Identix Comments on Preliminary First Quarter Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 5, 1999--Identix Incorporated (AMEX:IDX - news), a worldwide leader in providing biometric security and identification solutions, said today that revenues for its fiscal first quarter ended Sept. 30, 1999 will be between $17 million and $18 million with services revenue approximately $10 million and product revenue between $7 million and $8 million.
The Company said that government services revenues were down from the previous quarter due to the delay of the award of certain contracts which were received late in the quarter. In addition, certain governmental orders and certain OEM orders for its live-scan systems were delayed due to governmental spending-approval authorization cycles. The Company also said that beta tests at 100 major corporations of its newly released BioLogon(tm) 2.0 software ran longer than anticipated, and that, consequently, channel sales of BioLogon 2.0 only began in mid-September.
Chairman & CEO Randall C. Fowler commented, ''The major input on reduced revenue came from lower government contract revenue (ANADAC services) and delayed government orders for live-scan systems.'' He also said that even though services revenues were down, the contracts have since been awarded and the services business had a strong backlog totaling approximately $120 million largely in contracts to be delivered over one-to-five years. The Company anticipates that the delayed live-scan systems will be booked and shipped in the coming months.
''In the commercial sector,'' Fowler continued, ''our goal is for our technology using fingerprint user authentication to replace passwords and PINS everywhere. Our immediate task is to launch as many OEMs and channel partners as possible using the PC as the enabler for the mass market. As a result, the delay in release of BioLogon 2.0 also did have an adverse effect on revenue generated by our IT Security products. Today BioLogon 2.0 is available from several OEMs and distributors, including Compaq, Key Tronic, Cherry, SCM Microsystems and Digital River. We anticipate that additional OEMs and distributors will be offering these products over the next several quarters, and that our fingerprint readers and software will become widely available for enterprise networks and e-business applications during the year 2000.''
He added, ''We expect to be measured on how quickly we can broaden the channels of distribution for our IT products, including both the Company's fingerprint readers and BioLogon 2.0. Signing top-multinational corporations is one of our major objectives and our efforts are being met with enthusiasm. We believe that creating a critical mass of availability on PCs, laptops, notebooks and enterprise servers is absolutely essential to implementing biometrics for e-business.''
President James P. Scullion said that the Company's IT product bookings were on target for the quarter, but that certain orders were not shipped due to the late release of the BioLogon 2.0 software. He said, ''The new release is available now, and is moving through channels.''
For the first quarter of the previous year, the Company reported revenue of $20.8 million and net income of $450,000 or $0.02 per share.
The Company anticipates reporting its first quarter results on October 26, 1999.
About Identix
Identix Incorporated, www.Identix.com, is a leader in designing, developing, manufacturing, and marketing products for the capture and/or comparison of fingerprints for security, anti-fraud, law enforcement, physical access and other applications. Through Identicator Technology, Inc., Identix's IT Security division, Identix designs and develops proprietary, cost-effective, security products and solutions for personal identification and verification. Identicator Technology provides a wide range of applications to markets that include corporate enterprise security, Intranet, extranet, and Internet access and security, E-commerce, government and law enforcement agencies. Identix's partners include Compaq (NYSE:CPQ - news), Key Tronic (Nasdaq:KTCC - news), SCM Microsystems (Nasdaq:SCMM - news), Cherry GmbH and Unisys (NYSE:UIS - news).
The statements in this media release that relate to future plans, events, or performance are forward-looking statements, including the statements related to future performance, product availability and market demand. These forward-looking statements involve risks and uncertainties. Actual results, events and performance may differ materially for a variety of reasons including competition, dependence on strategic partners, development of markets and customer demand for Identix and Identicator Technology products, technological development, intellectual property protection and other risks identified in Identix's SEC filings. Identix undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events.
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Contact:
Identix Incorporated
Investor Relations Department, 408/731-2021
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