INSIDE Secure announced consolidated sales results for the third quarter and nine months ended September 30, 2018. Consolidated revenue in the third quarter of 2018 was $9,076,000 against $11,556,000 a year ago. Revenue in the third quarter of 2018 was down 21% from the third quarter of 2017 which benefited from a particular strong base effect driven by high royalties revenues from a historical U.S. customer in the defense industry.

Consolidated revenue in the nine months of 2018 was $31,568,000 against $25,915,000 a year ago.

Based on the performance in first nine months of 2018, the Company confirms top line growth in 2018, more than offsetting the anticipated decline of a U.S. customer which generated a high level of revenue from royalties in the second half of 2017. The Company does not expect any more royalty revenue from this U.S. customer going forward. The Company also confirms that it anticipates adjusted operating expenses in 2018 to be in the lower end of the previously communicated $36 million to $37 million range, before getting back to a normative EBITDA margin greater than 20%.