SurfControl Announces Record Q2 Revenues, Continued Positive Cash Flow and EBITDA Profitability Tuesday 5 February 2002 PDF Print Manchester (February 5, 2002) - SurfControl (London:SRF, Nasdaq Europe:SRFC), the number one Internet filtering company in the global security market, today announced record earnings for the second quarter and the six-months ending December 31, 2001. The company also reported continued positive cash flow from operations and EBITDA profitability for the quarter, and noted that it has achieved both these milestones ahead of market expectations. Filtering revenues for the quarter increased 58% to $13.3 million, versus $8.4 million for the second quarter of last year. Filtering revenues for the six-months ending December 31, 2001 increased 72% to $24.4 million, versus $14.2 million for the same period last year. EBITDA for the quarter was $0.8 million, versus a EBITDA loss of $3.2 million for Q2 of last year. "I am very pleased to report these two key milestones: significant operational cash generation and EBITDA profitability, both of which have been achieved ahead of target," said Steve Purdham, CEO of SurfControl. "Our results demonstrate that we are well on the way to achieving our long-term strategic goal of consistent, profitable growth. Based on this performance, we are confident of a successful outcome for the year." The company points to expanding markets, channel development and technology leadership as three key factors of its Q2 success. SurfControl leads the growing corporate Internet filtering market: The market continues to expand as companies seek rapid return on investment (ROI) through improved staff productivity as well as improved network performance and sound security. Jupiter Communications estimates that more than 12 billion email messages are sent every day in the United States. Electronic risks like email-borne viruses and confidential information leakage through email have also received increased public attention in recent months, driving demand. SurfControl's market leadership is based on its strategy of linking product development to customer needs. To gain rapid ROI, companies are seeking technologies that combine Web and email filtering, along with artificial intelligence tools to automate content recognition and categorization. SurfControl is uniquely positioned to meet this market demand with a total filtering solution that protects organizations from the full spectrum of electronic information risk, from potentially damaging Web and email content, to email-borne viruses, spam and hoaxes. As a result, the company's customer base continues to grow. Part of this business expansion includes organizations selecting SurfControl products to replace other filtering solutions. New U.S. customers in Q2 include the Internal Revenue Service, Veterans Administration, State of North Dakota, Federal Reserve Bank of Philadelphia, Sun Life Financial, Crate & Barrel, TRW, Montgomery County Public Schools, Ricoh, Brinks Inc., Toyota Motor Sales USA, Jersey City Public Schools and the Cherry Hill Township Board of Education. Q2 new customers from outside the U.S. include Yorkshire Building Society, Britannia Building Society, Conde Nast Publications Ltd., Harley-Davidson Europe Ltd., ITN, Thames Valley Police H.Q., Fairchild Dornier, Lenzing AG, Niederösterreichische Landesregierung, Volksbanken AG, Porsche Cars, Public Trustees of Queensland, Adelaide Bank, Sydney Airports Corporation, South Australian Tourism Commission, Workcover Authority Queensland and the City of Freemantle. Indirect sales channels increase to 35% of revenue over 26% in Q2 2001: SurfControl's strategic partners and resellers are playing an increasingly important role in revenue generation. This steady increase saw indirect sales channels grow to 35% of revenue in Q2 2002 compared to 26% in Q2 2001. Established relationships with companies such as IBM, Check Point and Microsoft are driving sales and are providing a solid foundation for future, indirect sales operations that will expand to make significant long-term revenue gains. During the quarter, SurfControl signed agreements with many new resellers and OEM partners throughout the world, including ASCII in Tokyo who has been appointed distributors of SuperScout VS in Japan and also Content Technologies, to whom SurfControl has licensed its URL category list, for integration into the most recent version of its Web filtering software. SurfControl leads the market with investments in artificial intelligence technology The growth of the Internet in recent years has been massive, and it shows no signs of slowing. To address this, SurfControl has invested in developing filtering technology based on artificial intelligence, including neural networks, that categorizes content automatically and complements the traditional list-based approach used in the SurfControl Content Database. SurfControl's SuperScout Web Filter and Email Filter offer superior database technology and add to it the neural networks and image recognition capabilities. SuperScout Web Filter features the Virtual Control Agent (VCA), an enabling neural network-based tool to categorize content for domains not included within SurfControl lists. SuperScout Email Filter features the Virtual Image Agent(tm) Option which allows administrators to recognize explicit adult image files in email. "Today, filtering is much more than simple URL database filtering. The market is demanding comprehensive filtering solutions for Web and email that include sophisticated content analysis methods, and we've invested in neural networks and email filtering technology to meet these evolving customer needs," said Purdham. "It is this technological innovation, coupled with a full understanding of the issues surrounding Internet filtering, that will help maintain our market position going forward." For further information: Tom Moriarty SurfControl plc +44 1260 296 200 firstname.lastname@example.org James Russell éclat Marketing +44 118 989 5600 email@example.com About SurfControl - The Internet Filtering Company SurfControl plc (London:SRF/NASDAQ Europe:SRFC), is the Number One Internet Filtering company in the global security market. The SurfControl family of products employs expert filtering, Pass-Through, and Pass-By technologies to create a productive Internet environment in the workplace and a child safe environment on the Internet at home and at school. This comprehensive line of Internet monitoring and policy management solutions includes SuperScout Web Filter- the market leader in Internet productivity in the corporation; SuperScout Email Filter - managing content security; CyberPatrol - the market leader in responsible Internet usage in the home and at school; and the SurfControl Content Filtering SDK - the proven filtering solution for ISPs, Search Engines, Internet Appliances and ASPs. SurfControl works with a variety of industry partners such as AT&T, Check Point Software (NASDAQ:CHKP), Cisco Systems (NASDAQ:CSCO), Hewlett Packard (NYSE:HWP), IBM (NYSE:IBM), Intel (NASDAQ: INTC), and Microsoft Corp.'s Web TV (NASDAQ: MSFT). SurfControl employs more than 380 people worldwide and has 8 offices: in the USA, in California and Massachusetts; in the UK, in Manchester and London; Rotterdam, Holland; Vienna, Austria; Frankfurt, Germany and Sydney, Australia. For further information and news on SurfControl, please visit http://www.surfcontrol.com This press release was distributed by ResponseSource Press Release Wire on behalf of eclat Marketing in the following categories: Consumer Technology, Personal Finance, Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.