VASCO Reports Fourth Quarter and Full Year 2003 Results - Achieved Fourth Consecutive Quarter of Profit and Positive Operating Cash Flow - Reported Record Net Income for Full Year
Thursday February 12, 3:00 am ET
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Q4 2003 and full-year revenues increase 83% and 32%, respectively, compared to prior year; Q4 2003 net income from continuing operations of $0.2 million compared to net losses of $1.9 million in Q4 2002; Full year 2003 net income from continuing operations of $0.8 million compared to net losses of $5.1 million in 2002. Backlog for firm orders to be shipped in Q1 2004 at $5.2 million.
OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, Feb. 12 /PRNewswire- FirstCall/ -- VASCO Data Security International, Inc. (Nasdaq: VDSI - News; www.vasco.com ), a global provider of security products that enable e-business and e-commerce, today announced financial results for the fourth quarter and full year 2003. The results being reported for 2002 have been restated to report the activities of the VACMAN Enterprise business unit, which was sold during the third quarter of 2003, as a discontinued operation.
Revenues for the fourth quarter of 2003 were $6,196,000 and were $2,805,000, or 83% better than the $3,391,000 reported for the fourth quarter of 2002. Revenues for the full year ended December 31, 2003 were $22,866,000 and were $5,496,000, or 32% better than the $17,370,000 reported for the full year 2002.
Operating income for the fourth quarter of 2003 was $365,000 and compares to an operating loss of $2,008,000 for the same period in 2002. Operating income for the full year ended December 31, 2003 was $1,124,000 and compares to an operating loss for the full year ended December 31, 2002 of $4,713,000. Operating expenses for the fourth quarter of 2003 were $3,548,000, a decrease of $627,000 or 15% from $4,175,000 for the same period in 2002. Operating expenses for the full year ended December 31, 2003 were $12,732,000, a decrease of $2,191,000 or 15% from $14,923,000 for the full year ended December 31, 2002.
The Company reported net income from continuing operations of $235,000 and $761,000 for the quarter and full year ended December 31, 2003, respectively, compared to net losses from continuing operations of $1,908,000 and $5,108,000 for the quarter and full year ended December 31, 2002, respectively. Net income from total operations was $265,000 and $2,756,000 for the quarter and full year ended December 31, 2003, respectively and compares to a net loss from total operations of $1,899,000 and $4,539,000 for the quarter and full year ended December 31, 2002, respectively.
Income per basic and diluted common share from total operations was $0.01 for the fourth quarter 2003 and compares to a loss per basic and diluted common share of $0.08 for the comparable period in 2002. The Company reported a loss per basic and diluted common share of $0.06 from total operations for the full year 2003 compared to a loss per basic and diluted common share of $0.20 for the full year 2002. The loss per basic and diluted common share for the full year 2003 included a non-cash charge of $3,720,000 or $0.12 per share associated with the beneficial conversion option included in the Series D 5% Cumulative Convertible Voting Preferred Stock issued in the third quarter of 2003.
The company revised its third quarter 2003 results to reflect a deemed dividend under EITF 98-5 relating to the issuance of its Series D Convertible Preferred Stock during the quarter and will file an amended Form 10-Q as soon as practicable. The change resulted in a reduction in net income available to common shareholders of $3,720,000 and a reduction in net income (loss) per common share. Net income per common share was reduced from $0.04 and $0.06 for the quarter and nine-months ended September 30, 2003, respectively, to a net loss of $0.08 and $0.06 per common share, respectively.
Earnings before interest, taxes, depreciation and amortization (EBITDA or operating cash flow) from continuing operations were $348,000 and $2,299,000 for the fourth quarter and the full year of 2003, respectively, and compares with a loss before these items of $1,602,000 and $3,510,000 in the fourth quarter and full year of 2002, respectively.
The Company had a cash balance at December 31, 2003 of $4,817,000 compared to $5,524,000 at September 30, 2003 and $2,616,000 and December 31, 2002.
"The results of the fourth quarter of 2003 reflect the continued focus on executing our plan," said Ken Hunt, VASCO's Chief Executive Officer. "At this time last year, we fine tuned VASCO's focus on its core business, worked closely with our strategic customers to ensure that we could meet their needs in 2003, reviewed our expense base to ensure that only those activities related to the core business were carried forward into 2003 and analyzed our balance sheet to make sure that we were optimizing our cash flow. The results achieved in 2003 demonstrate that the strategy was sound and the plan was executed successfully. In 2003, we were profitable in each quarter, achieved record profits for the full year, generated positive operating cash flows in each quarter of the year, and restructured our balance sheet to eliminate all debt. We are now well positioned to focus on future growth."
"I am very pleased with the results achieved this year," stated Jan Valcke, President and COO. "The results reflect the hard work of our staff in looking for ways to make our processes more efficient and eliminate costs. It also reflects the broad acceptance of our products in the market place. During the fourth quarter we added 130 new customers, which brings the total new customers for 2003 up to 572. As mentioned before, these customers often start off as pilots and serve as an important source of future revenues as they implement their strategies fully. We also made significant progress in developing new products that we believe will serve our existing customers well and provide us with new opportunities in the future." |
