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

To: Hockeyfan who wrote (7292)	3/20/1998 10:03:00 AM
From: Ed Flynn	Read Replies (1) \| Respond to of 26039

Are you including in your $6,000 of misc cost an allocation of salaries/rent/utilities back to the JV from Sylvan or are you assuming this is parts and maintenance? $17,000 gross profit is not much and can disappear in the blink of an eye. I would be thrilled if indeed the JV was marginally profitable from the start, I just don't think that will be the case with only the NASD announcement. Now, hook another deal on top and I might start doing the wave. Ed

To: Hockeyfan who wrote (7292)	3/20/1998 3:21:00 PM
From: Wesley0428	Read Replies (1) \| Respond to of 26039

<<<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.>>> I'm not sure $4000 is enough to cover the labor costs associated with taking 4 sets of prints per day. I could easily see that being .15 - .25 of a full-time person. On the other hand the $35 seems conservative to me. Also it'll take quite some time to hit the 250K click/year rate. Of course IDX will be selling lots of machines to the 3P lessor during that ramp period which won't hurt.

To: Hockeyfan who wrote (7292)	3/21/1998 9:41:00 AM
From: James Overko	Respond to of 26039

Headline: Identix Inc:Announces Potentially Large Contract with Sylvan for the NASD Author: Jeff Kessler/Smith 1(212)526-5162/5736 Rating: 2 Company: IDX Country: COM CUS Industry: MISCEL Ticker : IDX Rank(Prev): 2-Outperform Rank(Curr): 2-Outperform Price : $9 5/16 52wk Range: $12-7.38 Price Target: $18 Today's Date : 03/20/98 Fiscal Year : JUN ------------------------------------------------------------------------------ EPS 1997 1998 1999 2000 QTR. Actual Prev. Curr. Prev. Curr. Prev. Curr. 1st: 0.01A 0.02A 0.02A - -E - -E - -E - -E 2nd: 0.00A 0.02A 0.02A - -E - -E - -E - -E 3rd: 0.01A 0.06E 0.06E - -E - -E - -E - -E 4th: 0.04A 0.08E 0.08E - -E - -E - -E - -E ------------------------------------------------------------------------------ Year:$ 0.07A $ 0.18E $ 0.18E $ 0.33E $ 0.33E $ - -E $ - -E Street Est.: $ 0.16E $ 0.15E $ 0.31E $ 0.30E $ - -E $ - -E ------------------------------------------------------------------------------ Price (As of 3/19): $9 5/16 Revenue (1998): 83.9 Mil. Return On Equity (98): N/A Proj. 5yr EPS Grth: 35.0 % Shares Outstanding: 25.6 Mil. Dividend Yield: N/A Mkt Capitalization: 238.40 Mil. P/E 1998; 1999 : 51.7 X; 28.2 X Current Book Value: $0.82 /sh Convertible: - -Debt- to-Capital: 0.0 % Disclosure(s): None ------------------------------------------------------------------------------ * Yesterday Identix announced that the NASD has signed a contract with the Sylvan/Identix Fingerprinting Centers LLC joint venture (at year end Sylvan and Identix split the profits from the JV) making the electronic capture and transmission of fingerprints available to NASD for background checks eliminating the need for ink based prints. * We believe that this fingerprinting service will be offered at approximately $35 per click to a potential Sylvan based population of 250,000 brokers registering with the NASD each year and we believe that other organizations that require background checks will soon follow suit, making the potential served universe of individuals enormous. The service comes with a guarantee that the prints taken will be usable 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-identification of individuals taking certification tests such as the Series 7 for the NASD to ensure that no one has hired a professional test taker. * We believe that revenue from this contract will slowly ramp up over the next few quarters but that it could have a meaningful impact on fiscal 1999 results for Identix. * Once again, we see Identix as the clear choice in biometric applications and we view each new contract as just one step closer to widespread public acceptance of biometrics in everyday life. ------------------------------------------------------------------------------ BUSINESS DESCRIPTION: Identix is the leading producer of personal identification and verification systems for security access control and law enforcement applications. ------------------------------------------------------------------------------ Disclosure Legend: A-Lehman Brothers Inc. managed or co-managed within the past three years a public offering of securities for this company. B-An employee of Lehman Brothers Inc. is a director of this company. C-Lehman Brothers Inc. makes a market in the securities of this company. G-The Lehman

To: Hockeyfan who wrote (7292)	3/21/1998 10:27:00 PM
From: David	Read Replies (2) \| Respond to of 26039

Sylvan financial analysis question for J. Saf: You wrote "I believe that the sale/leaseback will be for 3 to 5 years at an interest rate of 12% to 18%", and analyzed costs and profit margin on that basis. Here's the question, and forgive my naivete, but isn't the joint venture going to pay the interest to the seller -- IDX -- on an installment sale, and won't that interest get recognized somewhere in the IDX bottom line?

To: Hockeyfan who wrote (7292)	4/20/1998 1:04:00 PM
From: David	Read Replies (1) \| Respond to of 26039

Further factoid bearing on Sylvan joint venture costs . . . . According to the April 13 Seattle Times, the INS fingerprinting center is expected to be able to process 200 cases per week. If we assume that there will be one TP-600 in there, then 200 cases per week/40 hours a week = 5 cases per hour (maximum rate, presumably). For the first thousand uses of the TP-600 a year -- that is, the NASD deal -- we can estimate, at maximum efficiency, 200 hours' usage, or 10% of an employee's time.