Needham & Company Maintains a 'Hold' on VASCO Data
Analyst, Scott Zeller, said, "The Vasco DecQ results were a strong beat on both revenue and EPS, as the company benefits from continued strength in the banking vertical. The banking vertical at VDSI generates 80%+ of revenues, and 2/3rds of all VDSI revenue is from EMEA – given the continued macro concerns, it surprises us that banks continue to spend on VDSI. Importantly, revenue growthwas balanced between banking (+48% y/y) and “enterprise” (+45% y/y) demonstrating the overall VDSI franchise is healthy and growing...We continue to believe visibility at VDSI is uneven, as suggested by the prepared remarks, referring to CY11 deals and customers which drove DecQ, but may not be material in CY12. We are raising our CY12 estimates higher, but remain below guidance, introducing CY13 of $175m which is 4% CY11-12 growth."