Thursday, July 24, 2008

Vasco Data Securities Reports Better Than Expected 2nd Quarter Earnings

Vasco Data Securities surprised Wall Street with a solid quarter lifting the stock almost 18% on over 8 times average volume. Here is what the big whig had to say about the quarter...

"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."

Net income for the second quarter ended June 30, 2008 was $7.5 million, or $0.20 per share, up 9% from $6.9 million, or $0.18 per share in the same period last year and exceeded the $0.15 predicted by the analysts.

Revenue grew by 9% to $35.4 million for the second quarter from $32.4 million in the corresponding period of the previous year, and topped Street analysts consensus estimate of $34.20 million.

Net income for the first six months of 2008 increased to $12.4 million, or $0.32 per share on revenues of $64.3 million from $11.8 million or $0.31 per share on revenues of $58.8 million in the year-ago period.

Here are a few more of the highlights from the quarter...

    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
-- 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.

Congratulations to all the longs... I still think that this is a great long term investment as the world turns more and more to online banking and security. Don't forget that Vasco Data Securities just jump up almost 17% on a day that all the major averages tumbled.

1 comment: