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Technology Stocks : Identix (IDNX) -- Ignore unavailable to you. Want to Upgrade?

To: Hal who wrote (25786)	4/6/2004 3:39:57 PM
From: steve	Read Replies (1) \| Respond to of 26039

Identix shares jump on Department of Defense order Reuters, 04.06.04, 12:33 PM ET NEW YORK, April 6 (Reuters) - Shares of Identix Inc. (nasdaq: IDNX - news - people) shot up as much as 28 percent after news that it won a $1 million contract to provide facial recognition technology to the U.S. Department of Defense, as investors bet that recent attacks would speed up security deployment around the globe. The Minnetonka, Minnesota, company said it expects to recognize the majority of the subcontract from Unisys Corp. (nyse: UIS - news - people) in the fiscal year ending on June 30. "While today's contract is not a substantial one, it's meaningful, and it suggests that their technology is indicative of the direction the U.S. government intends to pursue," said analyst Jay Meier of Miller Johnson Steichen Kinnard. He also said the U.S. government has in development as many as a dozen programs that include biometrics technologies such as fingerprinting, facial recognition and retina scanning. Shares of Identix, Viisage Technology Inc. (nasdaq: VISG - news - people) and other biometrics companies surged after Sept. 11 attacks, only to fall back sharply as governments took longer than anticipated to roll out programs that mandate the use of such technologies. For example, the U.S. government has asked visa-waiver countries to adopt passports that contain biometrics information. But those governments have complained a 2004 deadline is unrealistic. The recent railroad bombing in Madrid is expected to speed up European countries' security efforts. "Pain and fear are great motivators," said Meier, who expects Identix to turn a profit next year. In midday Nasdaq trade, Identix stock was up $1.36, or 21 percent, at $7.80 after hitting $8.23, its highest level since May 2002. Viisage rose to $10.30, its highest level since December 2001. It recently traded at $9.87, up 79 cents, or 8.7 percent. Copyright 2004, Reuters News Service forbes.com steve