I posted that I liked LTNX and wanted to give some information on it. I like their plan (especially the Pulsar deal) and the companies that they are invloved in. It comes out of the quiet period on Wednsday so I expect news and an upgrade or two. think it can catch fire like other IPO's>
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We provide professional Internet data security services and develop and market software and microprocessor-based products needed to secure electronic commerce and communications over the Internet, intranets, extranets and other Internet-based communication networks ("Internet Protocol Networks"). Our primary technology offerings utilize an advanced form of cryptography referred to as public key infrastructure or PKI, which is the standard technology for securing Internet-based commerce and communications. PKI helps ensure the integrity and privacy of information being transmitted in an electronic transaction or communication and verifies the identity, authenticity and authority of the sender and the recipient of that information. We have established relationships with industry leaders who have adopted PKI as a core feature of their secure product offerings, including Netscape Communications Corporation, Microsoft Corporation, VeriSign, Inc., International Business Machines Corp., RSA Data Security, Inc., SCM Microsystems, Inc., Atmel Corporation and the U.S. National Security Agency.
Our security software and microprocessor-based products can be used with world-wide-web browsers such as Netscape Communicator and Microsoft Internet Explorer to provide secure E-mail or other data communications and facilitate secure electronic commerce transactions. Additionally, by using our Internet data security products, our customers can integrate PKI security into their Internet Protocol Networks, existing database applications and customized software applications such as those used in the finance, healthcare, telecommunications, electronic commerce and government industries. Our customers are diverse and include: Bank of America, VeriSign, Inc., Lucent Technologies Inc., Lockheed Martin Corporation, Deloitte & Touche LLP, Netscape Communications Corporation, Nippon Telegraph and Telecommunications Data Corporation, Schlumberger Limited, the National Security Agency and the U.S. Army Corps of Engineers.
Consumers, government agencies and corporations are increasingly relying upon the Internet, intranets, extranets and other communication networks to conduct electronic commerce and communications. International Data Corporation estimates that the number of Internet users will grow from 97 million in 1998 to 320 million in 2002, with electronic commerce growing from $32 billion to $426 billion over the same period. The increasing proliferation of, and reliance upon, Internet communications and transactions has now caused data security to become a paramount concern. Demand for information security products is forecast by Datamonitor, an independent research firm, to increase from $1.6 billion in 1997 to almost $7.0 billion by 2001, a growth rate of 44% per annum. In addition, Datamonitor forecasts the Internet-security PKI segment to be the fastest growing segment of this market, increasing from $75 million in 1997 to approximately $1.9 billion by 2001, a growth rate of 124% per annum.
Our Internet data security, PKI-based products are used to enhance the security of world-wide-web browsers by "digitally signing" messages in hardware tokens (such as PKI cards, PCMCIA cards, and secure-keys) using digital certificate technology. Digital certificates are advanced electronic identification files which uniquely identify the sender of an electronic communication. The use of digital certificates is expanding rapidly across the Internet. In fact, several states now consider digital signatures contractually binding, and there is a growing acceptance within the federal government to effectuate transactions through the use of digital certificates. Our data security products support numerous types of operating systems and facilitate the process of issuing, managing and recovering digital certificates throughout a customer's enterprise.
Given the increasing demand for PKI security, we believe significant market opportunities exist for the development of PKI products that provide security tailored to the more advanced security levels required in certain environments. We are currently developing PKI cards capable of integrating multiple digital certificates and which will provide for greater processing power, multiple algorithm suites and greater storage capacity than today's conventional PKI cards, yet remain credit card sized and competitively priced. In addition, working with Atmel Corporation, a leading semi-conductor manufacturer, we are leading the development of the Forte microprocessor pursuant to a task order issued under a contract with the National Security Agency. We are designing Forte, a 32-bit RISC microprocessor, to embed in an advanced PKI card. Our Forte PKIcard is expected to be the fastest, most versatile and most cryptographically advanced PKI card available.
To capitalize on opportunities in the rapidly growing Internet security market, we are acquiring Pulsar, a network integration solutions company that deploys large-scale network solutions to organizations in the commercial and government sectors that have significant information processing requirements. Pulsar had revenues of approximately $62.0 million for the nine months ended September 30, 1998 and, following this offering, we intend to roll out our enterprise-wide Internet data security products to its significant client base. This client base includes over 100 federal agencies, such as The Executive Offices of the President of the United States, the Federal Bureau of Investigation, the Federal Communications Commission, and over 40 commercial, state and local customers. We believe that our newly acquired Pulsar network integration solutions expertise will provide us with significant competitive advantages with respect to our Internet data security offerings, as the implementation of Internet Protocol Network security solutions and infrastructure requires specialized skills which are typically limited in corporate information technology departments. We also intend to leverage the direct sales force, distribution channels and partners of our new Pulsar operations, including electronic commerce companies, Internet service providers, value-added resellers, systems integrators and original equipment manufacturers, to aggressively expand our distribution capabilities. These partners include Network Associates, Inc., Dell Computers Corp., International Business Machines Corp., Lucent Technologies Inc. and Compaq Computer Corporation.
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