SafeNet Announces $150 Million Dollar Contract from Department of Defense
Shipments to start early October; Company Reaffirms Full Year 2005 Guidance
BALTIMORE, Maryland September 29, 2005 SafeNet, Inc. (NASDAQ: SFNT), setting the standard for information security, announced today that it has been awarded a $150 Million Indefinite Delivery Indefinite Quantity (IDIQ) contract from the Department of Defense (DoD) for its new KIV-7M Link Encryptor, the largest contract in SafeNet's history. The Company also has received a delivery order in excess of $18 million that will begin to ship in early October.
"This contract far exceeds the Company's preliminary expectations of a $50 Million dollar contract," said Chris Fedde, Senior Vice President and General Manager for SafeNet's Enterprise Security Division. "In fact, the initial IDIQ award already represents approximately half of our minimal market projections for this product."
Due to the late timing of the contract award, the Company anticipates that revenue for the third quarter will be in the range of $63 million to $65 million. Given the initial order of $18 million which is now in backlog, the Company reaffirms its full year 2005 guidance.
SafeNet expects to report its full third quarter financial results on October 27, 2005.
Conference Call
The Company will be hosting a conference call today at 5:00 pm EDT, to discuss the KIV-7M contract. To join SafeNet in the conference call, dial 1-866-314-4865 and use passcode 70599045 within the United States. If you are calling from outside the U.S., please dial 1-617-213-8050 and use passcode 70599045. The conference call will also be available via live webcast on SafeNet's Investor Relations Web site at www.safenetinvestor.com . A replay of the conference call will be immediately available via webcast on SafeNet's Investor Relations site.
About SafeNet, Inc.
SafeNet is a global leader in information security. Founded more than 20 years ago, the company provides complete security utilizing its encryption technologies to protect communications, intellectual property and digital identities, and offers a full spectrum of products including hardware, software, and chips. ARM, Bank of America, Cisco Systems, the Departments of Defense and Homeland Security, Adobe, Samsung, Texas Instruments, the U.S. Internal Revenue Service and scores of other customers entrust their security needs to SafeNet. For more information, visit www.safenet-inc.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
The statements contained in this release, which are not historical facts, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are subject to uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. Important factors that could cause actual results to differ materially are included but are not limited to those listed in SafeNet's periodic reports and registration statements filed with the Securities and Exchange Commission. The Company assumes no obligation to update information concerning its expectations.
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