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Acquired Company Mobile Armor Inc.
Classified Stocks Common Stock 1,246,216 shares
Preferred Stock Series A 17,723,968 shares
Preferred Stock Series B 2,215,496 shares
Ownership percentage 100%
Purchase Price USD 29,318 thousands
(5) Issues to Deal With
In the computer security industry which our group belongs to, there have been two competitors
with gaining a respectable degree of market share in the U.S. In addition to our direct
competitors, Microsoft Corporation, a major operating system software vendor, has entered into
the security market. Moreover, recently variable consolidations have indeed continued including
M&A or acquisition from other industry and new entries, etc. We anticipate that such a
consolidation, new entries, and their presence in the computer security market will make the
competition in the market more intense.
In response to such intense competition, we are enhancing our wide range of technologies to
better combat the latest web threats, which evolve from day to day, through the acquisition of
InterMute Inc. in 2005 for antispyware technologies; Kelkea Inc. in 2007 for IP filtering and
reputation services; Provilla, Inc. in 2007 for data leak prevention (DLP); Identum in 2008 for
email encryption technology; Third Brigade Inc. in 2009 for Host Intrusion Prevention System
(HIPS); Humyo in 2010 for online storage and data synchronization services ; and Mobile Armor
in 2011 for data encryption and mobile device management technology.
Through a series of acquisitions and organically grown technology, Trend Micro has created
Trend Micro Smart Protection Network. Since 2009, Trend Micro Smart Protection Network is at
the core of Trend Micro products and services and is designed to protect customers from web
threats through a next generation cloud-client content security infrastructure.
Trend Micro Smart Protection Network correlates web, email and file threat data using
reputation technologies and is continuously updating in-the-cloud threat databases to detect,
analyze and protect customers from the latest threats. By introducing fast, real-time security
status “look-up” capabilities in-the-cloud, Trend Micro reduces dependence upon conventional
pattern file downloads on the endpoint, as well as the cost and overhead associated with
corporate-wide pattern deployments.
We will continue to concentrate management resources on developing original, high-performance
solutions that address customer pain points faster than the competitors. At the same time, we
will continue to pursue long-term growth with a stable financial foundation, strengthen our
commitment to users, as well as develop marketing campaigns that target customer needs and
customer buying behavior.
(6) Business Results and Changes in Financial Conditions
Fiscal Year
Item
The 20th Term
ended December
2008
The 21st Term
ended December
2009
The 22nd Term
ended December
2010
The 23rd Term
ended December
2011
Net Sales
(millions of yen)
101,707 96,346 95,391 96,392
Ordinary Income
(millions of yen)
33,640 31,714 23,835 28,690
Net Income 19,247 17,638 12,720 17,341
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