VASCO Reports Results for Third Quarter and First Nine Months of 2011
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Revenue from continuing operations for the third quarter of 2011 was $41.4 million, an increase of 57% compared to the third quarter of 2010; Operating income from continuing operations for the third quarter of 2011 was $7.4 million, an increase of 196% compared to the third quarter of 2010. Guidance for full-year 2011 revenue and operating margins increased.
Guidance for full-year 2011:
VASCO is revising its guidance for the full-year 2011 as follows:
Revenue growth from continuing operations is projected to be in the range of 45% to 55% for the full-year 2011 over full-year 2010, as compared to expected full-year revenue growth of more than 40% announced at the end of the second quarter of 2011; andOperating margins from continuing operations, excluding expenses related to the amortization of acquisition-related intangible assets, for full-year 2011 are projected to be in the range of 13% to 16% of revenue, compared to 8% to 12% of revenue announced at the end of the second quarter of 2011.
"Revenues for the third quarter of 2011 were the second highest in our company's history and were second only to the previous quarter of 2011," stated T. Kendall Hunt, Chairman & CEO. "Revenues from both the banking and enterprise and application security markets increased substantially over the same periods in 2010. While we were disappointed with the closure of the DigiNotar business, we believe that VASCO's customers understand that the certificate authority business of DigiNotar was separate and distinct from our core authentication business. We continue to experience strong order intake for our authentication products and expect to show strong growth in the fourth quarter of 2011 over 2010."
"The results of the third quarter indicate that we are making progress in a number of important areas," said Jan Valcke, VASCO's President and COO. "Revenue from the banking market grew in most all of our geographic markets, including the European market where the concerns related to sovereign debt have been highly publicized. In addition, we saw strong orders from and shipments to customers in the enterprise and application security market. Our gross margins as a percentage of revenue also showed substantial improvement over earlier quarters of 2011. The improvement in the margin rate can be attributed to shipping orders to a broader base of banking customers, an improved mix of our business associated with the growth in revenues from the enterprise and application security market and improvements we have made in our production scheduling that allows us to reduce our overall freight costs." |
