Preliminary First Quarter 2006 Revenues and EarningsBased upon...

Preliminary First Quarter 2006 Revenues and Earnings
Based upon preliminary financial data, the Company anticipates that revenues for the first quarter will be in the range of approximately $63 million to $65 million, compared to $59.8 million in the same quarter in 2005. In its financial results press release on February 2, 2006, the Company provided first quarter 2006 guidance for revenues in a range of $65 million to $69 million.

During the quarter the Company experienced higher operating expenses associated primarily with Sarbanes-Oxley and accounting costs of approximately $800,000. In addition, SafeNet acquisition related charges of approximately $600,000 related to the nCipher deal will be reflected in the first quarter financials. As a result the Company now expects non-GAAP EPS to be below previous guidance of $0.29 to $0.37 per share and GAAP EPS to be below previous guidance of $0.02 to $0.09 per share.


Why would you think this will effect senetas.
Does Senetas only receive royalties from SafeNet it does not say anything here about reduced sales.

Only Expenses with no relationship to senetas