The VASCO Digipass 760 authentication tool in action. Source: VASCO.
Shares of computing security specialist VASCO Data Security International (VDSI +0.10%) jumped in pre-market trading today, following the release of analyst-thumping results for the second quarter of 2014.
Analysts were looking for earnings near $0.09 per share on sales of approximately $42.3 million. VASCO delivered adjusted second-quarter earnings of $0.17 per share, up from $0.05 per share in the year-ago quarter. Revenue increased by 28% year-over-year, stopping at $47.7 million.
Operating margins were 16% in the second quarter, up from 10% in the previous quarter and 5% in the year-ago period.
Looking ahead, VASCO raised its full-year 2014 guidance for revenue and operating margins. The midpoint of VASCO's official sales target range was boosted by 4%. Operating margins are now expected to land at roughly 14%, up from 12% in earlier guidance figures.
"We are very pleased with the results of the second quarter," said VASCO CEO T. Kendall Hunt in a prepared statement. "The strength of both our intake of new orders and our pipeline of prospective orders has given us the confidence to increase our guidance for both full-year revenues and operating margins. We were also very pleased to expand our authentication technology portfolio with the acquisition of Risk IDS, a risk-based authentication solution." Risk IDS Ltd. serves the global banking community.
