Qualys Announces Fourth Quarter and Full Year 2012 Financial Results

Qualys Announces Fourth Quarter and Full Year 2012 Financial Results

                 2012 Revenue Growth of 20% to $91.4 Million
           Fourth Quarter GAAP EPS of $0.03, Non-GAAP EPS of $0.06
           Full Year 2012 GAAP EPS of $0.08, Non-GAAP EPS of $0.20

REDWOOD CITY, Calif., Feb. 11, 2013 (GLOBE NEWSWIRE) -- Qualys, Inc.
(Nasdaq:QLYS), a pioneer and leading provider of cloud security and compliance
solutions, today announced financial results for the fourth quarter and year
ended December 31, 2012. For the fourth quarter, the Company reported revenues
of $24.7 million, GAAP net income of $1.2 million, non-GAAP net income of $2.0
million, adjusted EBITDA of $4.4 million, GAAP earnings per diluted share of
$0.03, and non-GAAP earnings per diluted share of $0.06. For the full year
ended December 31, 2012, the Company reported revenues of $91.4 million, GAAP
net income of $2.3 million, non-GAAP net income of $5.7 million, adjusted
EBITDA of $13.8 million, GAAP earnings per diluted share of $0.08, and
non-GAAP earnings per diluted share of $0.20.

Philippe Courtot, Chairman and Chief Executive Officer of Qualys, said, "We
are very pleased with our performance for the quarter and year as we continue
to benefit from strong revenue growth generated from both new and existing
customers. While our core Vulnerability Management solution remains the
cornerstone of our product suite, we also experienced high demand for our Web
Application Scanning and Policy Compliance solutions as we successfully
diversified our business throughout last year. We aim to continue this trend
in 2013 with innovation efforts that will center on further expanding our
platform and reaching into new markets, including the government sector with
our Virtualized QualysGuard Private Cloud Platform. We believe that our
best-in-class platform and the benefits of increasing operating scale will
enable us to further drive growth and shareholder value over the coming year."

Fourth Quarter 2012 Financial Highlights

Revenues: Revenues for the fourth quarter of 2012 increased by 19% to $24.7
million, compared to $20.7 million in the same quarter last year. Revenue
growth was driven by a combination of increased sales of subscriptions for
additional solutions to existing customers, as well as sales of subscriptions
to new customers.

Bookings: Four-Quarter Bookings (a non-GAAP financial measure) were $101.2
million for the four-quarter period ended December 31, 2012, an increase of
$16.1 million, or 19%, compared to $85.1 million for the four-quarter period
ended December 31, 2011. The increase in Four-Quarter Bookings was primarily
due to sales of subscriptions for additional solutions to a larger customer
base, as well as sales of subscriptions to new customers.

Gross Profit: GAAPgross profit for the fourth quarter of 2012 increased by 19%
to $19.7 million, compared to $16.5 million in the same quarter last year.
GAAP gross margin was 80% for the fourth quarter of 2012, compared to 80% in
the same quarter last year. Non-GAAP gross profit for the fourth quarter of
2012 increased 19% to $19.8 million, compared to $16.6 million in the same
quarter last year. Non-GAAP gross margin was 80% for the fourth quarter of
2012, compared to 80% in the same quarter last year.

Operating Income: GAAP operating income for the fourth quarter of 2012
increased to $1.6 million, compared to an operating loss of $43,000 in the
same quarter last year. Non-GAAP operating income for the fourth quarter of
2012 increased by $1.9 million to $2.5 million, compared to $0.6 million in
the same quarter last year. Non-GAAP operating margin increased to 10% in the
fourth quarter of 2012 from 3% in the same quarter last year as a result of
the Company's continued focus on cost management and the benefits of
increasing operating scale.

Net Income: GAAP net income for the fourth quarter of 2012 was $1.2 million,
or $0.03 per diluted share, up from a net loss of $0.7 million, or a $0.13 net
loss per diluted share, in the same quarter last year. Non-GAAP net income for
the fourth quarter of 2012 was $2.0 million, or $0.06 per diluted share,
compared to a non-GAAP net loss of $16,000, or a $0.00 net loss per diluted
share, in the same quarter last year.

Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the fourth
quarter of 2012 increased by 103% to $4.4 million, compared to $2.2 million in
the same quarter last year. As a percentage of revenues, adjusted EBITDA
increased to 18% in the fourth quarter of 2012 compared to 11% in the same
quarter last year.

Full Year 2012 Financial Highlights

Revenues: Revenues for 2012 increased by 20% to $91.4 million, compared to
$76.2 million in 2011. Revenue growth was driven by a combination of increased
sales of subscriptions for additional solutions to existing customers, as well
as sales of subscriptions to new customers.

Gross Profit: Gross profit for 2012 increased by 16% to $73.0 million,
compared to $63.0 million in 2011. GAAP gross margin was 80% in 2012, compared
to 83% in 2011. Non-GAAP gross profit for 2012 increased by 16% to $73.3
million, compared to $63.1 million in 2011. Non-GAAP gross margin was 80% for
2012, compared to 83% in 2011.

Operating Income: GAAP operating income for 2012 increased by 3% to $3.0
million, compared to $2.9 million in 2011. GAAP operating margin was 3% in
2012, compared to 4% in 2011. Non-GAAP operating income for 2012 increased by
28% to $6.5 million, compared to $5.1 million in 2011. Non-GAAP operating
margin was 7% in both 2012 and in 2011.

Net Income: GAAP net income for 2012 was $2.3 million, or $0.08 per diluted
share, compared to $2.0 million, or $0.08 per diluted share, in 2011. Non-GAAP
net income for 2012 was $5.7 million, or $0.20 per diluted share, compared to
$4.1 million, or $0.17 per diluted share, in 2011.

Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for 2012
increased by 32% to $13.8 million, compared to $10.4 million in 2011. As a
percentage of revenues, adjusted EBITDA increased to 15% in 2012 compared to
14% in 2011.

Initial Public Offering: Qualys began trading on the NASDAQ Stock Market under
the symbol "QLYS" on September 28, 2012, and successfully closed its IPO on
October 3, 2012. With the full exercise of the underwriters' over-allotment
option, the Company sold 7,836,250 shares of common stock and certain selling
shareholders sold 875,000 shares of common stock at a price to the public of
$12.00 per share.

Fourth Quarter 2012 Business Highlights

Customers:

  *New customers include: Citigroup, Colgate-Palmolive, Comcast, Georgetown
    University, Grupo Mexico, Hilton Worldwide, Level 3, Nestle Deutschland
    AG, Penske Automotive, Pepperdine University, RICOH, Standard Life, Sun
    Life Financial, Telkom SA and U.S. Bancorp.
  *Hosted more than 600 customers and partners at the 10^th Annual Qualys
    Security Conference in four cities around the world, where attendees
    shared best practices and learned from existing customers and renowned
    industry experts how to protect their IT Infrastructure from cyber-attacks
    and manage compliance more effectively.

New Products and Functionalities:

  *Released major extensions to the QualysGuard Cloud Platform including
    automated workflows for Vulnerability Management and enhanced scan
    management capabilities to increase efficiency for customers.
  *Introduced innovative predictive analytics engine to QualysGuard
    Vulnerability Management to help customers analyze risk exposures to
    zero-day and Microsoft Patch Tuesday vulnerabilities.
  *Expanded QualysGuard Policy Compliance with support for new technologies,
    including Microsoft Windows 8 and Windows 2012 Server.
  *Expanded QualysGuard Web Application Scanning (WAS) with advanced scanning
    configurations and reporting enhancements to address the growing needs of
    customers. New capabilities also include Malware Detection, which is a
    unique and competitive advantage for WAS, as well as forthcoming
    integrations with attack tools to allow customers and consultants to
    further test and validate scanning results.
  *Upgraded the first generation of the QualysGuard Private Cloud Platforms
    to the new virtualized and extensible platform at Apple, Fujitsu,
    Microsoft, NTT and Oracle. This new virtualized platform provides
    customers, partners and government agencies with the performance and
    scalability to secure their IT infrastructures while keeping data on
    premise and will enable Qualys to seamlessly introduce new services to
    these customers and partners.

Industry Recognition:

  *Received top customer ratings in an independent information security study
    conducted by TheInfoPro, a service of 451 Research with top ratings in
    every category, outperforming all competitors. Additionally, 100% of
    Qualys' customers indicated they were not considering switching to a
    competing solution.
  *Named a finalist in five 2013 SC Magazine Awards categories, including
    best customer service and excellence in security and compliances solutions
    for enterprises and SMBs.

Channel Partners:

  *Announced an agreement with The Emirates Integrated Telecommunications
    Company ("du") to deliver vulnerability and compliance management services
    to businesses in the United Arab Emirates using the new extensible
    QualysGuard Private Cloud Platform to be hosted at du in Dubai.
  *Expanded the partnership with Verizon to include their managed security
    services and consulting practice leveraging the full suite of QualysGuard
    solutions.

Financial Performance Outlook

First Quarter 2013 Guidance: Management expects revenues to be in the range of
$24.4 million to $24.9 million. GAAP net loss per diluted share is expected to
be in the range of $0.02 to $0.04 and non-GAAP net income (loss) per diluted
share is expected to be in the range of a loss of $0.01 to an income of $0.01
based on approximately 35.5 million weighted average diluted shares
outstanding for the quarter.

Full Year 2013 Guidance: Management expects revenues to be in the range of
$106 million to $108 million. GAAP EPS is expected to be in the range of $0.02
to $0.06 per diluted share and non-GAAP EPS is expected to be in the range of
$0.16 to $0.20 per diluted share based on approximately 35.7 million weighted
average diluted shares outstanding for the full year.

Investor Conference Call

Qualys will host a conference call and live webcast to discuss its fourth
quarter and full year 2012 financial results today at 2:00 p.m. Pacific Time
(5:00 p.m. Eastern Time). To access the conference call, dial (877) 881-2609
in the U.S. or +1 (970) 315-0463 for international participants with
conference ID #88737334. The live webcast of Qualys' earnings conference call
can also be accessed at investor.qualys.com. A replay of the conference call
will be available through the same webcast link following the end of the call.

About Qualys, Inc.

Qualys, Inc. (Nasdaq:QLYS), is a pioneer and leading provider of cloud
security and compliance solutions with over 6,000 customers in more than 100
countries, including a majority of each of the Forbes Global 100 and Fortune
100. The QualysGuard Cloud Platform and integrated suite of solutions helps
organizations simplify security operations and lower the cost of compliance by
delivering critical security intelligence on demand and automating the full
spectrum of auditing, compliance and protection for IT systems and web
applications. Founded in 1999, Qualys has established strategic partnerships
with leading managed service providers and consulting organizations including
Accuvant, BT, Dell SecureWorks, Fujitsu, NTT, Symantec, Verizon, and Wipro.
The company is also a founding member of the Cloud Security Alliance (CSA).
For more information, please visit www.qualys.com.

Qualys, the Qualys logo and QualysGuard are proprietary trademarks of Qualys,
Inc. All other products or names may be trademarks of their respective
companies.

Legal Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements generally relate to future
events or our future financial or operating performance. Forward-looking
statements in this press release include, but are not limited to, statements
related to: our belief that we will continue to diversify our business in
2013, and that our innovation efforts will center on further expanding our
platform and reaching into new markets, including the government sector with
our Virtualized QualysGuard Cloud Platform; our belief that our best-in-class
platform and the benefits of increasing operating scale, will enable us to
further drive growth and shareholder value over the coming year;our guidance
for revenues, GAAP EPS (net loss) and non-GAAP EPS (net loss) for the first
quarter and full year 2013; and our expectations for the number of weighted
average diluted shares outstanding for the first quarter and full year
2013.Our expectations and beliefs regarding these matters may not
materialize, and actual results in future periods are subject to risks and
uncertainties that could cause actual results to differ materially from those
projected. These risks include our ability to continue to develop platform
capabilities and solutions; customer acceptance and purchase of our existing
solutions and new solutions; our ability to retain existing customers and
generate new customers; the market for cloud solutions for IT security and
compliance not continuing to develop; competition from other products and
services; and general market, political, economic and business
conditions.The forward-looking statements contained in this press release
are also subject to other risks and uncertainties, including those more fully
described in our filings with the Securities and Exchange Commission,
including our Quarterly Report on Form 10-Q for the three months ended
September 30, 2012, filed with the Securities and Exchange Commission on
November 9, 2012. The forward-looking statements in this press release
arebased on information available to Qualys as of the date hereof, and Qualys
disclaims any obligation to update any forward-looking statements, except as
required by law.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with generally
accepted accounting principles, or GAAP, Qualys monitors non-GAAP measures of
Four-Quarter Bookings, non-GAAP gross profit, non-GAAP gross margin, non-GAAP
operating income, non-GAAP operating margin, non-GAAP net income (loss),
non-GAAP EPS and adjusted EBITDA.

Qualys monitors Four-Quarter Bookings to understand sales trends for its
business. Qualys believes this metric provides an additional tool for
investors to use in assessing its business performance in a way that more
fully reflects current business trends than reported revenues and reduces the
variations in any particular quarter caused by customer subscription
renewals.Qualys believes Four-Quarter Bookings reflects the material sales
trends for its business because it includes sales of subscriptions to new
customers, as well as subscription renewals and upsells of additional
subscriptions to existing customers.

Qualys also monitors non-GAAP gross profit, non-GAAP gross margin, non-GAAP
operating income, non-GAAP operating margin, non-GAAP net income (loss),
non-GAAP EPS and adjusted EBITDA to evaluate its ongoing operational
performance and enhance an overall understanding of its past financial
performance. Qualys believes that these non-GAAP metrics help illustrate
underlying trends in its business that could otherwise be masked by the effect
of the income or expenses, as well as the related tax effects, that are
excluded in non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating
income, non-GAAP operating margin, non-GAAP net income (loss), non-GAAP EPS
and adjusted EBITDA.Furthermore, Qualys uses these measures to establish
budgets and operational goals for managing its business and evaluating its
performance. Qualys also believes that non-GAAP gross profit, non-GAAP gross
margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net
income (loss), non-GAAP EPS and adjusted EBITDA provide additional tools for
investors to use in comparing its recurring core business operating results
over multiple periods with other companies in its industry.

The presentation of this non-GAAP financial information is not intended to be
considered in isolation or as a substitute for results prepared in accordance
with GAAP.A reconciliation of the non-GAAP financial measures discussed in
this press release to the most directly comparable GAAP financial measures is
included with the financial statements contained in this press
release.Management uses both GAAP and non-GAAP information in evaluating and
operating its business internally and as such has determined that it is
important to provide this information to investors.

                                                                  
Qualys, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share data)
                                                                  
                                         Three Months Ended Year Ended
                                         December 31,       December 31,
                                         2012      2011     2012     2011
Revenues                                  $ 24,657  $ 20,652 $ 91,420 $ 76,212
Cost of revenues ^ (1)                    4,981     4,123    18,404   13,247
Gross profit                              19,676    16,529   73,016   62,965
Operating expenses:                                                
Research and development^(1)             4,870     4,953    20,195   19,633
Sales and marketing ^ (1)                 9,911     9,229    37,738   31,526
General and administrative ^ (1)          3,268     2,390    12,079   8,900
Total operating expenses                  18,049    16,572   70,012   60,059
Income (loss) from operations             1,627     (43)     3,004    2,906
Other income (expense), net:                                       
Interest expense                          (39)      (40)     (192)    (204)
Interest income                           12        4        14       14
Other income (expense), net               (144)     (447)    (188)    (346)
Total other income (expense), net         (171)     (483)    (366)    (536)
Income (loss) before provision for income 1,456     (526)    2,638    2,370
taxes
Provision for income taxes                281       125      358      416
Net income (loss)                         $ 1,175   $ (651)  $ 2,280  $ 1,954
                                                                  
Net income (loss) per share attributable to common                  
stockholders:
Basic                                     $ 0.04    $ (0.13) $ 0.09   $ 0.09
Diluted                                   $ 0.03    $ (0.13) $ 0.08   $ 0.08
Weighted average shares used in computing
net income (loss) per share attributable                           
to common stockholders:
Basic                                     30,807    5,194    11,891   5,053
Diluted                                   35,064    5,194    28,352   24,194
                                                                  
^(1) Includes stock-based compensation as                          
follows:
                                                                  
Cost of revenues                          $ 81      $ 47     $ 276    $ 143
Research and development                  188       159      672      499
Sales and marketing                       218       181      1,074    578
General and administrative                383       248      1,430    927
Total stock-based compensation            $ 870     $ 635    $ 3,452  $ 2,147
                                                                  

                                                                   
Qualys, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(in thousands)
                                                                   
                                           Three Months Ended Year Ended
                                           December 31,       December 31,
                                           2012      2011     2012    2011
Net income (loss)                           $ 1,175   $ (651)  $ 2,280 $ 1,954
Foreign currency translation gain (loss),   (42)      (106)    (59)    (166)
net of zero tax
Change in unrealized gain (loss) on         8         —        8       —
short-term investments, net of zero tax
Other comprehensive income (loss), net      (34)      (106)    (51)    (166)
Comprehensive income (loss)                 $ 1,141   $ (757)  $ 2,229 $ 1,788
                                                                   

                                                                    
Qualys, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
                                                                    
                                                           December 31,
                                                           2012      2011
Assets                                                               
Current assets:                                                      
Cash and cash equivalents                                   $ 34,885  $ 24,548
Short-term investments                                      83,547    —
Accounts receivable, net                                    24,545    20,750
Prepaid expenses and other current assets                   4,377     3,774
Total current assets                                        147,354   49,072
Restricted cash                                             114       112
Property and equipment, net                                 18,148    13,861
Intangible assets, net                                      2,811     3,175
Goodwill                                                    317       317
Other noncurrent assets                                     1,574     2,252
Total assets                                                $ 170,318 $ 68,789
Liabilities, Convertible Preferred Stock and Stockholders'           
Equity (Deficit)
Current Liabilities:                                                 
Accounts payable                                            $ 2,031   $ 2,254
Accrued liabilities                                         7,803     8,468
Deferred revenues, current                                  56,497    46,717
Capital lease obligations, current                          1,183     1,987
Total current liabilities                                   67,514    59,426
Deferred revenues, noncurrent                               8,616     4,713
Income taxes payable, noncurrent                            594       661
Other noncurrent liabilities                                1,231     2,134
Capital lease obligations, noncurrent                       808       2,406
Total liabilities                                           78,763    69,340
Convertible preferred stock                                 —         63,873
Stockholders' equity (deficit):                                      
Common stock                                                31        5
Additional paid-in capital                                  166,651   12,927
Accumulated other comprehensive loss                        (1,035)   (984)
Accumulated deficit                                         (74,092)  (76,372)
Total stockholders' equity (deficit)                        91,555    (64,424)
Total liabilities, convertible preferred stock and          $ 170,318 $ 68,789
stockholders' equity (deficit)
                                                                    

                                                                 
Qualys, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
                                                                 
                                                      Year Ended December 31,
                                                      2012        2011
Cash flows from operating activities:                             
Net income                                             $ 2,280     $ 1,954
Adjustments to reconcile net income to net cash                   
provided by operating activities:
Depreciation and amortization expense                  7,341       5,373
Bad debt expense                                       218         193
Loss on disposal of property and equipment             10          1
Stock-based compensation                               3,452       2,147
Non-cash interest expense                              24          36
Amortization of premiums on short-term investments     7           —
Changes in operating assets and liabilities:                      
Accounts receivable                                    (4,014)     (6,651)
Prepaid expenses and other assets                      91          (3,835)
Accounts payable                                       (242)       1,248
Accrued liabilities                                    (1,163)     2,817
Deferred revenues                                      13,683      11,885
Income taxes payable                                   181         333
Other noncurrent liabilities                           84          1,689
Net cash provided by operating activities              21,952      17,190
Cash flows from investing activities:                             
Purchases of short-term investments                    (83,547)    —
Purchases of property and equipment                    (11,188)    (7,499)
Purchases of intangible assets                         (49)        —
Net cash used in investing activities                  (94,784)    (7,499)
Cash flows from financing activities:                             
Proceeds from initial public offering, net of offering 84,534      —
costs
Proceeds from exercise of stock options                1,685       948
Proceeds from early exercise of stock options          384         390
Proceeds from issuance of Series C Preferred Stock     —           128
Principal payments under capital lease obligations     (2,401)     (1,476)
Non-contingent payment related to acquisition          (1,000)     —
Net cash provided by (used in) financing activities    83,202      (10)
Effect of exchange rate changes on cash and cash       (33)        (143)
equivalents
Net increase in cash and cash equivalents              10,337      9,538
Cash and cash equivalents at beginning of period       24,548      15,010
Cash and cash equivalents at end of period             $ 34,885    $ 24,548
                                                                 

                                              
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
FOUR-QUARTER BOOKINGS
(Unaudited)
(in thousands)
                                              
                                    Four Quarters Ended
                                    December 31,
                                    2012       2011
Revenues                             $ 91,420   $ 76,212
Deferred revenues, current                     
Beginning of the Four-Quarter Period 46,717     37,811
Ending                               56,497     46,717
Net change                           9,780      8,906
Four-Quarter Bookings                $ 101,200  $ 85,118
                                              

                                                                  
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
EBITDA AND ADJUSTED EBITDA
(Unaudited)
(in thousands)
                                                                  
                                         Three Months Ended Year Ended
                                         December 31,       December 31,
                                         2012      2011     2012     2011
Net income (loss)                         $ 1,175   $ (651)  $ 2,280  $ 1,954
Depreciation and amortization of property 1,829     1,473    6,895    4,939
and equipment
Amortization of intangible assets         115       119      446      434
Interest expense                          39        40       192      204
Provision for income taxes                281       125      358      416
EBITDA                                    3,439     1,106    10,171   7,947
Stock-based compensation                  870       635      3,452    2,147
Other (income) expense, net               132       443      174      332
Adjusted EBITDA                           $ 4,441   $ 2,184  $ 13,797 $ 10,426
                                                                  

                                                                  
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
(Unaudited)
(in thousands, except per share data)
                                                                  
                                         Three Months Ended Year Ended
                                         December 31,       December 31,
                                         2012      2011     2012     2011
GAAP gross profit                         $ 19,676  $ 16,529 $ 73,016 $ 62,965
Plus:                                                              
Stock-based compensation expense          81        47       276      143
Non-GAAP gross profit                     $ 19,757  $ 16,576 $ 73,292 $ 63,108
                                                                  
GAAP income (loss) from operations        $ 1,627   $ (43)   $ 3,004  $ 2,906
Plus:                                                              
Stock-based compensation expense          870       635      3,452    2,147
Non-GAAP income from operations           $ 2,497   $ 592    $ 6,456  $ 5,053
                                                                  
GAAP net income (loss)                    $ 1,175   $ (651)  $ 2,280  $ 1,954
Plus:                                                              
Stock-based compensation expense          870       635      3,452    2,147
Non-GAAP net income (loss)                $ 2,045   $ (16)   $ 5,732  $ 4,101
                                                                  
Non-GAAP net income (loss) attributable   $ 2,025   $ (16)   $ 2,694  $ 902
to common stockholders
                                                                  
Non-GAAP net income (loss) per share attributable                   
to common stockholders:
Basic                                     $ 0.07    $ 0.00   $ 0.23   $ 0.18
Diluted                                   $ 0.06    $ 0.00   $ 0.20   $ 0.17
Weighted average shares used in computing
non-GAAP net income (loss) per share                               
attributable to common stockholders:
Basic                                     30,807    5,194    11,891   5,053
Diluted                                   35,064    5,194    28,352   24,194
                                                                  

                                                                   
Qualys, Inc.
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS
(Unaudited)
(in thousands, except per share data)
                                                                   
                                          Three Months Ended Year Ended
                                          December 31,       December 31,
                                          2012     2011      2012     2011
Numerator:                                                          
Net income (loss)                          $ 1,175  $ (651)   $ 2,280  $ 1,954
Net income attributable to participating   (16)     —         (1,204) (1,518)
securities
Net income (loss) attributable to common   1,159    (651)     1,076    436
stockholders - basic
Undistributed earnings reallocated to      15       —         1,201    1,516
participating securities
Net income (loss) attributable to common   $ 1,174  $ (651)   $ 2,277  $ 1,952
stockholders - diluted
Denominator:                                                        
Weighted-average shares used in computing
net income (loss) per share attributable   30,807   5,194     11,891   5,053
to common stockholders - basic
Effect of potentially dilutive securities:                          
Convertible preferred stock                383      —         13,270   17,590
Common stock options                       3,874    —         3,187    1,537
Warrants                                   —        —         —        2
Contingently issuable shares related to an —        —         4        12
acquisition
Weighted-average shares used in computing
net income (loss) per share attributable   35,064   5,194     28,352   24,194
to common stockholders - diluted
Net income (loss) per share attributable                            
to common stockholders:
Basic                                      $ 0.04   $ (0.13)  $ 0.09   $ 0.09
Diluted                                    $ 0.03   $ (0.13)  $ 0.08   $ 0.08
                                                                   

CONTACT: Investors:
         Don McCauley
         Chief Financial Officer
         Qualys, Inc.
         +1 (650) 801-6181
         dmccauley@qualys.com
        
         Media:
         John Christiansen/Stacy Roughan
         Sard Verbinnen & Co
         +1 (415) 618-8750/+1 (310) 201-2040
         jchristiansen@sardverb.com/sroughan@sardverb.com
 
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