Story image

AVG publishes 2Q16 results ahead of merger with Avast

15 Aug 2016

AVG has announced its second quarter 2016 financial results, bringing in $105 million, a 2.6% drop in earnings compared to its $107.8 million from the same time last year.

The company recently announced that it will be acquired by Avast, which will purchase all of AVG's outstanding ordinary shares for $25.00 per share in cash, totalling $1.3 billion.

AVG brought in a GAAP net income of $6.9 million, equating to $0.13 per diluted ordinary share, another drop from its $8.5 million or $0.15 per ordinary share from the same time last year.

Meanwhile, its Non-GAAP net income sits at $22.8 million, compared to its $24.6 million from last year. The company's GAAP operating income is at $12.4 million, while operating cash flow sits at $19.3 million and free cash flow at $15.1 million.

According to AVG, the drop in revenue has been attributed to 'challenging market conditions' as the company continues its strategic and operating plans. However, AVG's subscription base is increasing, now reaching 83% of total revenue.

AVG says its focus on mobile products and services has continues growing, with total mobile revenue up 28% compared to the same time last year.

The company expects its fiscal year 2016 outlook to bring in $430-$440 million in revenue, $43-$46 million in GAAP net income, and GAAP net income per diluted ordinary share to be $0.81-$0.89.

In addition, non-GAAP adjusted net income might reach $100-$104 million, while non-GAAP adjusted net income per diluted ordinary share is expected to reach $1.91-$1.99.

Avast will continue its AVG acquisition, with the deal expected to close between September and October this year.

SecOps: Clear opportunities for powerful collaboration
If there’s one thing security and IT ops professionals should do this year, the words ‘team up’ should be top priority.
Interview: Culture and cloud - the battle for cybersecurity
ESET CTO Juraj Malcho talks about the importance of culture in a cybersecurity strategy and the challenges and benefits of a world in the cloud.
Enterprise cloud deployments being exploited by cybercriminals
A new report has revealed a concerning number of enterprises still believe security is the responsibility of the cloud service provider.
Ping Identity Platform updated with new CX and IT automation
The new versions improve the user and administrative experience, while also aiming to meet enterprise needs to operate quickly and purposefully.
Venafi and nCipher Security partner on machine identity protection
Cryptographic keys serve as machine identities and are the foundation of enterprise information technology systems.
Machine learning is a tool and the bad guys are using it
KPMG NZ’s CIO and ESET’s CTO spoke at a recent cybersecurity conference about how machine learning and data analytics are not to be feared, but used.
Seagate: Data trends, opportunities, and challenges at the edge
The development of edge technology and the rise of big data have brought many opportunities for data infrastructure companies to the fore.
Popular Android apps track users and violate Google's policies
Google has reportedly taken action against some of the violators.