Hot Growth Special Report 2006 >



VASCO Data Security Intl. (VDSI)

Computer-security worries are driving big gains for Vasco. The Oakbrook Terrace (Ill.) outfit makes hand-held "tokens" that customers of banks and other financial outfits use to generate one-time passwords so they can access their accounts securely online. Vasco's gizmo looks like a cross between an electronic car-door opener and a calculator. Already hugely popular in Asia and Europe, the devices may soon proliferate in the U.S., via such banks as Wachovia and HSBC. Last year alone, Vasco shipped more than 7 million tokens, helping drive a 137% rise in net income, to $7.7 million, on an 83% gain in sales, to $54.6 million. Pressure from U.S. regulators to tighten security could further ratchet up growth this year. And additional growth could come from Vasco's new software product that would replace the tokens with "cookies," which banks will be able to send online straight to customers' computers.

Company Info

2005 Rank


Market Value*
($ Millions)


($ Millions)


Sales Growth
(3-yr. avg. annual)

41.2 %

($ Millions)


Profit Growth
(3-yr. avg. annual)

218.1 %

Return on Inv. Capital (3-yr.)

21.3 %

Share Price
12-Mo. Hi/Lo


Share Price
As of 4/28/06


Return on Equity

29.5 %

P/E Ratio


No. of Employees


Industry Systems Software


Location Oakbrook Terrace, Ill.
Phone 630 932-8844
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

VASCO Data Security International, through its subsidiaries, engages in the design, development, marketing, and support of open standards-based hardware and software security systems that manage and secure access to information assets worldwide. It offers patented 'Strong User Authentication' products for e-business and e-commerce, which enable secure financial transactions to be made over private enterprise networks and public networks, such as the Internet. Its product line includes Digipass and VACMAN. The Digipass product line, which exists as a family of authentication devices and software libraries, provides various means of authenticating users to any network, including the Internet. Digipass devices calculate dynamic passwords, and electronic signatures or message authentication codes to authenticate users on a computer network and for various other applications, such as electronic transactions. The Digipass technology is also designed to operate on non-VASCO platforms, such as a desktop personal computers or laptops, personal digital assistants, mobile phones, and smart cards. VASCO Data Security International's VACMAN product line, including VACMAN controller and VACMAN middleware, incorporates various authentication utilities and solutions that allow organizations to add Digipass authentication into their existing networks and applications. VACMAN Controller allows the user to provide secure remote access to various kinds of applications, and VACMAN Middleware allows administrators to positively identify remote users before granting remote access to sensitive corporate data and applications. The company's security solutions are sold through its direct salesforce, as well as through distributors, resellers, and systems integrators. It has operations in Belgium, Australia, Singapore, Shanghai, and the U.S. VASCO Data Security International was founded in 1996 and is based in Oakbrook Terrace, Ill.

Data provided by Capital IQ
T. Kendall Hunt

T. Kendall Hunt, 62

Chairman and Chief Executive Officer

Total Compensation*

$ 350,000

Total Options Value*

$ 4,708,550

* Fiscal Year 2005

University of Miami - Bachelor's Degree, Pepperdine University - MBA

Executive Bio

T. Kendall (Ken) Hunt has been chairman of VASCO Data Security International since 1990 and its CEO since November, 2002. Hunt serves as president of the Belgian Business Club of Chicago. He is a co-founder of Secured Services (formerly Southern Software Group). Hunt is the founder of VASCO, and served as its president and CEO from May, 1984, through June, 1999. Prior to founding VASCO, he served as president and CEO of Deltak. Prior to Deltak, he served as president of Itel's computer system division that sold, leased, and serviced IBM compatible computer products worldwide. Prior to Itel, he had positions with Proprietary Systems and IBM. Hunt has extensive experience in international business and the acquisition of multiple companies in the U.S. and in Europe. His primary professional experience is in Internet and network security, software, computers, general financial management, and audit compliance, Securities & Exchange Commission reporting, and capital formation, including debt and private placements. He serves as chairman of AOS-Hagenuk and has been its director since July, 1997. He has been a director of VASCO Data Security International since July, 1997. He has been an independent director of Global Med Technologies since April, 2006. He serves as a director of He has been a director of Secured Services since September, 2003. Additionally, he is on the advisory board for the Posse Foundation. He holds an MBA from Pepperdine University, and a BBA from the University of Miami, Fla.

Management Team

Key Executives

T. Kendall Hunt; Clifford K. Bown; Jan Valcke

Board Directors

John N. Fox; Michael A. Mulshine; Michael P. Cullinane; John R. Walter; T. Kendall Hunt

Executive Data provided by Capital IQ