3SOF

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

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 
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 

"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.                                      
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.