New Government Advisory of PoS Malware Serves as a Security Reminder

The US government today posted an advisory regarding newly identified malware, dubbed Backoff, that has been tied to recent PoS (point-of-sale) data breach investigations.  Many of the findings and recommendations reinforce our ongoing commitment to — and stance on — security when it comes to remote access technology.  We encourage all of our PoS customers to take a look at the advisory.  And if nothing else, it should serve as another important reminder when it comes to password best practices and phishing.

As part of our ongoing commitment to customer security, we provide a wide variety of built-in features that our customers can employ to further secure their environments, and we continue to take steps to educate all of our customers on how to best protect themselves from security threats like phishing and malware.

You can learn more about the security best practices we recommend when it comes to passwords here, including how you can take advantage of our built-in security features like two-factor authentication – additional steps/details can be found on our help site, for example here and here.

We also encourage sharing our tips on how to identify and protect yourself against phishing attempts.

         

LogMeIn Elevate at CompTIA’s ChannelCon

 

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LogMeIn will be on the road in Phoenix, August 4th through 6th at CompTIA’s annual ChannelCon. We’re excited to once again be attending and exhibiting at this informational, IT channel event! We have a couple of exciting things going on at ChannelCon including a live demo of our recently released cloud app management offering, AppGuru, as well as some other exciting things.

Introducing our new Elevate app!

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First, we’ll be introducing a new LogMeIn Elevate App that is reinventing the communication portal between LogMeIn and our partners – opening the door for two-way communications, community interaction, newsfeed updates, event calendar, resource center, and much more!

The new app is compatible with iPhone, iPad, iPod, Android Smartphones & tablets and is now available to download in the Apple or Android app store. Now you’re able to bring LogMeIn Elevate to wherever you are, on the device of your choice! It’s that easy.

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Join us at our Appfest!

Appfest is a Cirque du Soleil themed celebration open to anyone attending CompTIA’s ChannelCon. It will take place on Monday, August 4th from 8-11pm. There will be plenty of food, drinks, and entertainment, including a $500 gift card raffle. Be sure to stop by our booth (#600) to grab your VIP pass to the event!

         

LogMeIn Reports 35 Percent Year-Over-Year Revenue Growth in the Second Quarter, Raises Guidance by $6 Million

LogMeIn, Inc. (NASDAQ: LOGM) today announced its results for the second quarter of 2014.  Total revenue increased 35 percent to $55.0 million from $40.7 million reported in the second quarter of 2013.

Adjusted EBITDA for the second quarter of 2014 was $11.5 million, or 21 percent of revenue, as compared to $8.1 million, or 20 percent of revenue in the second quarter of 2013.

Non-GAAP net income for the second quarter of 2014 was $7.3 million, or $0.29 per diluted share.  Non-GAAP net income excludes $6.7 million in stock compensation expense, $181,000 in patent litigation related expense and $2.0 million in acquisition related costs and amortization.  This compares to non-GAAP net income of $3.3 million, or $0.13 per diluted share, reported in the second quarter of 2013.

GAAP net income for the second quarter of 2014 was $1.3 million, or $0.05 per diluted share, as compared to GAAP net loss of $1.4 million, or $0.06 per diluted share, reported in the second quarter of 2013.

GAAP cash flow from operations for the second quarter of 2014 was $21.0 million, or 38 percent of revenue.  The Company closed the quarter with cash, cash equivalents and short-term investments of $221.0million.  Additionally, the Company reported total deferred revenue of $108.3 million, an increase of 39 percent from the $77.7 million reported in the second quarter of 2013.

A reconciliation of the comparable GAAP financial measures to non-GAAP measures used above is included in the attached tables.

“We’re happy to report another very good quarter and a great first half, with revenue and earnings that exceeded the high-end of our guidance,” said Michael Simon, CEO of LogMeIn.

“Our key growth drivers continue to perform very well, with join.me once again delivering 100-plus percent year-over-year revenue growth, strong ongoing contribution from our SMB IT customer base and early, encouraging customer demand and traction in the Internet of Things with Xively.”

As a result, we are now forecasting revenue growth in excess of thirty percent for 2014,” concluded Simon.

Business Outlook   

Based on information available as of July 24, 2014, LogMeIn is issuing guidance for the third quarter 2014 and fiscal year 2014.

Third Quarter 2014: The Company expects third quarter revenue to be in the range of $56.0 million to $56.5 million.

Adjusted EBITDA is expected to be in the range of $11.5 million to $12.0 million, representing an adjusted EBITDA margin of 20 to 21 percent.

Non-GAAP net income is expected to be in the range of $6.7 million to $7.1 million, or $0.27 to $0.28 per diluted share.  Non-GAAP net income excludes an estimated $6.7 million of stock compensation expense, $100,000 in patent litigation related expense and $2.0 million in acquisition related costs and amortization.

Non-GAAP net income for the third quarter assumes an effective tax rate of approximately 30 percent. Non-GAAP net income per diluted share for the third quarter of 2014 is based on an estimated 25.0 million fully-diluted weighted average shares outstanding.

Including stock compensation expense, patent litigation related expense and acquisition related costs and amortization, we expect to report GAAP net income in the range of $700,000 to $1.1 million, or $0.03 to $0.04 per share.

GAAP net income for the third quarter assumes an effective tax rate of approximately 20 percent. GAAP net income per share for the third quarter of 2014 is based on an estimated 25.0 million weighted average shares outstanding.

Fiscal year 2014: The Company expects full year 2014 revenue to be in the range of $216.5 million to $218.0 million.

Adjusted EBITDA is expected to be in the range of $45.0 million to $48.0 million, representing an adjusted EBITDA margin of 21 to 22 percent.

Non-GAAP net income is expected to be in the range of $26.3 million to $28.0 million, or $1.05 to $1.12 per diluted share.  Non-GAAP net income excludes an estimated $25.8 million in stock compensation expense, $400,000 in patent litigation related expense and $7.0 million in acquisition related costs and amortization.

Non-GAAP net income for the full fiscal year 2014 assumes an effective tax rate of approximately 30 percent.  Non-GAAP net income per diluted share for 2014 is based on an estimated 25.0 million fully-diluted weighted average shares outstanding.

Including stock compensation expense, patent litigation related expense and acquisition related costs and amortization, we expect to report GAAP net income in the range of $3.5million to $5.4 million, or $0.14 to $0.21 per share.

GAAP net income for the full year assumes an effective tax rate of 20 percent.  GAAP net income per share for 2014 is based on an estimated 25.0 million weighted average shares outstanding.

Conference Call Information for Today, Thursday, July 24, 2014

The Company will host a corresponding conference call and live webcast at 5:00 p.m. Eastern Time today.  To access the conference call, dial 888-481-2877 (for the U.S. and Canada) or 719-325-2495 (for international callers), and enter conference ID 715-9376.  A live webcast will be available on the Investor Relations section of the Company’s corporate website at www.LogMeIn.com and via replay beginning approximately two hours after the completion of the call until the Company’s announcement of its financial results for the next quarter.  An audio replay of the call will also be available to investors beginning at approximately 8:00 p.m. Eastern Time on July 24, 2014 until 11:59 p.m.  Eastern Time on July 31, 2014, by dialing 888-203-1112 (for the U.S. and Canada) or 719-457-0820 (for international callers) and entering conference replay pass code 715-9376.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures including adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating income, non-GAAP income before provision for income taxes, non-GAAP provision for income taxes, non-GAAP net income, non-GAAP net income per diluted share and non-GAAP cash flow from operations.

Adjusted EBITDA is GAAP net (loss) income excluding (provision for)  benefit from income taxes, interest income, net, other expense, depreciation and amortization, acquisition related costs, stock compensation expense, and patent litigation related expense.  Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.  Non-GAAP operating income excludes acquisition related costs and amortization, stock compensation expense, and patent litigation related expense. Non-GAAP provision for income taxes excludes the tax impact of acquisition related costs and amortization, stock compensation expense, and patent litigation related expense. Non-GAAP net income and non-GAAP net income per diluted share exclude acquisition related costs and amortization, stock compensation expense, and patent litigation related expense. Non-GAAP cash flow from operations excludes payments and receipts related to patent litigation related costs and acquisition related payments.

The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures. The Company believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods and uses these measures in financial reports prepared for management and the Company’s board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software-as-a-service companies, many of which present similar non-GAAP financial measures to investors. The Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant elements that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management in determining these non-GAAP financial measures. In order to compensate for these limitations, management of the Company presents its non-GAAP financial measures in connection with its GAAP results. The Company urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP measures used in this press release are included in this release.

About LogMeIn, Inc.

LogMeIn (Nasdaq:LOGM) transforms the way people work and live through secure connections to the computers, devices, data, and people that make up their digital world. The Company’s cloud services free millions of people to work from anywhere, empower IT professionals to securely embrace the modern cloud-centric workplace, give companies new ways to reach and support today’s connected customer, and help businesses bring the next generation of connected products to market.

LogMeIn is headquartered in Boston’s Innovation District with offices in Australia, Hungary, India, Ireland, and the UK.

Cautionary Language Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the popularity, value and effectiveness of the Company’s products and services, the progress or success of the Company’s products and services, and the Company’s financial guidance for fiscal year 2014 and the third quarter of 2014. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control.  The Company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, dependence on the Company’s markets, customer adoption of the Company’s solutions, the Company’s ability to attract new customers and retain existing customers, adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which the Company operates, intellectual property litigation, the Company’s ability to continue to promote and maintain its brand in a cost-effective manner, the Company’s ability to compete effectively, the Company’s ability to develop and introduce new products and add-ons or enhancements to existing products, the Company’s ability to manage growth, the Company’s ability to attract and retain key personnel, the Company’s ability to protect its intellectual property and other proprietary rights, the result of any pending litigation, and other risks detailed in the Company’s other publicly available filings with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change.  The Company undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.

LogMeIn, LogMeIn Central, LogMeIn Pro, LogMeIn Rescue, join.me, Cubby, AppGuru, Xively and BoldChat are trademarks or registered trademarks of LogMeIn in the US and other countries around the world. 

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Introducing the Rescue Mac Technician Console

The Rescue team is excited to announce the general availability of the Rescue Mac Technician Console! The addition of the Mac TC provides more flexibility for technicians to support their customers with the device or operating system they prefer.

The Mac TC offers many of the great features the PC Console currently offers, including remote control access, file manager, system information, reboot and reconnect, and unattended access, among many others. The Mac TC empowers support agents to quickly resolve customer issues on the first interaction. Try it for free today!

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LogMeIn Responds to Short Thesis

In light of a recent report that came out with a short thesis on LogMeIn (LOGM), we would like to highlight the following six points:

1.   LogMeIn has been gaining IT management customers, not losing them in recent quarters.

2. LogMeIn management has stated that join.me is expected to grow triple digits in 2014.

3. LogMeIn management has stated that BoldChat is performing very well and is geared toward mobile customer engagement.

4. AppGuru is a highly differentiated solution for Bring Your Own App/Device (BYOA/D) from “Me Too” and other Remote Monitoring and Management (RMM) solutions. Furthermore, AppGuru is geared toward our Central customer base.

5. Not taken into account when evaluating LogMeIn, is the potential of Xively and the Internet of Things (IoT) market.

6. Since our first publicly reported quarter, we have always calculated our renewal rates in the same manner, add on sales do not factor into our renewal rate.

We look forward to providing further information on our conference call on July 24th at 5pm.

         

LogMeIn Sets Date to Announce Second Quarter 2014 Results

LogMeIn will report its second quarter 2014 financial results for the period ended June 30, 2014 following the close of market on Thursday, July 24th, 2014. On that day, management will hold a conference call and webcast at 5:00 p.m. ET to review and discuss the Company’s results for the second quarter.

  • What: LogMeIn Second Quarter 2014 Financial Results Conference Call
  • When: Thursday, July 24th, 2014
  • Time: 5:00 p.m. ET

Live Call:

  • + 1- 888-481-2877 (U.S. and Canada)
  • +  1- 719-325-2495 (international)
  • 7159376 (conference ID)

Replay:

  • + 1- 888-203-1112 (U.S. and Canada)
  • + 1- 719-457-0820 (international)
  • 7159376 (passcode)

Webcast:

         

Customer Security Tips

As part of our ongoing commitment to customer security, we’d like to offer our customers some advice on IT security and user password best practices, and how to better utilize the multiple layers of security that are built into LogMeIn products.

Some important user password best practices include:

  • Use two-factor authentication that is simple, free and available on all LogMeIn products
  • Create a unique, complex password for every account, device and system
  • Consider using a password safe application to generate secure passwords and store them safely
  • Never use simple passwords like “password” or “12345”
  • Always use complex passwords of at least eight characters in length, including upper- and lower-case letters, numbers and symbols

The above tips are especially relevant in efforts to protect against scam “phishing” tactics. For more detailed information on how to identify and avoid fraudulent emails,  click here.

         

Avoiding Phishing Attacks

What is Phishing?

Phishing is an email scam designed for identity theft. The most successful phishing emails are typically disguised to look like they come from a known or reputable source. These emails usually contain attachments or download links to malicious software, such as keystroke loggers, banking trojans, spywares, and rootkits. A keystroke logger is one of the most dangerous threats. An attacker can use a keystroke logger to steal user names and passwords as you type, including credentials to your emails, remote computers, HR systems, etc.

Tips on how to identify a fraudulent email

Legitimate organizations typically do not request sensitive information via email. LogMeIn will never email you for any of the following sensitive information:

  • Verify your account information – except to verify your email address after registration.
  • Ask for your password.
  • Confirm personal information such as age, social security number, or home address.
  • To provide information of a financial nature.
  • Download a new product or SSL certificate from a provided link.

If you receive a suspicious email purporting to be from a LogMeIn address, we recommend the following actions:

  • Do not reply
  • Do not open any attachments
  • Do not click on any links
  • Contact LogMeIn’s technical support team

Tips on how to identify phishing scams

  • Threats and Calls to Action - Phishers like to use scare tactics, and may threaten to disable an account or delay services until you update certain information. Most phishing campaigns include a call to action. If the content places any kind of urgency as far as “you must click into your account now”, it is potentially a scam.
  • Too generic – Watch out for generic-looking requests for information. Fraudulent emails are often not personalized.
  • Bad grammar – Scammers are not known for Grade A grammar and spelling.  This is a common trait among many fraudulent email scams. Some of these messages have been poorly translated from other languages, or use letters from the alphabet to substitute certain symbols (which is a common tactic meant to evade spam filters).
  • Links in email - If you see a link in a suspicious email message, don’t click on it. Hover your mouse over the link (without actually clicking on the link) to reveal whether the real address matches the URL that was typed in the message. In the example below, the link reveals the real web address that the user will be routed to, as shown in the red box. Notice that the URL string in the text looks nothing like the web address to which the user will be directed.

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  • Email body as an image – It is a common tactic of many spammers to make the whole message body an image so as to track the user and evade spam filters.
  • IP reputation – You can look up the sender IP’s reputation through the Return Path’s Sender Score (www.senderscore.org) website. The lower the score, the more likely the email is a phishing attempt.

Tips on what to do in your LogMeIn account if you think you’ve been phished

  • Clean your computer system of possible malware (including key loggers) – Immediately clean your system to remove any malware and key loggers that may have been installed.
  • Change passwords - Once your device is clean, change any passwords you might have revealed. If you used the same password for multiple resources, make sure to change it for each account, and do not use that password in the future.
  • Enable Two-Step Verification – With two-step verification, after entering your LogMeIn ID and password, you will also be required to enter a one-time code that you get from either a mobile authenticator app or via email. The following links provide additional information on this feature:
  •    http://help.logmein.com/SelfServiceKnowledgeRenderer?type=FAQ&id=kA030000000DGF0CAO
  •    http://help.logmein.com/SelfServiceKnowledgeRenderer?type=FAQ&id=kA0a0000000shEiCAI
  • Do not fill embedded forms with sensitive information – Never submit sensitive, personal or confidential information via forms embedded within email messages. Senders are often able to track all information entered.
  • Be careful with URLs – Pay attention to the URL of a website. Malicious websites may look identical to a legitimate site, but be aware that the URL may use a variation in spelling or a different domain.
  • Protect your computer – Make sure you maintain effective anti-virus, anti-spyware and Internet Security software to help combat phishing.
  • Think twice before opening an attachment – Be careful about opening or saving any document or attachment that come with spam mails.
  • Don’t disclose personal information – Never ever send any information about your account in an email. LogMeIn’s technical support team is available by phone at 1-866-478-1805 should you require assistance.
  • Make sure your receiving mail server does a Sender Policy Framework (SPF) check – SPF allows recipients to verify sender identity (at the organizational level) by allowing domain owners to publish, via DNS, the IP addresses that are authorized to send emails from the specified domains. Ask your mail server administrator to configure SPF validation – this is usually done in the spam filter.
  • Resources:
  •    http://www.openspf.org/FAQ/Testing_and_validating
  •    https://support.microsoft.com/kb/2640313

Ways to report a suspected phishing scam

  • The Anti-Phishing Working Group is an organization tasked to help to fight phishing scams. You can report phishing at http://www.antiphishing.org/report-phishing/
  • Call the LogMeIn support line FIRST, and note that they might ask you to forward the email to a specific address.
         

LogMeIn Introduces AppGuru

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Empowering businesses to securely embrace the app-centric world.

We’re excited to announce our new cloud app management offering, AppGuru. Specifically designed for IT professionals, AppGuru will change the way companies detect and secure employee-introduced applications and help IT professionals regain control of today’s consumerized IT environments.

IT’s acceptance of consumer devices into their network during the bring-your-own-device (BYOD) era opened up the door for an empowered workforce to introduce a flood of cloud applications to their corporate network. This exponentially increased the levels of business data flowing into the cloud and created an inability to understand what apps their employees were using in addition to existing, IT provided solutions. LogMeIn’s recent study fielded with Edge Strategies, found that 70% of organizations have a presence of bring-your-own-app (BYOA) and that IT underestimates the sheer volume of apps being brought into their organization by 7X.

This BYOA trend represents the latest example of the “Shadow IT” phenomenon, and has placed IT at an important crossroads; they can either ignore a trend that can be a threat to their business or address the challenge head on to bridge the gap between employee’s productivity wants, and their IT security needs.

With AppGuru, IT can take a managed and secure approach to cloud app adoption. Here’s a closer look at how AppGuru enables IT to embrace, secure and take control of the app-centric world:

  • Discover: IT can discover what apps are being used on the network, by whom, and on what devices, in addition to monitoring how much company data is going into the cloud
  • Analyze: Evaluate the security risks of cloud apps in use and uncover efficiencies across the organization with similar apps in use.
  • Provision: Manage your company’s current apps and subscriptions with out-of-the-box support for today’s most popular cloud apps, including Basecamp, Box, Evernote, GitHub, Google Apps, Jive, join.me, Office 365, Salesforce, and Trello.
  • Control: Enforce your company’s security standards, manage the adoption of cloud applications, and control feature usage within app policies.
  • Use: This centralized approach allows IT to access all of their company apps in one place and provide your company with the needed to streamline the adoption of new apps

Looking to get ahead of the trend and keep your network, data and business secure? Please visit AppGuru.com for more information.

AppGuru Discovery

         

[Infographic] Avoid the Sales/IT Collision Scenario: Using apps for better collaboration

What’s great for sales productivity isn’t always good for IT. Nearly 56% of sales teams agree that slow connections are one of the biggest issues with traditional online meeting apps, so it’s no surprise that many sales teams are bringing in their own cloud-based apps to demo, sell and close deals faster and easier.

The infographic below illustrates findings from an InfoWorld research report, based on an IDG QuickPulse survey administered to IT professionals. The report provides insight into the BYOA trend, identifies pain points associated with traditional online meeting tools, and address business-driven IT requirements that benefit the overall organization. You can get a full copy of the free report, Avoid the Sales/IT Collision Scenario: Using app for better collaboration, here, or get some quick highlights below.

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