FORM 6-K
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Commission File Number: 333-10486
For the Month of June 2002
Trend Micro Incorporated
(Translation of registrant's name into English)
Odakyu Southern Tower, 10th Floor, 2-1, Yoyogi 2-chome,
Sibuya-ku, Tokyo 151-8583, Japan
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
--- ---
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
--- ---
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-
--------------
Information furnished on this form:
Table of Contents
1. Press release of June 26, 2002 announcing U.S. GAAP financial information
for the fiscal year ended December 31, 2001.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Trend Micro Incorporated
Date: June 26, 2002 By: /s/ Mahendra Negi
--------------------
Mahendra Negi
Representative Director;
Chief Financial Officer
and Executive Vice
President
Press Release Attachment 1
TREND MICRO ANNOUNCED ITS U.S. GAAP FINANCIAL INFORMATION FOR THE FISCAL YEAR
ENDED DECEMBER 31, 2001
Tokyo, Japan - June 26, 2002 - Trend Micro Incorporated (Nasdaq: TMIC, Tokyo
Stock Exchange: 4704), a worldwide leader in network antivirus and Internet
content security solutions, today announced its U.S. GAAP financial information
for the fiscal year ended December 31, 2001.
1. Financial Highlights for FY 2001(January 1, 2001 through December 31, 2001)
* The amounts shown in U.S. dollars are for convenience only, exchanged by rate:
1US$=132JPY
(1) Consolidated Results of Operations
---------------------------------------------------------------------------------------------------------------------------------
Income before income
Compared Compared taxes, minority interest Compared
to the to the and equity in to the
Net sales previous Operating income previous loss of affiliated previous
year year companies year
---------------------------------------------------------------------------------------------------------------------------------
Millions of Millions of % Millions of Millions of % Millions of Millions of %
yen US$ yen US$ yen US$
FY2001 31,326 237.32 56.1 7,516 56.94 36.0 7,757 58.76 12.5
FY2000 20,070 152.05 47.2 5,527 41.87 40.6 6,892 52.21 72.3
---------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
Compared
to the Net income Net income Return on Ordinary
Net Income previous per share per share shareholders' income/total Ordinary
year (basic) (diluted) equity assets ratio income ratio
-------------------------------------------------------------------------------------------------------------------------------
Millions of Millions of % Yen US$ Yen US$ % % %
yen US$
FY2001 4,386 33.23 19.4 33.33 0.25 33.02 0.25 15.9 14.2 24.8
FY2000 3,675 27.84 71.1 28.18 0.21 27.53 0.21 17.6 18.8 34.3
-------------------------------------------------------------------------------------------------------------------------------
(Note) 1) Loss on investment in affiliated companies: - 130 millions of yen (FY2001)
- 88 millions of yen (FY2000)
2) Number of weighted average shares outstanding: 131,594,913 shares (FY2001)
130,388,962 shares (FY2000)
3) The company made no accounting changes in accounting principle,
which had material effects on the financial position and
results of operations, during the period.
4) The percentage of sales, operating income, net income before tax
and net income are in comparison to the previous year.
(2) Consolidated Financial Position
-------------------------------------------------------------------------------------------------------------------------------
Shareholders' Shareholders' equity
Total assets Shareholders' equity equity ratio per share
-------------------------------------------------------------------------------------------------------------------------------
Millions of Millions of Millions of Millions of % Yen Millions of
yen US$ yen US$ US$
FY 2001 64,729 490.37 30,766 233.08 47.5 233.00 1.77
FY 2000 44,574 337.69 24,344 184.43 54.6 185.66 1.41
-------------------------------------------------------------------------------------------------------------------------------
(Note) Number of shares issued at the end of fiscal year: 132,043,182 shares (FY2001)
131,120,842 shares (FY2000)
(3) Consolidated Cash Flows
-------------------------------------------------------------------------------------------------------------------------------
Cash flows from Cash flows from investing Cash flows from Ending balance of cash
operating activities activities financing activities and cash equivalent
-------------------------------------------------------------------------------------------------------------------------------
Millions of Millions of Millions of Millions of Millions of Millions of Millions of Millions of
yen US$ yen US$ yen US$ yen US$
FY 2001 12,240 92.73 -2,918 -22.11 5,784 43.82 40,783 308.96
FY 2000 6,086 46.10 -4,141 -31.37 6,496 49.21 24,436 185.12
-------------------------------------------------------------------------------------------------------------------------------
(4) Basis of consolidation and application of equity method:
The number of consolidated subsidiaries.................................. 18
The number of unconsolidated subsidiaries................................ -
The number of affiliated companies....................................... 4
(5) Change in the basis of consolidation and application of equity method:
The number of additional consolidated subsidiaries....................... 2
The number of excluded consolidated subsidiaries......................... -
The number of additional consolidated affiliated companies............... 1
The number of excluded consolidated affiliated companies................. -
Previously, on February 6, 2002, Trend Micro announced its Japanese GAAP
financial information for the same period. Significant differences between
Japanese GAAP and U.S. GAAP applicable to Trend Micro are summarized below.
Goodwill write-off (2,000 million yen), which was recorded as other expenses
under Japanese GAAP, was recorded as operating expenses under U.S. GAAP for the
fiscal year ended December 31, 2001.
From the fiscal year ended December 31, 2001, Trend Micro and Trend Micro
Incorporated (Taiwan) have adopted the deferred revenue accounting for their
Post-contract Customer Support service for its Japanese GAAP financial reporting
purposes. The cumulative effect of adopting the deferred revenue accounting of
3,009 million yen was recorded as extraordinary loss under Japanese GAAP for the
fiscal year ended December 31, 2001. For its U.S. GAAP reporting purposes, Trend
Micro and Trend Micro Incorporated (Taiwan) have historically adopted the
deferred revenue accounting for their Post-contract Customer Support service on
a consistent basis.
TREND MICRO INCORPORATED
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Thousands of
Thousands of yen U.S. dollars
--------------------------------- ------------
December 31 December 31,
2000 2001 2001
--------------- -------------- ------------
ASSETS
Current assets:
Cash and cash equivalents ............................................... (Yen)24,435,503 (Yen)40,782,650 $308,959
Time deposits ........................................................... - 70,768 536
Marketable securities ................................................... 1,893,475 1,847,113 13,993
Notes and accounts receivable, trade - less
allowance for doubtful accounts and sales returns of (Yen) 646,566
and (Yen) 850,376 ($6,442). ............................................ 8,133,700 11,430,383 86,594
Inventories ............................................................. 318,188 238,881 1,810
Deferred income taxes ................................................... 2,687,913 3,218,595 24,383
Prepaid expenses and other current assets ............................... 607,142 786,997 5,962
--------------- ---------------
Total current assets ............................................ 38,075,921 58,375,387 442,237
--------------- --------------- --------
Investments and other assets:
Securities investments .................................................. 1,335,849 1,304,489 9,882
Investment in and advances to affiliate company ......................... 182,473 84,929 643
Goodwill and intangibles ................................................ 2,740,827 1,110,462 8,413
Deferred income taxes ................................................... 446,004 972,201 7,366
Other ................................................................... 570,742 868,377 6,579
--------------- --------------- --------
5,275,895 4,340,458 32,883
--------------- --------------- --------
Property and equipment:
Office furniture and equipment .......................................... 1,536,444 2,317,359 17,556
Other properties ........................................................ 443,102 1,003,901 7,605
--------------- --------------- --------
1,979,546 3,321,260 25,161
Less: Accumulated depreciation ......................................... (756,898) (1,308,386) (9,912)
--------------- --------------- --------
1,222,648 2,012,874 15,249
--------------- --------------- --------
(Yen)44,574,464 (Yen)64,728,719 $490,369
=============== =============== ========
TREND MICRO INCORPORATED
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Thousands of
Thousands of yen U.S. dollars
--------------------------------- ------------
December 31 December 31,
2000 2001 2001
--------------- -------------- ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt ........................................ (Yen) 57,200 (Yen) 3,000,000 $ 22,727
Notes payable, trade ..................................................... 132,499 175,510 1,330
Accounts payable, trade .................................................. 796,782 1,206,486 9,140
Accounts payable, other .................................................. 517,247 1,806,527 13,686
Withholding income taxes ................................................. 120,994 264,608 2,005
Accrued expenses ......................................................... 615,850 1,529,358 11,586
Accrued income and other taxes ........................................... 2,014,589 3,359,572 25,451
Deferred revenue ......................................................... 5,043,425 9,342,597 70,777
Other .................................................................... 415,372 304,525 2,307
--------------- --------------- --------
Total current liabilities ........................................... 9,713,958 20,989,183 159,009
--------------- --------------- --------
Long-term liabilities:
Long term debt ........................................................... 9,799,900 11,500,000 87,121
Deferred revenue ......................................................... 548,225 916,873 6,946
Accrued pension and severance costs ...................................... 168,032 277,488 2,102
Other .................................................................... - 279,149 2,115
--------------- --------------- --------
10,516,157 12,973,510 98,284
--------------- --------------- --------
Shareholders' equity:
Common stock
Authorized
- 2000 250,000,000 shares ((Yen)50 par value)
- 2001 250,000,000 shares
Issued and outstanding
- 2000 131,120,842 shares .............................................. 6,183,266
- 2001 132,052,284 shares 6,833,678 51,770
Additional paid-in capital ............................................... 11,631,591 12,144,908 92,007
Legal reserve ............................................................ 149,991 149,991 1,136
Retained earnings ........................................................ 6,745,769 11,127,585 84,300
Accumulated other comprehensive income -
Net unrealized gain (loss) on debt and equity securities ............... (168,277) (310,480) (2,352)
Cumulative translation adjustments ..................................... (169,616) 848,873 6,431
--------------- --------------- --------
(337,893) 538,393 4,079
--------------- --------------- --------
Treasury stock, at cost (2000 - 5,262 shares; 2001
-9,102 shares) ......................................................... (28,375) (28,529) (216)
--------------- --------------- --------
24,344,349 30,766,026 233,076
--------------- --------------- --------
Commitments and contingent liabilities ..................................... - - -
Total liabilities and shareholders' equity .......................... (Yen)44,574,464 (Yen)64,728,719 $490,369
=============== =============== ========
TREND MICRO INCORPORATED
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Thousands of
Thousands of yen U.S. dollars
------------------------------------------------------ ------------------
For the year ended For the year ended
December 31 December 31,
1999 2000 2001 2001
--------------- ------------------ --------------- ------------------
Net sales ............................................. (Yen)13,633,170 (Yen)20,070,366 (Yen)31,326,321 $237,321
Cost of sales ......................................... 481,574 1,474,689 1,898,971 14,387
-------------- --------------- --------------- --------
Gross profit ...................................... 13,151,596 18,595,677 29,427,350 222,934
-------------- --------------- --------------- --------
Operating expenses:
Selling ........................................... 3,453,296 5,445,167 7,177,519 54,375
Research and development .......................... 994,340 2,043,480 2,755,200 20,873
General and administrative ........................ 4,772,038 5,303,661 9,725,458 73,678
Goodwill amortization ............................. - 276,286 - -
Goodwill write-off ................................ - - 2,253,559 17,072
--------------- --------------- --------------- --------
9,219,674 13,068,594 21,911,736 165,998
--------------- --------------- --------------- --------
Operating income .................................. 3,931,922 5,527,083 7,515,614 56,936
-------------- --------------- --------------- --------
Other income (expenses):
Interest income ................................... 148,487 241,133 393,254 2,979
Interest expense .................................. (66,526) (220,960) (296,625) (2,247)
Gain on sales of marketable securities ............ 280,532 119,650 19,975 151
Foreign exchange gain (loss), net ................. (174,921) 283,305 585,671 4,437
Other income (expense), net ....................... (120,298) 941,500 (461,312) (3,494)
--------------- --------------- --------------- --------
67,274 1,364,628 240,963 1,826
--------------- --------------- --------------- --------
Income before income taxes, minority interest and
equity in loss of affiliated companies .............. 3,999,196 6,891,711 7,756,577 58,762
-------------- --------------- --------------- --------
Income taxes:
Current ........................................... 2,538,455 4,701,426 4,214,459 31,928
Deferred .......................................... (688,988) (1,578,889) (973,338) (7,374)
1,849,467 3,122,537 3,241,121 24,554
-------------- --------------- --------------- --------
Income before minority interest and equity in
losses of affiliated companies ...................... 2,149,729 3,769,174 4,515,456 34,208
--------------- --------------- --------------- --------
Minority interest in income of a consolidated
subsidiary .......................................... - 6,845 - -
--------------- --------------- --------------- --------
Income from consolidated companies .................... 2,149,729 3,762,329 4,515,456 34,208
Equity in losses of affiliated companies .............. 2,356 87,672 129,544 981
--------------- --------------- --------------- --------
Net income ............................................ (Yen) 2,147,373 (Yen) 3,674,657 (Yen) 4,385,912 $ 33,227
=============== =============== =============== ========
Yen Yen Yen U.S. dollars
--------------- --------------- --------------- ------------
Per share data:
Net income - basic. ............................... (Yen) 16.90 (Yen) 28.18 (Yen) 33.33 $ 0.25
- diluted. ............................. 16.42 27.53 33.02 0.25
Cash dividends .................................... 1.67 - - -
TREND MICRO INCORPORATED
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Thousands of
Thousands of yen U.S. dollars
------------------------------------------------------ ------------------
For the year ended For the year ended
December 31 December 31,
1999 2000 2001 2001
--------------- ------------------ --------------- ------------------
Cash flows from operating activities:
Net income ........................................... (Yen) 2,147,373 (Yen) 3,674,657 (Yen) 4,385,912 $ 33,227
Adjustments to reconcile net income to net cash
provided by operating activities -
Amortization of deferred compensation related to
stock warrants .................................... 379,803 101,528 - -
Depreciation and amortization ...................... 428,238 1,014,281 3,604,342 27,306
Pension and severance costs, less payments ......... 58,579 40,361 103,576 785
Deferred income taxes .............................. (688,988) (1,578,889) (973,338) (7,374)
Gain on sales of marketable securities ............. (280,532) (119,650) (19,975) (151)
Equity in losses of affiliated companies ........... 2,356 87,672 129,544 981
Changes in assets and liabilities:
Increase in deferred revenue ...................... 1,123,053 2,975,760 4,141,118 31,372
Increase in accounts receivable,
net of allowances ................................ (1,945,194) (1,849,641) (2,660,035) (20,152)
(Increase) decrease in inventories ................ (541) (234,841) 87,290 661
Increase in notes and
accounts payable trade ........................... 377,869 51,234 360,097 2,728
Increase in accrued income and other taxes ........ 273,696 1,141,049 1,336,964 10,129
(Increase) decrease in other current assets ....... (370,227) 425,223 (132,105) (1,001)
Increase (decrease) in accounts payable, other .... (42,540) (133,267) 832,287 6,305
Increase in other current liabilities ............. - 62,997 1,192,476 9,033
Decrease (increase) in other assets ............... 23,729 268,804 (526,330) (3,987)
Other ............................................. 1,192 158,555 378,408 2,867
-------------- --------------- --------------- ----------
Net cash provided by
operating activities ........................... 1,487,866 6,085,833 12,240,231 92,729
-------------- --------------- --------------- ----------
Cash flows from investing activities:
Payments for purchases of fixed assets ............... (620,218) (876,964) (1,760,235) (13,335)
Payments for acquisitions of software ................ (185,455) (488,577) (969,360) (7,344)
Proceeds from sales of marketable securities ......... 2,388,480 239,486 2,811,975 1,303
Proceeds from maturities of marketable securities .... 1,101,846 100,000 - -
Payments for purchases of marketable securities and
security investments ................................ (5,264,042) (407,012) (2,897,926) (21,954)
Acquisition, net of cash acquired .................... - (2,508,248) - -
Investments in affiliated companies .................. (72,500) (200,000) (32,000) (242)
Payments for time deposit ............................ - - (70,768) (536)
Other .................................................. 92 - - -
-------------- --------------- --------------- ----------
- - - -
Net cash used in investing activities ........... (Yen)(2,651,797) (Yen)(4,141,315) (Yen)(2,918,314) ($)(22,108)
============== ============== ============== =========
TREND MICRO INCORPORATED
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Thousands of
Thousands of yen U.S. dollars
------------------------------------------------------ ------------------
For the year ended For the year ended
December 31 December 31,
1999 2000 2001 2001
--------------- ------------------ --------------- ------------------
Cash flows from financing activities:
Issuance of common stock pursuant to
exercise of stock warrants ...................... 671,292 1,527,019 955,414 7,238
Tax benefit from exercise of non-qualified
stock warrants .................................. 1,048,435 1,702,289 211,985 1,606
Proceeds from issuance of bonds .................. 6,000,000 5,000,000 12,500,000 94,697
Purchase of treasury bonds ...................... - - (6,812,000) (51,606)
Redemption of bonds ................................ - (1,300,000) (900,000) (6,818)
Decrease in short-term borrowings ................ - (226,000) - -
Decrease in long-term borrowings ................. - (127,685) (157,100) (1,190)
Purchase of/proceeds from sales of treasury
stock, net ...................................... (70,600) (78,617) (13,556) (103)
Dividends paid ................................... (208,337) - - -
Other ............................................ 141,415 (1,426) (943) (7)
-------------- --------------- --------------- --------
Net cash provided by financing activities .......... 7,582,205 6,495,580 5,783,800 43,817
-------------- --------------- --------------- --------
Effect of exchange rate changes on cash and cash
equivalents ....................................... (165,870) 346,524 1,241,430 9,404
-------------- --------------- --------------- --------
Net increase in cash and cash equivalents .......... 6,252,404 8,786,622 16,347,147 123,842
Cash and cash equivalents at beginning of year ..... 9,396,477 15,648,881 24,435,503 185,117
-------------- --------------- --------------- --------
Cash and cash equivalents at end of year ........... (Yen)15,648,881 (Yen)24,435,503 (Yen)40,782,650 $308,959
============== =============== =============== ========
Notes:
(1) Balance sheet and income statement of fiscal year 2000 and the related
numbers are retroactively restated by the effect of stock split on March
31, 2001(1:2 stock split).
(2) US dollar amounts in the financial statements are calculated by the
approximate exchange rate as of December 28, 2001 (JPY132.00=U.S.$1) and
are for reference only.
ABOUT TREND MICRO, INC.
Trend Micro, Inc. is a leader in network antivirus and Internet content security
software and services. The Tokyo-based corporation has its North American
headquarters in Cupertino, CA and business units worldwide. Trend Micro products
are sold directly, and are also available through corporate resellers and
value-added resellers. For additional information and evaluation copies of all
Trend Micro products, visit www.trendmicro.com or call (800) 228-5651 in North
America.
FOR ADDITIONAL INFORMATION:
Mr. Mahendra Negi
Chief Financial Officer/IR Officer
phone: +81-3-5334-4899
fax: +81-3-5334-4874
ir@trendmicro.co.jp