Wednesday October 25, 7:32 am Eastern Time
Press Release
SOURCE: Identix Incorporated
Identix Reports Strong Consolidated Fiscal First
Quarter Revenue Of $21.4 Million, up 22% Over Last
Fiscal First Quarter
SUNNYVALE, Calif., Oct. 25 /PRNewswire/ -- Identix Incorporated (Amex: IDX - news), a worldwide leader in providing
biometric authentication, security and identification solutions, today reported that fiscal 2001 first quarter revenue rose 22
percent to $21.4 million, when compared to revenue of $17.5 million in the year-earlier period. The net loss for the quarter was
$3.5 million, or $0.10 per share, before an expected one-time charge of $1.3 million related to the investment in Identix by
Motorola, Inc. (NYSE: MOT - news) in July 2000. This compares to a loss of $3.5 million, or $0.11 per share, in the first
quarter of the previous fiscal year. The net loss, including the expected one-time charge, was $4.7 million, or $0.14 per share.
Newly appointed Identix CEO Robert McCashin commented, ``I joined Identix because of the bright future I believe lies
ahead for our industry-leading biometric security solutions. We had an excellent first quarter, with very strong revenue. The
Company continues to move forward with new alliances, and the balance of fiscal 2001 should be very exciting for Identix. I
look forward to leading our management team in growing each one of our businesses, while driving our number one objective
-- enhancing shareholder value.''
The Company's Imaging Division was profitable and saw a substantial increase in revenue driven by strong demand for its Live
Scan products, as well as increased adoption of its customer service programs. Fiscal 2001 first quarter Imaging revenue
increased by 40 percent to $7.7 million, when compared to Imaging revenue $5.5 million in the year-earlier period. During the
quarter, Imaging continued to penetrate new Live Scan markets, as well as add to the installed base of existing customers.
According to Identix President and COO James P. Scullion, the Company's relationship with NEC Technologies continues to
expand, as illustrated by Live Scan shipments to NEC during the quarter for end-users such as King County, WA and the
California Department of Justice.
The Company's Government Services/ANADAC Division was also profitable for the quarter and showed strong revenue
growth, solidly affirming the steps taken over the past year to build the Division's management team and infrastructure to drive
and support growth. Fiscal 2001 first quarter Government Services revenue rose 18 percent to $12.3 million, when compared
to Government Services revenue of $10.4 million in the same period last fiscal year. Revenue for the quarter under the potential
$50 million five year contract with the Department of the Navy was approximately $2 million.
Revenue for the Company's Security Division was flat at $1.5 million, when compared Security revenues for the previous year's
fiscal first quarter. Shipments of the Company's DFR 300 miniature optical fingerprint reader during the quarter were less than
expected due to the late launch of the DFR 300, which came at the end of the fiscal 2000 fourth quarter. The late release of
production units caused purchases of the Identix biometric security solution PCMCIA Card, which contains the DFR 300, by
the Company's distribution channels to come later than anticipated, postponing shipment to OEMs including Compaq. This also
delayed adoption of this product by additional OEMs during the quarter.
Compaq recently announced the release of its biometric PCMCIA Card, which employs the Identix DFR 300 optical
fingerprint reader, as one of its Fingerprint Identification Technology (FIT) products. Compaq also recently began shipping
Identix's Windows 2000 BioLogon(TM) software lines to provide its users with heightened biometric security solutions.
Scullion said, ``The first quarter marked a significant milestone in the Company's history with the launch of itrust(TM), Identix's
end-to-end solution to secure e-commerce/m-commerce transactions. itrust is being positioned to be a transaction-based,
recurring revenue business. Motorola, our initial itrust partner, validated the itrust business model and confirmed its commitment
to Identix and our itrust secure authentication transaction management solutions, with an investment in Identix. We are working
diligently, to bring additional industry-leading strategic partners into the itrust model.
``We expect to showcase our itrust Authentication Server at Comdex next month in Las Vegas,'' Scullion continued, ``and we
believe itrust has the potential to become a defacto standard in controlling and managing secure transactions for users of online
services that require security, such as banking, securities trading, e-commerce, music and entertainment downloads, online
games, legal and business document transactions and exchanges.
``We believe that the outlook for our Security business is bright,'' Scullion said. ``We continue to see progress in the adoption
by large enterprises of our biometric security solutions. We are seeing growth -- small, but steady -- in the programs that are
already in place. Companies are moving from tens of seats to hundreds, as their confidence in our ability to supply a
cost-effective, convenient heightened security solution grows. The distribution by Compaq of our hardware and software
technology to 2,000 of Microsoft's sales reps has resulted in an increasing number of leads from potential multiple thousand
seat end users and we are entering new enterprises on a regular basis.
``We have grown and enhanced our management team to meet the opportunities and challenges that lie ahead. Obviously,''
Scullion said, ``the addition of Bob as CEO brings us a wealth of experience and insight into the enterprise marketplace. Bob
will leverage his 28 years of leadership and marketing experience, as well as his strong business relationships, to help drive
every aspect of our business to its highest level. Additionally, the promotion of Grant Evans to Executive Vice President, should
enable us to leverage his experience with our biometric security solutions to identify new market opportunities for our Security
and itrust business.
``The addition of Dan Dellegrotti as Vice President and General Manager of our Imaging Division has already paid off, as
demonstrated by Imaging's first quarter results. We have also strengthened our Human Resources Department and recruiting
capabilities with the promotion of Daniel E. Kenny to Vice President of Human Resources and Administration. Dan will be
instrumental in recruiting employees in preparation of the launch of itrust services,'' Scullion said.
Scullion said the Company's balance sheet is strong. As of September 30, 2000, the balance sheet reflected a current ratio of
2.9:1, working capital of $36.7 million, including cash and equivalents of $16.2 million, no long-term debt, credit lines available,
and shareholders' equity of $65.1 million.
About Identix
Identix Incorporated, www.Identix.com, is a leader in designing, developing, manufacturing and marketing products for the
capture and/or comparison of fingerprints for security, anti-fraud, law enforcement, physical access and other applications.
Identix designs and develops proprietary, cost-effective, security products and solutions for personal identification and
verification. Identix, which recently launched itrust(TM) for Internet and wireless Web secure transaction processing, provides
a wide range of applications to markets that include corporate enterprise security, Intranet, extranet, and Internet, wireless Web
access and security, E-commerce, government and law enforcement agencies. Identix's partners include Motorola, Compaq,
Key Tronic, SCM Micro, Cherry GmbH and Unisys.
The statements in this release that relate to future plans, events or performance are forward-looking statements that reflect the
Company's current expectations, assumptions and estimates of future performance and economic conditions. Such statements
are made in reliance on the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The
Company cautions investors that any forward looking statements involve risks and uncertainties that may cause actual results to
differ materially from those expressed or implied in such forward looking statements. Such risks and uncertainties include,
without limitation, risks and uncertainties associated with: development of the marketplace for biometrics solutions; demand for
the Company's products and services; the ability of the Company's alliances to succeed and in particular, the ability of the
Company to complete product development, successfully manufacture its products in volume and broadly disseminate the
Company's products; and other risks as identified in the Company's SEC filings. The Company disclaims any intention or
obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date
hereof or to reflect the occurrence of unanticipated events.
IDENTIX INCORPORATED
SELECTED CONSOLIDATED FINANCIAL DATA
(UNAUDITED)
Three Months Ended
September 30,
2000 1999
Revenues:
Product revenues $9,054,000 $7,038,000
Service revenues 12,313,000 10,429,000
Total revenues 21,367,000 17,467,000
Costs and expenses:
Costs of product revenues 5,260,000 4,092,000
Costs of service revenues 11,120,000 9,010,000
Research, development & engineering 2,164,000 2,207,000
Marketing and selling 3,207,000 2,103,000
General and administrative 2,667,000 2,794,000
Amortization of acquired intangible assets 832,000 885,000
One-time preferred stock warrant expense 1,259,000 --
Total costs and expenses 26,509,000 21,091,000
Loss from operations (5,142,000) (3,624,000)
Interest and other income (expense), net 399,000 181,000
Interest expense (22,000) (47,000)
Loss before taxes (4,765,000) (3,490,000)
Provision for income taxes (17,000) --
Loss before equity interest in
joint venture (4,782,000) (3,490,000)
Equity interest in joint venture 71,000 18,000
Net loss $(4,711,000) $(3,472,000)
Basic and diluted net loss per share $(0.14) $(0.11)
Weighted average common shares used in basic
and diluted net loss per share
computation 33,208,000 30,644,000
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