Tuesday October 27, 01:56 PM
UPDATE 2-Vasco Data Q3 profit sinks 80 pct, shares dip
* Q3 EPS $0.04 vs yr-ago $0.24
* Q3 rev down 44 pct
* Shares fall 4 in early morning trade
(Adds details, updates share movement)
Oct 27 (Reuters) - Internet-security
software company Vasco Data Security International Inc posted a more than 80 percent drop in quarterly earnings, hurt by a slack in orders from its banking customers.
The results reflected the current challenging economic environment and lower levels of activity that are due to the normal seasonal trends, including the holiday schedules in Europe, Chief Executive T Kendall Hunt said in a statement.
'The results for the third quarter continued the trends that we have seen since the middle of the fourth quarter of 2008 with our banking customers continuing to order small quantities to meet their short-term needs,' Hunt added.
In 2008, 82 percent of the company's revenue came from the banking sector.
For the third quarter, the company's net income fell to $1.5 million, or 4 cents per share, from $9.1 million, or 24 cents per share, a year ago.
Revenue fell 44 percent to $22.1 million.
The company, which competes with EMC (NYSE: EMC - news) unit RSA Security and ActivIdentity (ACTI - news) , added 350 customers in the third quarter, compared with 365 customers it added in the same period last year.
Analysts were expecting earnings of 5 cents a share, before items, on revenue of $25.4 million, according to Thomson Reuters I/B/E/S.
Vasco Data's customers include HSBC Holdings Plc, Rabobank, ING Bank and Fortis Bank.
Shares of the company fell 4 percent to $6.81 in early morning trade Tuesday on Nasdaq (NASDAQ: news) .
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(Reporting by Mansi Dutta in Bangalore; Editing by Himani Sarkar, Ratul Ray Chaudhuri) Keywords: VASCODATA/
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