Mytec Soars on Smith & Wesson Pledge
OTTAWA (Reuters) - Shares in Mytec Technologies Inc. (Toronto:MYT.TO - news) leapt 25 percent on Friday after the U.S. government dropped its threat of legal action against customer Smith & Wesson Corp. in return for safety changes such as ``smart' guns that use Mytec's fingerprint-scanning technology.
Shares in Toronto-based Mytec hit a 52-week high of C$8.60 on Friday on the Toronto Stock Exchange, a gain of C$1.75, before pulling back slightly to trade up C$1.40 at C$8.25.
The stock, trading between 60 Canadian cents and C$8.20 this year, added 31 percent on Thursday on news that it was launching portable authentication gear for such products as cellular phones and palmtop computers.
Also on Friday, Mytec posted a 1999 net loss of C$4.1 million, or 17.1 Canadian cents a share, versus a loss of C$2.9 million, or 12.0 cents per share, in 1998. The results included a non-cash writedown of C$1.4 million.
``This writedown reflects our decision to improve Mytec's financial foundation and sharpen our focus in preparation for future opportunities,' said Shamit Khosla, chief financial officer, in a statement.
He said the writedown allowed the company to cut its losses in two ventures that were not providing a return and revamped accounting methods.
Gains in the stock on Friday come as the Clinton administration dropped its legal threat against gun manufacturer Smith & Wesson after the company agreed to a series of safety changes to its handguns.
The suits were being pursued by 30 cities and states with the U.S. government threatening to join the action.
Smith & Wesson, owned by British conglomerate Tomkins PLC (TOMK.L), agreed to institute changes such as smart-technology and child trigger locks.
Mytec, which has developed a prototype ``smart' gun with Smith & Wesson over the past year, said the decision looked like a positive sign.
``It may be good news,' Mytec Chief Executive Dennis Hollingshead, told Reuters in a phone interview. He had not yet discussed the news with the firm.
Mytec technology couples an advanced algorithm -- a procedure for solving a mathematical problem -- with sensors that detect fingerprint patterns.
``It's still very early days,' Hollingshead said.
``The application of authentication to the use of a firearm is a very good idea, but there are so many of them out there already without it. But one has to start somewhere and...with proper legislation I'm sure you can require conversion to smart guns.' |
