SafeNet posts record earnings and revenue

Fourth quarter comes in at 36 cents a share

January 30, 2001|By Stacey Hirsh | Stacey Hirsh,SUN STAFF

SafeNet Inc., which provides security to companies that do business over the Internet, said yesterday that its fourth-quarter earnings and revenue broke company records.

The Baltimore County company reported net income of $2.7 million, or 36 cents per diluted share, for the quarter that ended Dec. 31, compared with a net loss of $643,000, or 11 cents per diluted share, for the corresponding quarter of the previous fiscal year.

SafeNet's revenue for the quarter was nearly double that of the 1999 quarter, rising from $4.5 million to $8.9 million.

Net income for the year was $5.8 million, or 80 cents per diluted share, compared with a net loss of $3.1 million, or 56 cents per diluted share, posted for 1999. The company's annual revenue rose from to $18.9 million in 1999 to $28.8 million last year.

SafeNet, which changed its name this year from Information Resource Engineering Inc., makes Virtual Private Network (VPN) technology for secure business communications.

In a statement yesterday, the company's chairman and chief executive officer, Anthony Caputo, said SafeNet's revenue from VPN technology increased 187 percent last year. Revenue from VPN technology rose from $9.2 million in 1999 to $26.4 million last year.

"SafeNet's continued growth and profitability demonstrates our success in establishing SafeNet as a leader in the VPN space," he said.

The results were released after the close of market yesterday. Shares of SafeNet closed at $43.38, down 50 cents.

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