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

To: brad greene who wrote (9767)	8/4/1998 11:13:00 AM
From: David	Read Replies (3) \| Respond to of 26039

More today from Westergaard: August 4, 1998 WBN Looks At the Whys and Wherefores of Identix' (IDX 7 3/4 AMEX) Fourth Quarter IDX reported 4QJun98 last week. Total revenues up 31%, product revenues (which is what's really important) up 21%, gross profit on product revenues up fractionally to 51%, and SG&A down from 24% to 20.4%. The decline in SG&A -- almost 4 points taken out -- is an astonishing achievement and says everything about how far IDX's internal restructuring has advanced!!! CEO Fowler and CFO Scullion conducted a conference call on the 28th. Lots of valuable inputs. Our rough notes: Legal expenses down sharply for FY99 as patent case is out of the way. Sylvan joint venture operating now in 10 U.S. cities. Strategic relationships expanded during year with biggies: Computer Associates, NEC Technologies, Sagem Morpho. ANADAC's services business primarily to government agencies, up 68% to $44mm, is now 15% commercial. Focus on low gross margins for this business loses sight of co's strategy to bid accepting 3% pass through on direct labor to gain market share, margins will come later. They'd rather take 3% on a growing $44mm business than 8% on a static $15mm. Alliances: very active in various negotiations right now, Oracle still in pilot, co surprised to learn how many of its customers already use Oracle software. Commercial biometric: Indicator has rushed in with $99 product, not secure, no encryption, software for analysis of fingerprint resides on p.c. which is no better than a password. When Compaq is ready to be serious about this market, IDX will be there. Co has 40-45 salespeople worldwide. INS (Immigration and Naturalization Service): Co has delivered what's been ordered and has been paid. Awaiting RFP (Request for Proposal) for balance of the order which WBN estimates at circa $20mm based on last year's INS news conference in Baltimore (see WBN-IDX "News Analysis"). Re debate over pattern recognition vs minutia alogrithm, IDX believes the former provides greater security and will prevail. Esoteric stuff, over our head. More to come. Chicago O'Hare Pilot Project: Very encouraging. Can now know everything that goes on a plane and who put it there. FAA and Air Force pleased. Large opportunity for Oracle and IDX to do business together -- not explained. Smart Cards: Coming. Note American Express, Visa announcement last week to develop a worldwide, open standard. The venture -- Proton World International -- will incorporate technology spun off from Banskaya of Belgium. Will include fingerprint recognition? WBN thinks so. Questions??? Blah blah blah blah blah!!! The IDX beat goes on in nooks and crannies throughout the world. Every day in every way. It's the ubiquitous little train that could. I think I can. I think I can. I know I can. I know I can. Choo choo choo choo choo choo!!! Amazing, amazing.