Annual Report 2009 (1 MB, pdf) - Vasco

VASCO DATA SECURITY INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(amounts in thousands, except per share data)
Note 10 – Earnings per Common Share
Basic earnings per share is based on the weighted average number of shares outstanding and excludes the
dilutive effect of unexercised common stock equivalents. Diluted earnings per share is based on the weighted
average number of shares outstanding and includes the dilutive effect of unexercised common stock equivalents
to the extent they are not anti-dilutive. A reconciliation of the shares included in the basic and fully diluted
earnings per share calculations is as follows:
For the years ended December 31,
2009 2008 2007
Net Income ............................................. $11,862 $24,291 $20,963
Weighted average common shares outstanding
Basic .............................................. 37,319 37,156 36,879
Incremental shares with dilutive effect:
Stock options ................................... 762 992 1,279
Restricted stock awards ........................... 3 27 80
Warrants ....................................... — 29 67
Dilutive ............................................ 38,084 38,204 38,258
Net Income per share
Basic .............................................. $ 0.32 $ 0.65 $ 0.57
Dilutive ............................................ 0.31 0.64 0.55
Note 11 – Employee Benefit Plan
We maintain a defined contribution pension plan for our U.S. employees established pursuant to the
provisions of Section 401(k) of the Internal Revenue Code, which provides benefits for eligible employees of the
company and allow us to match employee contributions. For the years ended December 31, 2009, 2008 and 2007,
we contributed $75, $100 and $72, respectively, to this plan as matching contributions.
We also maintain a pension plan for our Belgian employees, in compliance with Belgian law. The plan is a
defined contribution plan, but has a minimum return guarantee under Belgian law. Returns guaranteed by the
pension plan administrator are essentially equal to the legal requirement. For the years ended December 31,
2009, 2008 and 2007, the company contributed $487, $386 and $288, respectively, to this plan.
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