Vasco Data Security (VDSI) Issues Mixed Prelim. Q3 Results; Revises FY16 Guidance

VASCO Data Security International, Inc. (Nasdaq: VDSI) announced preliminary results for the third quarter ended September 30, 2016.

Based on preliminary financial information, VASCO expects to report the following for the third quarter of 2016:

• Total revenue in the range of $42 million to $44 million, GAAP net income from continuing operations of $0.00 to $0.02 per fully diluted share; and
• Non-GAAP net income from continuing operations1 of $0.07 to $0.09 per fully diluted share (Non-GAAP Diluted EPS).

*** The Street sees Q3 revenue of $52.5 million and EPS of $0.04.

Third quarter 2016 preliminary results are subject to change based on the completion of the Company's normal quarter-end review process.

VASCO is reducing guidance for the full-year 2016 as follows:

• Revenue is expected to be in the range of $185 million to $195 million, compared to $205 million to $215 million communicated previously; and
• Operating income as a percentage of revenue, excluding the amortization of purchased intangible assets, is projected to be lower than the previously communicated range of 10% to 12%. Updated guidance will be communicated with complete third quarter results on October 27, 2016.

*** The Street sees FY16 revenue of $21.08 million and EPS of $0.26.

"Our third quarter results were negatively impacted primarily by the extension of sales cycles in the European region as some of our large banking customers are adapting to market pressures and the need for digital transformation. As a result, they are delaying the placement of orders until future quarters," said T. Kendall Hunt, VASCO Chairman & CEO. "Although we are dissatisfied with our third quarter performance, we continue to remain optimistic about the demand for our core hardware products and strong growth of our DIGIPASS for Apps mobile application security solution. We remain confident in our business strategy and in the strength of our long-term growth opportunities, particularly our software solutions and combined platform."

1 An explanation of these measures is included below under the heading "Non-GAAP Financial Measures." Further information, including a reconciliation of GAAP to related Non-GAAP financial measures, will be included in our release of third quarter results on October 27, 2016.

Preliminary Results Conference Call TodayOn October 18, 2016 at 5:00 p.m. EDT/23:00 CEST, VASCO will host a conference call to discuss its preliminary third quarter 2016 financial results. A live webcast of the conference call will be available via the VASCO Investor Relations website at: ir.vasco.com. Shortly after the conclusion of the call, a replay of the webcast will be available at the same website.

Dial-in telephone numbers for the preliminary results conference call are:

• Dial-in U.S.: 800-379-4140
• Dial-in international: + 1-212-231-2919

You May Also Be Interested In

• Alcon (ALC) shares pop 10% on better-than-feared Q1 print
• European stocks mostly lower; ranges limited ahead of US inflation release
• Uber (UBER) to Acquire Delivery Hero’s foodpanda Delivery Business in Taiwan