Identix Announces First Quarter Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 26, 1999--Identix Incorporated (AMEX:IDX - news), a worldwide leader in providing biometric security and identification solutions, today announced results for its fiscal year 2000 first quarter ended September 30, 1999.
As a result of the previously announced delay of certain government and OEM orders for live-scan systems and the lateness in the quarter of certain government contract awards for services, revenues for this fiscal year's first quarter were $17.5 million. Product and services revenues for the first quarter of this fiscal year were $7.1 million and $10.4 million, respectively. This compares to total revenues of $20.8 million for the first quarter of last fiscal year, which included product revenues of $9.7 million and services revenues of $11.1 million. According to the announcement by Identix Chairman and CEO Randall C. Fowler, the government services contracts have been received and are currently underway. In addition, most of the delayed government and OEM live-scan orders are expected to be received over the next few months.
The net loss for this fiscal year's first quarter was $3.5 million, or $0.11 loss per share, compared to net income of $450,000, or $0.02 income per share, for the first quarter of fiscal year 1999.
In addition to increased operating expenses from the acquisition of Identicator Technology, Inc. fiscal 2000 first quarter results also included $885,000 in acquisition related amortization expenses, as well as $593,000 in charges against cost of sales and general and administrative expenses for a write down in inventory and a write off of intangible assets due to market price pressures. Product gross profit margins for this fiscal year's first quarter, including the charge to cost of sales, increased to 54 percent, up from 51 percent for the same period last year.
Fowler commented, ''We entered fiscal year 2000 committed to investing in the business for the long term and to taking maximum advantage of the products and technologies we gained with the acquisition of Identicator Technology. While fiscal 2000 first quarter revenues were down due to order delays and the loss was greater than anticipated, we believe we are taking the steps needed to reach our strategic goal of enabling the PC world to use the Identix fingerprint readers and software. Industry resources have shown us that there are currently more 100 million new PCs shipped annually.
''Our immediate task is to launch as many OEM and channel partner relationships as possible using the PC as the enabler for the mass market,'' Fowler added. ''Today, BioLogon 2.0 is available from several OEMs and distributors, including Compaq, Key Tronic, Cherry, SCM Microsystems and Digital River. We also expect to release this quarter the DFR 300 -- the reader Motorola and Identix have been jointly developing for use with cell phones, laptops, notebooks and other portable communications and computing products. With our growing suite of new products and applications and our strong market position, I am convinced we are better equipped than ever to capture the market as it develops.''
Identix President and CFO James P. Scullion added that the Company has seen continued IT product bookings, despite the previous announced delayed release of BioLogon 2.0(tm) software and consequent delayed shipments. He commented, ''BioLogon is designed to conveniently secure enterprise networks and we believe that the new software has been well received in the marketplace.''
As of September 30, 1999 the current ratio was 2.8:1, working capital was $27.7 million, there was no long-term debt and shareholders' equity was $62.4 million.
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 release that relate to future plans, events or performance are forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance on the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The Company cautions investors that any forward looking statements involve risks and uncertainties that may cause actual results to differ materially from those expressed or implied in such forward looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with general economic conditions in the markets where the Company operates, orders from and contracts with government entities, availability of government funds, risks associated with the Company's alliances, partnerships and joint ventures, product development and commercialization risks, development of markets for the Company's products and services and other risks as identified in Identix's SEC filings. The Company states no intention and 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.
IDENTIX INCORPORATED
SELECTED FINANCIAL DATA
Three Months Ended
September 30,
1999 1998
Revenues:
Product revenues $ 7,038,000 $ 9,749,000
Services revenues 10,429,000 11,067,000
Total revenues 17,467,000 20,816,000
Costs and expenses:
Cost of product revenues 3,271,000 4,818,000
Cost of services revenues 9,010,000 9,593,000
Research, development and engineering 2,207,000 1,461,000
Marketing and selling 2,924,000 2,462,000
General and administrative 2,794,000 1,781,000
Amortization of acquired intangible assets 885,000 46,000
Total costs and expenses 21,091,000 20,161,000
Income (loss) from operations (3,624,000) 655,000
Interest and other income (expense), net 181,000 32,000
Interest expense (47,000) (133,000)
Income (loss) before taxes (3,490,000) 554,000
Provision for income taxes - (30,000)
Income (loss) before equity interest
in joint venture (3,490,000) 524,000
Equity interest in joint venture 18,000 (74,000)
Net income (loss) $ (3,472,000) $ 45,000
Net income (loss) per share:
Basic $ (0.11) $ 0.02
Diluted $ (0.11) $ 0.02
Shares used in computing net income
(loss) per share:
Basic 30,644,000 25,285,000
Diluted 30,644,000 25,575,000
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Contact:
Identix Incorporated
Investor Relations Department, 408/731-2021 |
