VASCO announces preliminary 1995 results.
For the year 1995, VASCO will report a net after tax loss of approximately $300,000 on revenues of approximately $3.8 million, up from $2.75 million the previous year. The primary reason for the loss was VASCO's decision to write down previously capitalized development costs.
Ken Hunt, chief executive officer of VASCO, said: "VASCO management and the Audit Committee of the Board of Directors, after internal analysis and a review of industry norms, made the decision to revise the remaining estimated economic life of the company's previously capitalized product development costs. As a result, the company has accelerated the amortization of a substantial portion of these assets, which will be reflected in its year end results. This approach to amortization is in response to the rapid evolution of technology. In today's technological environment, it is impractical to anticipate a product life cycle in excess of 24 months."
Hunt went on to say: "The computer and network security industry has become incredibly dynamic. Industry growth is accelerating and the buyers of security products are becoming increasingly sophisticated. We view these changes as opportunistic. VASCO data security product orders to date already exceed the total 1995 revenue for similar products. The company is well positioned to respond to market needs and will seize these growing opportunities in Europe, North America and ultimately throughout the world. We expect to do this through a combination of internal growth and, where practical and prudent, through strategic alliances, joint ventures, or outright acquisition of complementary companies or technologies."
VASCO recently announced the acquisition of an interest in Belgium-based Lintel Security (Lintel). As a result of this acquisition the company has added Lintel's AuthentiCard(R) product, a DES-based access control device, and certain other encryption-oriented products to its line. Regarding the Lintel acquisition, Hunt said: "We are very pleased about our new product offerings; however, the strategic aspects of the Lintel acquisition are even more exciting. Lintel has a presence in Europe, with name recognition and an installed client base. In addition to its authentication products, Lintel has extensive experience in cryptography. Lintel's cryptographic chips are useful in such applications as secure mobile phones, secure fax modems, PC encryptor boards, cryptographic firewalls, and other applications requiring encryption at hardware speeds."
VASCO also recently announced the appointment of Greg Apple to the newly created position of Controller and Director of Administration. Apple will be responsible for establishing an automated accounting system with a focus on internal controls and international financial reporting. Apple is a CPA, with "big six" experience, who most recently worked in the software industry.
Standard & Poor's CORPORATION RECORDS now provides coverage on VASCO Corp. (OTC:VASC).
CONTACT: VASCO Corp., Lombard, Ill.
Ken Hunt, 708/495-0755
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|Date:||Mar 29, 1996|
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