Needham & Company Maintains a 'Hold' on VASCO Data (VDSI); Adjusting FY12 Estimates After Strong Qtr
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Price: $21.80 --0%
Rating Summary:
4 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Hold' on VASCO Data Security (NASDAQ: VDSI).
Needham analyst says, "The Vasco SeptQ results were strong, and show the resiliency of the core authentication security business, demonstrating it has not been materially impacted by the collapse of recently acquired DigiNotar. DigiNotar was small in revenue impact (2-3% total VDSI revenue for CY11) before being placed into bankruptcy. Surprisingly, banks in Europe and Asia were big consumers of VDSI tokens in the quarter, despite the negative macro climate for banks in EMEA. The outperformance on large deals for security tokens drove topline overage; however, tokens are lower margin than the “enterprise” (smaller deal) tokens, and blended gross margins were lower than the historical 70%+ gross margins at VDSI."
"CY11 revenue is to be +45-55% y/y, up from +40% previously – suggests revenue going from $151m up to the $157-167m range. Operating margin guidance for CY11 was raised from 8-12% up to 13-16%, and should please investors who were critical of VDSI’s lagging margins in recent quarters. We are raising our DecQ estimates as well as CY12; however, we still expect CY12 to be flat/down from CY11." (FY12 EPS estimate from $0.27 to $0.40)
For more ratings news on VASCO Data Security click here and for the rating history of VASCO Data Security click here.
Shares of VASCO Data Security closed at $8.13 yesterday.
Needham analyst says, "The Vasco SeptQ results were strong, and show the resiliency of the core authentication security business, demonstrating it has not been materially impacted by the collapse of recently acquired DigiNotar. DigiNotar was small in revenue impact (2-3% total VDSI revenue for CY11) before being placed into bankruptcy. Surprisingly, banks in Europe and Asia were big consumers of VDSI tokens in the quarter, despite the negative macro climate for banks in EMEA. The outperformance on large deals for security tokens drove topline overage; however, tokens are lower margin than the “enterprise” (smaller deal) tokens, and blended gross margins were lower than the historical 70%+ gross margins at VDSI."
"CY11 revenue is to be +45-55% y/y, up from +40% previously – suggests revenue going from $151m up to the $157-167m range. Operating margin guidance for CY11 was raised from 8-12% up to 13-16%, and should please investors who were critical of VDSI’s lagging margins in recent quarters. We are raising our DecQ estimates as well as CY12; however, we still expect CY12 to be flat/down from CY11." (FY12 EPS estimate from $0.27 to $0.40)
For more ratings news on VASCO Data Security click here and for the rating history of VASCO Data Security click here.
Shares of VASCO Data Security closed at $8.13 yesterday.
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