Hambrecht & Quist expects BIG IDX earnings miss
Applied Technologies Universe Third Quarter 1999 Preview --Hambrecht & Quist (Joe Arsenio II)
Analyst: Joe Arsenio II 415-439-3339
Associate: Peter Wood 415-439 3729
Date:10/12/99
Identix - IDX Notes:
*IDX preannounced that its F1Q00 (Sept.) sales would equal $17 million - $18 million, below our previous $21.3 million estimate. While the Company did not provide an earnings projection, we believe its logical to assume that IDX will fall well below our expectations of a loss of($0.05)/sh.
*IDX's IT division has developed a robust suite of software driven workstation and network security solutions that enable fingerprints to replace all passwords. We believe that the simplified logon process for users, reduced expenses for IT departments, and enhanced security of fingerprint technology will result in the first broad based horizontal adoption of biometrics by commercial markets.
*In order to achieve broad deployment of its IT products most effectively, IDX's Identicator division is teaming up with PC OEMs, computer peripheral manufacturers, software vendors, and systems integrators. To date, Identix has announced OEM relationships with Compaq (CPQ/$21.50/MP), Key Tronic, Cherry Electronics, SCM Microsystems, Motorola (MOT,$93.00,B-F), Unisys and Novell. We anticipate additional relationships with significant PC OEMs are imminentand will help drive substantial implementation in F00.
*While we are encouraged by IDX's promising prospects for playing a leading role in the development of commercial biometric markets, we are a maintaining our Market Perform recommendation pending additional visibility into the timing of the IT growth ramp and concerns regarding revenue visibility in IDX's traditional government "livescan" business. |
