VASCO expects up to $4.8 mil in losses from DigiNotar bankruptcy

OAKBROOK TERRACE — VASCO Data Security International said it expects to lose between $3.3 million and $4.8 million as a result of the bankruptcy of DigiNotar, B.V. in The Netherlands.

DigiNotar was declared bankrupt by the Haarlem District Court, The Netherlands on September 20.

“We expect to record the costs and a recovery related to the DigiNotar events beginning in the third quarter of 2011,” said T. Kendall Hunt, VASCO’s Chairman and CEO. “Additional costs or recoveries may be recorded in future periods as more information becomes available. We also expect to report the foregoing costs and recovery, together with the results of operation of DigiNotar through the date of its filing for bankruptcy, as a discontinued operation.”

DigiNotar, an Internet-safety company based near Amsterdam, was attacked by hackers last summer, who issued fraudulent certificates under the company’s name and targeted websites from the government and companies such as Facebook and Google. The Dutch government said Sept. 3 it no longer trusted safety certificates issued by DigiNotar.

VASCO Data Security International in January for $12.9 million. VASCO said in a filing today it expects significant losses associated with DigiNotar.