NW_19991029_VASCO Data Security Reports Third Quarter Results
OAKBROOK TERRACE, ILLINOIS, October 21, 1999 -- VASCO Data Security International, Inc. (OTC BB: VDSI.OB) today announced its consolidated financial results for its third quarter ended September 30, 1999. Revenues for the quarter increased 16% to $4,653,000 as compared to $4,025,000 for the third quarter of 1998. Total revenue for the nine months ended September 30, 1999 increased 29% to $13,412,000, as compared to $10,432,000 for the first nine months of 1998.
Operating income for the third quarter of 1999 increased to $460,000, or $0.02 per share, as compared with an operating loss of $157,000, or $0.01 per share, for the third quarter of 1998. For the nine months ended September 30, 1999, operating income reached $236,000, or $0.01 per share, as compared to an operating loss of $648,000, or $0.03 per share, for the same period in 1998.
For the third quarter of 1999, the company reported a net loss of $114,000, or $0.00 per share, as compared with a net loss of $717,000, or $0.04 per share, for the third quarter of 1998. For the nine months ended September 30, 1999, net loss decreased to $1,524,000, or $0.07 per share, as compared to a net loss of $2,320,000, or $0.11 per share, for the same period of 1998.
VASCO attributes its continued revenue growth to the increased demand for securing e-business and commerce applications. The company’s customers, which include blue-chip corporations, government agencies, and 130 leading banks around the world, are making Internet-based services a priority to drive their own revenue growth and reduce their distribution costs. Security is a critical technology to enable these efforts by protecting information and financial assets, and by helping to bring new customers online.
The acquisition of IntelliSoft and its product line that includes PKI, true Single Sign-On, and Web access control solutions, completed subsequent to September 30, 1999, has reaffirmed and extended VASCO's commitment to the e-security market. VASCO expects the acquisition, which will be accounted for as a pooling of interests, to be accretive during 2000.
"We’ve found that our customers and prospects are wrapping up their Y2K preparation and are moving aggressively to compete in the new Web economy," stated Mario Houthooft, President and CEO of VASCO. "They are turning to VASCO to help them establish or extend their Internet and enterprise security at the same rapid pace. With the addition of IntelliSoft’s people and products, VASCO can now provide our customers with unmatched speed in bringing end-to-end security to their e-business and e-commerce services – and with far less effort."
About VASCO Data Security
VASCO Data Security, a US corporation, helps organizations rapidly and effectively secure their e-business and e-commerce applications and services. The company’s family of Digipass, VACMAN, and SnareWorks products offers end-to-end security through PKI, strong user authentication, true Single Sign-On, Web access control, enterprise management, and encryption solutions that also sharply reduce the time and effort required to deploy and manage them. With hundreds of financial institutions, blue-chip corporations, and government agencies as customers in more than 50 countries, VASCO Data Security is a global leader in security solutions that support the Internet economy. More information is available at www.vasco.com and www.isoft.com.
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," or "expects" 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.
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