Seems to be an email only product. When was the last time you sent/received secure email? VRSN is going for the B2B, secure ecom transactions and Onsite customers - where there's a lot more money and acceptance. This 'Zipzit' product is not applicable, or even available yet, I believe. Secure, individual email has many 'issues', when it's not implemented within an Onsite type environment (within a company). CRLs (Certificate Revocation Lists) issues are just one of the hurdles involved with Internet (worldwide) secure email. Good luck CUST.
Regards,
- Jer
Security Dynamics Reaping Benefits Of Latest Product, Online Stakes
Dow Jones Online News, Monday, June 28, 1999 at 17:27
By Frank Byrt, Staff Reporter
BOSTON -(Dow Jones)- Security Dynamics Technologies Inc., a young firm that is already a
big player in designing and selling computer-security products, may have an ace up its sleeve when it
comes to share value.
That's because of the Bedford, Mass.-based company's investments in several Internet-related
firms, investments that are now worth millions. In addition, a new product is expected to be a big
success.
Security Dynamics' primary mission is coming up with products for protecting computer
networks from interlopers using changing numerical passwords. The company's flagship product is
SecurID, a credit card-type device that provides centralized, nonrepeating numerical passwords for
users of computer networks. It is in use by about four million computer users, the company said.
Security Dynamics is now coming to market with Keon, a much more sophisticated Internet
security device that will facilitate business-to-business electronic commerce, the company said. It
expects Keon will soon become its primary source of revenue, surpassing SecurID, so the company
is in a state of transition, Security Dynamics executives said.
Jim Wade, an analyst with the Baltimore office of Deutsche Bank-Alex. Brown, rates Security
Dynamics a "strong buy," based on the outlook for Keon. "We think this new product is significant
and represents a leading-edge technology for network and Internet security products."
Charles Stuckey, Security Dynamics chief executive, said Keon will have a far-reaching impact
on Internet business as it will make sure that others can't access the information being sent. Also,
the business placing an order can't come back later and deny it.
Stuckey said the first versions of Keon were released this month and eventually it will become
the largest source of company revenue.
Last year, the company reported earnings of $29.4 million, or 45 cents a share, on sales of
$171.3 million. The results were before items, including partial proceeds from an investment. For
1997, it reported $17 million, or 58 cents a share, excluding items, on sales of $140.6 million.
The mean estimate of analysts surveyed by First Call is for earnings of 68 cents in 1999 and
89 cents in 2000.
Security Dynamics officials said the company is currently in a quiet period before the release
of second-quarter earnings, due July 15, and therefore couldn't comment on the estimates.
Security Dynamics (SDTI) shares edged up 37.5 cents, or 2.1%, to close at $18.125 Monday.
The 52-week high was $30.625 set on Jan. 9, and the 52-week low was $5.438, set on Oct. 8, 1998.
Among its Internet investments, the company has a hefty stake in VeriSign Inc. (VRSN). It has
an agreement to distribute one of VeriSign's computer-security products, but the pre-initial public
offering investment also brought a windfall in terms of share appreciation.
Internet security firm VeriSign went public in January 1998 at $14 a share. The per-share value
has climbed steadily from about $19.125 a year ago, adjusted for a stock split. It closed at $74
Monday, up $5.50, or 8%.
The sale of some of the VeriSign shares by Security Dynamics resulted in a $31.3 million gain
it recognized in 1998. As of the end of 1998, Security Dynamics still held 3.6 million shares, then
worth about $213 million.
After another VeriSign public offering and Security Dynamics sale of additional stock, it
recorded a gain of $74.7 million in January, and in the second quarter it will recognize an increase of
$12.6 million on VeriSign, the company said in its annual report.
Security Dynamics also has stakes in five other companies that develop Internet-trading
security products.
Arthur Coviello, Security Dynamics president, said he thinks the appetite for sophisticated
computer-security products will be insatiable once Internet commerce becomes accepted by major
companies. "We think the market should grow 100% annually for the foreseeable future and we
expect to get our fair share.
"(Keon) is a whole new product line," he said. "And we're encouraged that we're here with the
right product at the right time."
Copyright (c) 1999 Dow Jones & Company, Inc.
All Rights Reserved. |
