Vasco Data Security International Inc. has a market cap of $243.1 million; its shares were traded at around $6.46 with a P/E ratio of 25.9 and P/S ratio of 2.4. VDSI is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:Consolidated general and administrative expenses for the quarter ended March 31, 2009, were $4,648, an increase of $2,282, or 96%, from the first quarter of 2009. In addition to the long-term incentive compensation and currency rate factors noted above, the increase in general and administrative expenses was primarily due to an increase in our provision for uncollectible accounts receivable of approximately $680. In the first quarter of 2010, we recorded approximately $340 of incremental reserves for bad debts, which compares to a net recovery of previously reserved amounts of approximately $340 in the first quarter of 2009.
Consolidated net interest income was $71 in the first quarter of 2010 as compared to income of $143 in the first quarter of 2009. The decline in interest income reflects the lower interest rates paid on invested cash balances partially offset by higher average cash balances. Our average cash balance in the first quarter of 2010 of $71,861 was $14,339, or 25%, higher than in the first quarter of 2009.
Other income (expense) primarily includes exchange gains (losses) on transactions that are denominated in currencies other than our subsidiaries functional currencies, subsidies received from foreign governments in support of our export business in those countries and other miscellaneous non-operational, non-recurring expenses. Other income for the first quarter of 2010 was $60 and compares to other expense of $248 for the first quarter of 2009. The increase in other income (expense) primarily reflects lower exchange losses ($148 in the first quarter of 2010 compared to $521 in the first quarter of 2009) and a decrease in $65 in other income mostly related to government subsidies.
At December 31, 2009, we had U.S. net operating loss (NOL) carryforwards of $23,204. Of this amount, $16,643 is available to offset future taxable income. The remainder represents tax deductions for employee stock option gains which would be credited to paid-in capital. The U.S. loss carryforwards expire in varying amounts beginning in 2018 and continuing through 2029. In addition, if certain substantial changes in the companys ownership were deemed to have occurred, there would be an annual limitation on the amount of the U.S. carryforwards that could be utilized. At December 31, 2009, we also had foreign NOL carryforwards of $5,391. The foreign NOL carryforwards have no expiration dates. A valuation reserve has been provided for the U.S. and certain foreign operating loss carryforwards to offset the future benefits because we have not determined that their realization is more likely than not.
At March 31, 2010, we had working capital of $86,319, a $1,313 decrease, or 1%, from $87,632 reported at December 31, 2009. The decrease in working capital was primarily related to the impact of the strengthening of the U.S. dollar.
EBITDA from continuing operations for the three months ended March 31, 2010 and 2009 was $1,516 and $5,302, a decrease of $3,786, or 71%, from the same period of the prior year. A reconciliation of EBITDA to net income for the three months ended March 31, 2010, and 2009 follows:
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