VASCO Data Security International, Inc. (NASDAQ:VDSI) Warns 2015 Second Half Revenue May Be Short

VASCO Data Security International, Inc. (NASDAQ:VDSI) warned investors that revenue for the next year may slow due challenges in the second half. The security software company stated that the first half of 2015 is on track but that the second half may see an unexpected slowdown in revenue generation. The company recently released earnings for the 2014 year end and did well when compared to analysts’ expectations. Originally the company had released forward guidance just above analysts’ estimates but that may change going forward.

Where do analyst foresee upcoming resistance in VDSI?

Strength Of Business

The company remains a strong but has a major contract that ends in the middle of this year. This will be a drag on revenue during the last half of the year unless another contract can pick up the slack. Although this will affect that period VASCO Data Security International, Inc. (NASDAQ:VDSI) overall is expecting a strong fiscal 2015. The company guided revenues for 2015 to up to $230 million which would be a 14% increase over 2014.

The cyber security segment has been getting strong exposure recently. US president, Barak Obama, recently led a security summit at Stanford University which brought much publicity to VASCO Data Security International, Inc. (NASDAQ:VDSI)’s like VASCO that provide cyber security software solutions. The meeting featured Obama’s vision of better corporate to government information sharing in an effort to fight rising cyber-crime events.

Recent Earnings

The company showed earnings in the recent fourth quarter of 32 cents per share. This beats consensus opinions by 7 cents. Revenues rose year over year by 44% to come in at $62 million. The numbers beat across the board and VASCO Data Security International, Inc. (NASDAQ:VDSI) expects this year to carry that momentum. Even despite the expected second half slowdown, the 2015 totals are expected to easily top2014.

Technicals

The stock recently broke through a strong band of resistance at $29 but failed to follow through. Other indicators are healthy and the issue may just be pausing before continuing upward. The spread is wide on this stock but that will be resolved as orderly trading resumes.

 

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Cook Laurie

Cook Laurie

Laurie, a long-time member of the US Markets Daily general assignment reporter who has covered a variety of subjects from breaking news to investigative features, from stock markets to politics, and from neighborhood small business to global warming.