We aren't an Internet stock -- yet. You only have to look at the revenues. The IT division reported under $1M in revenues the last quarter. While I expect that number to ramp up quite a bit next quarter, it is currently only about 5% of total IDX revenues.
When Brad makes the Verisign P/S comparisons, he doesn't note that 100% of Verisign's revenues are Internet-based. IDX has now released a Verisign/Entrust/etc. - compatible software product. This is a only the first step in the right direction. It should make marketing the hardware to the corporate market somewhat easier, since our channel partners can now offer Internet end users both an ultimate hardware and software authentication solution. In fact, it will be easier to approach the marketplace through IDX hardware resellers than by VRSN/ENTU somehow trying to sell the authentication certificate to people without scanners on their desktops. Maybe that's why we haven't seen a related VRSN/ENTU co-marketing release.
Watching the competition at COMDEX, I see no new product announcements out of the silicon vendors Veridicom, Authentec, etc. The closest we see to a new product is Who?Vision recycling its last six months worth of press releases on what they are still developing . . . and the Secugen bio-mouse, in an apparent 500-user pilot. In other words, just like at CTST last spring, nothing particularly threatening. We can expect a DFR-300 mouse in the not too distant future, but I think it is just another option and not significantly more saleable than a biometric keyboard.
IDX finally announces the DFR-300, not yet in production but apparently with orders in hand for December, and new forms for that next-generation scanner. I was unpleasantly surprised at the potential $179 list price for the BioTouch product, but pleased at the 40% price break on the DFR-300 versus the DFR-200. That seems to ensure that IDX remains the price leader in the mass market for some time to come. Compaq did not mention the iPAQ, but we may also see that announcement pretty soon.
I am still expecting more announcements, in particular the release of BioSafe and BioShield.
As to the stock price, I had expected we were going to hit $12, but beyond that I had no expectations. We were clearly attracting the attention of daytraders and short sellers, so moment to moment stock price shifts can be expected -- along with visits from the obnoxious kids on the Yahoo board. |
