VASCO Data Security International, Inc. (VDSI) has reported 73.94 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.57 million, or $0.01 a share in the quarter, compared with $2.20 million, or $0.06 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $3.21 million, or $0.08 a share compared with $5.60 million or $0.14 a share, a year ago. Revenue during the quarter dropped 10.27 percent to $41.96 million from $46.77 million in the previous year period. Gross margin for the quarter expanded 263 basis points over the previous year period to 71.28 percent. Total expenses were 99.28 percent of quarterly revenues, up from 93.34 percent for the same period last year. That has resulted in a contraction of 594 basis points in operating margin to 0.72 percent.
Operating income for the quarter was $0.30 million, compared with $3.12 million in the previous year period.
“Our first quarter provided a solid start to the year as we made important progress in transitioning VASCO into a business with an increased focus on software. Demand for our software solutions remained strong and for the first time more than 50% of our revenue was derived from non-hardware solutions, which includes our mobile security suite, DIGIPASS for Apps, and our e-signature solution, eSignLive,” stated T. Kendall Hunt, VASCO chairman and chief executive officer. “Increased software sales allowed us to improve gross margins approximately three percent above the first quarter of last year. We remain confident in our strategy of delivering innovative solutions that enable our customers to grow their business by ensuring trust in people, their devices, and the transactions they conduct."
VASCO Data Security International, Inc. forecasts revenue to be in the range of $180 million to $190 million for fiscal year 2017.
Working capital increasesVASCO Data Security International, Inc. has recorded an increase in the working capital over the last year. It stood at $142.43 million as at Mar. 31, 2017, up 7.30 percent or $9.69 million from $132.74 million on Mar. 31, 2016. Current ratio was at 3.13 as on Mar. 31, 2017, down from 3.33 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 80 days for the quarter from 132 days for the last year period. Days sales outstanding went up to 70 days for the quarter compared with 66 days for the same period last year.
Days inventory outstanding has decreased to 70 days for the quarter compared with 120 days for the previous year period. At the same time, days payable outstanding went up to 61 days for the quarter from 54 for the same period last year.
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