VASCO Announces Sale of Consulting Operations to Focus Entire Efforts on Information Security Operations
LOMBARD, ILLINOIS - August 27, 1996 -- VASCO Corp. (OTCBB:VASC) announced today that it has signed a purchase agreement to sell the assets, and to transfer the staff of its consulting and technical training organization, VASCO Performance Systems ("VPS"), to Wizdom Systems, Inc. with headquarters in Naperville, Illinois, and offices in Washington, DC and Detroit, Michigan. This sale will enable VASCO to focus its resources on the expanding information security operations of its wholly-owned subsidiaries, VASCO Data Security, Inc. ("VDSI"), and its two recently-acquired European operations, Lintel SECURITY ("Lintel") and Digipass ("Digipass"). Terms of the sale were not disclosed.
As a result of the market's rapidly growing interest in the Internet and its corresponding concern about information security, the Company has focused its energies over the past 12 months on its much faster growing information security operations. "Although VASCO had its origins in consulting and technical training, the opportunities available to VASCO in the information security industry dwarf those available to the Company in consulting and professional services. Our internally-generated growth in information security has averaged more than 110% per year for the last two years, not including the contribution of our recent European acquisitions. The decision to sell VPS was really driven by the appropriate allocation of corporate resources." said Ken Hunt, Chairman and CEO of VASCO Corp.
Due to this focus on information security, its VPS operation has seen its revenues and net income erode. During the first 6 months of 1996, the consulting and training business generated $185,000 in revenues, vs. $873,000 in revenues for the first 6 months of 1995. Correspondingly, it experienced a net loss for the period of ($83,000) vs. net income of $134,000 for the year earlier period. "VPS is a very professional and capable operation, with a history of success in providing services to many Fortune 1000 companies across the United States. With proper focus, I expect VPS to thrive as in past years," stated Mr. Hunt.
The Company's recent acquisitions of Lintel and Digipass further reinforce its commitment to information security, and have greatly expanded the company's product offerings in this area. Lintel and Digipass add over 40 European-based employees servicing more than 100 banks and other major industries throughout Europe and the Middle East. VASCO, with a combination of cryptographic and authentication products, has established a meaningful information security presence in Europe. Combined with these two new acquisitions, VASCO is now a leader in authentication technology, with over 1.5 million devices in use today.
VASCO previously reported 6 month results for its combined operations with revenues of $3,125,000 and a net loss after taxes of ($27,000). Excluding VPS, VASCO's restated revenues would be approximately $2,940,000 , yielding net income after taxes of $23,000 for the same 6 month period.
About VASCO Corp.
VASCO Corp., headquartered in Lombard, IL, and its foreign and domestic subsidiaries offer information security technologies which "enable" critical client applications designed to achieve corporate initiatives and improve profitability. Since initiating its strategy in 1989, VASCO, through strategic acquisitions and internal growth, has become a leader in computer security authentication devices, with over 1.5 million units in use today.
The Company's computer security subsidiaries include VASCO Data Security, Inc., headquartered in Lombard, as well as Lintel SECURITY and Digipass s.a., both of Brussels, Belgium. VASCO's patented and proprietary hardware and software security products provide computer security, Extended User Authentication (EUA) and RSA/DES encryption for financial institutions, industry and government. |
