CyberGuard Announces Q4 Growth

FT. LAUDERDALE, Fla. -- CyberGuard Corporation (Nasdaq:CGFW - News), the technology leader in network security, today reported revenues of $47.812 million for the fiscal year ended June 30, 2004, a 45 percent increase over revenues for the previous fiscal year of $32.98 million. The company reported revenues of $14.520 million for the quarter ended June 30, 2004, an increase of $5.516 million or 61 percent over revenues of $9.004 million for the quarter ended June 30, 2003.

On a GAAP basis, net income for fiscal year 2004 was $1.77 million compared to $4.071 million for fiscal year 2003. On a pro forma basis (net of acquisition and other non-recurring charges as outlined in the attached financial statement that reconciles GAAP and pro forma numbers), net income for fiscal year 2004 was $7.906 million compared to $8.274 million for the fiscal year ended June 30, 2003.

CyberGuard recorded a net profit for the second consecutive fiscal year. On a GAAP basis, the net income to shareholders for fiscal year 2004 was $0.06 per diluted share compared to $0.16 per diluted share for fiscal year 2003. On a non-GAAP or pro forma basis, the net income to shareholders for fiscal year 2004 was $0.28 per diluted share compared to $0.33 for the prior fiscal year. For the quarter ended June 30, 2004, the net income to shareholders on a GAAP basis was $0.01 compared to a net loss of ($0.17) per diluted share to shareholders for the fourth quarter of fiscal year 2003. On a pro forma basis, net income to shareholders was $0.04 per diluted share for the quarter ended June 30, 2004, compared to $0.02 per diluted share for the fourth quarter of fiscal year 2003.

"Investing in our sales infrastructure has produced results," stated Pat Clawson, chairman and chief executive officer of CyberGuard Corporation. "Our revenues grew 45 percent this fiscal year over last - a substantial increase for the second consecutive year. Our growth rate for the fourth quarter was even greater - 61 percent. That rate of growth, which is well beyond much of the industry, enables us to invest in our development infrastructure so we can build a world-class security company and deliver value to our customers and our shareholders."

CyberGuard Corp.