Shares of VASCO Data Security International (NASDAQ:VDSI) have plunged today, down by 13% as of 12:45 p.m. EST, after the company reported fourth-quarter earnings.
Revenue in the fourth quarter came in at $47.6 million, down 6.5% from a year ago. Full-year 2016 revenue was $192.3 million. VASCO posted adjusted earnings per share of $0.13, up from an adjusted profit of $0.09 per share a year ago. Gross margin was 64.8% in the fourth quarter, and the company exited the quarter with $144.2 million in cash on the balance sheet.
EVP and Chief Strategy Officer Scott Clements was promoted to COO during the quarter, and BankMobile implemented VASCO's DIGITPASS for Apps mobile app security suite. Switzerland's largest retail bank, Raiffeisen, also implemented the company's CRONTO technology for online banking.
In a statement, Chairmand and CEO T. Kendall Hunt said that the company's transition to a software-based business continues make progress, and management is happy with the "sustained high rate of growth" in the software business. This has helped offset the decline in hardware products.
In terms of guidance, VASCO expects full-year 2017 revenue to be in the range of $180 million to $190 million, with an adjusted operating margin of 1% to 5%.