Vasco Data Jumps as Profit Doubles - TheStreet

Vasco Data Jumps as Profit Doubles

The company sails past estimates.
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Shares of

Vasco Data Security International

(VDSI)

jumped Thursday after the company zoomed past analysts' second-quarter expectations and raised revenue guidance for the full year.

Net income for the second quarter rose to $6.9 million, or 18 cents a share, from $3 million, or 8 cents a share, a year earlier.

Analysts polled by Thomson Financial were expecting earnings of 15 cents a share.

Revenue increased 75% to $32.4 million from $18.5 million a year earlier. Analysts were expecting revenue of $30.3 million.

Shares of Vasco soared $3.20, or 13.6%, to $26.69 in recent trading.

Vasco, which makes hardware security tokens that compete with RSA Security, a division of

EMC

(EMC)

, bagged 631 new customers in the second quarter of 2007, of which 113 were banks and 518 were enterprise security-related customers.

For the full year, Vasco raised its revenue guidance to project growth of 55% to 65% over full-year 2006, or in the range of $117.9 million to $125.5 million. The company's previous guidance had pegged revenue growth of 35% to 45% over 2006, or between $102.7 million and $110.3 million.

Analysts are expecting revenue of $119.7 million for the full year.

Vasco's expectations for gross profit as a percentage of revenue for full-year 2007 are unchanged and projected to be in the range of 60% to 68%.

Operating profit as a percentage of revenue for full-year 2007 is now guided to be in the range of 23% to 30%, compared to previous guidance of 18% to 25%.