EXHIBIT 99.1
FOR IMMEDIATE RELEASE
For information contact:
Yvonne Donaldson Bob Joyce
BindView Corporation Financial Dynamics
1-713-561-4023 1-617-747-3620
yvonne.donaldson@bindview.com bjoyce@fd-us.com
BINDVIEW DELAYS THIRD-QUARTER FINANCIAL RESULTS
REAFFIRMS FOURTH-QUARTER REVENUE ESTIMATES
HOUSTON - OCT. 28, 2004 - BindView Corporation (NASDAQ:BVEW), a
leading provider of proactive business policy, IT security and directory
management software, announced today that it is delaying the release of its
financial results for the third quarter ended September 30, 2004. The Company
also announced that its audit committee has commenced an investigation of the
revenue recognition practices of its Latin American operations, which has
accounted for less than two percent of the Company's consolidated revenues. The
Company is diligently working to complete the investigation and will release
its third quarter results, as well as restated results, if necessary, for
periods prior to the third quarter, promptly upon completion of the
investigation.
The investigation currently concerns revenues totaling approximately
$1.0 million, including $800 thousand in the first half of 2004 and $250
thousand in the second half of 2003. Executive management began investigating
certain aspects of the Company's Latin American operations on October 14, as a
result of information discovered in the course of its ongoing collection
efforts on certain Latin American accounts receivable. Executive management
notified the audit committee of its investigation and subsequently reported its
preliminary findings to the committee. The audit committee has retained
independent legal counsel to provide advice in connection with the committee's
own investigation of these matters. Revenue transactions being investigated
occurred during the twelve months ended June 30, 2004, and represent less than
two percent of the Company's consolidated revenues during that period.
"Our internal review of Latin American operations and our delay of our
third-quarter results are appropriate courses of action," said BindView
Chairman and Chief Executive Officer Eric J. Pulaski. "The fundamental strength
of our business remains unchanged, and we are confident in our ability to
achieve our fourth-quarter targets. We believe the transactions under review
are isolated and relatively small. We will take appropriate remedial action in
accordance with the results of the investigation."
During the third quarter of 2004, the Company received orders totaling
approximately $200 thousand from Latin American operations, which were included
in its revised estimates provided earlier this month. The Company has
determined it will exclude these transactions, and accordingly has revised its
revenue estimate for the third
quarter from $17.5 million to $17.3 million and its net loss from $1.9 million
to $2.2 million. This revised net loss estimate assumes that any financial
charges arising from the investigation will be reflected in the Company's
operating results for periods prior to the third quarter of 2004.
REAFFIRMS FOURTH-QUARTER REVENUE ESTIMATES
The Company reiterated its previously announced fourth-quarter revenue
estimates of $24 million to $29 million, and lowered its net income estimates
for the fourth quarter by $0.5 million to cover anticipated expenses for the
investigation. Net income for the fourth quarter is expected to range between
$3.8 million ($0.07 per share) to $5.9 million ($0.11 per share).
SCHEDULED CONFERENCE CALL
BindView will conduct a conference call to comment on the Latin
American investigation in the time slot previously reserved for its financial
results and provide details on recently announced operational changes. The call
will be led by BindView Chairman and Chief Executive Officer Eric Pulaski,
joined by newly appointed President and Chief Operating Officer Arshad Matin,
and Executive Vice President and Chief Financial Officer Edward Pierce.
Date/Time: Oct. 28, 2004 - 4:00 CDT
Dial-In Numbers: 1-800-500-0311; Code 833223 (for domestic callers)
1-719-457-2698; Code 833223 (for international callers)
Replay Numbers: 1-888-203-1112; Code 833223 (for domestic callers)
1-719-457-0820; Code 833223 (for international callers)
ABOUT BINDVIEW
BindView Corporation is a leading provider of proactive business
policy, IT security and directory management software. BindView solutions and
services enable customers to centralize and automate policy compliance,
vulnerability assessment, and directory administration across the entire
organization. With BindView insight at work(TM), customers benefit from reduced
risk and improved operational efficiencies with a verifiable return on
investment. More than 20 million licenses have shipped to 5,000 companies
worldwide, spanning all major business segments and the public sector. Contact
BindView via e-mail at info@bindview.com or visit BindView's Website at
http://www.bindview.com. BindView can also be reached at 1-800-749-8439 or at
1-713-561-4000.
# # #
Statements in this news release not based on historical fact are
"forward-looking" statements pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Actual results could differ
materially because of factors such as the investigation into the Company's
Latin American operations; prospective customers' decisions to complete
transactions in the fourth quarter; the company's ability to successfully close
sufficient fourth-quarter transactions; and the risk factors and other matters
described from time to time in BindView's Form 10-K filings, Form 10-Q filings,
and other periodic filings with the Securities and Exchange Commission.