TMCnet News
Safe-T Reports Full Year 2018 Financial ResultsHERZLIYA, Israel, March 26, 2019 /PRNewswire/ --– Safe-T Group Ltd. (NASDAQ: SFET) (TASE: SFET), a provider of software-defined access solutions for the hybrid cloud, today announced financial results for the year ended December 31, 2018. Safe-T reported continuing progress and achievements in 2018. During the year ended December 31, 2018, Company revenues totaled $1,466,000, an increase of 34% compared with $1,096,000 in the year ended December 31, 2017. Non-IFRS customer net bookings totaled $1,830,000 ($423,000 of which are still contingent bookings as at the date of this announcement), an increase of approximately 11% compared to $1,651,000 net bookings last year (including no contingent bookings). [1] Non-IFRS order backlog of customers who have not yet been charged totaled as of December 31, 2018, to $982,000, compared with an order backlog of $565,000 as of December 31, 2017. Backlog amounts include contingent bookings. The Company reported revenues of $463,000 in the fourth quarter of 2018, representing a 23% increase compared with $377,000 in the corresponding quarter last year. The Company ended the year with a cash balance of $3,717,000. Safe-T announced on January 29, 2019 the signing of a non-binding letter (LOI) for the acquisition of an Israeli company in the proxy network solution industry. Unaudited results for the full year of 2018, provided to Safe-T by the target company, included revenues of approximately $2,200,000. The closing of the acquisition is still subject, among other conditions, to the signing of definitive documentation and obtaining shareholders' approval. "In 2018, we focused on organic and inorganic growth of the company through the launch of new products, integrations with new partners, and the development of new technologies," said Shachar Daniel, Chief Executive Officer of Safe-T Group Ltd. "As the Company continues to leverage its extensive knowledge and experience, we look forward to expanding our footprint in 2019 by driving sustainable product innovation and building a foundation to scale the business over the long-term." Additional Recent Developments:
Financial Results for the Year Ended December 31, 2018
The following table presents the reconciled effect of the non-cash expenses/income on the Company's net loss for the years ended December 31, 2018 and December 31, 2017, respectively:
Fourth Quarter 2018 Financial Results
The following table presents the reconciled effect of the non-cash expenses/income on the Company's net loss for the fourth quarters of 2018 and 2017, respectively:
Balance Sheet Highlights
Use of Non-IFRS Financial Results In addition to disclosing financial results calculated in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board, the Company's earnings release contains non-IFRS financial measures of net loss for the period that excludes the effect of share-based compensation expenses, the revaluation of other investments and revaluation of derivative warrant and anti-dilution liability. The earnings release also contains non-IFRS financial measures for bookings and backlog orders. Bookings are a non-IFRS financial metric that we define as binding and non-revocable customers purchase orders over a defined period. We consider bookings to be a useful metric for management and investors because bookings drive future revenue, which is an important indicator of the health and viability of our business. Net bookings are non-IFRS financial measures that we use internally to analyze bookings fulfilled at the end of each reporting period. Backlog orders is a non-IFRS financial metric that we define as an aggregate amount of net bookings that weren't invoiced as of the day of measurement. This measure is different from the unfilled performance obligations reflected in the consolidated financial statements under "Contract Liabilities" item in the balance sheets, which are calculated on net bookings which were already invoiced. The Company's management believes the non-IFRS financial information provided in this release is useful to investors' understanding and assessment of the company's ongoing operations. Management also uses both IFRS and non-IFRS information in evaluating and operating business internally, and as such deemed it important to provide all this information to investors. The non-IFRS financial measures disclosed by the Company should not be considered in isolation, or as a substitute for, or superior to, financial measures calculated in accordance with IFRS, and the financial results calculated in accordance with IFRS and reconciliations to those financial statements should be carefully evaluated. Investors are encouraged to review the reconciliation of these non-IFRS information to their most directly comparable IFRS financial measures provided in the financial statement tables herein. About Safe-T Group Ltd. Safe-T Group Ltd. (Nasdaq: SFET) (TASE: SFET), is a provider of software-defined access solutions which mitigate attacks on enterprises' business-critical services and sensitive data. Safe-T solves the data access challenge by masking data at the perimeter, keeping information assets safe and limiting access only to authorized and intended entities in hybrid cloud environments. Safe-T enhances operational productivity, efficiency, security, and compliance by protecting organizations from data exfiltration, leakage, malware, ransomware, and fraud. With Safe-T's patented, multi-layer software-defined access, financial services, healthcare, utility companies and governments can secure their data, services, and networks from internal and external data threats. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. For example, Safe-T is using forward-looking statements in this press release when it discusses expectations regarding the increase of future revenue, that it expects to see increased interest and adoptions by government entities and other high-caliber organizations, and that it intends to acquire a in the business proxy network solution industry and such company's 2018 revenues. Because such statements deal with future events and are based on Safe-T's current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Safe-T could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading "Risk Factors" in Safe-T's annual report on Form 20-F filed with the Securities and Exchange Commission ("SEC") on March 26, 2019, and in any subsequent filings with the SEC. Except as otherwise required by law, Safe-T undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Safe-T is not responsible for the contents of third-party websites.
[1] According to the Company's revenue recognition policy, the period from the receipt of an order to the date of partial recognition can be one to four quarters. In addition, the maintenance services provided for most customers are recognized on a proportionate basis over the engagement period of up to five years. CONTACT INVESTOR RELATIONS: View original content:http://www.prnewswire.com/news-releases/safe-t-reports-full-year-2018-financial-results-300818335.html SOURCE Safe-T |