Soaring interest in two-factor authentication is paying dividends for digital security firm Vasco, which is reporting a 90% rise in first quarter revenue and 114% jump in income.
Revenues for Q1 2005 leaped to $11.4 million from $6 million in the first quarter of 2004 and 23% from $9.3 million in the fourth quarter of 2004. Quarterly revenues were boosted by a $876,000 contribution from AOS-Hagenuk, the Dutch smart card and security firm which was acquired for EUR5 million in early February.
Net income for the quarter rose to $1.4 million against income of $O.5 million in 2004. Operating expenses increased by $1.75 million or 49% over the period.
The company says it shipped approximately 1.5 million of its digital authentication tokens in the first quarter 2005, a 200% year-on-year increase. New accounts in the quarter included 18 banks and 166 corporate network customers.
Ken Hunt, Vasco's CEO, and chairman says the firm is "looking to grow by making acquisitions that can expand our authentication product offerings and product development capabilities".