TREND MICRO INC S/ADR - TMICY STOCK NEWS

Trend Micro Incorporated has initiated a capital allocation strategy aimed at enhancing shareholder value, fueled by excess liquidity from its history of profitable growth. The strategy includes a share buyback of up to 50Bn JPY, with 25Bn JPY set to begin immediately. The firm aims to balance cash management while maintaining dividend commitments of 70% of net operating profits. Additionally, the company is undergoing a brand refresh to solidify its position as a leading SaaS cybersecurity provider to over 400,000 enterprise clients globally. CEO Eva Chen emphasized the focus on growth amidst industry challenges through innovation and an expansive product portfolio.

On February 16, 2023, Trend Micro reported a 21% year-over-year net sales growth for Q4 and an 18% increase for FY 2022. Key financials include consolidated net sales of 61,694 million Yen (approx. $436 million), with operating income of 5,470 million Yen ($38 million) and net income of 1,350 million Yen ($9 million). The enterprise annual recurring revenue surged by 29% to over $691 million, while active SaaS subscriptions grew by 12% to over 424,000. Looking ahead, the company expects FY 2023 consolidated net sales of 248,500 million Yen (around $1,840 million) and operating income of 34,800 million Yen ($257 million).

Trend Micro announced the launch of a new Pwn2Own Automotive competition in January 2024, aimed at enhancing security in the connected vehicle ecosystem. This standalone event will take place at Automotive World Tokyo and is part of the Trend Micro Zero Day Initiative (ZDI). The Pwn2Own competition, now in its 17th year, challenges researchers to identify software vulnerabilities, furthering automotive research and incentivizing complex threat discovery. With past participation from Tesla, the event is set to spotlight critical automotive technologies requiring evaluation, striving to improve overall cybersecurity in the automotive sector.

Trend Micro, a global cybersecurity leader, recently conducted its eighth annual "Building a Future" service project in Orlando, where over 2,000 employees volunteered nearly 8,000 hours and contributed $60,000 in supplies to benefit around 2,500 students. The initiative took place across several local elementary schools, providing resources like books and educational materials.

Trend Micro's ongoing commitment to corporate social responsibility extends beyond this event, with employees having volunteered over 30,000 hours previously, totaling $2.3 million in donations. They focus on fostering educational environments and promoting online safety for kids and families worldwide.

Trend Micro has launched CTOne, a new subsidiary dedicated to enhancing 5G network security. With a focus on innovative cybersecurity solutions, CTOne aims to address emerging threats in private 5G environments. The global private 5G market was valued at USD 1.38 billion in 2021, expected to grow at a CAGR of 49%. The company highlights the importance of pre-deploying security measures to build resilience against cyberattacks. CTOne plans to develop solutions for O-RAN and edge computing to further mitigate cyber risks.

Trend Micro published a report warning about potential shifts in the ransomware industry, suggesting that cybercriminals may partner with organized crime or hostile governments. The report emphasizes the evolution of ransomware attacks and proposes scenarios for future threats. Key recommendations for security teams include hardening corporate systems, migrating to cloud services, and enhancing detection and response efforts. The report underlines the impact of economic and geopolitical factors on cybercrime, encouraging proactive measures from defenders and regulators.

Trend Micro predicts an increase in cyber threats for 2023, with a focus on vulnerabilities within home offices, software supply chains, and cloud infrastructures. The report highlights the risk of unpatched VPNs and home devices, along with anticipated trends like supply chain attacks from managed service providers and 'living off the cloud' techniques. Recommendations include adopting zero trust strategies and consolidating security platforms to enhance threat detection. Trend Micro emphasizes the importance of employee awareness and stress testing IT infrastructures for effective defense.

Trend Micro announced the results of the Pwn2Own competition held in December 2022, awarding $989,750 for the purchase of 63 unique zero days. The competition highlighted security vulnerabilities in home devices amid a rise in remote work, with an estimated 80% of US employees working from home. The event included a SOHO Smashup category, where hackers earned up to $100,000 for exploiting connected devices. The top contestant, DEVCORE, secured $142,500 in prizes. The competition aimed to raise awareness about the cybersecurity risks posed by home devices.