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Technology Stocks : AXSI - Axcess Inc. (formerly LASX) -- Ignore unavailable to you. Want to Upgrade?

To: John Arnopp who wrote (821)	3/31/1998 9:58:00 PM
From: John A. Paul	Read Replies (1) \| Respond to of 1220

John: After reading the company's special announcement, I put together the following. What are your thoughts? My read on the THE FOUR OPPORTUNITIES IN 1998 from the company's special announcement March 31, 1998 "First, continue to market the high-volume dye-sublimation secure card printer to existing customers and government markets worldwide through prime contractors, and master distributors. The company will also introduce, some time in the third quarter, a new mid-range secure card printer aimed at the ID badging market segment and similar decentralized markets. As with the multi-station printer this new product line will continue to be marketed under the Sandia brand name, but will be distributed through a network of Master Distributors." My Take: This is apparently the current business with the Immigration and Naturalization Service and with China. It appears the company is going to use "master distributors" to help bring the product to market. Also the introduction of the mid-range priced printer should help expand contracts. I view this as a good move. For some time I have wondered why there was a lack of marketing. We will see how the master distributors help. "Second, manage the initial growth of IDCard Services, a new division aimed at serving the corporate, university and other markets in the provision of secure, personalized ID cards. IDCard Services meets a demand expressed by many customers and prospects identified in the Sandia sales effort. This business service has recently been launched and orders are now being taken. This division should be able to capitalize on the trend toward outsourcing and solid margins are expected." My take: There has to be a huge need for ID cards. Since the company has apparently identified prospective customers and "orders are now being taken", we should see contracts and sales within the next quarter. "Third, develop and introduce to the market a new product line to address the market for corporate access control. This new product family will combine state-of-the-art technologies to meet the growing demand for security and fraud prevention by corporations that increasingly operate in an environment of virtual boundaries and an information explosion. The market opportunity is large, at $2.8 billion in electronic access control systems, and growing fast, over 60% per annum in the specialized niches that this division will serve, characterized by biometric and computer security. This market segment offers a prime opportunity to leverage the expertise we have in secure cards, biometric data storage and transfer and other related advanced technologies." My take: As the paragraph states, this is a huge market. There has to be millions of dollars of business out there. I assume we will not see contracts until the 4th quarter. "Fourth, bring to market, through the strategic partnership with XLVision, the first products in a family of high-performance, low cost reader solutions for card-based biometric access control systems and 2D symbology applications. The product development programs in the partnership with XLVision are making good progress. Prototypes are expected to be available for demonstration to potential customers by the fourth quarter. We expect to see a significant contribution to revenue from this technology division beginning in early 1999. This partnership is being run out of the XLVision campus in Florida, under AXCESS management, as the core of the newly formed Technology Division. Both the Technology Division and the Solutions Division, based in Dallas, share a common overall market opportunity and should produce technical and operational synergy in the future." My take: This end of the business is what many on this thread have seen as the savior of the company. But we will not see revenue until next year, so we need the other products to do well this year. Actually, I was pleased to read the first three paragraphs which show the company has a plan to reach some of the markets we have always envisioned them to be progressing toward. I recommend that people read the entire special announcement and give feedback on this thread. Personally I am still optimistic for the long run and hopeful the company has some contract announcements for us early next week to boost the after split price. We have to see the price stabilized above 5 and hopefully above 7.5, so that selling will not drive the price sub-five. It is a very slippery slope below 5. JP