VASCO Reports Results for First Quarter 2011
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Revenue for the first quarter 2011 was $36.4 million, an increase of 52% compared to the first quarter 2010; Operating income for the first quarter 2011 was $3.1 million, an increase of 324% compared to the first quarter 2010.
"Consistent with the second half of 2010, the first quarter of 2011 continued to show strong revenue growth from our traditional businesses," stated T. Kendall Hunt, Chairman & CEO. "Revenues in the first quarter of 2011 were the second highest in the company's history, reflecting strong growth from the banking market partially offset by a small decline in revenues from the enterprise and application security market. In addition to the strong revenue growth, we continued to invest in new technology and people as evidenced by the acquisition of DigiNotar in January of 2011 and the acquisition of Alfa & Ariss, which closed on April 1, 2011. While revenues from DigiNotar and Alfa & Ariss are not expected to be significant in 2011, we believe that both acquisitions will provide technology that will enhance our current product line as well as provide us with technical expertise that will be important to the continued development and rollout of our authentication services product lines."
"In addition to the growth in revenue, we saw a significant increase in order intake during the first quarter of 2011 compared to the first quarter of 2010," said Jan Valcke, VASCO's President and COO. "We are also encouraged to see that the pipeline for future deals continues to be strong. While we expect that there will continue to be pressure on price and terms of new large banking deals, as evidenced by the decline in our gross margins in the first quarter of 2011, we expect that we will be able to improve our gross margins as the growth rate in the enterprise and application security revenue increases and our authentication service business model gains momentum in the quarters ahead." |
