CYREN LTD. (NASDAQ:CYRN) Files An 8-K Results of Operations and Financial Condition
Item 2.02
Results of Operations and Financial Condition.
Preliminary Information for the Fiscal Year Ended December 31, 2020
The Company is providing certain preliminary information related to its revenue, cash and cash equivalents as an update to the information provided in the Company’s previous periodic filings. The Company has not yet completed its financial statements for the fiscal year ended December 31, 2020, but the Company currently estimates that (i) revenue for the fourth quarter was $8.4 million and $36.4 million for the twelve months ended December 31, 2020; (ii) cost of sales was $3.6 million for the fourth quarter and $14.8 million for the twelve months ended December 31, 2020; (iii) operating expenses were $9.0 million for the fourth quarter and $37.3 million for the twelve months ended December 31, 2020; and (iv) net loss was $5.0 million for the fourth quarter and $17.3 million for the twelve months ended December 31, 2020.
The Company’s cash and cash equivalents as of December 31, 2020 were approximately $9.3 million. The Company believes, based on its current operating plan, that its cash and cash equivalents as of December 31, 2020 and its projected revenues, together with the net proceeds of the Offering, will be sufficient to fund its operations through the first three quarters of 2021. The ability to continue as a going concern is dependent upon the Company’s ability to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. The Company intends to finance operating costs over the next twelve months through a combination of actions that may include existing cash on hand, reducing operating spend, divesting non-core assets and future issuances of equity and/or debt securities.
The Company’s estimates of revenue, cost of sales, operating expenses, net loss, cash and cash equivalents as of December 31, 2020, and its ability to fund its operations are preliminary and unaudited, represent estimates as of the date of this Current Report on Form 8-K, and are subject to completion of the Company’s financial closing procedures. The Company’s independent registered public accounting firm has not completed an audit and does not express an opinion or any other form of assurance with respect to the Company’s estimates of revenue, cost of sales, operating expenses, net loss, cash and cash equivalents, or the Company’s ability to continue as a going concern.
About CYREN LTD. (NASDAQ:CYRN)
CYREN Ltd. (CYREN) is engaged in developing and marketing information security solutions for protecting Web, e-mail and mobile transactions. The Company is a Security-as-a-Service provider of integrated cloud-based security technology solutions that mitigate cyber threats, malware attacks, information leaks, legal liability and productivity loss through the application of cyber intelligence. It delivers security services to a range of customers and original equipment manufacturer, and service provider distribution partners, including network and security vendors offering content security gateways, unified threat management solutions and antivirus solutions, and to service providers, such as Software-as-a-Service vendors, Web hosting providers and Internet service providers. Its technologies include CYREN GlobalView Cloud and Recurrent Pattern Detection. Its offerings include CYREN WebSecurity (CWS), CYREN EmailSecurity, Cyber Intelligence Suite and Embedded Solutions.
