openPR Logo
Press release

VASCO Reports Record Results for Second Quarter and First Six Months of 2007

07-26-2007 06:45 PM CET | IT, New Media & Software

Press release from: VASCO Data Security

Revenues for the second quarter 2007 increased 75% over Q2 2006; Operating income increased 132% over Q2 2006. Revenue for the quarter is best in the Company’s history; VASCO increases its full-year 2007 guidance for revenue and operating margins; Financial results for the periods ended June 30, 2007 and guidance for full-year 2007 will be discussed on the conference call today at 10:00 a.m. E.D.T.

OAKBROOK TERRACE, Ill., and ZURICH, Switzerland, July 26, 2007 - VASCO Data Security International, Inc. (Nasdaq: VDSI) (www.vasco.com) today reported financial results for the second quarter and six-months ended June 30, 2007.

Revenues for the second quarter of 2007 increased 75% to $32.4 million from $18.5 million for the second quarter in 2006 and, for the first six months of 2007, increased 83% to $58.8 million from $32.2 million for the first six months in 2006.

Net income for the second quarter of 2007 was $6.9 million or $0.18 per diluted share, an increase of $3.8 million or 126% from $3.0 million, or $0.08 per diluted share for the comparable period in 2006. Net income for the first six months of 2007 was $11.8 million or $0.31 per diluted share, an increase of $7.6 million or 181% from $4.2 million, or $0.11 per diluted share for the comparable period in 2006.

Other Financial Highlights:
• Gross profit was $20.7 million or 64% of revenue for the second quarter and $38.2 million or 65% of revenue for the first six months of 2007. Gross profit was $11.9 million or 64% of revenue for the second quarter and $21.3 million or 66% of revenue for the first six months of 2006.
• Operating expenses for the second quarter and first six months of 2007 were $11.2 million and $21.9 million, respectively, an increase of 44% from $7.8 million reported for the second quarter 2006 and an increase of 53% from $14.3 million reported for the first six months of 2006. Operating expenses for the second quarter and first six months of 2007 included $0.5 million and $0.9 million, respectively related to stock-based incentives.
• Operating income for the second quarter and first six months of 2007 was $9.5 million and $16.3 million, respectively, an increase of $5.4 million or 132% from $4.1 million reported for the second quarter of 2006 and an increase of $9.3 million or 134% from the $7.0 million reported for the first six months of 2006. Operating income, as a percentage of revenue, for the second quarter and first six months of 2007 was 29.1% and 27.7%, respectively, compared to 22.1% and 21.7% for the comparable periods in 2006.
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was $10.2 million and $17.8 million for the second quarter and first six months of 2007, respectively, an increase of 122% from $4.6 million reported for the second quarter of 2006 and an increase of 158% from $6.9 million reported for the first six months of 2006.
• Net cash balances, cash balances less borrowing under VASCO’s line of credit, at June 30, 2007 totaled $26.0 million compared to $16.8 million and $12.6 million at March 31, 2007 and December 31, 2006, respectively.
Operational and Other Highlights:
• VASCO won 631 new customers in the second quarter of 2007 (113 banks and 518 enterprise security) and 1,250 in the first six months of 2007 (207 banks and 1,043 enterprise security).
• VASCO launched Digipass 840 for the blind and visually impaired.
• VASCO launched Ultra-light Digipass 805 One-Button Reader to its Client Authentication Suite.
• VASCO is included in Fortune’s Small Business magazine FSB 100, Crain’s Fast 50 and Business Week’s Hot Growth 100.
• VASCO presented its Market Vision Award to PostFinance for its approach of Swiss e-banking.
• VASCO’s aXs GUARD study sees swift rise of spam & malware threats for Small and Medium Enterprises (SME’s).

Guidance for full-year 2007:
VASCO is updating its guidance for the full-year 2007 as follows:
• Revenue growth is projected to be 55% to 65% for the full-year 2007 over full-year 2006, as compared to previous guidance of 35% to 45%,
• Gross profit (margin) as a percentage of revenue for full-year 2007 is projected to be in the range of 60% to 68%, which is unchanged from the previous guidance, and
• Operating profit (margin) as a percentage of revenue for full-year 2007 is projected to be in the range of 23% to 30% as compared to previous guidance of 18% to 25%.
“The results for the quarter, and year-to-date, confirm that each of our core strategies is working,” said Ken Hunt, VASCO’s CEO and Chairman. “Our Full-Option, All-Terrain product strategy is generating record numbers of new customers. Our existing customers, which are the source of our sustainable, repeatable revenues, are contributing strongly to our record level of revenues. And, finally, our strategies for improving operating efficiency have resulted in an increase in operating income as a percentage of revenue. In the second quarter of 2007, operating income was approximately 29% of revenue compared to approximately 22% in the second quarter of 2006.”

"The results of the second quarter continue the trend of strong growth," said Jan Valcke, VASCO's President and COO. "The growth reflects an increase in the size of the market as the use of the internet continues to expand, recognition by the market that it needs stronger forms of authentication to combat the increasing sophistication of the criminals in their attempts to steal persons’ identities and the continued development of our product line. We are continually investing in our VACMAN platform and other new products to ensure that we are able to meet fully the needs of our customers. As we start the third quarter, we have a backlog of firm orders to be shipped in the third quarter of $27.1 million, which is 68% higher than the $16.1 million backlog we had when entering the third quarter of 2006 and 45% higher than the $18.7 million in actual sales reported for Q3 2006."

Cliff Bown, Executive Vice President and CFO added, “Our balance sheet continues to strengthen as a result of the strong operating performance. Our net cash balance at June 30, 2007 was $26.0 million, an increase of $9.2 million or 55% from March 31, 2007. At June 30, 2007 our net working capital was $37.8 million, an increase of 31% from $28.8 million at March 31, 2007. Days Sales Outstanding (DSO) in net accounts receivable decreased to approximately 67 days at June 30, 2007 from 81 days at March 31, 2007.”

Conference Call Details
In conjunction with this announcement, VASCO Data Security International, Inc. will host a conference call today, July 26, 2007, at 10:00 a.m. EDT - 16:00h CET. During the Conference Call, Mr. Ken Hunt, CEO, Mr. Jan Valcke, President and COO, and Mr. Cliff Bown, CFO, will discuss VASCO’s actual results for the for the periods ended June 30, 2007 and full-year 2007 guidance.
To participate in this Conference Call, please dial one of the following toll-free numbers:

USA/Canada: +1 888-603-6873
International: +1 973-582-2706

And mention access code 9015756 or VASCO to be connected to the Conference Call.

The Conference Call is also available in listen-only mode on www.vasco.com. Please log on 15 minutes before the start of the Conference Call in order to download and install any necessary software. The recorded version of the Conference Call will be available after the Conference Call on the VASCO website.

About VASCO: VASCO is the number one supplier of strong authentication and e-signature solutions and services. VASCO has established itself as the world’s leading software company specialized in Internet Security, with a customer base of over 5,300 companies in more than 100 countries, including close to 850 international financial institutions. VASCO’s prime markets are the financial sector, enterprise security, e-commerce and e-government.

Forward Looking Statements
Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as “believes,” “anticipates,” “plans,” “expects,” and similar words, is forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

Reference is made to the Company's public filings with the US Securities and Exchange Commission for further information regarding the Company and its operations.

For more information contact:
Jochem Binst, +32 2 609 97 00, jbinst@vasco.com

About VASCO: VASCO is the number one supplier of strong authentication and e-signature solutions and services. VASCO has established itself as the world’s leading software company specialized in Internet Security, with a customer base of over 5,300 companies in more than 100 countries, including close to 850 international financial institutions. VASCO’s prime markets are the financial sector, enterprise security, e-commerce and e-government.

VASCO Data Security

Press contact: Jochem Binst, jbinst@vasco.com

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release VASCO Reports Record Results for Second Quarter and First Six Months of 2007 here

News-ID: 24778 • Views: 1068

More Releases from VASCO Data Security

VASCO Data Security advises schools and universities to sufficiently secure thei …
India, Mumbai, August 24th, 2010 - VASCO Data Security Inc. (Nasdaq: VDSI; vasco.com ), a leading software security company specializing in authentication products, urges schools, colleges and universities as well as their students to be more careful and aware of security issues when using online platforms for educational purposes. To prevent identity and data theft, online applications used by schools and universities should be sufficiently protected. They are still enjoying their
Azlan-Tech Data To Distribute VASCO’s Digipass Pack Range in EMEA Region
Distribution Agreement Aims at SME Entreprise Security Market; Boosts Availability of VASCO’s Digipass Packs in Broad Market Channel OAKBROOK TERRACE, Ill., and ZURICH, Switzerland, September 4, 2007 - VASCO Data Security International, Inc. (Nasdaq: VDSI) (www.vasco.com ), the leading software security company specializing in authentication products, today announced that it has signed a non-exclusive distribution agreement with Azlan-Tech Data, a leading ICT distributor in Europe and the Middle East. Azlan-Tech
VASCO Launches Next Generation of Digipass Packs for SME’s
Secure Remote Access and Network Access for 5 Users and more; Digipass Packs Bring Security of Banking Sector to SME’s; Easy to Install Strong Authentication Solutions for Every Company OAKBROOK TERRACE, Ill., and ZURICH, Switzerland, September 04, 2007 - VASCO Data Security International, Inc. (Nasdaq: VDSI) (www.vasco.com), the leading software security company specializing in authentication products, today announced its next generation of Digipass Packs (www.digipasspack.com ). VASCO’s Digipass Packs offer out-of-the-box
VASCO Offers Smart Card Based e-Security to the Blind and Visually Impaired with …
Accessibility of Internet Applications Boosted by VASCO’s Digipass Comfort Voice Range; Seamless Support by VACMAN Controller Makes Digipass 840 CV Compatible with the Entire Digipass Product Range OAKBROOK TERRACE, Ill., and ZURICH, Switzerland, June 12 , 2007 - VASCO Data Security International, Inc. (Nasdaq: VDSI) (www.vasco.com), the leading software security company specializing in authentication products, today announced that it has strengthened its Digipass product line with Digipass 840 Comfort Voice (CV).

All 5 Releases


More Releases for Conference

Surgery Conference
5th International Surgery and Surgeons Meet will be organized on June 26-27,2019 in New York, USA. The conference highlights the theme “Disseminating advance research and Innovative Technology in the field of Surgery”. Surgeons Meet 2019 aims to gather leading surgeons, eminent scientists, research scholars, students along with industrial and pharmacy professionals to express their views on the latest technologies for future Surgery research. The event is designed in a way
Surgery Conference 2018
After the successful conference of Surgical Nursing and Nursing Education 2017, Conference Series Ltd is bringing forward another conference on 28th Surgical Nursing and Nurse Education Conference (Surgical Nursing 2018) which is scheduled on August 08-09, 2018 at Osaka, Japan with a theme of “Innovative Innovations towards Surgical Nursing and Nurse Education”. The conference invites all the participants across the globe to attend and share their insights and convey recent
Pediatric Nursing 2017 Conference
Recommended | Nursing Conferences | Pediatric Nursing Conferences Conference Series LLC takes immense pleasure & feels honoured in inviting the contributors across the globe to attend the “28th International conference on Pediatric Nursing & Healthcare which will be held in September 04-05, 2017 at Edinburgh, Scotland. Target Spectators: We extend warm welcome to distinguished Pediatric Nobel laureates, Speakers, Delegates, Exhibitors, Researchers, students around the world to explore the
22nd World Cardiology Conference
Diabetes Mellitus: A Major Risk Factor for Heart Diseases There has been a dramatic increase in the incidence of Diabetic heart disease worldwide, which has been exacerbated by the growing risk factors including Hypertension, abnormal blood lipids and obesity. Diabetic heart disease" (DHD) refers to heart disease that develops in people who have diabetes. If you have diabetes you are two to four times more prone to cardiovascular disease that affect
SEO Conference 2013 Bulgaria
On March 22, over 400 people are expected to arrive at the Inter Expo Center Sofia in Bulgaria for the SEO Conference 2013. As noted on the SEO Conference Bulgaria – official site, the event, which will take place from 9 a.m. to 7 p.m., is the country’s main conference that focuses on search engine optimization and marketing. It is also an outstanding meeting place for customers, optimizers and representatives
LINQ Conference Successfully Concluded
The 1st European Conference LINQ 2012 on "Learning Innovations and Quality" took place to great success on the 23rd of October in Brussels. The organizers from the University of Duisburg-Essen in Germany and the Q-Cert-VET project consortium greeted a variety of international authors, European project representatives, and participants from over 20 countries who came to take part in the development of a discussion on the potential points of interaction between