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Citadel's Financial Update
SecurityProNews
Staff Writer
2004-12-17
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Citadel Security Software has provided a financial update for its year-ended December 31, 2004.
Based upon preliminary estimates, Citadel now expects its revenue for the full year 2004 to be between $15.2 million and $16.0 million, compared to previous guidance of full-year revenue of $18.5 to $21 million. As a result, the Company will not meet its previously released net income guidance for the second half of 2004 which was for net income of $1.0 million to $2.0 million. The Company expects to end 2004 with approximately $4.9 million of deferred revenues, most of which will be earned in 2005.
"While we are disappointed that it appears unlikely that we will be able to meet our targets, based on discussions with potential customers, we believe that we are positioned well going into 2005," said Steven B. Solomon, Citadel's chairman, CEO and president. "Our revenue today comes primarily from large transactions, which, if delayed, can negatively impact our quarter-to-quarter results. In this case, several large deals that we expected to occur in 2004 with both government and commercial sector customers now appear likely to be delayed until the first half of 2005. We are pleased that our results thus far in 2004 represent a substantial improvement over 2003, and we look forward to continued strong growth in 2005. As we are finalizing our business plans for 2005, we believe that our pipeline is strong and we expect strong growth in both revenue and earnings in the upcoming year."
Both government and commercial segments are positioned to deliver profitable growth in 2005 and beyond. Mr. Solomon stated, "This past year, we recorded some of our largest sales ever, rolled out several exciting new products, completed a financing with a leading investment firm, listed our stock on the Nasdaq SmallCap Market, hired many top-quality employees, and moved into our state-of-the-art facility. We believe that we are positioned well for the future."
The Company anticipates that it will issue 2005 guidance when it releases its preliminary 2004 year-end results in early 2005.
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