VASCO Reports Results for Second =
Quarter and=20
First Six Months of 2008.![](3D"http://www.vasco.com/images/space.gif"=20)
![3Den=20](3D"http://www.vasco.com/images/world_en.gif"=20 "3Den") Thursday, 24 July, =
2008 |
|
<=
IMG=20
height=3D8=20
=
src=3D"http://www.vasco.com/images/space.gif"=20
width=3D1>
|
| Revenues for =
the second=20
quarter 2008 increased 9% over second =
quarter=20
2007 and were the highest in the =
Company=E2=80=99s=20
history; Operating income decreased 4% =
over=20
second quarter 2007. Updated =
guidance for=20
full-year 2008 provided. Financial =
results=20
for the second quarter of 2008 to be =
discussed=20
on conference call today at 10:00 a.m.=20
E.D.T. |
|
<=
IMG=20
height=3D8=20
=
src=3D"http://www.vasco.com/images/space.gif"=20
width=3D1>
|
OAKBROOK TERRACE, =
IL., and=20
ZURICH, Switzerland, July 24, 2008 - =
VASCO Data=20
Security International, Inc. (Nasdaq: =
VDSI) ( http://www.vasco.com/) today=20
reported financial results for the =
second=20
quarter and six months ended June 30,=20
2008.
Revenue for the second =
quarter of=20
2008 increased 9% to $35.4 million from =
$32.4=20
million for the second quarter of 2007, =
and for=20
the first six months of 2008, increased =
9% to=20
$64.3 million from $58.8 million for the =
first=20
six months of 2007.
Net =
income for=20
the second quarter of 2008 was $7.5 =
million, or=20
$0.20 per diluted share, an increase of =
$0.6=20
million, or 9%, from $6.9 million, or =
$0.18 per=20
diluted share, for the comparable period =
in=20
2007. Net income for the first six =
months=20
of 2008 was $12.4 million, or $0.32 per =
diluted=20
share, an increase of $0.5 million, or =
5%, from=20
$11.8 million, or $0.31 per diluted =
share, for=20
the comparable period in =
2007.
Other=20
Financial Highlights:
=E2=80=A2 =
=20
Gross profit was $25.4 million, or =
72% of=20
revenue, for the second quarter of 2008 =
and=20
$45.4 million, or 71% of revenue, for =
the first=20
six months of 2008. Gross profit was =
$20.7=20
million, or 64% of revenue for the =
second=20
quarter of 2007 and $38.2 million, or =
65% of=20
revenue, for the first six months of =
2007.
=E2=80=A2=20
Operating =
expenses=20
for the second quarter and first six =
months of=20
2008 were $16.4 million and $30.6 =
million,=20
respectively, an increase of 46% from =
$11.2=20
million reported for the second quarter =
of 2007=20
and an increase of 40% from $21.9 =
million=20
reported for the first six months of =
2007.=20
Operating expenses for the second =
quarter and=20
first six months of 2008 included $0.8 =
million=20
and $1.5 million, respectively, related =
to=20
stock-based incentives.
=E2=80=A2 =
=20
Operating income for the =
second=20
quarter and first six months of 2008 was =
$9.0=20
million and $14.9 million, respectively, =
a=20
decrease of $0.4 million, or 4%, from =
$9.4=20
million reported for the second quarter =
of 2007=20
and a decrease of $1.4 million, or 9%, =
from=20
$16.3 million reported for the first six =
months=20
of 2007. Operating income, as a =
percentage of=20
revenue, for the second quarter and =
first six=20
months of 2008 was 26% and 23%, =
respectively,=20
compared to 29% and 28% for the =
comparable=20
periods in 2007.
=E2=80=A2 =
=20
Earnings before interest, =
taxes,=20
depreciation and amortization (EBITDA) =
was $9.9=20
million and $16.9 million for the second =
quarter=20
and first six months of 2008, =
respectively, a=20
decrease of 3% from $10.2 million =
reported for=20
the second quarter of 2007 and a =
decrease of 5%=20
from $17.7 million reported for the =
first six=20
months of 2007.
=E2=80=A2 =
=20
Net cash balances, cash balances =
less=20
borrowing under VASCO=E2=80=99s line of =
credit, at June=20
30, 2008 totaled $42.1 million compared =
to $47.8=20
million and $38.8 million at March 31, =
2008 and=20
December 31, 2007, =
respectively.
Operational=20
and Other Highlights:
=E2=80=A2 =
=20
VASCO won 516 new customers in Q2 =
2008 (79=20
new banks and 437 new enterprise =
security=20
customers). For the first six =
months of=20
2008, VASCO won 1,107 new customers (150 =
banks=20
and 957 enterprise security =
customers).
=E2=80=A2=20
Banco Itau =
(Brazil)=20
secures more than 1.6 million end users =
with=20
VACMAN Controller/Digipass =
GO3
=E2=80=A2 =20
Independent Bankers' =
Bank=20
(U.S.) secures online banking with =
VACMAN=20
Controller/Digipass GO6
=E2=80=A2 =
=20
Mizuho Bank (Japan), Intesa =
Sanpaolo (Italy) and Banco Itau (Brazil) =
receive=20
VASCO's Market Vision Award
=E2=80=A2 =
=20
Digipass integrated into =
SonicWall=20
SSL-VPN
=E2=80=A2 =
VASCO=20
opens subsidiary in Mumbai =
India
=E2=80=A2 =20
VASCO expands US =
Channel=20
Partner Program
=E2=80=A2 =
=20
VASCO ranks 5th in Fortune Small =
Business=20
Top 100 and 14th in BusinessWeek's Hot =
Growth=20
Companies top 50.
Guidance for =
full-year=20
2008:
VASCO updated its full-year =
2008=20
guidance as follows:
=E2=80=A2 =
=20
Revenue growth of 15% to 25% for =
the=20
full-year 2008 over full-year 2007, a =
reduction=20
from its previous guidance of 10 =
percentage=20
points in each end of the =
range,
=E2=80=A2 =20
Gross margins as a=20
percentage of revenue of 60% to 68% for=20
full-year 2008, which is unchanged from =
previous=20
guidance, and
=E2=80=A2 =
=20
Operating margins as a percentage =
of=20
revenue of 20% to 25% for full-year =
2008, which=20
is also unchanged from previous =
guidance.
=E2=80=9CWe=20
are pleased with the progress we saw in =
the=20
business in Q2,=E2=80=9D stated T. =
Kendall Hunt,=20
Chairman & CEO. =E2=80=9CNot =
only did we=20
report a record level of revenues for a =
quarter,=20
but we also increased our deferred =
revenues and=20
saw a strong order flow throughout the =
quarter.=20
The current order flow reinforces our =
belief=20
that our growth rates over 2007 will =
accelerate=20
in the second half of the year. We =
are,=20
however, reducing our revenue guidance =
for two=20
primary reasons. One is to more =
fully=20
consider the impact of our business =
strategies=20
where a larger portion of our business =
activity=20
relates to recurring software revenue, =
which may=20
be deferred and recognized in future =
periods.=20
The second is to reflect a more=20
conservative outlook for the full year =
given the=20
uncertainty of the world =
economies.=E2=80=9D
"We=20
are continuing to make investments in =
our=20
infrastructure and continuing our =
aggressive=20
hiring plan," said Jan Valcke, VASCO's =
President=20
and COO. "Our business mix is =
evolving=20
favorably, as expressed by the increase =
in gross=20
margins. It is our goal to =
accelerate our=20
growth in enterprise security and other=20
non-traditional markets while =
strengthening our=20
position in the banking =
sector."
Cliff=20
Bown, Executive Vice President and CFO =
added,=20
=E2=80=9CThe continued strong operating =
performance has=20
allowed us to both invest strongly in =
the=20
business and strengthen our balance =
sheet.=20
While our net cash balance =
decreased $5.7=20
million or 12% during the quarter, our =
working=20
capital increased $7.8 million or 13% =
from March=20
31, 2008. Days Sales Outstanding =
(DSO) in=20
net accounts receivable increased to=20
approximately 83 days at June 30, 2008 =
from 67=20
days and 76 days at March 31, 2008 and =
December=20
31, 2007, =
respectively.=E2=80=9D
Conference Call=20
Details
In conjunction with this=20
announcement, VASCO Data Security =
International,=20
Inc. will host a conference call today, =
July 24,=20
2008, at 10:00 a.m. EDT - 16:00h CET.=20
During the Conference Call, Mr. =
Ken Hunt,=20
CEO, Mr. Jan Valcke, President and COO, =
and Mr.=20
Cliff Bown, CFO, will discuss =
VASCO=E2=80=99s results=20
for the second quarter 2008.
To =
participate=20
in this Conference Call, please dial one =
of the=20
following numbers:
USA/Canada: =
888 562=20
3356
International: +1 973 582=20
2700
Participants should =
reference=20
Conference ID - 54791512#.
The =
Conference=20
Call is also available in listen-only =
mode on http://www.vasco.com/. Please=20
log on 15 minutes before the start of =
the=20
Conference Call in order to download and =
install=20
any necessary software. The recorded =
version of=20
the Conference Call will be available on =
the=20
VASCO website 24 hours a =
day.
change=20
Commission rules and regulations. =
We use=20
EBITDA as a measure of performance, a =
simplified=20
tool for use in communicating our =
performance to=20
investors and analysts and for =
comparisons to=20
other companies within our industry. As =
a=20
performance measure, we believe that =
EBITDA=20
presents a view of our operating results =
that is=20
most closely related to serving our =
customers.=20
By excluding interest, taxes, =
depreciation and=20
amortization we are able to evaluate =
performance=20
without considering decisions that, in =
most=20
cases, are not directly related to =
meeting our=20
customers=E2=80=99 requirements and were =
either made in=20
prior periods (e.g., depreciation and=20
amortization), or deal with the =
structure or=20
financing of the business (e.g., =
interest) or=20
reflect the application of regulations =
that are=20
outside of the control of our management =
team=20
(e.g., taxes). Similarly, we find that =
the=20
comparison of our results to those of =
our=20
competitors is facilitated when we do =
not need=20
to consider the impact of those items on =
our=20
competitors=E2=80=99 =
results.
EBITDA should be=20
considered in addition to, but not as a=20
substitute for, other measures of =
financial=20
performance reported in accordance with=20
accounting principles generally accepted =
in the=20
United States. While we believe that =
EBITDA, as=20
defined above, is useful within the =
context=20
described above, it is in fact =
incomplete and=20
not a measure that should be used to =
evaluate=20
our full performance or our prospects. =
Such an=20
evaluation needs to consider all of the=20
complexities associated with our =
business=20
including, but not limited to, how past =
actions=20
are affecting current results and how =
they may=20
affect future results, how we have =
chosen to=20
finance the business and how regulations =
and the=20
other aforementioned items affect the =
final=20
amounts that are or will be available to =
shareholders as a return on their =
investment.=20
Net income determined in accordance with =
U.S.=20
GAAP is the most complete measure =
available=20
today to evaluate all elements of our=20
performance. Similarly, our Consolidated =
Statement of Cash Flows, which will be =
filed as=20
part of our annual report on Form 10-K, =
provides=20
the full accounting for how we have =
decided to=20
use resources provided to us from our =
customers,=20
lenders and shareholders.
###
About VASCO: =
VASCO is a=20
leading supplier of strong =
authentication and=20
e-signature solutions and services =
specializing=20
in Internet Security applications and=20
transactions. VASCO has positioned =
itself=20
as a global software company for =
Internet=20
Security serving a customer base of more =
than=20
7,600 companies in more than 100 =
countries,=20
including more than 1,150 international=20
financial institutions. VASCO=E2=80=99s =
prime markets=20
are the financial sector, enterprise =
security,=20
e-commerce and =
e-government.
Forward=20
Looking Statements
Statements made in =
this=20
news release that relate to future =
plans, events=20
or performances are forward-looking =
statements.=20
Any statement containing words such as=20
=E2=80=9Cbelieves,=E2=80=9D =
=E2=80=9Canticipates,=E2=80=9D =E2=80=9Cplans,=E2=80=9D =
=E2=80=9Cexpects,=E2=80=9D=20
and similar words, is forward-looking, =
and these=20
statements involve risks and =
uncertainties and=20
are based on current expectations. =
Consequently,=20
actual results could differ materially =
from the=20
expectations expressed in these =
forward-looking=20
statements.
Reference is made to =
our=20
public filings with the U.S. Securities =
and=20
Exchange Commission for further =
information=20
regarding VASCO and our =
operations.
For=20
more information contact:
Jochem =
Binst, +32 2=20
609 97 40, jbinst@vasco.com |
|
<=
IMG=20
height=3D8=20
=
src=3D"http://www.vasco.com/images/space.gif"=20
width=3D1>
|
Full =
Article
| |
<=
IMG=20
height=3D8=20
=
src=3D"http://www.vasco.com/images/space.gif"=20
width=3D1>
|
| | |
<=
IMG=20
height=3D8=20
=
src=3D"http://www.vasco.com/images/space.gif"=20
width=3D1>
Recent=20
News
Quick Links
Investor Press
Release Archives
Media=20
=
Alerts
| |
![3D"VASCO](3D"https://www.vasco.com/site_images/vs_logo.gif"=20){kind=logo}
![](3D"http://www.vasco.com/images/space.gif")
![3D"Seal](3D"https://www.vasco.com/images/2008-award.jpg")
![3DHotGrowthAwardBusinessWeek=20](3D"https://www.vasco.com/site_images/HotGrowthAwardSmallest.gif"=20)
![3D""=20](3D"http://www.vasco.com/images/icon_stop.gif"=20 "3D\"\""){kind=icon}
My VASCO.com![](3D"http://www.vasco.com/images/util_right.gif")