Trend Micro sees record earnings

Taiwan-based Trend Micro (趨勢科技) yesterday announced record first half earnings and a plan to list on the Tokyo Stock Exchange (TSE) yesterday in Taipei.

The Taiwan software developer -- perhaps best known for its anti-virus software, PC-Cillin -- said net income increased 161 percent during the first half of this year compared to the same period last year, with its strongest sales growth in Europe and the US.

"We experienced another record first half," said Steve Chang, chairman and founder of Trend Micro, attributing the strong sales growth to his company's Internet related products and strong software development teams.

The company reported sales of ?9.6 billion (US$88 million) for the first half of the year through June, a rise of 70.5 percent over the same time last year, with net income reaching ?2.47 billion (US$23 million), a 161 percent increase.

The company also noted that Japan remained its top market overall, a fact which led the company to list its shares on the TSE according to Stuart Young, software industry analyst at Primasia.

"The company holds 70 percent of the Japanese market for anti-virus software," said Young, "and they can make a lot more money by listing in Tokyo rather than Taiwan."

He said since Trend Micro is such a well-known name in Japan, investors there would be better able to estimate the value of the company based on the size of its market share "so that should help Trend get a decent price on the listing."

Trend Micro successfully applied to transfer its shares from the JASDAQ over-the-counter stock exchange to the TSE's main board. Listing on the main board makes Trend more attractive to institutional investors and should pump up its share price, Young said.

Trend's Chang indicated that increasing share price is a primary reason for listing on the TSE, and he hopes the company's employees will benefit from a rise in the stock's price.

Software companies generally give their employees stock as a part of their benefit package, Young said. In the case of many talented software developers, stock "is the only way to keep them."

Taiwan's software industry generated revenue of NT$103.4 billion in 1999, up from the previous year's NT$80.2 billion, according to the Institute for Information Industry (III, 資策會).

Trend Micro also helps act as a World Wide Web SWAT team when it comes to fighting computer viruses. The company, which has offices around Asia including Manila, Taipei and Tokyo, turns these locations into the equivalent of anti-virus crime labs when major viruses threaten the Web.