comparable measures to help investors understand the company’s current and future operating cash flow performance. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when evaluating the business internally and therefore felt it important to make these non-GAAP adjustments available to investors.

 

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. For example, statements in the future tense, and statements including words such as “expect,” “plan,” “estimate,” “anticipate,” or “believe” are forward-looking statements. These statements are based on information available at the time of the press release and the company assumes no obligation to update any of them. The statements in this press release are not guarantees of future performance and actual results could differ materially from current expectations as a result of numerous factors, including business conditions and growth or deterioration in the internet security market, technological developments, products offered by competitors, availability of qualified staff, and technological difficulties and resource constraints encountered in developing new products, as well as those risks described in the company’s publicly filed reports, which are available through www.sec.gov.

 

Company Contact

 

Mike Myshrall, CFO
Cyren
+1.703.760.3320
mike.myshrall@cyren.com

 

3

 

 

CYREN LTD.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

(in thousands of U.S. dollars, except per share amounts)

 

   Three months ended   Nine months ended 
   September 30   September 30 
   2020   2019   2020   2019 
   Unaudited   Unaudited   Unaudited   Unaudited 
                 
Revenues  $9,114   $9,496   $27,944   $28,862 
                     
Cost of revenues   3,792    3,712    11,168    11,501 
                     
Gross profit   5,322    5,784    16,776    17,361 
                     
Operating expenses:                    
                     
Research and development, net   4,769    3,516    12,264    11,990 
                     
Sales and marketing   2,942    3,027    9,123    10,473 
                     
General and administrative   2,302    2,484    6,992    7,314 
                     
Total operating expenses   10,013    9,027    28,379    29,777 
                     
Operating loss   (4,691)   (3,243)   (11,603)   (12,416)
                     
Other income, net   1    (3)   9    262 
                     
Financial expenses, net   (235)   (321)   (757)   (642)
                     
Loss before taxes   (4,925)   (3,567)   (12,351)   (12,796)
                     
Tax benefit   33    37    94    117 
                     
Net loss  $(4,892)  $(3,530)  $(12,257)  $(12,679)
                     
Loss per share - basic and diluted  $(0.08)  $(0.06)  $(0.20)  $(0.23)
                     
Weighted average number of shares outstanding:                    
Basic and Diluted   60,580    54,554    60,103    54,389 

 

4

 

 

CYREN LTD.

 

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES

 

(in thousands of U.S. dollars, except per share amounts)

 

   Three months ended   Nine months ended 
   September 30   September 30 
   2020   2019   2020   2019 
   Unaudited   Unaudited   Unaudited   Unaudited 
                 
GAAP gross profit  $5,322   $5,784   $16,776   $17,361 
GAAP gross margin   58%   61%   60%   60%
Plus:                    
Stock-based compensation expense   21    36    85    98 
Amortization of intangible assets   673    758    1,698    2,364 
Non-GAAP gross profit   6,016    6,578    18,559    19,823 
Non-GAAP gross margin   66%   69%   66%   69%
                     
GAAP operating loss   (4,690)   (3,243)   (11,603)   (12,416)
Plus:                    
Stock-based compensation expense   724    419    1,876    1,002 
Amortization of intangible assets   788    885    2,071    2,736 
Expense (Capitalization) of technology   536    (1,118)   (1,067)   (2,510)
Settlement of litigation, net   -    -    -    - 
Non-GAAP operating loss   (2,643)   (3,057)   (8,723)   (11,188)
                     
GAAP net loss   (4,892)   (3,530)   (12,257)   (12,679)
Plus:                    
Stock-based compensation expense   724    419    1,876    1,002 
Amortization of intangible assets   788    885    2,071    2,736 
Adjustment to earn-out liabilities   -    -    -    - 
Amortization of deferred tax assets   (48)   (55)   (144)   (170)
Gain from an earn-out liability settlement   -    -    -    (256)
Settlement of litigation, net   -    -    -    - 
Expense (Capitalization) of technology   531    (1,169)   (1,126)   (2,627)
Non-GAAP net loss  $(2,896)  $(3,450)  $(9,580)  $(11,994)
                     
Numerator for non-GAAP EPS calculation  $(2,896)  $(3,450)  $(9,580)  $(11,994)
Non-GAAP net loss per share  $(0.05)  $(0.06)  $(0.16)  $(0.22)
                     
GAAP weighted-average shares used to compute net loss per share   60,580    54,554    60,103    54,389 

 

5

 

 

CYREN LTD.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(in thousands of U.S. dollars)

 

   September 30   December 31 
   2020   2019 
   Unaudited     
Assets        
Current Assets:        
Cash and cash equivalents   12,894   $11,551 
Trade receivables, net   2,348    2,187 
Deferred commissions   1,004    948 
Prepaid expenses and other receivables   1,284    819 
Total current assets   17,530    15,505 
           
Long-term deferred commissions   1,243    1,580 
Long-term lease deposits   863    767 
Operating lease right-of-use assets   11,191    8,695 
Severance pay fund   646    659 
Property and equipment, net   4,410    4,410 
Intangible assets, net   8,093    8,966 
Goodwill   20,818    20,246 
Total long-term assets   47,264    45,323 
Total assets  $64,794   $60,828 
           
Liabilities and Shareholders’ Equity          
Current Liabilities:          
Trade payables  $1,103   $1,184 
Employees and payroll accruals   3,676    3,427 
Accrued expenses and other liabilities   1,160    1,145 
Operating lease liabilities   1,889    1,946 
Deferred revenues   9,272    7,208 
Total current liabilities   17,100    14,910 
           
Deferred revenues   1,064    1,956 
Convertible notes   10,000    10,000 
Convertible debentures   9,344    - 
Long-term operating lease liabilities   9,678    7,174 
Deferred tax liability   646    796 
Accrued severance pay   762    811 
Other liabilities   653    470 
Total long-term liabilities   32,147    21,207 
           
Shareholders’ equity   15,547    24,711 
Total liabilities and shareholders’ equity  $64,974   $60,828 

 

6

 

 

CYREN LTD.

 

CONDENSED CONSOLIDATED CASH FLOW DATA

 

(in thousands of U.S. dollars)

 

   Three months ended   Nine months ended 
   September 30   September 30 
   2020   2019   2020   2019 
  Unaudited   Unaudited   Unaudited   Unaudited 
Cash flows from operating activities:                
                 
Loss  $(4,892)  $(3,530)   (12,257)  $(12,679)
                     
Adjustments to reconcile loss to net cash provided by (used in) operating activities:                    
Loss on disposal of property and equipment   (1)   -    12    1 
Depreciation   594    484    1,809    1,420 
Stock-based compensation   724    419    1,876    1,002 
Amortization of intangible assets   788    885    2,071    2,736 
Amortization of deferred commissions   378    (297)   1,181    (909)
Amortization of operating lease right-of-use assets   586    338    1,508    1,051 
Interest on convertible notes   153    142    436    424 
Interest and amortization of debt issuance costs on Convertible Debentures   188    -    400    - 
Other income related to the earn-out consideration   -    -    -    (257)
Deferred taxes, net   (53)   (55)   (171)   (182)
                     
Changes in assets and liabilities:                    
Trade receivables   36    (509)   (126)   196 
Prepaid expenses and other receivables   (73)   168    (456)   (607)
Deferred commissions   (236)   353    (900)   1,101 
Change in long-term lease deposits   (3)   2    (89)   25 
Trade payables   (175)   559    (289)   (264)
Employees and payroll accruals, accrued expenses and other liabilities   (43)   39    (90)   (185)
Deferred revenues   (955)   (357)   1,034    5,997 
Accrued severance pay, net   (37)   5    (36)   73 
Operating lease liabilities   (591)   (342)   (1,545)   (1,075)
Other long-term liabilities   21    (15)   184    (126)
Net cash (used in) operating activities   (3,590)   (1,711)   (5,448)   (2,258)
                     
Cash flows from investing activities:                    
                     
Proceeds from sale of property and equipment   2    1    6    1 
Capitalization of technology   489    (1,027)   (1,100)   (2,462)
Purchase of property and equipment   (105)   (309)   (1,543)   (1,259)
Net cash provided by (used in) investing activities   386    (1,335)   (2,637)   (3,720)
                     
Cash flows from financing activities:                    
                     
Proceeds from convertible debenture, net of debt issuance costs   -    -    9,442    - 
Payment of earn-out consideration   -    -    -    (2,680)
Proceeds from options exercised   -    231    -    743 
Net cash provided (used) by financing activities   -    231    9,442    (1,937)
Effect of exchange rate changes on cash   (1)   (76)   (14)   (124)
Increase (decrease) in cash, cash equivalents and restricted cash   (3,205)   (2,891)   1,343    (8,039)
Cash, cash equivalents and restricted cash at the beginning of the period   16,675    13,008    12,127    18,156 
Cash, cash equivalents and restricted cash at the end of the period  $13,470   $10,117   $13,470   $10,117 
                     
Reconciliation of cash, cash equivalents and restricted cash as shown in the consolidated statements of cash flow:                    
Cash and cash equivalents  $12,894   $9,546   $12,894   $9,546 
Restricted cash included in long-term restricted lease deposits   576    571    576    571 
                     
Total cash, cash equivalents and restricted cash  $13,470   $10,117   $13,470   $10,117 

 

7 

 


The following information was filed by Cyren Ltd. (CYRN) on Monday, November 16, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one quarter to another to evaluate Cyren Ltd.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Cyren Ltd..

Continue

Assess how Cyren Ltd.'s management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Cyren Ltd.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2020 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Rating

Learn More
Bullish Bearish Neutral
Filter Sentiment:
All
Positive
Negative
Filter Category:
All
Financial
Legal
Revenue
Other
Filter Subcategory:
All
Expense
Product
Earnings
Debt
Income
Cash Flow
Other
Inside Cyren Ltd.'s 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Parentheticals)
Condensed Consolidated Statements Of Cash Flows (Unaudited)
Condensed Consolidated Statements Of Changes In Shareholders' Equity (Unaudited)
Condensed Consolidated Statements Of Comprehensive Loss (Unaudited)
Condensed Consolidated Statements Of Operations (Unaudited)
Accounting Policies, By Policy (Policies)
Commitments And Contingencies
Commitments And Contingencies (Details)
Financial Expense, Net
Financial Expense, Net (Details) - Schedule Of Financial Expense, Net
Financial Expense, Net (Tables)
General
Leases
Leases (Details)
Leases (Details) - Schedule Of Future Minimum Lease Payments
Leases (Details) - Schedule Of Operating Right-Of-Use Assets And Operating Lease Liabilities
Leases (Details) - Schedule Of Weighted Average Remaining Lease Terms And Discount Rates For All Of Operating Leases
Leases (Tables)
Related Parties
Related Parties (Details) - Schedule Of Balances With Related Parties
Related Parties (Details) - Schedule Of Transactions With Related Parties
Related Parties (Tables)
Segment And Geographic Information
Segment And Geographic Information (Details)
Segment And Geographic Information (Details) - Schedule Of Net Amount Of Property And Equipment
Segment And Geographic Information (Details) - Schedule Of Revenue Generated By Customer Type
Segment And Geographic Information (Details) - Schedule Of Total Revenue By Geographic Area
Segment And Geographic Information (Tables)
Shareholders' Equity
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Schedule Of Employee And Director Options Outstanding
Shareholders' Equity (Details) - Schedule Of Employees And Directors' Stock Option Activity
Shareholders' Equity (Details) - Schedule Of Options To Non-Employees
Shareholders' Equity (Details) - Schedule Of Rsus Activity
Shareholders' Equity (Details) - Schedule Of Stock-Based Compensation Expense
Shareholders' Equity (Tables)
Significant Accounting Policies

Material Contracts, Statements, Certifications & more

Cyren Ltd. provided additional information to their SEC Filing as exhibits

Ticker: CYRN
CIK: 1084577
Form Type: 10-Q Quarterly Report
Accession Number: 0001213900-20-037418
Submitted to the SEC: Mon Nov 16 2020 4:56:57 PM EST
Accepted by the SEC: Mon Nov 16 2020
Period: Wednesday, September 30, 2020
Industry: Prepackaged Software

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/cyrn/0001213900-20-037418.htm