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Boardroom
CyberDefender Corporation


In The Boardroom With...

Mr. Gary Guseinov
CEO/Chairman of the Board
CyberDefender Corporation
www.CyberDefender.com
www.cyberdefendercorp.com

SecurityStockWatch.com: Thank you for joining us today, Gary. Please give us an overview of your background.

Gary Guseinov: I co-founded CyberDefender in 2003 and am currently the CEO and Chairman of the Board. We took the company public in 2007 and listed on the NASDAQ in mid-2010. Prior to CyberDefender I was president of a performance based online marketing company.

SecurityStockWatch.com: First off, can you give us an overview of the solutions CYDE brings to market?

Gary Guseinov: The Company’s platform combines our proprietary cloud-based/community powered malware analysis and distribution network with a broad range of software utilities with a remote 24/7 live tech-on-call service. We provide anti-virus, anti-spyware, optimization, secure browsing software and operate several technical support centers devoted to consumer PC repair and support. We are a trusted single source solution for all the digital needs of consumers and small businesses.

SecurityStockWatch.com: We know the security industry is growing rapidly; can you tell us how CyberDefender differs from your peers?

Gary Guseinov: CyberDefender is different from our peers in a number of important ways.

Firstly, we focus exclusively on the consumer and small business markets -- our products are developed specifically to meet the needs of the home and small business PC market. Most of our competitors focus on enterprise level customers, their concern about the consumer is an afterthought.

Secondly, CyberDefender markets its products through the direct response channel, where we virtually have no competition, and there are very high barriers to entry. And we have chosen a partner, Guthy-Renker, the best of the best in the industry, which gives us a very strong competitive advantage.

Thirdly, we offer the broadest platform of cloud-based security products. We operate our cloud-based community peer-to-peer platform, the Argus Network, which is the only one of its kind. Argus allows us to collect and distribute threat data while leveraging individual PCs. Argus effectively reduces operating expenses related to distributing software and threat signature updates.

Lastly, we realize that the "do it yourself" software model doesn't work for many consumers- some simply can't or don't know how to install software correctly, and others have PCs with completely unrelated issues which need resolution- as such we also offer a white glove remote PC repair service. Our US based techs are available 24/7 - and are able not to only resolve technical issues, but also sell our software.

SecurityStockWatch.com: Can you talk more about your marketing strategy?  

Gary Guseinov: CyberDefender's marketing and advertising is focused primarily on Direct Response Television. Our marketing campaigns are conducted under our wholly owned brands: DoubleMySpeed.com, MyCleanPC.com and MaxMySpeed.com.

We are the #1 direct response marketer of Internet security in the United States.
Marketing direct to the consumer has many advantages for us, including a direct relationship with our customer, control the channel/ pricing, and we don't rely heavily or entirely on any single box store or manufacturer.

As I mentioned, we have partnered with the largest and most successful direct response marketer in the world - Guthy-Renker. We have plans to expand globally into 28 countries around the world in late 2010 and throughout 2011. In addition we have a unique licensing deal with Wiley Publishing where we sell our products under the "For Dummies" brand.

SecurityStockWatch.com: What is your perspective on the market drivers for CYDE solutions at this time?

Gary Guseinov: The market is driven by an increasing complexity in devices, their interconnection, and the increasing sophistication of home networks. This is compounded by a global environment of increased threats, including spam, phishing attacks, scams, and identity theft…these threats are at all time highs today and growing.

Additionally, in a challenged economy, many consumers need to get a little more mileage out of their older computers in order to stretch their dollar, so products that increase speed and efficiency are in high demand. Most security companies offer do-it-yourself "DIY" packaged software to address these issues and lack a white glove complementary service, which many consumers simply require in order to install and use software properly.

According to the Parks Associates 2009 Report, the network-based premium-level remote technical support market is projected to more than double to $1.7 billion annually by 2014. We believe the total market numbers for this service, including SMB (small and midsized businesses) could be significantly larger. Our remote technical support service is growing very quickly, and this represents an incredibly exciting opportunity for the company.

SecurityStockWatch.com: We read with great interest your recent announcement that you expect GAAP revenues for the third quarter of 2010 to be in the range of $12 million to $13.5 million, an increase of 24% to 39% sequentially and 173% to 207% year over year. That is truly very impressive especially during these challenging economic times. Can you comment on this high growth?

Gary Guseinov: Thank you- our third quarter news was a very exciting announcement for us, as it represents our 10th consecutive quarter of revenue growth. Our CAGR for the past ten reported quarters is over 194%. We're very proud of our growth, and our large and growing clientele of consumers continues to grow rapidly-

Not only are we continuing to implement a proven, highly effective go to market strategy, we have a robust product pipeline with a number of exciting new launches planned for the second half of 2010.

SecurityStockWatch.com: Are there any particular "testimonials" or success stories you'd like to talk about?

Gary Guseinov: Today we have over 7.4 million users, and over 650,000 paying subscribers to date, and we have thousands upon thousands of success stories. In particular, our remote PC repair service has a very positive customer satisfaction rate, and our highly qualified support technicians can remotely fix virtually any problem our customers are experiencing -- from helping to set up a home network or new printer, to getting an iPod or cell phone to sync properly…we receive thank you's everyday from our customers. Customers call us thinking their computer might be dead, and about an hour later, they are up and running again- people are so thankful and that is very rewarding for all of us here at CyberDefender.

I would encourage anyone to visit our website and watch real testimonial videos from our customers at: http://cyberdefender.com/customer-reviews.html

SecurityStockWatch.com: What resources are available for end-users at www.CyberDefender.com ?

Gary Guseinov: CyberDefender Research Labs posts live, up to the minute data on new and emerging threats -- this can be very helpful for consumers and we keep it updated daily so consumers can check it in real time.

CyberDefender also offers a free diagnosis, both online and through our LiveTech remote PC repair service. So if you aren't sure if CyberDefender is right for your issue, or you aren't even sure what the problem is - we can help address that for no charge.

Additionally, we offer free trials of virtually all of our products.

Investors can visit our corporate site at www.cyberdefendercorp.com for a variety of investor relations information including press releases, financial information and recent media coverage.