Identix shares jump after Pentagon order
Benno Groeneveld
Web reporter
Shares of Identix Inc. jumped more than 18 percent in afternoon trading after the Minnetonka-based company reported it had received a $1 million order for its face recognition system from a Department of Defense program.
Identix said Tuesday morning it been awarded the order as a subcontractor for Unisys Corp., which is working with a task force at the department looking at ways to further develop face recognition systems as part of anti-terrorism measures.
Jay Meier, an analyst at Miller Johnson Steichen Kinnard in Minneapolis noted that the contract announcement isn't the only, or even the main, reason for Identix' stock rise.
Of course, any contract with the Pentagon indicates that a company is a leader in its field. "It is a huge psychological boost," Meier said.
But there is more at stake. The world is fast moving toward methods that can close holes in border protection and those methods generally include some form of biometrics.
For example, fingerprint, facial recognition and other biometrics systems are increasingly included in passports, Meier said. "There are more than 180 countries in the world that issue passports and Identix is one of two companies that have demonstrated their technology is reasonably accurate."
In addition, there are rumors that Identix might be acquired.
All these factors came together Tuesday, leading to Identix' stock (Nasdaq:IDNX) hitting $8.23 Tuesday morning, an increase of 28 percent over Monday's closing price. The stock later settled back and by mid-afternoon was up 18 percent, or $1.16, to $7.60. Trading was very heavy. On an average day about 675,000 shares are traded. Mid-afternoon volume had reached almost 16 million shares.
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