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

To: brad greene who wrote (13699)	5/30/1999 10:34:00 PM
From: David	Read Replies (1) \| Respond to of 26039

The Motorola deal . . . . Having had a few days to think about the Motorola announcement, here are some conclusions: (1) By adding the Motorola chip to the reader, IDX is doing the equivalent of attaching the necessary PC element to non-PC applications, such as cell phones. (Or Palm Pilot VIIs and later models.) (2) The IDT product + the Motorola chip ~ the F3 system, but it will cost well under $100 retail (versus at least $300) and will be smaller and lighter -- and therefore eligible to penetrate new markets. It will also get marketing support from Motorola, and probably sales to Motorola's high end cell phone model. (3) Given this development, and the throwaway mention that IDT is working with Oracle, I think we have seen an IDX decision to withdraw the F3 technology from almost all markets. The probable and major exception: the FAA project with Oracle and others. This conclusion is somewhat supported by Fowler and analyst statements that after acquiring IDT, the combined management had to decide where to eliminate product line overlaps. (4) We may therefore see an F3 product writeoff in the upcoming quarter. (5) The combined IDT/Motorola line will be able to match new images to the established template in the reader itself, which is inherently more secure than placing a template bank on a server. I would expect IDX to pitch this system to the military, for example. (6) Although the IDX F3 pattern recognition scheme is marginally more private (and secure) than a minutiae-based template, using F3 standards would undercut IDX's obvious strategic interest in creating a universal software platform for biometrics.