News off the call . . .
Fowler: IDT product has been shipped in keyboards, mouses, as well as peripheral. CPQ has shipped as much in last 9 months as industry had shipped in all the time before . . .
O'Hare: J. Saf asked, Fowler answered FAA has declared it a success, and a report is coming out. Fowler talked about it expanding to other airports, like Dallas, SF, JFK . . . four or five, at least, in all, before going national ("if that's their intent"). Fowler then described the videotape being available to public in next few weeks. Other pilot program has to do with putting IDX biometrics in a rebuilt Midway airport. In elevators and doors in International terminal in O'Hare. IDX designed new product for legacy problems, with smart cards and swipe cards, to look like an existing card reader to allow use of existing in-place wiring, which was important. FAA is annoyed that all over the country there are all kinds of card readers, and it should be standardized and "we're in a very good place to do that" using IDX and IDT technology (to lower the price points). Tape is being sent to airports around the world.
Mastercard and Visa question (J. Saf). Fowler: IDX is going after that business. The banks are in a competitive position, and IDX is "in an ideal situation to take advantage of whatever they do." Last Fowler heard, B of A pilot was "going very well."
J.Saf: When will IDX come out with enhanced software suite for $99 scanner? Fowler: In next few weeks, "BioShield" will have drag-and-drop encryption and will make early stuff "look like the Model T."
Q: Corporate intranet user products? A: Last six to eight months is the first time that Fowler has seen a "market pull," i.e., demand over active selling. First pull was in Far East and Europe. Fowler's met personally with companies that want the product. First, the CPQ peripheral, and second, built-ins to laptops, etc., especially insurance companies. HMO's, retail banking, wholesale money transfer, investment banks. Life of computer in enterprise system is 18-24 months.
Q:(Gilford, Otis Bradley) -- Is the fact of no announcement now mean no present deals? A: No, not necessarily; we may have to coordinate a press release. IDX never puts out a PR without clearance from others who are mentioned. "It doesn't mean we don't have that in place." Also, CPQ has said there are orders in "the tens of thousands" that go into smaller enterprise systems.
Q: (Gilford) How would you ramp up to the million/month order size? A: Not difficult. We've already outgrown one outsourcer. It wouldn't be difficult to go to millions of units [per year] and even could get to a million in a month.
Fowler: Wouldn't be surprised if units moved in the last few months were in the order of 100,000 per month, per upcoming announcment.
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It looks like Fowler opened up a bit more than usual, although he was his usual evasive self when asked to scoop the PR department on particular announcements. His last, volunteered remark indicated CPQ/Keytronic IDT sales could be at the rate of over 1 million units per year. That would be major, and should propel the stock. |
