CyberDefender Corporation (OTCBB: CYDE)

Based in Los Angeles, California, CyberDefender Corporation (CYDE) is a provider of Internet security technology for the consumer market. With over 5 million active users of its proprietary patent pending Collaborative Internet Security Network (or the earlyNETWORK), CyberDefender is an industry leader. CyberDefender’s earlyNETWORK is designed to address the “zero hour gap,” which effectively reduces the risks associated with new and emerging Internet threats. By utilizing a proprietary secure peer-to-peer network, CyberDefender delivers protection to the end user faster than the traditional client-server or cloud methods. CyberDefender develops and markets PC desktop security utilities in the following categories: anti-spyware, anti-virus, and PC optimization. In addition, CyberDefender offers the following services: identity protection and remote PC repair and optimization services. CyberDefender products are fully compatible with Microsoft's XP, Vista, and 7 operating systems.

Recent Financial Highlights

• Sales receipts increased 520% y-o-y to $12.4 million for FH09
• GAAP revenue increased 465% y-o-y to $6.9 million for FH09
• Improved marketing expenditures as a percentage of revenues to 92% in Q209 from 117% in Q109
• New Licensees increased 61% y-o-y for the FH09
• ARPU of $80 for Q209
• Expect to be cash flow breakeven by the end of Q409
• 350,000 paying customers

Investment Highlights

• Only public pure-play, consumer-focused Cyber Security provider
• Scalable business 
  • Over five million active users worldwide
  • Over 450 call center agents, with the ability to ramp
• Stable recurring revenue stream
  • Average annual renewal rates at 40% to 50%
  • Six sequential quarters of GAAP revenue growth
• Large and growing market opportunity
  • According to IDC, the consumer security market was $3.4B in 2008, and is expected to grow to $5.4B in 2012 (CAGR of 12.3%)
• Proprietary Technology
  • Peer-to-peer collaborative security network
• Key partners
  • Guthy-Renker
  • For Dummies/Wiley
  • Allianex

DISCLAIMER

CyberDefender Corporation makes no representation, warranty or guarantee as to, and is not responsible for, the accuracy or completeness of the information provided on this site.  The views provided on this site are based on estimates and assumptions that are subject to significant business, economic, regulatory and competitive uncertainties.  CyberDefender Corporation is not liable to any recipient or third party for the use of or reliance on the information contained on this site.

The information provided on this site does not constitute a recommendation or take into account the particular investment objectives, financial situations, or needs of individual investors.  CyberDefender Corporation strongly advises you consult your investment professional before making financial decisions.