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

To: Richard Newton who wrote (7290)	3/20/1998 9:48:00 AM
From: Hockeyfan	Read Replies (4) \| Respond to of 26039

Lehman Bros. First Call Note - Estimates charge at $35 per click - The service comes with a guarantee that the prints taken will be useable or they will be retaken for free (this compares to a nearly 40% rejection rate when ink prints are used.) - At some point in the future the contract also makes the provision for bio-ID of individuals taking certification tests, such as the Series 7 for the NASD, to ensure no one has hired a professional test taker. - Revenues will ramp up slowly over the next few quarters and COULD HAVE A MEANINGFUL IMPACT ON FISCAL 1999 RESULTS FOR IDENTIX. Do I smell an estimate increase for 1999? ******************************** Impact of NASD Deal revisited - The economics of the lease are driven by the third party lessor. Randy said that the TP600 sales would be to an independent thrid party. According to GAAP accounting rules, the 3P lessor can not have recourse to IDX or IDX would have to record the sale in installments. Therefore I believe that the sale/leaseback will be for 3 to 5 years at an interest rate of 12% to 18%. Any other terms would create too much risk for the lessor. Also, the 3P is not likely to agreet to pay full markup on the TP600s. If the 3P balks, the deal does not get done. The annual payment on a $40,000 TP600 @ 15% interest for 4 years is $14,000. I threw in an additional $6000 for miscellaneous costs per year just to be safe to get $20,000 per year. The $6000 is probably too high and the TP600 lease amount would decrease greatly after 4 years. I will adjust the annual cost to $18,000. With the new $35 per click figure I recalculate my estimate to be: 250,000 printsets / 250 centers = 1,000 printsets per center * $35 = $35,000 - $18,000 = $17,000 profit per center * 250 centers = $4,250,000 total profit * 50% profit split * 65% tax adjustment / 25 million shares = 5.525 cents per share. As I said before, this calculation shows the NASD contract covering ALL fixed costs of each center and additional contracts going directly to the bottom line.

To: Richard Newton who wrote (7290)	3/20/1998 9:49:00 AM
From: brad greene	Read Replies (1) \| Respond to of 26039

Richard, Thanks....Looks like 10 days to cover. bg

To: Richard Newton who wrote (7290)	4/6/1998 8:16:00 PM
From: Richard Newton	Respond to of 26039

Congressional record - recent "fingerprint" references Found the following references to 2 new bills introduced in Congress during March (may be worth an occasional check, but they are new and may not go anywhere so don't get too excited)... both, if passed would be good for a company like IDX. Congressional Record: March 5, 1998 (Senate) From the Congressional Record Online via GPO Access [http://wais.access.gpo.gov] (search on fingerprint... sorry the direct url was too long... wait till page loads [it may take some time] and then use the find feature in your browser). By Mr. KENNEDY: S. 1717. A bill to amend the Immigration and Nationality Act to strengthen the naturalization process; to the Committee on the Judiciary. the new american citizenship act Gephart and Kennedy introduced bill which provides increased services, and requires INS to reduce the naturalization process to six months with no backlogs.... one of the requirements is " Procuring the technology to institute electronic fingerprint checks at all Immigration and Naturalization Service offices by the fiscal year 2000." March 31, 1998 - Mr. DeWINE (for himself, Mr. Hatch, Mr. Leahy, and Mr. Specter): S. 1893. A Bill to establish a law enforcement block grant program; to the Committee on the Judiciary. the local law enforcement block grant act of 1998 From 1999-2003, this Act authorizes $750 million each year for direct grants to local law enforcement to reduce crime and improve public safety.... "One of the most frequent uses of this grant money in Ohio, and by local law enforcement across the country, has been for crime fighting technology. I believe there is a critical need to modernize the crime fighting tools used by local law enforcement, who have been fighting increasingly sophisticated criminals with outmoded tools. That's why I am expressly providing that funds may also be used for information and identification technology, such as criminal history information, fingerprint dissemination, and DNA and ballistics tests."