VASCO Data Security International Whiffs on Revenues

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VASCO Data Security International (NAS: VDSI) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), VASCO Data Security International whiffed on revenues and missed estimates on earnings per share.

Compared with the prior-year quarter, revenue contracted and GAAP earnings per share contracted.


Gross margins expanded, operating margins contracted, net margins dropped.

Revenue details
VASCO Data Security International logged revenue of $32.3 million. The five analysts polled by S&P Capital IQ expected sales of $37.7 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $36.4 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.05. The four earnings estimates compiled by S&P Capital IQ forecast $0.09 per share. GAAP EPS of $0.05 for Q1 were 17% lower than the prior-year quarter's $0.06 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 67.8%, 540 basis points better than the prior-year quarter. Operating margin was 6.9%, 150 basis points worse than the prior-year quarter. Net margin was 5.9%, 100 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $44.8 million. On the bottom line, the average EPS estimate is $0.14.

Next year's average estimate for revenue is $176.8 million. The average EPS estimate is $0.53.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,982 members out of 2,048 rating the stock outperform, and 66 members rating it underperform. Among 521 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 510 give VASCO Data Security International a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on VASCO Data Security International is outperform, with an average price target of $10.81.

Over the decades, small-cap stocks like VASCO Data Security International have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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