14 DAY TRIAL // Today, DigiNotar, a subsidiary of VASCO Data Security International was declared bankrupt after filing a petition yesterday. The company is finally put out of its misery after making a long series of poor judgment calls in the events regarding the rogue certificates.
An appointed bankruptcy judge and a so-called trustee will supervise the whole process at the end of which a public report will be released to act as “a source of information to the company's creditors and stakeholders.”
“Although we are saddened by this action and the circumstances that necessitated it, we would like to remind our customers and investors that the incident at DigiNotar has no impact on VASCO's core authentication technology.
“The technological infrastructures of VASCO and DigiNotar remain completely separated, meaning that there is no risk for infection of VASCO’s strong authentication business,” revealed T. Kendall Hunt, VASCO’s chairman and CEO.
On September 5, in an attempt to reduce the impact of the imminent financial losses brought by the downfall of DigiNotar, Kendal stated that “VASCO does not expect that the DigiNotar security incident will have a significant impact on the company’s future revenue or business plans. In fact, DigiNotar’s expected revenue for the year 2011 was approximately 2% of VASCO’s guided revenue for the year 2011 as communicated on July 26, 2011.”
Now, after the bankruptcy was officially declared, we learn that “While the losses associated with DigiNotar are expected to be significant, we do not expect, given the manner in which the acquisition of DigiNotar was structured, that the value of all of the intangible assets acquired will be fully impaired.”
“We expect that a significant portion of the value assigned to the intellectual property acquired from DigiNotar to continue to have value as we incorporate the technology into our existing product line,” stated Cliff Bown, VASCO’s executive vice president and CFO.
Victim companies are slowly but surely patching up the holes in their products caused by the DigiNotar incident and it's clear that VASCO is trying hard to wash away any connection between them and the name that surrounded one of the most catastrophic security issues in the past few years.