VASCO Announces Record First Quarter Revenues

Revenues increase 42% from Q1 2000



Apr 25, 2001, 01:00 ET from VASCO Data Security International, Inc.

    OAKBROOK TERRACE, Ill. and BRUSSELS, Belgium, April 25 /PRNewswire/ --
 US-based VASCO Data Security International, Inc. (Nasdaq:   VDSI; Nasdaq Europe)
 ( www.vasco.com ), a global provider of security solutions that enable e-
 business and e-commerce, today announced financial results for the quarter
 ended March 31, 2001. Revenues for the quarter increased 42% to $7,872,725, up
 from $5,551,927 for the first quarter of 2000. This is a record for revenues
 recorded in a first quarter for VASCO.
     For the first quarter of 2001, the Company reported an operating loss,
 before non-cash compensation for stock options to certain officers of the
 Company, of $971,612 and a net loss before these options of $887,243 or
 $0.04 per share, compared with an operating loss of $575,933 and a net loss of
 $813,855, or $0.03 per share, for the same period in 2000. The stock options
 referred to are stock options issued to officers of the Company located
 outside the US whose services are rendered under consulting agreements. If
 these officers had been employees in the US, there would be no effect on
 operating income, net income or earnings per share.
     The Company recorded a net loss, after the items referred to above, of
 $1,038,574 or $.05 per share, compared with a net loss in the first quarter of
 2000 of $813,855 or $.03 per share. Loss before interest, taxes, depreciation
 and amortization, and non-cash compensation charges for options was $365,298
 for the first quarter of 2001, compared with $320,370 for the first quarter of
 2000.
     "We are pleased to report that VASCO is continuing its pattern of
 substantial year over year growth," stated Mario Houthooft, President and CEO
 of VASCO. "During the first quarter we saw our business grow on all fronts,
 with the closing of an important strategic acquisition, the announcement of
 new products, customers, and partnerships, and the opening of a new sales
 office.  We are seeing demand for our real-world anywhere, anytime, anyhow
 security products continuing from our outstanding growth in the year 2000."
     Dennis D. Wilson, Executive Vice President and Chief Financial Officer of
 VASCO, noted that "our 42% growth in revenue from the first quarter of 2000
 was the best first quarter in our Company's history and consistent with the
 guidance that we gave to the investment community earlier this year.  VASCO
 had approximately $14 million of cash on hand at the end of the first quarter,
 giving us more than sufficient financial resources to continue implementing
 our growth strategy we outlined at the beginning of the year."
 
     Highlights for the quarter include:
 
     -- The signing of a Letter of Intent to acquire Identikey Ltd., an
        international security software company with headquarters in Australia
        and operations in the United States and Europe, to provide immediate
        entry into the fast-growing web portal security market.  VASCO
        completed the acquisition as scheduled before the end of the quarter.
 
     -- Accelerated business in the important US market, led by SouthTrust
        Corporation, a Top 25 US commercial bank, which is utilizing VASCO
        Identikey security software and Digipass authenticators to provide
        secure access to commercial banking services over the Internet for its
        corporate customers.
 
     -- An announcement with Siemens that the communications giant has joined
        forces with VASCO to put Digipass strong authentication and digital
        signature security on Siemens' new MultiMobile SX45 Wireless PDA.
        According to Siemens, "we chose Digipass to provide anywhere, anytime,
        anyhow security for MultiMobile SX45 because VASCO's technology offered
        us the strong combination of easy to use and flexible security."
 
     -- The opening of a sales office in Paris, France to accelerate sales of
        the Digipass family of security platforms, including the Digipass 800
        portable smart card reader.
 
     -- Introduction of the Digipass 110 secure smart card VASCO to expand the
        Company's reach into the billion-dollar worldwide smart card market,
        with Digipass strong authentication and digital signature security now
        available for all market-leading smart card operating systems.
 
     -- The signing of one of the leading banks in the Asia/Pacific region,
        OCBC Bank of Singapore, following the opening of a sales office in
        Singapore, demonstrating VASCO's ability to rapidly expand into new
        geographic regions.
 
     VASCO Data Security International, Inc. reported the following:
 
 
                                             Three months ended March 31,
                                               2001                2000
 
     Net revenues                         $7,872,725          $5,551,927
     Cost of goods sold                    2,792,725           1,862,954
     Gross Profit                          5,080,000           3,688,973
     Operating costs:
       Sales and marketing                 3,340,273           2,162,637
       Research and development            1,380,621             941,605
       General and administrative          1,330,718           1,160,664
       Non-Cash Compensation                 151,331                   -
         Total operating costs             6,202,943           4,264,906
 
     Operating loss                       (1,122,943)           (573,933)
 
     Interest Income/(Expense), net          129,973            (162,911)
     Other Income/(Expense), net             128,173             (55,470)
 
     Loss before income taxes               (864,798)           (794,314)
     Provision for income taxes              173,777              19,541
 
     Net loss                            $(1,038,574)          $(813,855)
 
     Basic and diluted net loss per share     $(0.05)             $(0.03)
 
     Weighted average shares outstanding  27,893,127          26,786,287
 
 
     About VASCO
     VASCO secures the enterprise from the mainframe to the Internet with
 infrastructure solutions that enable secure e-business and e-commerce, protect
 sensitive information, and safeguard the identity of users. The Company's
 family of Digipass(R) and SnareWorks(R) products offers end-to-end security
 through strong authentication and digital signature, true Single Sign-On,
 access control and advanced entitlements, web portal security, and PKI
 enablement, while sharply reducing the time and effort required to deploy and
 manage security. VASCO's customers include hundreds of financial institutions,
 blue-chip corporations, and government agencies in more than 50 countries.
 More information is available at www.vasco.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," "expects," and similar words, 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.
 
     Reference is made to the Company's public filings with the US Securities
 and Exchange Commission for further information regarding the Company and its
 operations.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X40967115
 
 

SOURCE VASCO Data Security International, Inc.
    OAKBROOK TERRACE, Ill. and BRUSSELS, Belgium, April 25 /PRNewswire/ --
 US-based VASCO Data Security International, Inc. (Nasdaq:   VDSI; Nasdaq Europe)
 ( www.vasco.com ), a global provider of security solutions that enable e-
 business and e-commerce, today announced financial results for the quarter
 ended March 31, 2001. Revenues for the quarter increased 42% to $7,872,725, up
 from $5,551,927 for the first quarter of 2000. This is a record for revenues
 recorded in a first quarter for VASCO.
     For the first quarter of 2001, the Company reported an operating loss,
 before non-cash compensation for stock options to certain officers of the
 Company, of $971,612 and a net loss before these options of $887,243 or
 $0.04 per share, compared with an operating loss of $575,933 and a net loss of
 $813,855, or $0.03 per share, for the same period in 2000. The stock options
 referred to are stock options issued to officers of the Company located
 outside the US whose services are rendered under consulting agreements. If
 these officers had been employees in the US, there would be no effect on
 operating income, net income or earnings per share.
     The Company recorded a net loss, after the items referred to above, of
 $1,038,574 or $.05 per share, compared with a net loss in the first quarter of
 2000 of $813,855 or $.03 per share. Loss before interest, taxes, depreciation
 and amortization, and non-cash compensation charges for options was $365,298
 for the first quarter of 2001, compared with $320,370 for the first quarter of
 2000.
     "We are pleased to report that VASCO is continuing its pattern of
 substantial year over year growth," stated Mario Houthooft, President and CEO
 of VASCO. "During the first quarter we saw our business grow on all fronts,
 with the closing of an important strategic acquisition, the announcement of
 new products, customers, and partnerships, and the opening of a new sales
 office.  We are seeing demand for our real-world anywhere, anytime, anyhow
 security products continuing from our outstanding growth in the year 2000."
     Dennis D. Wilson, Executive Vice President and Chief Financial Officer of
 VASCO, noted that "our 42% growth in revenue from the first quarter of 2000
 was the best first quarter in our Company's history and consistent with the
 guidance that we gave to the investment community earlier this year.  VASCO
 had approximately $14 million of cash on hand at the end of the first quarter,
 giving us more than sufficient financial resources to continue implementing
 our growth strategy we outlined at the beginning of the year."
 
     Highlights for the quarter include:
 
     -- The signing of a Letter of Intent to acquire Identikey Ltd., an
        international security software company with headquarters in Australia
        and operations in the United States and Europe, to provide immediate
        entry into the fast-growing web portal security market.  VASCO
        completed the acquisition as scheduled before the end of the quarter.
 
     -- Accelerated business in the important US market, led by SouthTrust
        Corporation, a Top 25 US commercial bank, which is utilizing VASCO
        Identikey security software and Digipass authenticators to provide
        secure access to commercial banking services over the Internet for its
        corporate customers.
 
     -- An announcement with Siemens that the communications giant has joined
        forces with VASCO to put Digipass strong authentication and digital
        signature security on Siemens' new MultiMobile SX45 Wireless PDA.
        According to Siemens, "we chose Digipass to provide anywhere, anytime,
        anyhow security for MultiMobile SX45 because VASCO's technology offered
        us the strong combination of easy to use and flexible security."
 
     -- The opening of a sales office in Paris, France to accelerate sales of
        the Digipass family of security platforms, including the Digipass 800
        portable smart card reader.
 
     -- Introduction of the Digipass 110 secure smart card VASCO to expand the
        Company's reach into the billion-dollar worldwide smart card market,
        with Digipass strong authentication and digital signature security now
        available for all market-leading smart card operating systems.
 
     -- The signing of one of the leading banks in the Asia/Pacific region,
        OCBC Bank of Singapore, following the opening of a sales office in
        Singapore, demonstrating VASCO's ability to rapidly expand into new
        geographic regions.
 
     VASCO Data Security International, Inc. reported the following:
 
 
                                             Three months ended March 31,
                                               2001                2000
 
     Net revenues                         $7,872,725          $5,551,927
     Cost of goods sold                    2,792,725           1,862,954
     Gross Profit                          5,080,000           3,688,973
     Operating costs:
       Sales and marketing                 3,340,273           2,162,637
       Research and development            1,380,621             941,605
       General and administrative          1,330,718           1,160,664
       Non-Cash Compensation                 151,331                   -
         Total operating costs             6,202,943           4,264,906
 
     Operating loss                       (1,122,943)           (573,933)
 
     Interest Income/(Expense), net          129,973            (162,911)
     Other Income/(Expense), net             128,173             (55,470)
 
     Loss before income taxes               (864,798)           (794,314)
     Provision for income taxes              173,777              19,541
 
     Net loss                            $(1,038,574)          $(813,855)
 
     Basic and diluted net loss per share     $(0.05)             $(0.03)
 
     Weighted average shares outstanding  27,893,127          26,786,287
 
 
     About VASCO
     VASCO secures the enterprise from the mainframe to the Internet with
 infrastructure solutions that enable secure e-business and e-commerce, protect
 sensitive information, and safeguard the identity of users. The Company's
 family of Digipass(R) and SnareWorks(R) products offers end-to-end security
 through strong authentication and digital signature, true Single Sign-On,
 access control and advanced entitlements, web portal security, and PKI
 enablement, while sharply reducing the time and effort required to deploy and
 manage security. VASCO's customers include hundreds of financial institutions,
 blue-chip corporations, and government agencies in more than 50 countries.
 More information is available at www.vasco.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," "expects," and similar words, 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.
 
     Reference is made to the Company's public filings with the US Securities
 and Exchange Commission for further information regarding the Company and its
 operations.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X40967115
 
 SOURCE  VASCO Data Security International, Inc.