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CyberGuard Survives Q1 Hurricanes: Page 2 of 3

However, the CEO admitted that there is still room for improvement, namely in the Asia/Pacific region and the company’s OEM business. The coming quarters will see a major focus on these areas, he said.

Clawson also admitted that branding is an issue. “We need to get our name out more widely." As a result, he added, the company is now embarking on a new global marketing program.

But, with the U.S. presidential election a matter of days away, Clawson predicts that the real breakout quarter will not come until March 2005. “The commercial sector gets very weak-kneed when there are all these changes going on. There are geopolitical issues that we can’t avoid now, and it pays to be a little cautious.”

Nonetheless, one exec on today’s call promised that CyberGuard will close “some big deals” this quarter and next, although he wouldn't specify.

In early trading today, CyberGuard shares fell 30 cents (4.82 percent) to $5.92.