LOS ANGELES, Sept. 16, 2010 (GLOBE NEWSWIRE) -- CyberDefender Corporation (Nasdaq:CYDE), a provider of Internet security software, utilities and Live PC Support services that work together to maximize online safety for consumers, today commented on the Company's growth strategy that has delivered solid year-to-date business expansion. Management also announced gross sales and GAAP revenue growth targets for the third quarter ending September 30, 2010.
During the first nine months of 2010, CyberDefender has executed on a series of strategic initiatives aimed at broadening its cloud-based PC security and optimization platform, bolstering its infrastructure, increasing revenue per customer and positioning the business for long-term growth and market share expansion. An onshore U.S. based call center, which doubles as a sales organization, coupled with recent improvements to its e-commerce, IVR and CRM platforms, have contributed to significantly improved operating efficiencies and sales growth while also improving customer retention rates. CyberDefender continues to solidify its presence in the market for remote tech-on-call services and expects to become a leader in consumer and small business-focused Internet security. CyberDefender believes its current operating platform can support a volume of business many times its current revenue run rate.
"Since our inception in 2003, CyberDefender has continued to grow along with this burgeoning growth sector," stated Gary Guseinov, CyberDefender Chief Executive Officer. "The entire industry is growing rapidly as consumers and small to medium businesses purchase more peripherals and use PCs for a multitude of daily uses. Meanwhile, we believe that CyberDefender is unlike any other Internet security company as we provide software and remote tech on call services that work together in a managed, secure, customer-friendly environment – the way security should be delivered.
"We have established a successful and highly scalable model that supports high sales growth, with ample room for market share expansion," Mr. Guseinov continued. "Recent Board and management additions have strengthened our resources, and our team's broad-based expertise in security software, marketing and call center operations is contributing to our growth. Our strong execution has delivered nine sequential quarters of revenue gains with a compounded annual growth rate of 194% since 2008. We expect to continue our expansion and we're excited about what the future holds for CyberDefender. In the near term, we expect to achieve outstanding double digit quarter-on-quarter growth for the current quarter ending September 30, 2010."
Proven and Highly Effective Go-to-Market Strategy
CyberDefender's marketing and advertising is focused primarily on Direct Response Television/Radio campaigns, and online advertising. The company's primary marketing campaigns are conducted under the brands: DoubleMySpeed.com, MyCleanPC.com and MaxMySpeed.com
CyberDefender's migration to an onshore call center has generated higher customer satisfaction, higher retention rates and higher average revenue per customer. The company is using this onshore call center as an important sales tool to drive both upselling and cross-selling opportunities.
Third Quarter 2010 Growth Targets
GAAP revenues for the third quarter of 2010 are expected to be $12 million to $13.5 million, an increase of 24% to 39% over the $9.7 million in the second quarter of 2010 and 173% to 207% over $4.4 million in the third quarter of 2009.
For the three months ending September 30, 2010, the company expects gross sales of $16 million to $17.5 million. This represents an increase of 29% to 41% over gross sales of $12.4 million in the second quarter of 2010, and 139% to 161% over $6.7 million in the third quarter of 2009. The company defines gross sales (a non-GAAP measure) as GAAP revenues before refunds and charge backs and before deferring revenue for GAAP purposes.
The targeted year-over-year and sequential quarter growth in both gross sales and GAAP revenue is being driven by the success of offline marketing campaigns, increased renewals and continued growth and market penetration related to the company's tech-on-call service offerings.
CyberDefender intends to provide guidance for its fourth quarter of 2010 ending December 31, 2010 during its third quarter 2010 earnings conference call in November.
Non-GAAP Financial Measures
Gross sales are a non-GAAP measure that we use in assessing our operating performance. We define gross sales as total sales before refunds and chargebacks and before deferring revenue for GAAP purposes. We reference this non-GAAP financial measure frequently in our decision-making because it gives a better indication of our operating performance and the profitability of our marketing initiatives. We include this non-GAAP financial measure in our announcements in order to provide transparency to our investors and enable investors to better understand our operating performance. However, gross sales alone should not be used to assess our financial performance or to formulate investment decisions.
CyberDefender Corporation (Nasdaq:CYDE) is a provider of Internet security software, utilities and Live PC Support services that work together to ensure maximum safety for consumers in a digital world. The company develops and markets antispyware/antivirus software and remote, live tech support services. In addition, CyberDefender offers identity protection and computer optimization services. With millions of active users on its cloud based Collaborative Internet Security Network, CyberDefender leverages the power of community to protect its customers from the rapidly growing number of new online threats every year. CyberDefender products are fully compatible with Microsoft's XP, Vista, and 7 Operating systems. All products are available at . IR Site: .
The CyberDefender Corporation logo is available at
Forward Looking Statements
Statements in this press release that are not statements of historical or current fact, including any statement regarding future growth and profitability, constitute "forward-looking statements" under Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause CyberDefender's actual results to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Factors that could cause CyberDefender's results to be materially different from the forward-looking statements include whether CyberDefender will be able to find financing when and as it needs it and whether CyberDefender's revenues will eventually exceed its expenses. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in CyberDefender's reports and registration statements filed with the Securities and Exchange Commission, which are available for review at .
CONTACT: The Bohle Company for CyberDefender Public Relations: Luis Levy (310) 785-0515 Ext. 204 PR@CyberDefender.com The Piacente Group Investor Relations: Kristen McNally Lee Roth 212-481-2050 IR@CyberDefender.com CyberDefender@tpg-ir.com