This is some info that I found on yahoo's company pagefor NRI.Subj: Don't give up on NRID...Read this!
By: dlevitt
Date: Dec 3 1997 12:14 P.M PST
Reply To: Msg. 1 by YahooFinance
I have been doing a lot of research on NRID and even called and talked with
their investor relations person for a while.
Granted... stock performance is pitiful, but look at the companies potential:
Their first big comercial product line was introduced 1Q97 (keyboard scanner
and SAF for NT&WIN95) at the same time they abandoned future governemnt
work. Before that it was mainly government contracts for identity checking. They
have increased sales by 30% each quarter this year. That was before they had
even shipped a single unit to the three major distributors of computer peripherals
with whom they now have distribution agreements.
They now have almost a half dozen products including the keyboard scanner
made by KeyTronic and the distribution network to sell them across the world.
Let me mention the fact that KeyTronic is the largest independent manufacturer
of Keyboards in the world and makes keyboards for: Microsoft, Dell, HP et.al.
They should be able to really open the market in '98. Remember, they're the
FIRST!! For nearer term warm fuzzies...I was told that they are fullfilling supply
contracts with a large financial institution and a couple healthcare companies for
which press releases are forthcoming.
About the Stock...
The biggest thing effecting the stock is the bottom line. Their loss per share has
been growing instead of declining. Why? Read the 10-Q and you'll see that
although their sales are increasing and their costs are going down, they are
writing off a large
"deemed dividend" to earnings per share. This is not an actual cash payment.
This is an accounting lineitem which accounts for dilution of common stock value
by the conversion of prefered stock into common stock. Nobody paid anybody
$980,000 last quarter. It makes things look a lot worse than they are!
In fact their CFO refiled last years 10-K (without a good explanation in the
filing) to reflect this new accounting practice that the SEC is requiring of public
companies. Because of this, the loss per share widened in '96. He must have
thought that it would serve as a good tool to compare '96 and '97.
Unfortunately, nobody new what the hell was happening and you got panic
selling.
Also, they have this $10 million balloon payment to Cogent in '99 for the use of
their algorithm. That's hanging over the stock value like a lead balloon. Well,
their public relations guy assured me that they were looking for other algorithms,
so they could say Bye to Cogent and keep the $10 million. Lucent has an
algorith and a new fingerprint sensor that they're looking at. This will assuredly
save their butts sometime in '98.
Finally, their Cash flow problem...They've been in the same cash situation at the
end of every year for a few years now, and have been able to find funding. They
are currently looking for more financing, but their not freaking out about it
because they are on the verge of some serious sales revenue.
--->The bottom line is that NRID is not going out of business and that the
demise of their stock price is due to bad accounting decisions. Their stock is a
steal at $.45/share and if my wife wouldn't kill me, I'd mortgage the home and
buy up every last share at that price.
Michael Blonder<eom>
|
