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Technology Stocks : Identix (IDNX)

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To: bob jordan who wrote (16439)1/19/2000 9:34:00 PM
From: David  Read Replies (1) of 26039
 
Bob (again),

You wrote, "I have not seen anything about the DFR300 shipping. Blanket statements may satisfy you...it does not me." Here is the company's announcement of when the DFR-300 was to ship:

siliconinvestor.com

"Volume shipments are expected in early December." And we heard in this week's PR that volume shipments of readers were occurring. Ron Ohio posted earlier tonight that he called the factory and they reported the DFR-300s were shipping. So you have formal information from the company, and informal information. If that's not enough for you, maybe you could share with us what your problem is.

Then you wrote, "The Compaq price is discounted to begin with because they are selling to compaq. Secugen is competitive whether you like it or not....you really think ESAF would not discount their application to make it competitive?"

The CPQ price is discounted mostly because it ships in OEM amounts. Given the $99 FIT price tag, you can bet the DFR-200 was priced WAAAY under $70 . . . probably more like $35, since that link above also gives this pricing information: "With the introduction of the DFR 300, Identix has achieved a 40-percent cost reduction since introducing its previous generation reader. The Motorola-Identix alliance drops the already reduced price point established in August 1998 when Identicator Technology, Inc., Identix's wholly owned subsidiary and IT Security Division, and Compaq introduced the first biometric readers for less than $99." Considering the new, 40% less DFR-300 has been publicly described by Grant Evans as priced at less than $20 in OEM quantities, you can do the math and confirm it. A $20 reader probably translates into a $60 OEM price, maybe less. A $70 Secugen reader can't be competitive on price, whether you like it or not . . . unless ESAF is heavily subsidizing the purchases by paying Secugen money and not charging the end user. You don't really win debating points by holding untenable positions.

As usual, I won't defend the IDX press release writer (or editor). They could have done a better job explaining what is going on. The ESAF release was better.

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