InkSure Technologies Provides Update on Large International Order
Friday January 20, 11:52 am ET
FT. LAUDERDALE, Fla., Jan. 20 /PRNewswire-FirstCall/ -- InkSure Technologies Inc. (OTC Bulletin Board: INKS - News), a leading provider of covert machine-readable security solutions for the prevention of counterfeiting, fraud and diversion, today provided an update on the status of a previously announced equipment order involving authentication of the packaging of hundreds of millions of individual product containers for a large international customer.
In June 2005, InkSure announced its receipt of an order from a large international customer that calls for the initial shipment of several hundred SignaSure(TM) electro-optic readers and the installation of a number of high-speed production line SortSure(TM) quality assurance systems. Following the deployment of the equipment and the activation of the authentication project, the Company expects to receive recurring revenues from the sale of SmartInk(TM) to the customer.
"This represents the largest equipment order in InkSure's history, and we look forward to a long-term relationship with our international customer," stated Elie Housman, Chief Executive Officer of InkSure Technologies, Inc. "The order is of great importance to our Company, because it represents our entry into the large market for tax stamps/marks, the counterfeiting of which costs governments around the world billions of dollars annually."
When the order was first announced, the Company expected equipment revenues to begin in the second half of 2005, but changes in field specifications and the late arrival of components from other project vendors delayed initial shipments. Further delays resulted from system integration issues, which have since been resolved. The Company now expects the equipment to be shipped and deployed in the near future.
"While these delays have been frustrating and will prevent InkSure from achieving profitability in the fourth quarter of 2005 as expected, we are gratified that our equipment meets the highest performance standards and confident that the international authentication project will provide important benefits to the customer," continued Housman. "We are currently looking at a number of other projects in the tax stamps/markings field, and management is optimistic that InkSure will play a significant role in this area."
Despite the absence of equipment revenues under the abovementioned international order, InkSure expects fourth quarter revenues to be the strongest of the year 2005 and well ahead of prior-year levels. Revenues for the full year ended December 31, 2005 should increase by more than 50% when compared with 2004 results.
"Postponement of the equipment shipments into early 2006, combined with new and repeat business from other 'world-class' customers, should allow the Company to generate strong revenues and greatly improved operating results in the current year. InkSure is clearly positioning itself as a premier provider of innovative covert security solutions on a global scale, and our confidence in the future has never been stronger," concluded Housman.
About InkSure Technologies Inc.
InkSure Technologies Inc., with its corporate headquarters in Ft. Lauderdale, Florida and its R&D center in Science Park, Rehovot, Israel, specializes in comprehensive, covert security solutions designed to protect high profile brands and documents of value from counterfeiting, fraud and diversion. The Company's sales and marketing activities target a number of market opportunities, including financial, pharmaceutical, branded products, transportation, and government/institutional, on a global scale. The Company's R&D activities include the development of chipless RFID technology for affordable item-level secure logistics and track-and-trace applications.
The Company's common stock is listed on the OTC Bulletin Board under the symbol "INKS". Additional information on the Company is available on its website at inksure.com.
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