Vasco Data Security International (VDSI) has reported 43.86 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $5.01 million, or $0.13 a share in the quarter, compared with $3.48 million, or $0.09 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $6.35 million, or $0.16 a share compared with $5.99 million or $0.15 a share, a year ago.
Revenue during the quarter dropped 6.47 percent to $47.60 million from $50.89 million in the previous year period. Gross margin for the quarter expanded 229 basis points over the previous year period to 67.13 percent. Total expenses were 95.40 percent of quarterly revenues, up from 89.84 percent for the same period last year. That has resulted in a contraction of 556 basis points in operating margin to 4.60 percent.
Operating income for the quarter was $2.19 million, compared with $5.17 million in the previous year period.
"Our fourth quarter and full-year results reflect our continuing progress in transforming VASCO into a more software-based business. Strong growth in demand for our software-based solutions, including double-digit growth for our e-signature solution, eSignLive, and more than 100% growth for our mobile security solution, DIGIPASS for Apps partially offset the decline in demand for our hardware products," said T. Kendall Hunt, VASCO chairman & chief executive officer. "We are pleased with the sustained high rate of growth in our software business which reflects our success in executing our long term strategy of having the majority of our revenue derived from software providing VASCO with a more reliable and predictable revenue stream and solutions that we believe will be in high demand."
For fiscal year 2017, Vasco Data Security International expects revenue to be in the range of $180 million to $190 million. The company expects operating income to grow in the range of 1 percent to 5 percent.
Working capital increasesVasco Data Security International has recorded an increase in the working capital over the last year. It stood at $139.52 million as at Dec. 31, 2016, up 9.27 percent or $11.84 million from $127.68 million on Dec. 31, 2015. Current ratio was at 3.05 as on Dec. 31, 2016, down from 3.29 on Dec. 31, 2015. Cash conversion cycle (CCC) has increased to 61 days for the quarter from 57 days for the last year period. Days sales outstanding went up to 36 days for the quarter compared with 27 days for the same period last year.
Days inventory outstanding has decreased to 51 days for the quarter compared with 53 days for the previous year period. At the same time, days payable outstanding went up to 26 days for the quarter from 23 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
