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TORONTO (Dow Jones)--Mytec Technologies Inc. (T.MYT) is hoping to break even
in 1999, president and chief executive Thomas A. Grecco told Dow Jones on
Friday.
A day earlier, at Mytec's annual meeting here, Grecco told shareholders not
to expect Mytec to turn a profit for the next two years. The company is
entering the commercial phase, after spending almost five years on the
research and development of its biometric encryption technology.
In the year ended Dec. 31, 1997, Mytec lost C$8.9 million or 39 Canadian
cents a share, including a large charge.
However, Mytec is in good financial shape to continue sales and development
of its biometric encryption technology, Grecco told Dow Jones.
The technology involves linking a small piece of digital data with a
biometric, such as a fingerprint, and is used to replace an access Personal
Identification Number or password, he said. The technology is aimed at
corporate clients such as banks, which could use the technology in their
high-security computer networks, Grecco said.
As reported, Mytec and its Counterforce Inc. subsidiary have accepted an
offer for an operating line of credit of up to C$5 million, and a term loan
facility of C$10 million.
The financing will be used to cover operating costs, and for production,
sales and marketing of Mytec's first biometric encryption product, Touchstone,
which was launched commercially late last year, Grecco told shareholders.
Mytec hasn't started selling the product yet, but Grecco said about 200
Touchstone devices are being tested by potential clients.
Deals to sell the Touchstone product have been signed with distributors in
Poland and Korea, Grecco said at the meeting.
"In 1998, we think we'll sell about 1,000 of the Touchstone units at about
C$900 each," Grecco later told Dow Jones.
Mytec will continue to fund development of its biometric encryption
technology with funds generated from Counterforce, which provides traditional
security services for homes and small businesses, Grecco said.
In 1997, Mytec had revenues of C$11.8 million.
Grecco said there is market acceptance of biometric technology, and the key
to sales will be boosting awareness of the products. While he sees sales of
Touchstone rising in 1999, Grecco declined to give a specific revenue
projection.
(MORE) DOW JONES NEWS 06 -22 -98
12:31 PM
Mytec Technologies Inc. (T.MYT) president and chief executive Thomas A.
Grecco told Dow Jones he's cautious about providing sales projections, because
anticipation of large-volume sales and Touchstone's "sexiness" led investors
to overvalue Mytec's shares in the past.
After rising to above C$10 a share in October 1996, the stock plunged to
C$1.06 a share in December 1997.
In Toronto Monday, the stock is currently trading at 2.95, off 0.09.
"They (shareholders) thought we were going to sell millions of these things
(Touchstone products)," he said. "We're looking at a much smaller market
though. What sense does it make to spend C$900 on a security device for your
PC, when you could almost buy a new computer for that amount?" he said.
While Touchstone is aimed at large, corporate clients, which require high
security and may order large volumes, the company hasn't ruled out lower-end
products, Grecco said. Mytec should have a fingerprint authentification
product geared to home-computer users on the market within two years, Grecco
said. He expects the product to sell at about C$150, but said it's too early
to provide sales projections.
-By Lori McLeod; 416 -943 -7800
(END) DOW JONES NEWS 06 -22 -98
12:32 PM |
