Vasco Data Security International Inc. design develop market and support security products and services which manage and secure access to computer systems of corporate and government customers. Additionally the company enables secure financial transactions made over private enterprise networks and public networks such as the Internet. The company's software and hardware products provide organizations with strong flexible and effective Internet and enterprise security solutions and they compete favorably against those of the competitors. Vasco Data Security International Inc. has a market cap of $230.2 million; its shares were traded at around $6.14 with a P/E ratio of 24.6 and P/S ratio of 1.7. Vasco Data Security International Inc. had an annual average earning growth of 107% over the past 5 years.
Highlight of Business Operations:The U.S. Dollar strengthened by approximately 8% and 12% against the Euro for the quarter and nine months ended September 30, 2009, respectively, as compared to the same periods in 2008. The U.S. Dollar strengthened 12% and 26% against the Australian Dollar for the quarter and nine months ended September 30, 2009, respectively, as compared to the same periods in 2008. We estimate that the strengthening of the U.S. Dollar versus these two currencies in 2009 compared to 2008 resulted in a decrease in revenue of approximately $592 and $4,292 for the quarter and nine months ended September 30, 2009, respectively, compared to the same periods in 2008 and a decrease in operating expenses of approximately $934 and $4,318 for the quarter and nine months ended September 30, 2009, respectively, compared to the same periods in 2008.
The financial position and results of operations of most of our foreign subsidiaries, with the exception of our subsidiaries in Switzerland and Singapore (in which the functional currency is the U.S. Dollar), are generally measured using the local currency as the functional currency. Accordingly, assets and liabilities are translated into U.S. Dollars using current exchange rates as of the balance sheet date. Translation adjustments arising from differences in exchange rates are included as a separate component of stockholders equity. Revenue and expenses are translated at average exchange rates prevailing during the period. Gains and losses resulting from foreign currency transactions are included in the condensed consolidated statements of operations in other non-operating income (expense). Foreign exchange transaction gains aggregating $308 and $643 in the third quarter and first nine months of 2009, respectively, compare to losses aggregating $836 and $751 in the third quarter of 2008 and first nine months of 2008, respectively.
Revenue for the first nine months of 2009 from the banking market decreased $34,674 or 41%, compared to the first nine months of 2008 and revenue from the enterprise and application security market increased $391 or 2% in the same period. Changes in the revenue in both markets for the first nine months of 2009 compared to the same period in 2008 were attributable to the same factors noted above in the comparison of revenue for the third quarter of 2009 to the revenue for the third quarter of 2008.
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