VASCO Data Security International, Inc. (NASDAQ:VDSI) 1Q2015 revenue from continuing operations jumped 68% to $65.1 million. The net income from continuing operations came at $13.7 million, up 287%, from $3.5 million, for the first quarter of 2014.
VASCO reported gross profits from continuing operations came at $37.7 million in 1Q2015. The operating expenses from continuing operations declined 1% to $21.6 million from 1Q2014. The company increased the FY2015 revenue forecast range to $230 million-$240 million, compared to previous guidance range of $220 million to $230 million. The operating income is expected to come in the range of 19% to 22%, compared to initial guidance range of 17% to 20%.
The expert view
Kendall Hunt, the Chairman and CEO of VASCO, said that management is delighted with the results of 1Q. The company posted record revenue in 1Q2015. It demonstrated the delivery of massive quantity of card readers utilizing company’s Cronto technology to Rabobank. It was mentioned in the record backlog at the start of the year. There is a considerable growth in revenues from other clients in the quarter.
The revenues linked to the delivery of all products offered to Rabobank outpaced 30% of 1Q revenue. The combined revenue from all other clients surged over 15% over 1Q2014. The guidance revision is based on the strong performance of 1Q results and strong product pipeline for potential new orders for new and traditional products.
Hunt further added that the mobile solutions DIGIPASS for Mobile and DIGIPASS for Apps, and solutions developed on Cronto technology will serve as important source of revenues in FY2015 and beyond. The financial results are expected to better in the first half of the year. Jan Valcke, the President and COO VASCO, said that the results in 1Q reflect an 83% growth in revenues from the banking division.