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TIS growing but losses continue

Internet security vendor Trusted Information Systems reported strong revenue growth but continued losses for the quarter ended December 27.

The stock of Trusted Information Systems (TISX) dropped five percent in late trading today after the Internet security firm reported strong revenue growth but continued losses for the quarter ending December 27.

Those results were within the range of analysts' expectations, according to First Call. The company's stock price closed at 15-1/4, down 7/8 after holding steady through much of the day.

Fourth-quarter revenues rose 93 percent to $9.4 million, up from $4.8 million for the same 1995 quarter, but TIS lost $757,000, or 7 cents a share. Financial analysts had expected losses of 5 to 7 cents a share.

Most of the increased revenue came from TIS's commercial products, including the Gauntlet firewall that yesterday was selected by chemical manufacturer DuPont for internal use. Commercial income, as opposed to government contracts, was $5.9 million, up from $1.6 million for the 1995 quarter.

For fiscal 1996, revenues were $26.3 million, up from $18 million in 1995. Commercial product revenues jumped from $4.2 million to $13.5 million as revenues from the government declined slightly, consistent with TIS's strategy. For the year, losses were $2.1 million, or 25 cents a share.

TIS, which went public last October, is one of three companies whose key recovery technology has been certified by the federal government as an acceptable method for U.S. firms to use to export products that use 56-bit encryption. The company, which licensed that technology to IBM, has been criticized by other high-tech firms for undermining efforts to throw out U.S. encryption export rules.