Precise Biometrics fights on

BUSINESS WATCH

Biometric Technology Today • March 20035

financial results

Saflink sales jumpSaflink had a strong end to 2002, posting itshighest fourth quarter revenue for many years,helping to boost overall 2002 results torespectable levels.

Revenue for the fourth quarter of 2002 wasUS$1.1 million, compared to US$366,000 in thethird quarter of 2002 and US$23,000 in the fourthquarter of 2001. Revenue for fiscal 2002 was justover US$2.0 million, compared with US$402,000in 2001, an increase of 399% (see Figure 1).

Underpinning the company’s results was thebiggest enterprise sale in the company’s history –a 5000 seat sale with an unnamed Fortune 100financial services corporation. The company wasalso heavily involved with the Common AccessCard Program at the Department of Defense.

The company still made a net loss, butmanaged to cut this from US$14.1 million in2001 to US$6.2 million in 2002.

Contact: Thomas Doggett at Saflink,Tel: +1 800 762 9595, email: tdoggett@saflink.com

financial results

Bioscrypt has strong Q4A strong finish to 2002 saw Bioscrypt sell moreof its biometric units than at any time in itshistory. This was reflected in the company’srevenue performance, which hit US$2.2 millionin the fourth quarter, representing growth of30% over the previous quarter and a 24% jumpover the same quarter in 2001.

For the year as a whole, Bioscrypt postedrevenues of US$6.5 million compared withUS$5.3 million in 2001. Net losses were alsosignificantly improved moving from US$15.6million in 2001 to US$5.9 million in 2002 .

Based on market conditions and projecteddemand, the company said it expects revenuein 2003 to grow to US$10–12 million, while it

expects to achieve operating profitability on aquarterly basis by the end of 2003.

Contact: Bruce Macinnis at Bioscrypt,Tel: +1 905 624 7709,email: bruce.macinnis@bioscrypt.com

corporate news

NEC enters UK marketNEC, one of the world’s largest IT securityproviders, has announced the launch of a newSecurity Solutions division which will targetpublic and private sector organisationsthroughout the UK.

The company says its new division will providephysical and electronic security protection,including biometric technology.

Contact: Sylvia Welch at NEC,Tel: +1 916 463 1031,email: Sylvia.welch@necam.comfinancial ults

financial results

Precise Biometrics fights onPrecise Biometrics has posted its fourth quarterand year end results for 2002. The strong fourthquarter helped the company to achieve overallyearly revenues of US$2.7 million, up fromUS$1.6 million in 2001. Net losses, however,deepened slightly to US$8.7 million.

Revenues were not as strong as forecast,possibly due to poor sales of the company’sproducts for physical access control systems.The company had come close to running out ofcapital by the end of 2002, but managed toissue new shares in December to raise theliquid capital position to SEK 28 million(US$3.3 million).

Contact: Gunilla Savring at Precise Biometrics,Tel: +46 46 31 11 14,email: gunilla.savring@precisebiometrics.com

C o m p a n yn e w s

• Intelli-Check and Bioscrypthave signed a collaborationagreement to integrate theirrespective technologies. Theproposed solution will combineBioscrypt’s fingerprint verif-ication algorithm with Intelli-Check’s ID-CHECK tech-nology to prevent economicloss from check-cashing, creditcard and various other fraudsusing fake identification. Thesolution will store the finger-print template in a 2D barcode.

• Fingerprint Cards has signeda distributor license agreementwith Singapore-based AutostarTechnology. Autostar willmarket and sell FingerprintCards’ technology in Sing-apore, Malaysia and Indonesiaas well as develop end usersolutions and products basedon Fingerprint Cards’ tech-nology. Autostar will hold itsown stock of components tosupport its local customer base.Meanwhile, Fingerprint Cardsand Motorola’s SemiconductorProducts Sector have signed anagreement to collaborate onmarketing Fingerprint Cards’biometric technology on aMotorola processor platform.

• Facial recognition systemvendor Imagis Technologiesand Wirehound, a developer ofvertical market applicationsusing J2ME technology onhandheld devices, have enteredinto a business developmentagreement. As part of theagreement, Wirehound willdevelop and market solutionsemploying Imagis’ face recog-nition and information sharingtechnologies for end users who require remote identifi-cation and verification cap-abilities. Imagis’ ID-2000, forexample, will be integrated intoone of Wirehound’s encryptedwireless alert applications called Birddog, which can alert police and security officersto potentially dangerous indi-viduals within seconds of amatch.

Company Revenue Net income

02 01 02 01

Bioscrypt 6,449 5,304 (5,890) (15,590)*

Precise Biometrics 2,662 1,670 (8,718) (8,067)

Saflink 2,006 402 (6,223) (14,138)

* Includes US$8.49 million of goodwill amortization expense.

Figure 1. Financial results summary (US$000).