Absolute Software Announces Intent to Divest Absolute Manage and Absolute Service
Absolute empowers more than 12,000 customers worldwide to protect devices, data, applications, and users against theft or attack — both on and off the corporate network. With the industry’s only tamper-proof endpoint visibility and control solution, Absolute allows IT organizations to enforce asset management, security hygiene, and data compliance for today’s remote digital workforces. Absolute’s patented Persistence®technology is embedded in the firmware of Dell, HP, Lenovo, and 22 other leading manufacturers’ devices for vendor-agnostic coverage, tamper-proof resilience, and ease of deployment. See how it works atwww.absolute.comand follow us at@absolutecorp.
Vancouver, Canada: July 16, 2015– Absolute® Software Corporation (TSX: ABT) the industry standard for persistent endpoint security and data risk management solutions for computers, laptops, tablets and smartphones, today announced its intention to divest Absolute Manage® and Absolute Service, its enterprise mobility management and IT service management products.
“The Absolute management team and its Board of Directors are unified in our belief that this planned divestiture will strengthen Absolute,” said Geoff Haydon, Absolute’s chief executive officer. “The divestiture will enable us to focus on our core information security business, which constitutes more than 95 percent of our customers. It will also favorably position us to expand and strengthen our market leadership in this important segment.”
Plans to divest Absolute Manage and Absolute Service are consistent with the Company’s stated strategy to place a stronger emphasis on Absolute’s adaptive endpoint security solutions. With the ability to focus management and financial resources on this product line, Absolute will be in a position to accelerate its technology roadmap, extend its unique persistence platform, and deliver additional value to its customers.
Absolute Manage and Absolute Service represented approximately 11% of Absolute’s total Sales Contracts in the nine months ended March 31, 2015, and these product lines are estimated to be approximately break-even after direct expenses and the application of indirect expenses and overheads.
Absolute intends to operate Absolute Manage and Absolute Service as a separate business unit. Absolute remains committed to supporting these products and providing its customers with continued best-in-class support and service.
Absolute is also providing an update on its expected fiscal 2015 performance. For the fiscal year ended June 30, 2015 Absolute expects Sales Contracts of $101.1 - $101.5 million, revenue of $93.4 - $93.8 million and cash from operating activities of $22.9 - $23.3 million. Sales Contracts are expected to grow year-over-year in line with the Company’s outlook. Absolute’s fourth quarter results are expected to reflect a slight year-over-year decline in Sales Contracts as the Company continued to progress initiatives around refining its technology, geographic and vertical market focus, and restructuring its sales organization to maximize new and existing customer opportunities. Management remains confident this focused strategy will drive long-term growth in the information security market, and believes the Company has a unique opportunity to leverage its proven persistence platform to drive significant customer and shareholder value.
All dollar figures are unaudited and stated in U.S. dollars, unless otherwise indicated.