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

To: R. Jaynes who wrote (12216)	1/21/1999 5:03:00 PM
From: David	Respond to of 26039

I think that question is a reasonable one -- why isn't IDX taking on the most profitable element of the transaction, the software? Maybe the question answers itself. How are you going to stop Bank of America, for instance, for doing in-house the highest mark-up element of the product? Do you tell B of A, "take it or leave it"? If not Bank of America, what about the Peruvian bank? Well, I think IDX will make tens of millions of dollars if they supply hardware-only to B of A in a full rollout. In the Peruvian deal, the F3 is a high-cost item. I'm not objecting to any F3 sales, given its sales history so far. But, coincidentally, I've been thinking about the BAT acquisition over the last day or so, and what it may have brought to IDX. When IDX took it over, we knew that BAT was a subcontractor on the O'Hare deal, and supposedly had a Netscape plug-in and maybe a Microsoft or Sun connection, along with biometric software that could be used in smart cards (a la O'Hare). In the end, what I think IDX purchased was a greater share of the profits on the O'Hare project and its progeny (so far unrealized), and perhaps some very modest additional biometric software capacity that has not shown up in any major product. IDX had to buy IDT to acquire some other major biometric software pilots and possibilities. BAT was very likely a worthwhile purchase, even if it only represents the FAA project. Remember, IDX didn't pay that much for BAT. But right now it is hard to identify exactly what else IDX has gotten from that deal.