Identix Wins Statewide Contract, Releases Revenue Forecast
Biometrics security company Identix Inc. has been awarded a blanket purchase agreement (BPA) to provide live scan fingerprint systems to law enforcement agencies in Pennsylvania. In additional news, Identix’s CFO resigned as the company announced its second quarter revenue would fall below expectations.
The Pennsylvania Chiefs of Police Association (PCPA) has given a BPA for Identix to replace, upgrade and add to the more than 100 live scan systems currently deployed throughout Pennsylvania with TouchPrint® 3000 10-print live scan systems. The initial purchase order includes $500,000 to supply TouchPrint 3800XCH full-hand scanners.
PCPA Technology Coordinator Chris Braun says Pennsylvania is also preliminarily contemplating the possibility of procuring additional biometric technology from Identix to help enable statewide biometric data sharing through the state’s integrated law enforcement networks.
“We are extremely proud to have been selected to play such an important role in Pennsylvania’s state-wide law enforcement programs,” says Identix President and CEO Joseph J. Atick.
Also on Dec. 23, Identix announced that its revenue for its fiscal 2004 second quarter ending Dec. 31 will fall below expectations. The company cites as a factor in the declining revenue a hold on a BPA with the U.S. Department of Homeland Security (DHS) that was initiated after a competitor filed a protest with the department.
The company also says customer infrastructure development requirements on most of the awards received in the second quarter have delayed to future quarters much of the revenue from those projects to future quarters.
“Our anticipated revenue shortfall this quarter is especially frustrating in view of the fact that we continue to win many of the major awards being made in the biometrics industry,” Atick says. “While short-term revenue challenges as the result of customer delays are frustrating, these delays are out of our control. However, that which is in our control – the continued win of important industry defining contracts and purchase orders – is enabling us to build a solid backlog.”
Identix expects fiscal 2004 second quarter results to reflect revenue in the range of $18.5 million to $20 million, down from previous expectations of $21 million to $25 million. Identix says it will report consolidated financial results for its second quarter the week of Jan. 26.
In what Identix says is an unrelated development, Erik Prusch is resigning as Identix’s CFO effective Jan. 14. The company says he is leaving on “his own accord due to a desire to relocate his family back to the West Coast.”
Prusch joined the company as CFO in April 2001. Identix COO Jim Moar will serve as CFO while a search for a new CFO is conducted.
“We are disappointed to see Erik leave. Erik has done an excellent job of guiding Identix through the challenging integration period arising out of the merger with Visionics,” Atick says. “His departure comes at a time when we have completed our merger integration and have shifted our focus from integration and the establishment of solid internal controls to operations and execution.”
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