Voltage Security, the global leader in end-to-end data protection, today announced financial results for the fiscal year ending January 31, 2010.
With growing market acceptance of its broad set of encryption solutions, including Voltage SecureDataTM, its end-to-end encryption product line for enterprise and payment applications, Voltage completed four quarters of year-over-year revenue growth, and three consecutive quarters of profitability and cash generation from operations, resulting in over 70% revenue growth for the fiscal year. The company also was cash flow positive from operations and profitable for the fiscal year.
"We are extremely pleased with our performance over this past year, especially given the tough economic climate," said Sathvik Krishnamurthy, president and CEO of Voltage Security. "We continue to see demand increasing across our entire product line, with our sales pipeline having tripled as compared to this time last year."
Multiple Trends Driving Growth
The heightened demand for Voltage solutions is being driven by three broad trends:
• Increasing set of cyber threats across the enterprise is causing enterprise IT executives to be more vigilant in protecting valuable data assets, and particularly, private and personal customer data.
"Customers are battling cyber crime throughout the enterprise. Much of the publicity is focused on endpoint security but our customers around the globe are increasingly concerned with malware and cyber threats within the data center as well," commented Krishnamurthy.
• Reducing audit scope for payment card industry (PCI) compliance continues to be an important objective for large companies in regulated industries, particularly in the financial services, payments, insurance and medical sectors. These enterprises are responsible for protecting the privacy of customer credit card data, and are subject to mandatory time-consuming and expensive assessments. "By utilizing Voltage encryption and key management solutions, our customers are dramatically reducing audit scope, and saving significant amounts of time and money," continued Krishnamurthy.
• Displacing competitive legacy encryption solutions is also increasingly driving Voltage growth. In the past, enterprises have chosen encryption solutions based on legacy technology like PKI, which quickly becomes unmanageable and too expensive to administer. Now customers are turning to more simplified but innovative Voltage end-to-end encryption and key management solutions.
Leadership in Payment Security
Throughout the year Voltage continued to build its leadership position in providing information security solutions for the broader payments industry. Voltage continued to build out its customer and partnership base as follows:
• One of the nation's top five credit card processors has selected Voltage to power its encryption of credit card data, from card swipe to card brand hand-off, covering the critical endpoints of the payment stream.
• Heartland Payment Systems: Heartland's E3 End-to-End Encryption solution is powered by Voltage SecureData and protects cardholder and sensitive authentication data throughout the payment acquiring network.
• Thales: Thales, a leading provider of information systems and communication security, that secures more than 70 percent of the world's card payment transactions, has integrated Voltage SecureData technology with its hardware security modules (HSMs).
In addition, Voltage launched the industry's first, global, zero-cost licensing program, the Voltage SecureData Open License ProgramTM. This dramatically lowers the barriers to enable the easy integration of encryption with any POS device, electronic cash register (ECR), mobile device or eCommerce Payments platform, protecting credit card data from the point of entry into the payment flow.
Early participants in the program include Hypercom, one of the leading global point-of-sale (POS) device manufacturers, and XAC, one of the world's leading private label electronic payment system manufacturers.
In addition, Voltage added payments industry executive Doug Dwyre, previously with First Data Corp., to its executive team as vice president, business development, payments.
Successful Product Line Diversification Results in Increase in Suite Sales
Over two years ago Voltage strategically began product line diversification, bringing to market solutions such as Voltage SecureFileTM and Voltage SecureDataTM, to complement its flagship, market leading enterprise email security solution, Voltage SecureMailTM. Based on innovative encryption technology and sharing an underlying common key management architecture that greatly simplifies administration and total cost of ownership, customers are now increasingly purchasing "suites" of Voltage products to protect information as it flows within and beyond the enterprise.
During the fiscal year, over 40% of Voltage's revenues came from suite sales, and the company expects to see this number continue to grow.
Some of those customers include:
• A Fortune 10 telecommunications company.
• A top 5 payments processor.
• A leading auto insurance company.
Voltage continued to take a leading role in both standards and educating the broader market.
Earlier in the year, Voltage unveiled the Voltage Data Breach Index and Map. The company maintains this interactive tool, found here www.voltage.com/data-breach, which is continuously updated with global data breach information.
In the standards area, Voltage continued its work with memberships in the following organizations: FIPS, PCI Security Standards Council, OASIS KMIP Working Group and SPVA (Secure POS Vendor Alliance).