Secure authentication vendor Vasco is to move its shares from the Nasdaq national market to the SmallCap market and delist from Nasdaq Europe in a bid to reduce expenses and conserve its $2.5 million cash pile.
The vendor, which provides token-based authentication products to banks worldwide, says it expects to report reduced fourth quarter revenues in the range of $3.5 to $3.7 million, compared with $5.1 million for the third quarter of 2002.
The company blames the slowdown in sales on continued softness in the technology sector and the implementation of a "just-in-time" delivery programme to major banking customers. While the programme has had a negative impact on fourth quarter revenues, says Vasco, it has resulted in a stronger than forecasted year-end cash position and created an order backlog into 2003.
Vasco says it ended the year with approximately $2.5 million in cash, a reduction of only $0.2 million from the end of the third quarter, and had a firm Digipass backlog for delivery in 2003, excluding sales and maintenance associated with the Vacman product line, in excess of $10 million. The company further indicated that all of its credit facilities remained in place, including an unused line of credit for up to EUR2 million.
The company also announced the resignation of two of its Belgian directors, Christian Dumolin and Chris Lebeer, reducing the board to five members.
Full results for the quarter and year-ended 31 December, 2002 are due in the second week of February 2003.