THis one's hot. Was going to buy last week but didn't. Will tomorrow. I think this will be a nice long play.
Up 0.45 today. Anyone take profits?
I am wiating till hit $9.20 then $$$$$$
follow through on good volume
on the move
VDSI is one of my long-term favorites. One of those you should put in your 401k.
Ram
Shorts are covering...just like David did, now they pushing up higher ;)
BUY LOW, SELL HIGH
Profile:
VASCO Data Security International, Inc., through its subsidiaries, engages in the design, development, marketing, and support of open standards-based hardware and software security systems that manage and secure access to information assets worldwide. Its identity authentication products enable secure financial transactions to be made over private enterprise networks and public networks, such as the Internet. VASCO's identity authentication software is delivered via its Digipass security products, small calculator hardware devices carried by an end user, or in a software format on mobile phones, other portable devices, and personal computers. The company's security solutions are sold through its direct sales force, as well as through distributors, resellers, and systems integrators. The company operates in the United States, Belgium, Australia, Singapore, and Shanghai. VASCO Data Security International was founded in 1996 and is headquartered in Oakbrook Terrace, Illinois. VASCO Data Security International, Inc. acquired A.O.S. Hagenuk B.V. in February 2005.
Earnings:
VDSI: Q4 Results 8c vs 2c; Beats 5c Est; No Guidance
Tuesday , February 21, 2006 08:46 ET
QUARTER RESULTS
Vasco Data Security International Inc (VDSI) reported Q4 results ended December 2005. Q4 Revenues were $17.52M; +88.39% vs yr-ago; BEATING revenue consensus by +13.99%. Q4 EPS was 8c; +300.00% vs yr-ago; BEATING earnings consensus by +60.00%.
Q4 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $17.52M $9.30M +88.39% $15.37M +13.99%
---------- ------------ ------------ ---------- ------------ ----------
EPS: 8c 2c +300.00% 5c +60.00%
---------- ------------ ------------ ---------- ------------ ----------
QUARTERLY GUIDANCE:
Company provided NO Revenue guidance for next quarter.
Company provided NO EPS guidance for next quarter.
YEAR-END RESULTS
Co. also reported Year-End results ended December 2005. FY Revenues were $54.58M; +82.60% vs yr-ago; BEATING revenue consensus by +4.34%. FY EPS was 21c; +133.33% vs yr-ago; BEATING earnings consensus by +10.53%.
FY RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $54.58M $29.89M +82.60% $52.31M +4.34%
---------- ------------ ------------ ---------- ------------ ----------
EPS: 21c 9c +133.33% 19c +10.53%
---------- ------------ ------------ ---------- ------------ ----------
ANNUAL GUIDANCE:
Company provided NO Revenue guidance for coming year.
Company provided NO EPS guidance for coming year.
ADDITIONAL COMMENTARY:
Current backlog for orders to be shipped in Q1 2006 is $12.8 million, an increase of $2.1 million or 20% from the backlog for Q1 2005.
Analysis (6 slides; Price Target 13$):
http://www.knobias.com/research.pdf?id=3820
chart:
time for rebounding IMO ;D
more information about CC 2005:
VASCO Reports Results for Fourth Quarter and Full-Year 2005
Tuesday , February 21, 2006 02:00 ET
OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, Feb 21, 2006 /PRNewswire-FirstCall via COMTEX/ -- VASCO Data Security International, Inc. (Nasdaq: VDSI) ( http://www.vasco.com ), today reported financial results for the fourth quarter and full-year ended December 31, 2005.
Revenues for the fourth quarter of 2005 increased 88% to $17,519,000 from $9,298,000 in 2004 and, for the full-year 2005, increased 83% to $54,579,000 from $29,893,000 in 2004.
Net income available to common shareholders for the fourth quarter of 2005 was $2,962,000, or $0.08 per diluted share and compares to $481,000, or $0.02 per diluted share in 2004. Net income available to common shareholders for the full-year 2005 was $7,687,000, or $0.21 per diluted share compared to income of $3,021,000, or $0.09 per diluted share in 2004.
Financial Highlights:
-- Results reflect the twelfth consecutive quarter of operating profit
and positive earnings before interest, taxes, depreciation and
amortization ("EBITDA").
-- Results reflect the seventh consecutive quarter-over-quarter increase
in revenue. Revenue for the fourth quarter 2005 was 32% higher than
the third quarter of 2005.
-- Gross profit was $11,035,000 or 63% of revenue for the fourth quarter
and $34,438,000 or 63% of revenue for the full-year 2005. Gross
profit was $6,032,000 or 65% of revenue for the fourth quarter and
$20,709,000 or 69% of revenue for the full-year 2004.
-- Operating expenses for the fourth quarter and full-year 2005 were
$6,827,000 and $23,485,000, respectively, an increase of 50% from
$4,539,000 reported for the fourth quarter 2004 and an increase of 55%
from $15,157,000 reported for the full-year 2004.
-- Operating income for the fourth quarter and full-year 2005 was
$4,208,000 and $10,953,000, respectively, an increase of $2,715,000,
or 182%, from $1,493,000 reported for the fourth quarter of 2004 and
an increase of $5,401,000, or 97%, from the $5,552,000 reported for
the full-year 2004. Operating income as a percentage of revenue for
the fourth quarter and full-year 2005 was 24% and 20%, respectively,
compared to 16% and 19% for the comparable periods in 2004.
-- Other income/expense, which primarily includes exchange gains and
losses, was expense of $7,000 for the fourth quarter 2005 and income
of $506,000 for the full-year 2005 and compares to expense of $538,000
for the fourth quarter of 2004 and expense of $539,000 for the full-
year 2004.
-- Net income for the fourth quarter and full-year 2005 was $2,962,000
and $7,701,000, respectively, and compares to $516,000 and $3,253,000
reported for the same periods in 2004.
-- Earnings before interest, taxes, depreciation and amortization was
$4,456,000 and $12,536,000 for the fourth quarter and for the full-
year 2005, respectively, an increase of 276% from $1,186,000 reported
for the fourth quarter of 2004 and an increase of 118% from $5,747,000
reported for the full-year 2004.
-- Net cash balances, total cash and cash equivalents less bank
borrowings, at December 31, 2005 totaled $13,970,000 compared to
$9,272,000 and $8,220,000 at September 30, 2005 and December 31, 2004,
respectively.
Operational and Other Highlights:
-- VASCO won 251 new customers in Q4 2005 (21 banks and 230 corporate
network access customers) and 821 for full-year 2005. Year-to-date
new customers include 89 new banks and 732 corporate network access
customers.
-- VASCO shipped approximately 2,425,000 Digipass authentication products
in the fourth quarter and approximately 7,340,000 for the full-year
2005, an increase of 159% over the number of Digipass products shipped
in the full-year 2004. The 2,425,000 units shipped in the fourth
quarter of 2005 reflected an increase of 1,360,000 units, or 128%,
over the 1,065,000 Digipass products shipped in the fourth quarter of
2004.
-- Rabobank (The Netherlands) to Use VASCO's Digipass 810 for EMV-CAP and
Digipass Two Factor Authentication
-- Lloyds TSB Trials VASCO Digipass with 30,000 Online Banking Customers
-- Friesland Bank (The Netherlands) to Use VASCO's Digipass 815 Secure
Card Reader for Retail Banking
-- UK Online Gambling Company Redbet Uses VASCO's Digipass 260 to Secure
Online Gambling Applications
-- Dutch Online Service Provider DigiNotar Uses VASCO's Digipass GO3 to
Secure Online Authentication Services
-- VASCO and SAB2i Announce Solution Partnership
-- VASCO launches VACMAN Controller for Hardware Security Module (HSM)
-- VASCO launches Hyper-Portable Digipass 100, Digipass Strong User
Authentication on Flexible Smart Card
-- VASCO selected by Red Herring magazine as one of the inaugural Red
Herring Small Cap 100
"The results of the fourth quarter and full-year 2005 demonstrate clearly that our strategies are working," said Ken Hunt, VASCO's CEO and Chairman. "Our strategy of being the high-volume, high-quality, low-cost producer is clearly paying off as our unit volume for the quarter exceeded our nearest competitor by approximately 900,000 units, or 60%. Efficiencies created by our operating model were also strongly evident as our operating earnings, as a percentage of revenue, were 24% for the quarter and 20% for the full-year. As we look forward, I believe our vision of being the full-option, all-terrain authentication company will serve our customers well and maintain our market leading position."
"The fourth quarter in each of the last two years has reflected important changes in our business," said Jan Valcke, VASCO's President and COO. "Last year, the fourth quarter showed a significant increase in unit volume as the demand for consumer level authentication increased substantially. In the fourth quarter of this year, we saw a higher sense of urgency from our customers as the time lag between placing an order and the delivery of the product became shorter. In the fourth quarter of this year, we sold and delivered approximately $4.8 million of new business from October 27th, the date that we announced our backlog for the quarter, through the end of the quarter. We have also seen continuing strong demand through the 2005 holiday season and into 2006. Our current backlog for orders to be shipped in Q1 2006 is $12.8 million, an increase of $2.1 million or 20% from the backlog for Q1 2005. The current backlog is $1.4 million or 12% higher than our results for the full first quarter of 2005."
Cliff Bown, Executive Vice President and CFO added, "Our balance sheet continues to strengthen as a result of the strong operating performance. Net cash balances, cash and cash equivalents less bank borrowings, increased $4,698,000 or 51% from September 30, 2005 and our working capital increased by $3,504,000 or 27% from September 30, 2005. At December 31, 2005 our working capital balance was $16,325,000. Days Sales Outstanding (DSO) in net accounts receivable increased to approximately 63 days at December 31, 2005 from 59 days at September 30, 2005 due in large part to the significant amount of shipments in the month of December."
VDSI: ThinkEquity Starts @ Buy; Sets Tgt @ $12; Analyst Notes
Thursday , March 23, 2006 08:34 ET
Issuer: Vasco Data Security International Inc (NasdaqSC: VDSI)
Analyst Firm: ThinkEquity Partners
Ratings Action: INITIATE
Current Rating: Buy
Target Price Action: INITIATE
Target Price: $12.00
Analyst Comments: The firm believes that VASCO is the best way to play the growth in the nascent consumer (Internet banking) authentication space, one of their favorite growth themes. VASCO has a competitive advantage in consumer as it was the first mover and has the largest installed base. They believe that VASCO can outperform expectations in 2006 based on new bank wins. However, they believe that expectations are too high going into 1Q06, which may create a better buying opportunity.
VDSI: Volume Spike; 64% > 20-adsv, Stock -5.38%
Monday , April 03, 2006 15:10 ET
This is the 4th VOLUME alert for VDSI in the past 7 calendar days.
Trading for Vasco Data Security International Inc (NASDAQ SC: VDSI) has been heavier than usual in today's session. By 15:10 ET, the stock had already traded 1,111,200 shares via 1,084 trades. The cumulative volume is 63.72% above its 20-day average of 678,700. Normally the stock experiences around 1,094 individual trades per session.
So far, today's volume surge has caused a net decline in VDSI's stock price. At the time of this alert, the stock was trading at $7.740, down $-0.440 (-5.38%).
One year ago, the Company's shares closed at $6.360. The price has gained more than 21 percent since then.
Over the last 10 trading session VDSI has traded in a range between $7.880 and $9.900 and is currently trading 37.98% below its 52-week high of $12.480 set on November 14,2005 and 28.79% above its 52-week low of $6.010 from April 04,2005.
In the previous 3 sessions, VDSI trading has displayed a mixed trend. Closing results have been as follows:
March 31, 2006 --- closed at $8.180 down $0.170 (-2.04%) on 1,253,600 shares
March 30, 2006 --- closed at $8.350 down $0.760 (-8.34%) on 3,187,400 shares
March 29, 2006 --- closed at $9.110 up $0.040 (+0.44%) on 659,600 shares
&
VDSI: Morgan Keegan Cuts to Mkt Perform from Outperform; Analyst Notes
Thursday , March 30, 2006 08:45 ET
Issuer: Vasco Data Security International Inc (NasdaqSC: VDSI)
Analyst Firm: Morgan Keegan Inc.
Ratings Action: DOWNGRADE
Current Rating: Mkt Perform (from Outperform)
Analyst Comments: The firm is downgrading VDSI based on their belief that the dynamic competitive and regulatory environment limited the company's ability to close enough large deals to overcome lower-than-typical intraquarter visibility. They are also lowering their 1Q06 revenue estimate by $1.5M to $15.1M (consensus $16.8M). Due to rounding, their 1Q06E EPS remains at 5c (below consensus of 6c). Their new 2006E revenue is $72.9M (was $77.0M, vs. consensus = $79.3M), and EPS is 26c (was 28c, consensus = 29c).
This rating information was reported by Morgan Keegan Inc..
VDSI: Raymond James Cuts to Mkt Perform from Outperform; Analyst Notes
Tuesday , April 04, 2006 08:32 ET
Issuer: Vasco Data Security International Inc (NasdaqSC: VDSI)
Analyst Firm: Raymond James Financial Inc.
Ratings Action: DOWNGRADE
Current Rating: Mkt Perform (from Outperform)
Analyst Comments: The firm is downgrading shares due to the change in competitive dynamics between the company and RSAS.
&
VDSI: Brean Murray Sets @ Strong Buy; Sets Tgt @ $10; Analyst Notes
Tuesday , April 04, 2006 07:43 ET
Issuer: Vasco Data Security International Inc (NasdaqSC: VDSI)
Analyst Firm: Brean Murray
Current Rating: Strong Buy
Target Price Action: INITIATE
Target Price: $10.00
Analyst Comments: The firm is assuming coverage on the stock and continues to believe VDSI is poised to deliver superior results due to favorable macro trends, competitive position, and strong momentum in new banking customer acquisition.
13 $ price target:
http://www.knobias.com/research.pdf?id=4538
(7slides)
nice rebound IMO
update, nice rebound this week IMO
VDSI update:
http://www.vasco.com/documents/misc/ir/backgrshortMarch06.pdf
fyi:
VASCO Reports Results for First Quarter of 2006
Thursday , April 27, 2006 02:00 ET
OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, April 27, 2006 /PRNewswire via COMTEX/ -- VASCO Data Security International, Inc. (Nasdaq: VDSI) ( http://www.vasco.com ), today reported its financial results for the first quarter ended March 31, 2006.
Revenues for the first quarter of 2006 increased 20% to $13.7 million from $11.4 million in the first quarter of 2005. Net income for the first quarter 2006 increased 39% to $2.0 million, or $0.05 per diluted share, from $1.4 million, or $0.04 per diluted share, in the first quarter of 2005.
Financial Highlights:
-- Gross profit was $9.5 million or 69% of revenue for the first quarter
of 2006 and compares to gross profit of $7.2 million or 63% of revenue
in the first quarter of 2005.
-- Operating expenses for the first quarter of 2006 were $6.6 million, an
increase of $1.3 million or 24% from $5.3 million reported for the
first quarter 2005. Operating expenses in 2006 included $0.3 million
related to stock based incentives.
-- Operating income for the first quarter was $2.9 million, an increase of
$1.0 million or 51% from $1.9 million reported for the first quarter of
2005. Operating income as a percentage of revenue for the first
quarter of 2006 was 21% compared to 17% for the first quarter of 2005.
-- Earnings before interest, taxes, depreciation and amortization was
$3.1 million for the first quarter of 2006, an increase of 29% from
$2.4 million reported for the first quarter of 2005.
-- Net cash balances, total cash and cash equivalents less bank
borrowings, at March 31, 2006 totaled $14.5 million compared to
$14.0 million at December 31, 2005.
Operational and Other Highlights:
-- Approximately 1.8 million Digipass units shipped in the first quarter
of 2006, an increase of more than 16% from the first quarter of 2005.
-- A total of 341 new accounts sold in the quarter, including 34 banks and
307 Corporate Network Access ("CNA") customers. Both the number of new
CNA customers and the number of new banks are a company record for a
quarter.
-- VASCO Launches Speech Enabled Digipass 300 Comfort Voice
-- VASCO and Eutron Launch USB Enabled Digipass 860
-- VASCO Launches Digipass for Web
-- VASCO Launches Full Option, All Terrain Product Strategy
-- VASCO Partners with IMPRIVATA To Deliver Digipass-Based Network
Authentication Appliance
-- SNS Bank Rolls Out Digipass 300 Comfort Voice to Blind and Visually
Impaired Customers
-- German LBBW (Landesbank Baden-Wuerttemberg) offers Secure Retail
e-banking to its Customers with VASCO's Digipass 250
-- VASCO Awards GE Money Bank Germany for Its Visionary Approach to the
German E-Banking Market
-- Dexia Bank (Belgium) to Secure Retail E-banking Customers with VASCO's
Digipass 810 Strong Authentication
-- Banca Monte Paschi Belgio (Belgium) to Use VASCO's Digipass 260 for
Retail and Corporate Banking
Guidance for full-year 2006:
VASCO reaffirmed the full-year 2006 guidance provided on February 21, 2006, which included:
-- Revenue growth of 35% to 45% for the full-year 2006 over full-year
2005,
-- Gross margins as a percentage of revenue of 58% to 63% for the
full-year 2006, and
-- Operating margins as a percentage of revenue of 13% to 18% as reported
in accordance with Generally Accepted Accounting Principles and 15% to
20% excluding stock related compensation and amortization expenses.
"We introduced our All Terrain Strategy in the first quarter of 2006 to further penetrate and protect our existing and growing customer base," said Ken Hunt, VASCO's CEO, and Chairman. "We will build on our strategy of being the high-volume, high-quality, low-cost producer by expanding our flexible platform to support a growing array of authentication products. Some of those products, like our Digipass for Web, which we announced this quarter, will allow customers to implement a strong authentication solution as a complement to or as an alternative to deploying hardware authentication devices. Our platform, which allows any of our forms of authentication to be used simultaneously, will allow customers to deploy an appropriate, cost-effective method of authentication for each user of their application by selecting the appropriate Digipass product, including Digipass for Web. We believe that Digipass for Web will provide a seamless, non-invasive way to authenticate users that goes well beyond today's fraud detection products. With the addition of Digipass for Web, VASCO will be able to serve and authenticate every audience that needs strong authentication, from people buying a book online once a year to CFO's of companies, transacting millions of dollars on a daily base. We will also be looking to acquire companies that can expand our authentication product offerings and product development capabilities."
"The results of the first quarter in 2006 reflect the continued strong growth of the business in both our banking and corporate network access markets compared to the first quarter of 2005," said Jan Valcke, VASCO's President and COO. "The increase in gross margin as a percentage of revenue in the quarter primarily reflects the fact that our corporate network access business, which has a higher gross margin rate than our banking business, grew faster than our banking business and the fact that we were able to reduce our average cost of product sold. We added 34 new banking customers as compared to 18 in the first quarter of 2005. We also saw a very strong order flow in the first quarter of 2006. As we start the second quarter, we have a backlog of firm orders to be shipped in the second quarter of $16.0 million, which is 48% higher than the $10.8 million backlog we had entering the second quarter of 2005 and 30% higher than the $12.3 million in actual sales reported for Q2 2005."
Cliff Bown, Executive Vice President and CFO added, "Our balance sheet continues to be strong. Net cash balances, cash and cash equivalents less bank borrowings, were $14.5 million, an increase of $0.5 million or 4% from December 31, 2005. Our working capital was $18.9 million at the end of the first quarter, an increase of $2.6 million, or 16%, from $16.3 million at December 31, 2005. Days Sales Outstanding (DSO) in net accounts receivable increased to 76 days at March 31, 2006 from 63 days at December 31, 2005."
13 spages update, reduced price target (now 12$):
http://www.knobias.com/research.pdf?id=5024
updated research presentation:
http://www.knobias.com/research.pdf?id=5648
;D
on my watchlist
cheers
O.
VDSI: Friedman Starts @ Mkt Perform; Sets Tgt @ $8; Analyst Notes
Wednesday, June 21, 2006 06:58 ET
Issuer: Vasco Data Security International Inc (NasdaqSC: VDSI)
Analyst Firm: Friedman Billings Ramsey Group Inc.
Ratings Action: INITIATE
Current Rating: Mkt Perform
Target Price Action: INITIATE
Target Price: $8.00
Analyst Comments: The firm points out that with more than 20 million Digipass products sold and delivered, VDSI has established itself as one of the leaders for strong user authentication solutions. Historically, VDSI has derived between 85% and 90% of total revenues from European markets, as the company has built a formidable presence in this geographic region given its Belgian roots and core product focus. While the company has established itself as the No. 2 authentication vendor in the market behind leader RSA Security, they believe VDSI could face increased headwinds in its sweet spot of the financial services vertical over the coming year, as competition increases in the overall authentication space. While the firm is optimistic over the longer term on VDSI's growth prospects, their near-term concerns outweigh their generally positive view of the company.
VDSI: Short Interest UP 12.6% to 3.1M in Jun 2006
Monday , June 26, 2006 16:22 ET
According to new short interest data from NASDAQ, short interest for Vasco Data Security International Inc (NasdaqSC: VDSI) INCREASED 12.6% to 3,108,367 shares for the month ended mid-June, 2006.
SYMBOL MAY JUNE CHANGE %CHANGE DAYS/COVER
-------- ------------- ------------- ------------- ------------ ----------
VDSI 2,760,796 3,108,367 +347,571 +12.59% 10
Based on VDSI's 20-day average daily share volume of 323,910, it would require approximately 10 day(s) of buying to cover this short interest.
will be up today >:D
VASCO Reports Record Results for Second Quarter and First Six Months of 2006
Thursday July 27, 2:00 am ET
Revenues for the second quarter 2006 increase 50% over Q2 2005 and 35% over Q1 2006; Operating income increases 79% over Q2 2005 and 41% over Q1 2006. Revenue for the quarter is best in the Company's history; VASCO increases its full-year 2006 guidance for gross and operating margins; Financial results for the periods ended June 30, 2006 and guidance for full-year 2006 to be discussed on conference call today at 10:00 a.m. EDT
OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, July 27 /PRNewswire/ -- VASCO Data Security International, Inc. (Nasdaq: VDSI - News; http://www.vasco.com ) today reported financial results for the second quarter and six-months ended June 30, 2006.
Revenues for the second quarter of 2006 increased 50% to $18.5 million from $12.3 million in 2005 and, for the first six months of 2006, increased 35% to $32.2 million from $23.8 million in 2005.
Net income available to common shareholders for the second quarter of 2006 was $3.0 million, or $0.08 per diluted share, an increase of $1.4 million or 92% from $1.6 million, or $0.04 per diluted share in 2005. Net income available to common shareholders for the first six months of 2006 was $4.2 million, or $0.11 per diluted share, an increase of $1.2 million or 41% from $3.0 million, or $0.08 per diluted share in 2005.
Financial Highlights:
-- Gross profit was $11.9 million or 64% of revenue for the second
quarter and $21.3 million or 66% of revenue for the first six months
of 2006. Gross profit was $8.0 million or 65% of revenue for the
second quarter and $15.3 million or 64% of revenue for the first six
months of 2005.
-- Operating expenses for the second quarter and first six months of 2006
were $7.8 million and $14.3 million, respectively, an increase of 35%
from $5.8 million reported for the second quarter 2005 and an increase
of 30% from $11.1 million reported for the first six months of 2005.
Operating expenses for the second quarter and first six months of 2006
included $0.4 million and $0.7 million, respectively related to
stock-based incentives.
-- Operating income for the second quarter and first six months of 2006
was $4.1 million and $7.0 million, respectively, an increase of
$1.8 million or 79% from $2.3 million reported for the second quarter
of 2005 and an increase of $2.8 million or 66% from the $4.2 million
reported for the first six months of 2005. Operating income, as a
percentage of revenue, for the second quarter and first six months of
2006 was 22.1% and 21.7%, respectively, compared to 18.5% and 17.7%
for the comparable periods in 2005.
-- Net income for the second quarter and first six months of 2006 was
$3.0 million and $4.2 million, respectively, and compares to net
income of $1.6 million reported for the second quarter of 2005 and net
income of $3.0 million reported for the first six months of 2005.
-- Earnings before interest, taxes, depreciation and amortization was
$4.6 million and $6.9 million for the second quarter and first six
months of 2006, respectively, an increase of 68% from $2.7 million
reported for the second quarter of 2005 and an increase of 34% from
$5.1 million reported for the first six months of 2005.
-- Net cash balances, cash balances less borrowing under its line of
credit, at June 30, 2006 totaled $13.0 million compared to
$14.5 million and $14.0 million at March 31, 2006 and December 31,
2005, respectively.
Operational and Other Highlights:
-- Approximately 2.7 million Digipasses shipped in the second quarter
2006, an increase of 71% from the second quarter of 2005. For the six
months ended June 30, 2006, approximately 4.4 million Digipasses were
shipped, an increase of 45% over the same period in 2005.
-- VASCO won 361 new customers in Q2 2006 (46 banks and 315 enterprise
security) and 702 for the first six months of 2006. Year-to-date new
customers include 80 banks and 622 enterprise security.
-- Citibank (US), HSBC (UK), Van Lanschot Bankiers (BE), Capitec (South
Africa) use Digipass GO3 for Business/Corporate Banking
-- Bank Asya (Turkey) uses Digipass 810 for Business and Retail Banking
-- Banco Bradesco (Brazil) and Garanti Bank (Turkey) win VASCO's Market
Vision Award 2006
-- VASCO Wins 15 U.S. Banks during Q2 2006
-- VASCO acquires Logico Smart Card Solutions
-- VASCO launches Digipass Easy Pack for MS Outlook Web Access
-- VASCO adds CAP Token Verification Service to VACMAN Controller
-- VASCO launches Partner Certification Program for EMEA
Guidance for full-year 2006:
VASCO is updating its guidance for the full-year 2006 as follows:
-- Revenue growth of 35% to 45% for the full-year 2006 over full-year
2005 is reaffirmed and remains unchanged from prior guidance,
-- Gross margins as a percentage of revenue for full-year 2006 are
projected to be in the range of 60% to 65%, up from the previous
guidance of 58% to 63% for the full-year 2006, and
-- Operating margins as a percentage of revenue for full-year 2006 are
projected to be 15% to 20% as reported in accordance with Generally
Accepted Accounting Principles, up from the previous guidance of 13%
to 18%. Excluding stock related compensation and amortization
expenses, operating margins are expected to be 18% to 23% of revenue,
up from the previous guidance of 15% to 20%.
"Our Full-Option, All-Terrain Strategy, introduced in the first quarter of 2006, is being very well received in the market," said Ken Hunt, VASCO's CEO and Chairman. "As evidenced by the record revenue and Digipass units shipped in the second quarter, we are seeing strong and continuing interest in our product in all of our markets, including in the United States. Also, as evidenced by our acquisition of Logico in the second quarter, we are executing our make or buy strategy by adding technology and staff with expertise that will help us meet the growing demand of our customers."
"The results of the second quarter continue the trend of strong growth," said Jan Valcke, VASCO's President and COO. "As two-factor authentication becomes more broadly accepted as a cost-effective means of protecting against identity theft, we are seeing both an increase in the number of deals as well as the size of the deals. Customers particularly like our platform, which allows them to use any of our forms of authentication simultaneously. It allows them to deploy an appropriate, cost-effective method of authentication for each user of their application by selecting the appropriate Digipass product, including Digipass for Web. As a market leader, especially in the banking and financial market, we also are seeing increased interest from distributors, solution partners and companies with complimentary technologies. As we start the third quarter, we have a backlog of firm orders to be shipped in the third quarter of $16.1 million, which is 39% higher than the $11.6 million backlog we had, entering the third quarter of 2005."
Cliff Bown, Executive Vice President and CFO, added, "Our balance sheet continues to be strong as a result of the strong operating performance. We were able to fund our acquisition of Logico from our existing cash balances. In part due to the acquisition of Logico, our net cash balances decreased $1.3 million or 9% from March 31, 2006 while our working capital increased approximately 7% to $20.1 million at June 30, 2006 from $18.7 million at March 31, 2006. Days Sales Outstanding (DSO) in net accounts receivable increased to approximately 81 days at June 30, 2006 from 76 days at March 31, 2006."
nice and steady pre earning action...
update:
1)
Vasco Data Security International "buy," target price raised
Friday, October 27, 2006 5:20:23 AM ET
Brean Murray, Carret & Co
NEW YORK, October 27 (newratings.com) - In a research note published yesterday, analysts at Brean Murray maintain their "buy" rating on Vasco Data Security International (VDSI.NAS), while raising their estimates for the company. The target price has been raised from $11 to $14.
2)
VASCO Data Security "buy," target price raised
Friday, October 27, 2006 6:05:36 AM ET
Dougherty & Company
NEW YORK, October 27 (newratings.com) - In a research note published yesterday, analysts at Dougherty & Company maintain their "buy" rating on VASCO Data Security (VDSI.NAS). The target price has been raised from $11.5 to $13.5.
3)
VASCO Data Security International "market perform," target price raised
Friday, October 27, 2006 4:23:22 AM ET
Friedman,Billings,Ramsey &Co
NEW YORK, October 27 (newratings.com) - In a research note published yesterday, analysts at Friedman Billings reiterate their "market perform" rating on VASCO Data Security International Inc (VDSI.NAS). The target price has been raised from $8 to $11.
4)
Financial Results:
VASCO Reports Record Results for Third Quarter and First Nine Months of 2006
Thursday October 26, 2:00 am ET
Revenues for the third quarter 2006 increase 41% over Q3 2005; Operating income increases 96% over Q3 2005. Revenue for the quarter is best in the Company's history; VASCO increases its full-year 2006 guidance for operating margins; Financial results for the periods ended September 30, 2006 and guidance for full-year 2006 to be discussed on conference call today at 10:00 a.m. E.D.T.
OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, Oct. 26 /PRNewswire-FirstCall/ -- VASCO Data Security International, Inc. (Nasdaq: VDSI - News; http://www.vasco.com ) today reported financial results for the third quarter and nine months ended September 30, 2006.
Revenues for the third quarter of 2006 increased 41% to $18.7 million from $13.3 million in 2005 and, for the first nine months of 2006, increased 37% to $50.9 million from $37.1 million in 2005.
Net income available to common shareholders for the third quarter of 2006 was $3.3 million, or $0.09 per diluted share, an increase of $1.5 million or 88% from $1.8 million, or $0.05 per diluted share in 2005. Net income available to common shareholders for the first nine months of 2006 was $7.5 million, or $0.20 per diluted share, an increase of $2.8 million or 59% from $4.7 million, or $0.13 per diluted share, in 2005.
Financial Highlights:
-- Gross profit was $12.8 million or 68% of revenue for the third quarter
and $34.1 million or 67% of revenue for the first nine months of 2006.
Gross profit was $8.1 million or 61% of revenue for the third quarter
and $23.4 million or 63% of revenue for the first nine months of 2005.
-- Operating expenses for the third quarter and first nine months of 2006
were $7.8 million and $22.1 million, respectively, an increase of 40%
from $5.6 million reported for the third quarter 2005 and an increase
of 33% from $16.7 million reported for the first nine months of 2005.
Operating expenses for the third quarter and first nine months of 2006
included $0.5 million and $1.2 million, respectively, related to
stock-based incentives.
-- Operating income for the third quarter and first nine months of 2006
was $5.0 million and $12.0 million, respectively, an increase of
$2.5 million or 96% from $2.5 million reported for the third quarter of
2005 and an increase of $5.3 million or 77% from the $6.7 million
reported for the first nine months of 2005. Operating income, as a
percentage of revenue, for the third quarter and first nine months of
2006 was 26.6% and 23.5%, respectively, compared to 19.1% and 18.2% for
the comparable periods in 2005.
-- Net income for the third quarter and first nine months of 2006 was
$3.3 million and $7.5 million, respectively, and compares to net income
of $1.8 million reported for the third quarter of 2005 and net income
of $4.7 million reported for the first nine months of 2005.
-- Earnings before interest, taxes, depreciation and amortization was
$5.3 million and $12.2 million for the third quarter and first nine
months of 2006, respectively, an increase of 80% from $3.0 million
reported for the third quarter of 2005 and an increase of 51% from
$8.1 million reported for the first nine months of 2005.
-- Net cash balances, cash balances less borrowing under its line of
credit, at September 30, 2006 totaled $20.4 million compared to
$13.0 million and $14.0 million at June 30, 2006 and December 31, 2005,
respectively.
Operational and Other Highlights:
-- Approximately 2.9 million Digipasses shipped in the third quarter 2006,
an increase of 60% from the third quarter of 2005. For the nine months
ended September 30, 2006, approximately 7.4 million Digipasses were
shipped, an increase of 50% over the same period in 2005.
-- VASCO won 381 new customers in Q3 2006 (58 banks and 323 enterprise
security) and 1,083 for the first nine months of 2006. Year-to-date
new customers include 138 banks and 945 enterprise security.
-- VASCO won 29 U.S. Banks during Q3 2006.
-- Postfinance (Switzerland) uses Digipass 810 for corporate and retail
banking.
-- Garanti Bank (Turkey) secures retail customers with Digipass for Java
Phone.
-- Old National Bank (U.S.A.) uses Digipass 260 for corporate banking.
-- Banca Antonveneta uses VASCO's Digipass GO3 for retail banking.
-- Promedico (The Netherlands) secures medical data with Digipass 300 and
VACMAN Controller.
-- VASCO launches fraud detection & analysis services.
-- VASCO launches Digipass Smart Pack.
-- VASCO is the first company to receive full Belgian EPCI Certification
for Digipass 810.
-- Jean K. Holley elected to VASCO's Board of Directors.
Guidance for full-year 2006:
VASCO is updating its guidance for the full-year 2006 as follows:
-- Revenue growth of 35% to 45% for the full-year 2006 over full-year 2005
is reaffirmed and remains unchanged from prior guidance,
-- Gross margins as a percentage of revenue for full-year 2006 are
projected to be in the range of 60% to 65% and remain unchanged from
prior guidance, and
-- Operating margins as a percentage of revenue for full-year 2006 are
projected to be 20% to 25% as reported in accordance with Generally
Accepted Accounting Principles, up from the previous guidance of 15%
to 20%.
"Our Full-Option, All-Terrain Strategy is being very well received in the market," said Ken Hunt, VASCO's CEO and Chairman. "As evidenced by the record revenue and Digipass units shipped in the third quarter, we are seeing continuing strong interest in our product in all of our markets. The leverage in our business model is also contributing to the strong results as our operating margins as a percentage of revenue have been and are expected to continue to be, as evidenced by our increase in guidance for operating margins, above 20%."
"The results of the third quarter continue the trend of strong growth," said Jan Valcke, VASCO's President and COO. "Our product platform, which allows our customers to use any of our forms of authentication simultaneously, continues to be very well received. It enables our customers to deploy an appropriate, cost-effective method of authentication for each user of their application by selecting the appropriate Digipass product, including Digipass for Web. As a market leader, we also are continuing to see increased interest from distributors, solution partners and companies with complementary technologies. As we start the fourth quarter, we have a backlog of firm orders scheduled to be shipped in the fourth quarter of $21.5 million, which is 69% higher than the $12.7 million backlog we had entering the fourth quarter of 2005 and 23% higher than the $17.5 million actual revenue reported for the fourth quarter of 2005."
Cliff Bown, Executive Vice President and CFO added, "Our balance sheet continues to be strong as a result of the strong operating performance. Our net cash balances increased $7.4 million or 57% from June 30, 2006 while our working capital increased approximately 21% to $24.0 million at September 30, 2006 from $19.9 million at June 30, 2006. Days Sales Outstanding (DSO) in net accounts receivable decreased to approximately 66 days at September 30, 2006 from 81 days at June 30, 2006."
5)
Chart
VDSI update:
VASCO Data Security International initiated with "outperform"
Monday, December 04, 2006 2:49:47 AM ET
RBC Capital Markets
NEW YORK, December 4 (newratings.com) - Analyst Robert Breza of RBC Capital Markets initiates coverage of VASCO Data Security International (VDSI.NAS) with an "outperform" rating.
The target price is set to $15.
In a research note published on December 1, the analyst mentions that the company's stock is trading at a discount to that of its peer group. VASCO Data Security International's key to future success lies in the company's predictable and profitable business model, the analyst says. The company is expected to announce higher-than-anticipated guidance for 1Q07 and FY07, RBC Capital Markets adds.
&
2. Fast growers
Among Lynch's favorites are companies whose sales and earnings are expanding 20% to 30% a year. The classic Lynch play during the past decade might be Starbucks, which has consistently grown sales and earnings at superior rates. The company has a sterling balance sheet and generates substantial earnings by selling an addictive product, which its loyal customers purchase every day, at a premium.
The real trick is to find fast growers like Starbucks in their early stages. Some candidates I recently added to or upgraded on my watch list include J2 Global (Nasdaq: JCOM), VASCO Data Security (Nasdaq: VDSI), and Smith Micro Software (Nasdaq: SMSI), all of which currently are growing earnings above 20% a year and are expected to continue at a better than 18% pace for the next five. At the same time, don't shy away from a slower-growth business selling at a truly great price. Hidden Gems can take either form.
link:
http://www.fool.com/investing/small-cap/2007/01/03/finding-lynchs-10baggers.aspx?source=eptyholnk303100&logvisit=y&npu=y
chart:
Can we call this a BO ;) ?
news:
AIB (Allied Irish Banks) to Use VASCO's Alphanumeric Digipass 550 and VACMAN Controller Strong Authentication for Corporate and Business Internet Banking
Thursday January 4, 3:00 am ET
Leading Irish bank is first to use Alphanumeric Digipass/VACMAN Controller transaction signature; all iBB (Internet Business Banking) customers in Ireland, Northern Ireland and Great Britain to be secured with Digipass 550
OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, Jan. 4 /PRNewswire- FirstCall/ -- VASCO Data Security International, Inc. (Nasdaq: VDSI - News), ( http://www.vasco.com ), the global number one vendor of strong user authentication products, today announced that Allied Irish Bank ( http://www.aib.ie ) will use Digipass 550 and VACMAN Controller to secure its customers' assets. AIB is the first financial institution to use the brand new alphanumeric Digipass. This allows the transaction signature to be generated using both numeric and alpha characters, which are commonplace in both the BIC and the IBAN.
AIB Group is Ireland's leading banking and financial services organization. It operates principally in Ireland, Britain, Poland and the USA. It employs more than 24,000 people worldwide in more than 750 offices.
VASCO's Digipass 550 is a PIN protected Digipass client authentication product that provides one-time passwords, e-signatures and unique host authentication. Learn more about Digipass 550 at http://www.vasco.com/products/product.html?product=52 .
AIB's corporate and business customers in Ireland and the UK will be able to perform online banking transactions in an even more secure and user friendly way. To access their accounts, customers will be able to use a Digipass-generated one-time password. To secure online payments, AIB's customers will be able to use the brand new and extra secure alphanumeric transaction signature functionality.
Transactions will be secured using elements of the Account No. (or IBAN) and the beneficiary BIC (or Sort code), including alphanumeric characters. Based on these details, Digipass 550 will generate a transaction data signature, which the user must input for validation by the VACMAN server. The combination of Digipass generated one-time password and transaction signature offers leading edge protection against phishing and man-in-the-middle attacks.
The alphanumeric Digipass functionality is the result of key collaboration between AIB and VASCO. VASCO has developed this brand new functionality a la carte, at the request of the customer. VASCO continues to prove its claim of being the full option, all-terrain authentication company.
"Our customers' security is of paramount importance to AIB, however the collective challenge we faced was to ensure we employed a solution which would also be in line with SEPA," said Sean Jevens, Head of eChannel Development with AIB. "We opted for VASCO because of their track record in the financial sector and for their open and flexible approach. VASCO's VACMAN Controller and Digipass products fully meet that description."
"AIB is the first financial institution to offer its corporate customers alphanumeric Digipass transaction signatures," said Jan Valcke, VASCO's President and COO. "We developed the new Digipass alpha signing functionality in collaboration with our customer. This partnership approach is one of the strongest assets of VASCO and will lead to a more secure Internet environment for AIB's customers."
chart:
up again ;)
update:
1)
Little Tokens Help Keep Prying Eyes Out of Your Personal Business
BY BEN STEVERMAN
INVESTOR'S BUSINESS DAILY
Posted 1/5/2007
The Internet, populated by hazards with names such as worms, viruses, spyware, hackers and phishers, can be a scary place to do business.
There's a growing realization that "the Internet is not safe, and something has to be done about it," said Ken Hunt, chairman and chief executive of Vasco Data Security International. (VDSI)
Vasco offers a wide range of what it calls authentication products.
Entering a password on a Web site isn't enough to protect sensitive data, especially financial information and bank accounts, experts say. So, Vasco's products are aimed at finding other ways to make sure that the person logging into your site or network is allowed to do so. The simplest way to do this is through a "token," a small electronic device that gives users one-time passwords needed to log onto networks. Just as a bank card is needed — along with your pass code — to access an ATM, users need their tokens to access information online.
The Digipass
Often small enough to fit on a key chain, they are unique to each user. Whenever users want to enter a protected Web site, they touch a button to display a new password on the token's small screen. Users must then enter this password into their computers to gain entry.
Vasco's token, the Digipass, can also help with electronic signatures and other authentication options.
Tokens are increasingly common technology in Europe and spreading rapidly throughout the world. Vasco's core customers are banks, which have been spurred by regulators to adopt the technology.
Until recently, banks and other businesses in the U.S. were slow to boost online security. Regulators issued new rules in late 2005 to force U.S. banks to add extra protections. That opened a big new market for Vasco and its competitors. Vasco has "a good hold over the European market," said analyst Amit Dayal of Rodman & Renshaw. "And they're just starting to grow their business in the U.S."
Analysts and executives are enthusiastic about Vasco's business model because of the size of its potential market and how results can build on themselves.
Vasco counts as customers 550 banks in more than 100 countries. That's only about 1% of banks, Hunt says. "So we've barely scratched the surface," he said. Banks tend to adopt Vasco's technology in stages. First, a bank might launch a pilot project or buy Digipasses for a few departments. Then, the technology is expanded to more employees and the bank's biggest customers. Finally, tokens are rolled out to most customers. As a result, revenue for Vasco is spread over several years, and can increase every year, a process the company calls "layering." Analysts and execs foresee lots of potential growth from Vasco's existing customers. Vasco says banking clients have rolled out its technology to only 10% of potential users.
A key question is how U.S. banks will react to new regulations.
"What's going to be interesting is how these banks start deploying these solutions," Dayal said.
Vasco's sales in the U.S. have increased. It reported 29 new U.S. banking customers in the third quarter of 2006.
Because implementation of new regulations was hurried, many banks put new security in place quickly too, Hunt says. Vasco should add U.S. business as those banks realize their first choices aren't long-term solutions, he adds.
Robert Breza, an analyst with RBC Capital Markets, says new regulations in Asia spurred a huge increase in demand for Vasco's products in the past few years. The same thing could happen due to U.S. regulations, he says.
The company expects to double its U.S. sales force to win over U.S. banks.
Software Tokens
In 2006, Vasco introduced "software" tokens. Instead of devices you carry in your pocket, these products are software installed on your computer or your mobile phone. There's some debate over whether the software tokens or hardware tokens, which are Vasco's original specialty, will ultimately prevail.
Software tokens can be more convenient. U.S. consumers are "more finicky" and often don't want to carry a token around, Dayal said.
Hardware tokens are easier to understand and give users a sense of online security. Banks would prefer that customers bank online because it's more efficient than visiting a branch. Breza says that retiring baby boomers, who own an increasing share of bank deposits, are more likely to feel safe online with a hardware token. Younger customers may trust software authentication, he says.
Vasco's products are relatively cheap, and prices are likely to fall further. Hardware tokens cost $5 to $7 each. Software has been sold on a subscription basis for an average price of about $2 per year per user.
Profit margin at Vasco has been expanding despite price drops. But, Dayal says, in a competitive market there is a concern that prices will fall too quickly.
Banks made up 86% of sales in the third quarter of 2006, but Vasco's products also are used by a variety of businesses, governments and organizations around the world. The technology can be used by any organization with remote employees who log onto a site or network, Hunt says.
Rather than hiring many scientists and engineers to develop products, Vasco tends to do most of its research and development through acquisitions — by buying small, innovative companies with promising products. "It works very well for us," Hunt said. Hunt, who founded Vasco and owns almost 30% of the stock, said he runs a "no-nonsense company." Executives don't get "frills," don't fly business class and get paid less than their peers, he said. "We spend money like it's our own."
2)
Jefferies & Co Analyst Says VASCO Data Security (VDSI) Is Interesting Small Cap Idea of '07
01-11-2007 10:41:40 AM
Jefferies & Co analyst, Katherine Egbert, Says VASCO Data Security Int'l (Nasdaq: VDSI) is "An Interesting Small Cap Idea for 2007"
Egbert also says, "Increased regulation is driving large, consumer-facing financial services companies to seek out low-cost ways to protect user identity. VASCO is the sweet spot of this trend, and upcoming deals in Japan and with Paypal give us increased confidence in 2007.
Price target increased from $15 to $17."
update (unfortunately never bought :'( )
1)
VASCO Data Security International "market perform," target price raised
Wednesday, February 21, 2007 4:21:49 AM ET
Friedman,Billings,Ramsey &Co
NEW YORK, February 21 (newratings.com) - In a research note published yesterday, analysts at Friedman Billings reiterate their "market perform" rating on VASCO Data Security International Inc (VDSI.NAS). The target price has been raised from $11 to $15
2)
Vasco Data Security International "outperform," target price raised
Wednesday, February 21, 2007 6:02:42 AM ET
RBC Capital Markets
NEW YORK, February 21 (newratings.com) - In a research note published yesterday, analysts at RBC Capital Markets reiterate their "outperform" rating on Vasco Data Security International Inc (VDSI.NAS). The target price has been raised from $15 to $18.
3)
VASCO Data Security International "buy," target price raised
Wednesday, February 21, 2007 6:09:21 AM ET
Dougherty & Company
NEW YORK, February 21 (newratings.com) - In a research note published yesterday, analysts at Dougherty & Company reiterate their "buy" rating on VASCO Data Security International Inc (VDSI.NAS). The target price has been raised from $13.50 to $20
4)
VASCO Data Security International "market outperform," target price raised
Thursday, February 22, 2007 6:30:10 AM ET
Avondale Partners
NEW YORK, February 22 (newratings.com) - In a research note published yesterday, analysts at Avondale Partners reiterate their "market outperform" rating on VASCO Data Security International Inc (VDSI.NAS). The target price has been raised from $16 to $19.50
awesome chart >:D
"VDSI" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders. ;D
All history on a stock pick in 1 thread is awesome. ;)
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock. :(
Thank You....and good luck with all your trades....make some $$$ ;)
Up 18% on ER.
now up 27%.
I hope this bodes well for SCUR.
Reading the thread.......
and here is the chart
This company has great fundamentals.
"best in class" according to IBD.
There will be better buy ops after a breif shakeout.
52wk Range: 6.88 - 19.73
Volume: 4,715,234
Avg Vol (3m): 637,011
Technicals
Record Price High
Gap Up
Percentage Gainer
Price Gainer
Last Price Quote is:
26.66%above 13-day MA
31.02%above 50-day MA
RS Rating: 97
Fundamentals
Reports Earnings
Analyst Upgrade to Buy
Earnings Expected on Apr 26
Key Data:
Market Cap (M): $639.62
P/E Ratio: 52.21
PEG Ratio: 1.25667
Next Earnings: 07/26/2007
Last Analyst Rating: Buy
Started my analysis @ 8$, never bought :'(
1)
Vasco 1Q Profit Surges on Sales Boost
Thursday April 26, 3:29 pm ET
Vasco Data Security International 1st-Quarter Profit Triples on Sales Jump; Shares Peak
OAKBROOK TERRACE, Ill. (AP) -- Security software maker Vasco Data Security International Inc. said Thursday its first-quarter profit more than quadrupled as sales nearly doubled.
The company earned $5 million, or 13 cents per share, compared with a profit of $1.2 million, or 3 cents per share, during the same period a year prior. Revenue jumped to $26.4 million from $13.7 million. Analysts polled by Thomson Financial expected a profit of 11 cents per share on revenue of $24.8 million. Vasco sold 619 new accounts in the first quarter, compared with 341 a year prior.
Vasco reaffirmed its 2007 forecast for revenue growth of 35 percent to 45 percent, implying revenue of $102.7 million to $110.3 million.
Shares of Vasco soared $4.55, or 25.8 percent, to $22.21 on the Nasdaq Stock Market in afternoon trading. The stock reached a 52-week high of $22.72 earlier in the trading session, eclipsing a previous peak of $19.73.
2)
VDSI: Brean Murray Ups to Buy from Hold; Sets Tgt @ $26; Analyst Notes
Thursday , April 26, 2007 14:48ET
Issuer: Vasco Data Security International Inc (NasdaqSC: VDSI)
Analyst Firm: Brean Murray
Ratings Action: UPGRADE
Current Rating: Buy (from Hold)
Target Price: $26.00
Analyst Comments: The company significantly outperformed 1Q07 expectations with revenue of $26.4 million (93% YoY) and pro forma EPS of 15c (135% YoY) versus expectations of $25 million and 11c, respectively. The firm's concerns on VASCO were clearly premature. While at the end of last quarter the company guided below their original 2007 revenue estimate, 1Q07 revenue and 2Q07 backlog highlighted that the guidance was unreasonably cautious and even their original revenue estimates were conservative. Consequently, they believe the company's momentum is sustainable and are upgrading the stock to Buy. The firm's $26 target price is based on 30x their 2008 EPS estimate of 88c, representing less than 1x 2008E PEG.
VDSI: Friedman Ups to Outperform from Mkt Perform; Ups Tgt to $28 vs $17; Analyst Notes
Wednesday, June 13, 2007 08:04ET
Issuer: Vasco Data Security International Inc (NasdaqSC: VDSI)
Analyst Firm: Friedman Billings Ramsey Group Inc.
Ratings Action: UPGRADE
Current Rating: Outperform (from Mkt Perform)
Target Price Action: INCREASE
Target Price: $28.00 (+64.71% from $17.00)
Analyst Comments: While the stock has had a tremendous run during the past year, the firm believes there is still plenty of upside left, given our positive field checks on the name. Specifically, it appears that the company is starting to gain some significant traction within the U.S. market, as more banks are starting to adopt authentication-based technology to protect enterprises and their customers on the heels of regulatory pressures. Although, today, the U.S. market is still a small piece of the overall revenue pie (~10%), the firm believes the combination of strong technology and well-thought-out marketing initiatives has placed VDSI in an enviable position to gain market share in this fertile segment during the next 12 to 18 months.
fyi:
Thursday , June 14, 2007 08:35ET
Jeffries update:
Investment Summary
We are downgrading VDSI to Hold from Buy and lowering our price target to $22. We have slightly reduced our forward estimates to better account for slower backlog growth, spurred by mid-year seasonality. We continue to believe Vasco is one of the best run small cap companies.
Event
Recent checks indicate continued health in the two-factor authentication market, but seasonality could weigh on high valued stocks like VDSI.
Key Points
• We are lowering our 2H:07 estimates to better reflect seasonality. Vasco has reported two stellar quarters in a row, whereby revenue and backlog have far exceeded estimates. This
upside has been aided in part by regulation requiring the use of two-factor authentication in the U.S. and a growing awareness worldwide of the need to protect online financial transactions. The 70%+ y/y increases in backlog and 60%+ y/y revenue increase reported last quarter are unsustainable, and we have lowered our September and 2007 estimates to reflect we what think will be the beginning of a longer-term reversion to market rate of growth
(30-40% per IDC), propelled initially by summer seasonality. Our new revenue/GAAP EPS est for Sept are $28mm/$0.13, down from $29mm/$0.13. For 2007, we now expect $113mm/$0.51, down from $114mm/$0.52. This equates to y/y revenue growth of 48%, down from 50%. Our est for June remain at $28mm/$0.13, below consensus of $30mm/$0.14.
• Expectations are quite high for Vasco. Consensus revenue for 2007 contemplates 56% y/y growth, above the 35-45% guided range. The consensus estimated GAAP operating margin for the year also appears to be above guidance of 18-25%. We think it is likely that management will raise revenue growth and operating margin guidance for the year, but we think it's unlikely that annual revenue guidance will exceed 56% growth y/y, especially given a high likelihood of revenue upside for June.
• It's highly unlikely that y/y growth in backlog will accelerate in June, and there's some chance backlog will be flat or even down in absolute dollars q/q. Even in the best case scenario, we
expect the absolute q/q dollar increase in backlog to be significantly less than the $4.4mm increase from December to March. We have attached a historical and forward-looking revenue and backlog analysis that supports this hypothesis.
• We have both lowered our EPS estimate for 2008 and contracted the EPS multiple to reflect a more moderate level of growth. Despite today's downgrade we continue to believe Vasco is one of the best managed small cap companies in all of technology.
Valuation/Risks
Our $22 PT equates to 35x our '08 EPS estimate of 62c. We have modeled a 34% revenue CAGR through 2009. Investment risks include: difficult competition from larger EMC/RSA (EMC, $15.57, NC), concentrated industry exposure, high expectations, and potential pricing pressure.
download link for complete analysis:
http://www.knobias.com/research.pdf?id=11259
shorts:
VDSI: Short Interest UP 28.6% to 4.1M in Jun 2007
Tuesday , June 26, 2007 16:39ET
According to new short interest data from NASDAQ, short interest for Vasco Data Security International Inc (NasdaqSC: VDSI) INCREASED 28.6% to 4,097,824 shares for the month ended mid-June, 2007.
SYMBOL MAY JUNE CHANGE %CHANGE DAYS/COVER
-------- ------------- ------------- ------------- ------------ ----------
VDSI 3,186,746 4,097,824 +911,078 +28.59% 7
Based on VDSI's 20-day average daily share volume of 628,255, it would require approximately 7 day(s) of buying to cover this short interest.
chart:
wow >:D >:D
1)
VASCO Data Security International upgraded to "market outperform"
Friday, July 27, 2007 4:59:21 AM ET
Rodman & Renshaw
NEW YORK, July 27 (newratings.com) - Analyst Amit Dayal of Rodman & Renshaw upgrades VASCO Data Security International Inc (VDSI.NAS) from "market perform" to "market outperform," while raising his estimates for the company. The 12-18 month target price is set to $32.
In a research note published yesterday, the analyst mentions that the company has reported its 2Q07 EPS and revenues ahead of the estimates and the consensus. The upgrade in rating is based on VASCO Data Security International's raised guidance for 2007 and robust demand trends for the company's security products, the analyst says. The EPS estimates for 2007 and 2008 have been raised from $0.63 to $0.70 and from $0.79 to $1.01, respectively.
2)
VASCO Data Security "buy," target price raised
Friday, July 27, 2007 5:58:14 AM ET
Brean Murray, Carret & Co
NEW YORK, July 27 (newratings.com) - Analyst Andrey Glukhov of Brean Murray reiterates his "buy" rating on VASCO Data Security International Inc (VDSI.NAS), while raising his estimates for the company. The target price has been raised from $26 to $29.
In a research note published this morning, the analyst mentions that the company has posted robust 2Q results, with the pro-forma EPS and revenues significantly ahead of the estimates. VASCO Data Security achieved sequential expansion of 270 bps in its operating margins during 2Q, the analyst says. The company has raised its revenue growth and operating margin guidance for 2007 to 55%-65% y/y and 23%-30%, respectively. The EPS estimates for 2007 and 2008 have been raised from $0.64 to $0.73 and from $0.88 to $0.97, respectively.
3)
VASCO Data Security International "buy," target price raised
Friday, July 27, 2007 10:11:41 AM ET
Dougherty & Company
NEW YORK, July 27 (newratings.com) - Analysts at Dougherty & Company reiterate their "buy" rating on VASCO Data Security International Inc (VDSI.NAS). The target price has been raised from $25 to $30.
4)
VDSI: Q2 EPS 18c vs 8c Beats 15c Est; Guidance Comments
Thursday , July 26, 2007 08:51ET
QUARTER RESULTS
Vasco Data Security International Inc (VDSI) reported Q2 results ended June 2007. Q2 Revenues were $32.44M; +75.27% vs yr-ago; BEATING revenue consensus by +7.07%. Q2 EPS was 18c; +125.00% vs yr-ago; BEATING earnings consensus by +20.00%.
Q2 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
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Revenues: $32.44M $18.51M +75.27% $30.30M +7.07%
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EPS: 18c 8c +125.00% 15c +20.00%
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GUIDANCE
FY-07 Revenue Outlook : Revenue growth is projected to be 55% to 65% for the full-year 2007 over full-year 2006, as compared to previous guidance of 35% to 45%.
Chart:
VDSI: Morgan Keegan Starts @ Mkt Perform; Analyst Notes
Friday , August 17, 2007 07:49ET
Issuer: Vasco Data Security International Inc (NasdaqSC: VDSI)
Analyst Firm: Morgan Keegan Inc.
Ratings Action: INITIATE
Current Rating: Mkt Perform
Analyst Comments: While the firm's DCF and relative valuation methodology indicate VASCO shares to be overvalued at current levels, they believe the company's growth rate, which significantly exceeds that of its market segment warrants a premium valuation. Analysts' project revenue in the internet security sector will grow at a 16% CAGR over the next five years. Given the company's small market share relative to the sector, they believe the potential exists for the company to continue to outpace the broader market segment over the next several years. Accordingly, they will continue to monitor their current rating in the context of relative market share growth and valuation.
updated chart, great VDSI run in difficult market >:D
(unfortunately never bought from my side; my 1st analysis was @ 9$ ::) )
Featured in IBD.......
Featured in New America in IBD this weekend.
Company does digital tags and security for bank accounts and other secure access systems. Strong growth projections well into the future. ;)
Technicals
Percentage Gainer
Last Price Quote is:
6.41%above 13-day MA
19.92%above 50-day MA
RS Rating: 98
Fundamentals
Key Data:
Market Cap (M): $1,201.74
P/E Ratio: 60.89
PEG Ratio: 1.49231
Next Earnings: 10/25/2007
Last Analyst Rating: Mkt Perform
Press Release Source: VASCO Data Security International, Inc.
VASCO Turns Belgian eID Into Digipass Strong Authentication
Tuesday September 11, 3:00 am ET
VASCO's VACMAN Controller and Complete Digipass Card Reader Range eID Compliant; eID is New Platform for Digipass/VACMAN; VASCO's Products Protect Users' Online Privacy
OAKBROOK TERRACE, Ill., and ZURICH, Switzerland, Sept. 11 /PRNewswire-FirstCall/ -- VASCO Data Security International, Inc. (Nasdaq: VDSI - News; http://www.vasco.com), the leading software security company specializing in authentication products, today announced that its renowned VACMAN Controller and the entire Digipass smart card reader product range are fully compatible with the Belgian eID card. In order to strengthen the positioning of its eID product range in the Belgian market, VASCO has launched a dedicated eID website (http://www.digipassforeid.be).
For VASCO, the eID platform is an important additional platform to bring its VACMAN and Digipass technology to new verticals and new applications. In the banking sector, VASCO has built a very dominant position in the Belgian market, with the vast majority of banks offering different models of Digipass to their end-user for retail banking.
VASCO's entire card reader product line is eID enabled.
The unconnected reader range for eID range includes VACMAN Controller, Digipass 800, Digipass 805, Digipass 810, Digipass 820 and Digipass 840, the card reader for the blind and visually impaired.
VASCO's USB-connected Digipass readers for eID include the "transparent" Digipass 905 and the pin-pad secured Digipass 850.
The unconnected Digipass readers for eID combine the world leading Digipass technology and the specific secrets stored on the eID card. This allows users to calculate one-time passwords without jeopardizing their privacy. Their identity details will not be released on the Internet. In addition, the unconnected Digipass for eID readers can be used to read the public information on the eID card, an important tool for law enforcement and the public sector in general.
VASCO's USB-connected Digipass 905 for eID, a transparent card reader, can be used to read and access the eID PKI-certificates stored on a PC. Digipass 850, the pin-pad secured connected eID-reader, combines all functionalities of Digipass 905 with the ability to calculate one-time passwords.
"With Digipass for eID, we allow the Belgian citizen to us his/her Id card as a truly secure online platform," said Jan Valcke, VASCO's President and COO. "With this product range, we bring banking level security to other applications, including e-government. We expect that this product range will allow VASCO to further penetrate the e-government and e-commerce markets."
About VASCO
VASCO is the number one supplier of strong authentication and e-signature solutions and services.
VASCO has established itself as the world's leading software company specialized in Internet Security, with a customer base of over 5,300 companies in more than 100 countries, including close to 850 international financial institutions. VASCO's prime markets are the financial sector, enterprise security, e-commerce and e-government.
Forward Looking Statements
Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes," "anticipates," "plans," "expects," and similar words, is forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.
Reference is made to the Company's public filings with the US Securities and Exchange Commission for further information regarding the Company and its operations.
For more information contact:
Jochem Binst, +32 2 609 97 40, jbinstvasco.com
--------------------------------------------------------------------------------
Source: VASCO Data Security International, Inc.
fyi:
VDSI: Friedman Cuts to Mkt Perform from Outperform; Keeps Tgt @ $36; Analyst Notes
Tuesday , September 11, 2007 08:32ET
Issuer: Vasco Data Security International Inc (NasdaqSC: VDSI)
Analyst Firm: Friedman Billings Ramsey Group Inc.
Ratings Action: DOWNGRADE
Current Rating: Mkt Perform (from Outperform)
Target Price Action: MAINTAIN
Target Price: $36.00
Analyst Comments: With shares up roughly 60% since their upgrade in June, the firm sees minimal upside from current levels, as the stock is approaching their $36 price target, which they believe represents VDSI's fair value. While they believe the September quarter (3Q07) is tracking in line to slightly ahead of our expectations, which also bodes well for a strong year-end finish, they think the shares are already baking in this good news, which limits significant upside in the near term. In the firm's opinion, VDSI has done a great job of communicating its authentication strategy to financial institutions of all shapes and sizes, a dynamic that should continue to buoy top-line growth in the coming years, especially as authentication spending remains a high priority for many IT departments.
chart:
VDSI: Pacific Crest Starts @ Outperform
Monday , September 17, 2007 08:36ET
Issuer: Vasco Data Security International Inc (NasdaqSC: VDSI)
Analyst Firm: Pacific Crest Capital Inc.
Ratings Action: INITIATE
Current Rating: Outperform
Chart:
Vasco Data Security downgraded to "underperform"
Thursday, September 20, 2007 11:51:07 AM ET
RBC Capital Markets
NEW YORK, September 20 (newratings.com) - Analysts at RBC Capital Markets downgrade Vasco Data Security International Inc (VDSI.NAS) from "sector perform" to "underperform." The target price is set to $27.
In a research note published this morning, the analysts mention that in the event of a slow down in financial market spending, given its more than 85% exposure to the banking industry, the company is likely to be at a significant risk. The ramp in penetrating the US banking market, which could serve as a catalyst for Vasco Data Security's performance, is likely to take longer than expected, the analysts say. The company's performance in 3Q is trending in-line with the expectations, RBC Capital Markets adds.
Don't Bank On Vasco
Carl Gutierrez, 09.20.07, 9:03 PM ET
Vasco Data Security has been very successful over the past year, but heavy exposure to the banking industry may prove dangerous to its future.
On Thursday, RBC Capital Markets analyst Robert Breza kept his target price of $27 on Vasco Data Security International (nasdaq: VDSI - news - people ), but lowered his rating on the company to "underperform" from "sector perform" due to what he describes as an unfavorable risk/reward trade-off and a challenging industry backdrop. It provides security for online Internet applications in industries including banking, brokerage and health care.
Shares of the Oakbrook Terrace, Ill.-based company ended the trading day down 8.1%, or $3.02, to close $34.26. After looking at the company's price-to-earnings ratio, and comparing them to the company's current share price, Breza concluded Vasco was considerably overpriced.
"Although we applaud the company for what they've accomplished," Breza said, he encouraged investors to accumulate shares in the high $20s, versus current prices.
Vasco's shares have risen some 54.0% over the past three months, despite the summer's unrest. Over the past year, the company shares have risen 256.6%. According to Breza, the "challenging industry backdrop" for Vasco stems from its over 85% exposure to the banking industry, leaving it more at risk than its peers for a slowdown in financial market spending.
"Although not likely to show up in the current quarter's results," Breza said, "we believe the subprime issues seen in the financial markets over the past few months could translate to a more conservative outlook and may ultimately slow the growth in the backlog heading into 2008."
T. Kendall Hunt, Vasco's chief executive, begs to differ. Although Hunt admitted nearly 85% of the company's sales come from the banking industry, in an interview with Forbes.com he said Vasco's bank business is unrelated to the subprime mortgage industry. "I can say unequivocally we are not seeing any problems from the subprime mortgage debacle," he said.
Breza noted that declining enterprise and government IT spending, ongoing accounting issues and weakening demand for the company's products pose potential risks to his price target.
The financial industry has been roiled by the summer's turmoil, caused by the large drop in value of mortgage-backed securities and the subsequent credit squeeze. Geographically, Vasco only takes in approximately 10% of its sales from the U.S., while 64% comes from Europe, the Middle East, and Africa, 15% from Asia, and the rest from Latin America and other regions.
VASCO Data Security International "market outperform," target price raised
Monday, October 08, 2007 7:45:01 AM ET
Rodman & Renshaw
NEW YORK, October 8 (newratings.com) - Analyst Amit Dayal of Rodman & Renshaw maintains his "market outperform" rating on VASCO Data Security International Inc (VDSI.NAS). The target price has been raised from $32 to $45.
In a research note published this morning, the analyst mentions that the demand environment for the company's security offerings is robust. VASCO Data Security International is likely to generate earnings and revenue growth of at least 30% in the forthcoming few years beyond 2008, benefiting from customer additions, the analyst says. The company is unlikely to be impacted by the mortgage-related volatility in the financial markets, Rodman & Renshaw adds.
Q3 update:
VASCO Reports Strong Results for Third Quarter and First Nine Months of 2007
Thursday , October 25, 2007 03:00ET
OAKBROOK TERRACE, Ill., and ZURICH, Switzerland, Oct. 25 /PRNewswire-FirstCall/ -- VASCO Data Security International, Inc. (Nasdaq: VDSI) (http://www.vasco.com) today reported financial results for the third quarter and nine months ended September 30, 2007.
Revenues for the third quarter of 2007 increased 60% to $30.0 million from $18.7 million in 2006 and, for the first nine months of 2007, increased 74% to $88.8 million from $50.9 million in 2006.
Net income for the third quarter of 2007 was $5.9 million or $0.15 per diluted share, an increase of $2.6 million or 79% from $3.3 million, or $0.09 per diluted share in 2006. Net income for the first nine months of 2007 was $17.7 million, or $0.46 per diluted share, an increase of $10.2 million or 136% from $7.5 million, or $0.20 per diluted share, in 2006.
Financial Highlights:
-- Gross profit was $20.0 million or 67% of revenue for the third quarter
and $58.2 million or 66% of revenue for the first nine months of 2007.
Gross profit was $12.8 million or 68% of revenue for the third quarter
and $34.1 million or 67% of revenue for the first nine months of 2006.
-- Operating expenses for the third quarter and first nine months of 2007
were $11.7 million and $33.6 million, respectively, an increase of 50%
from $7.8 million reported for the third quarter 2006 and an increase
of 52% from $22.1 million reported for the first nine months of 2006.
Operating expenses for the third quarter and first nine months of 2007
included $0.6 million and $1.5 million, respectively, related to
stock-based incentives. Operating expenses for the third quarter and
first nine months of 2006 included $0.5 million and $1.2 million,
respectively, related to stock-based incentives.
-- Operating income for the third quarter and first nine months of 2007
was $8.3 million and $24.6 million, respectively, an increase of $3.3
million or 66% from $5.0 million reported for the third quarter of 2006
and an increase of $12.6 million or 105% from the $12.0 million
reported for the first nine months of 2006. Operating income, as a
percentage of revenue, for the third quarter and first nine months of
2007 was 27.5% and 27.7%, respectively, compared to 26.6% and 23.5% for
the comparable periods in 2006.
-- Earnings before interest, taxes, depreciation and amortization (EBITDA)
was $8.7 million and $26.5 million for the third quarter and first nine
months of 2007, respectively, an increase of 64% from $5.3 million
reported for the third quarter of 2006 and an increase of 117% from
$12.2 million reported for the first nine months of 2006.
-- Net cash balances, cash balances less borrowing under VASCO's line of
credit, at September 30, 2007 totaled $36.7 million compared to $26.0
million and $12.6 million at June 30, 2007 and December 31, 2006,
respectively.
Operational and Other Highlights:
-- VASCO won 608 new customers in the third quarter of 2007 (106 banks and
502 enterprise security) and 1,858 in the first nine months of 2007
(313 banks and 1,545 enterprise security).
-- People's United Bank to use VASCO's strong authentication.
-- Azlan-Tech Data to distribute Digipass Pack in EMEA.
-- VASCO turns Belgian eID into Digipass Strong Authentication.
-- VASCO launches next generation of Digipass Packs for small and
medium-sized enterprises; Digipass Pack for Remote Authentication and
Digipass Pack for Network Authentication.
-- VASCO expands international management team in Zurich -- hires Victor
Hoogland as Chief Information Officer and Alexandra Spirig as Director
of Contracts and Compliance.
-- VASCO opens subsidiary in Sao Paulo, Brazil.
-- VASCO opens sales office in Tokyo, Japan.
Guidance for full-year 2007:
VASCO reaffirmed its guidance for the full-year 2007 as follows:
-- Revenue growth is projected to be 55% to 65% for the full-year 2007
over full-year 2006;
-- Gross profit (margin) as a percentage of revenue for full-year 2007 is
projected to be in the range of 60% to 68%; and
-- Operating profit (margin) as a percentage of revenue for full-year 2007
is projected to be in the range of 23% to 30%.
"The results for the quarter, and year-to-date, continue to demonstrate that our core strategies are working," said Ken Hunt, VASCO's CEO and Chairman. "Our Full-Option, All-Terrain product strategy is generating large numbers of new customers. Our existing customers, which are the source of our sustainable, repeatable revenues, are contributing strongly to our growth in revenues. In addition, our strategy of increased focus on software is generating higher levels of deferred revenue that will be recognized over the life of the contracts. We expect that the recurring revenue that comes from these new contracts will become a more significant part of our revenues in future periods. And, finally, our operating margin of approximately 28% of revenue for both the third quarter and the first nine months of 2007 demonstrates the efficiency of our operating model."
"The results of the third quarter continue the trend of strong growth," said Jan Valcke, VASCO's President and COO. "During the last few months, there has been a significant increase in criminal activity directed at online banking. This fact has been covered by media all over the world. We believe that our growth continues to reflect an increase in the size of the market and recognition by the market that it needs stronger forms of authentication to combat the increasing sophistication of the criminals in their attempts to steal persons' identities. We are also seeing important growth in the size of our distribution channel as evidenced by the recent agreement we signed with Azlan-Tech Data. We believe that Azlan-Tech Data and other new distributors will be important contributors to our future growth. As we start the fourth quarter, we have a backlog of firm orders to be shipped in the fourth quarter of $33.4 million, which is 55% higher than the $21.5 million backlog we had when entering the fourth quarter of 2006 and 33% higher than the $25.2 million in actual sales reported for Q4 2006."
Cliff Bown, Executive Vice President and CFO added, "Our balance sheet continues to strengthen as a result of the strong operating performance. Our net cash balance has increased by approximately $19.9 million over the last two quarters. At September 30, 2007, our net cash balance was $36.7 million, an increase of $10.7 million or 41% from $26.0 million at June 30, 2007. The increase in cash in the third quarter was also due in part to a reduction in days sales outstanding (DSO) in our net accounts receivable. DSO decreased to approximately 55 days at September 30, 2007, from 67 days at June 30, 2007."
&
Vasco Data Security upgraded to "outperform" - update
Monday, November 12, 2007 11:39:38 AM ET
Morgan Keegan
NEW YORK, November 12 (newratings.com) - Analysts at Morgan Keegan upgrade Vasco Data Security International (VDSI.NAS) from "market perform" to "outperform."
In a research note published this morning, the analysts mention that the company has posted its 3Q EPS and revenues short of the consensus. While Vasco Data Security's revenue growth is likely to moderate from the 60%-95% seen so far this year, the company is expected to continue to post +40% growth going forward, the analysts say. The decline in the company's share price, following the 3Q results, offers an attractive investment option, Morgan Keegan adds.
Chart & Research File:
update:
VASCO Reports Results for Second Quarter and First Six Months of 2008.
Thursday , July 24, 2008 03:00ET
OAKBROOK TERRACE, Ill. and ZURICH, Switzerland, July 24 /PRNewswire-FirstCall/ -- VASCO Data Security International, Inc. (Nasdaq: VDSI) (http://www.vasco.com) today reported financial results for the second quarter and six months ended June 30, 2008.
Revenue for the second quarter of 2008 increased 9% to $35.4 million from $32.4 million for the second quarter of 2007, and for the first six months of 2008, increased 9% to $64.3 million from $58.8 million for the first six months of 2007.
Net income for the second quarter of 2008 was $7.5 million, or $0.20 per diluted share, an increase of $0.6 million, or 9%, from $6.9 million, or $0.18 per diluted share, for the comparable period in 2007. Net income for the first six months of 2008 was $12.4 million, or $0.32 per diluted share, an increase of $0.5 million, or 5%, from $11.8 million, or $0.31 per diluted share, for the comparable period in 2007.
Other Financial Highlights:
-- Gross profit was $25.4 million, or 72% of revenue, for the second quarter of 2008 and $45.4 million, or 71% of revenue, for the first six months of 2008. Gross profit was $20.7 million, or 64% of revenue for the second quarter of 2007 and $38.2 million, or 65% of revenue, for the first six months of 2007.
-- Operating expenses for the second quarter and first six months of 2008 were $16.4 million and $30.6 million, respectively, an increase of 46% from $11.2 million reported for the second quarter of 2007 and an increase of 40% from $21.9 million reported for the first six months of 2007. Operating expenses for the second quarter and first six months of 2008 included $0.8 million and $1.5 million, respectively, related to stock-based incentives.
-- Operating income for the second quarter and first six months of 2008 was $9.0 million and $14.9 million, respectively, a decrease of $0.4 million, or 4%, from $9.4 million reported for the second quarter of 2007 and a decrease of $1.4 million, or 9%, from $16.3 million reported for the first six months of 2007. Operating income, as a percentage of revenue, for the second quarter and first six months of 2008 was 26% and 23%, respectively, compared to 29% and 28% for the comparable periods in 2007.
-- Earnings before interest, taxes, depreciation and amortization (EBITDA) was $9.9 million and $16.9 million for the second quarter and first six months of 2008, respectively, a decrease of 3% from $10.2 million reported for the second quarter of 2007 and a decrease of 5% from $17.7 million reported for the first six months of 2007.
-- Net cash balances, cash balances less borrowing under VASCO's line of credit, at June 30, 2008 totaled $42.1 million compared to $47.8 million and $38.8 million at March 31, 2008 and December 31, 2007, respectively.
Operational and Other Highlights:
-- VASCO won 516 new customers in Q2 2008 (79 new banks and 437 new
enterprise security customers). For the first six months of 2008,
VASCO won 1,107 new customers (150 banks and 957 enterprise security
customers).
-- Banco Itau (Brazil) secures more than 1.6 million end users with VACMAN
Controller/Digipass GO3
-- Independent Bankers' Bank (U.S.) secures online banking with VACMAN
Controller/Digipass GO6
-- Mizuho Bank (Japan), Intesa Sanpaolo (Italy) and Banco Itau (Brazil)
receive VASCO's Market Vision Award
-- Digipass integrated into SonicWall SSL-VPN
-- VASCO opens subsidiary in Mumbai India
-- VASCO expands US Channel Partner Program
-- VASCO ranks 5th in Fortune Small Business Top 100 and 14th in
BusinessWeek's Hot Growth Companies top 50.
Guidance for full-year 2008:
VASCO updated its full-year 2008 guidance as follows:
-- Revenue growth of 15% to 25% for the full-year 2008 over full-year 2007, a reduction from its previous guidance of 10 percentage points in each end of the range,
-- Gross margins as a percentage of revenue of 60% to 68% for full-year 2008, which is unchanged from previous guidance, and
-- Operating margins as a percentage of revenue of 20% to 25% for full- year 2008, which is also unchanged from previous guidance.
"We are pleased with the progress we saw in the business in Q2," stated T. Kendall Hunt, Chairman & CEO. "Not only did we report a record level of revenues for a quarter, but we also increased our deferred revenues and saw a strong order flow throughout the quarter. The current order flow reinforces our belief that our growth rates over 2007 will accelerate in the second half of the year. We are, however, reducing our revenue guidance for two primary reasons. One is to more fully consider the impact of our business strategies where a larger portion of our business activity relates to recurring software revenue, which may be deferred and recognized in future periods. The second is to reflect a more conservative outlook for the full year given the uncertainty of the world economies."
"We are continuing to make investments in our infrastructure and continuing our aggressive hiring plan," said Jan Valcke, VASCO's President and COO. "Our business mix is evolving favorably, as expressed by the increase in gross margins. It is our goal to accelerate our growth in enterprise security and other non-traditional markets while strengthening our position in the banking sector."
Cliff Bown, Executive Vice President and CFO added, "The continued strong operating performance has allowed us to both invest strongly in the business and strengthen our balance sheet. While our net cash balance decreased $5.7 million or 12% during the quarter, our working capital increased $7.8 million or 13% from March 31, 2008. Days Sales Outstanding (DSO) in net accounts receivable increased to approximately 83 days at June 30, 2008 from 67 days and 76 days at March 31, 2008 and December 31, 2007, respectively."
&
VASCO Data Security upgraded to "buy"
12:15p.m. - Lazard Capital Markets
NEW YORK, July 25 (newratings.com) - Analysts at Lazard Capital upgrade VASCO Data Security (VDSI) from "hold" to "buy." The target price is set to $17.
&
VASCO Data Security upgraded to "market outperform"
11:59a.m. - Avondale Partners
NEW YORK, July 25 (newratings.com) - Analysts at Avondale Partners upgrade VASCO Data Security (VDSI) from "market perform" to "market outperform." The target price has been raised from $13.50 to $18.60.
&
VASCO Data Security International "sector perform," target price raised
11:47a.m. - RBC Capital Markets
NEW YORK, July 25 (newratings.com) - Analysts at RBC Capital Markets reiterate their "sector perform" rating on VASCO Data Security International Inc (VDSI). The target price has been raised from $14 to $15.