Visionics Reports Record Fiscal 2001 Results; 69% Increase in Facial Recognition Sales; 13% Increase in Live Scan Sales.Business Editors MINNETONKA Minnetonka (mĭnĭtŏng`kə), city (1990 pop. 48,370), Hennepin co., SE Minn., a residential suburb of Minneapolis, near Lake Minnetonka; inc. 1956. There is diversified manufacturing. , Minn. & JERSEY CITY, N.J.--(BUSINESS WIRE)--Nov. 14, 2001 Visionics Corporation (Nasdaq: VSNX), the worldwide leader in identification technologies and systems, announced its fiscal and fourth quarter results for 2001. The results were in line with company's expectations. In discussing the results, Dr. Joseph J. Atick, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Visionics commented, "We are very pleased with the results of the past year, a period in which Visionics has clearly emerged as the biometrics The biological identification of a person. Examples are face, iris and retinal patterns, hand geometry and voice. Increasingly built into laptop computers, fingerprint readers have become popular as a secure method for identification. industry leader, with an expanded portfolio of offerings focused on empowering human identification for public safety, law enforcement and security. We have demonstrated our ability to deliver cutting-edge technology, systems and a revolutionary scalable platform. This strategy and the required investments that we had put in motion long ago position us today to uniquely respond to the paradigm shift A dramatic change in methodology or practice. It often refers to a major change in thinking and planning, which ultimately changes the way projects are implemented. For example, accessing applications and data from the Web instead of from local servers is a paradigm shift. See paradigm. that occurred in our industry on September September: see month. 11th. There is no doubt in my mind we are operating in an environment where our business has become a cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to in our society's defense against crime and terrorism. We look forward to accelerating our growth." Revenues for fiscal 2001 were $30.5 million, a 19 percent increase over fiscal 2000 revenues of $25.6 million. Fourth quarter revenue was essentially flat with the previous year at $8.2 million compared to $8.4 million last year. For fiscal 2001, the Company incurred a net loss from operations, excluding non-recurring charges and changes in accounting, of $2.2 million or $.09 per share compared to $568,000 net loss or $.02 in the previous year. The total net loss for fiscal 2001 was $5.8 million or $.24 per share compared to $868,000 or $.04 per share. For the fourth quarter the net loss was $567,000 or $.02 per share compared with $256,000 or $.01 per share in last year's fourth quarter. Bob Gallagher For other uses, see Bob Gallagher (disambiguation). Robert Collins Gallagher (born July 7, 1948 in Newton, Massachusetts) is a former first baseman in Major League Baseball who played from 1972 through 1975 for the Boston Red Sox (1972), Houston Astros (1973-74) and , chief financial officer stated, "The fiscal year revenue growth of 13 percent in our live scan business and 69 percent in our FaceIt(R) business is in line with guidance provided in February February: see month. 2001. We are particularly pleased with our live scan sales growth in a highly competitive market." Gallagher Gallagher may refer to: People
automatic face recognition, face recognition and our new FaceIt(R) ARGUS Argus (är`gəs) or Argos (är`gŏs, –gəs), in Greek mythology. 1 Many-eyed monster, also called Panoptes. He guarded Io after she had been changed into a heifer. surveillance product, based on the Biometric bi·o·met·rics n. (used with a sing. verb) The statistical study of biological phenomena. bi Network Platform, should see exciting growth in fiscal 2002 in the 250 to 350 percent range. Combined, we expect year-over-year revenue growth of 35 to 50 percent. Growth is expected to be slower in the first half of fiscal 2002 as we spend time educating, installing smaller systems and validating val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. applications. We expect revenue growth beyond 50 percent sometime in the second half of the year. Fiscal 2001 was a year of investment and we expect to continue investing during the first half of Fiscal 2002, returning to profitability sometime during the second half of the year," Gallagher concluded. Key fiscal 2001 accomplishments include: -- Corporate Level: Raised approximately $26M in two private placements (includes October 2001 placement). -- Live Scan: Received $7.4 million Immigration and Natural Service (INS) order, installed in nine major (Category "X") airports. -- FaceIt(R): Announced $2 million Defense Advance Research Project Agency (DARPA) contract; 204 developer companies and partners were added to the FaceIt(R) partner network; deployed FaceIt(R) technology in Iceland Airport and Ybor City, Tampa, Florida. -- IBIS: Received National Institute of Justice (NIJ) approval to deploy under contract; system now operational in Ontario, California. -- Biometric Network Platform: Completed individual biometric network appliance (BNA) components Since the end of the fiscal year, Visionics' has made key announcements that provide the foundation for continued growth into fiscal 2002: -- Partnerships: Announced the addition of Loronix, ADT (Asynchronous Data Transfer) A transmission technique used in ISDN PBXs that dynamically allocates bandwidth. See also abstract data type. ADT - abstract data type and Raytheon Raytheon Company (NYSE: RTN) is a major American defense contractor and industrial corporation with core manufacturing concentrations in defense systems and defense and commercial electronics. into the vast FaceIt(R) Partner Network that had already included the likes of EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. , Intel, IBM/Informix -- FaceIt(R) airport customers: One category "X" and a second international airport in the eastern part of the U.S. -- Product launches: Launched FaceIt(R) ARGUS and Modular and Portable Live Scan Systems -- IBIS: Successful results reported in first fully implemented location (Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. , CA) Dr. Atick concluded, "We continue to work hard to enhance shareholder value. The new security climate has brought new opportunities, and we have already demonstrated our readiness. Since the end of the fiscal year, we have entered into new partnerships, secured agreements with airports for FaceIt(R) implementations, launched new products and have reported successful results with already installed systems. We are focused on executing on our top priorities, most notably presenting the FaceIt(R) capabilities to a range of decision-makers including governmental bodies and airport officials. As a result, we continue to be confident in our leadership and in our ability to meet market demand for identification technologies and systems." For the purpose of discussing fiscal and fourth quarter 2001 results, Visionics will hold a conference call and Webcast on November November: see month. 15, 2001 at 9:00 EST/8:00AM CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. . The call may be accessed via Webcast on the Visionics Web site (www.visionics.com/invest) or by dialing 800-406-5345 in the U.S. or 913-981-5572 internationally, using access code VISIONICS or 555701. Beginning one hour after the call, the presentation will be available for ninety days via Webcast on the Visionics Web site and by phone for seven days at 888-203-1112 in the U.S. or 719-457-0820 internationally, using the passcode 555701. About Visionics Corporation Visionics Corporation is the worldwide leader in identification technologies and systems, and is uniquely positioned with a comprehensive set of biometric identification Noun 1. biometric identification - the automatic identification of living individuals by using their physiological and behavioral characteristics; "negative identification can only be accomplished through biometric identification"; "if a pin or password is lost or product offerings: FaceIt(R), live scan, IBIS and BNP BNP B-type natriuretic peptide, brain natriuretic peptide Physiology A 32-residue peptide hormone produced predominantly in the ventricles, secreted in response to fluid overload–eg, CHF. See Atrial natriuretic peptide. . Award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" FaceIt(R) is the most widely deployed facial recognition software engine that allows computers to rapidly and accurately detect and recognize faces for the broadest range of uses, including ID Solutions, surveillance, information security and banking. TENPRINTER and FingerPrinter CMS (1) See content management system and color management system. (2) (Conversational Monitor System) Software that provides interactive communications for IBM's VM operating system. live scan systems, which capture fingerprints Impressions or reproductions of the distinctive pattern of lines and grooves on the skin of human fingertips. Fingerprints are reproduced by pressing a person's fingertips into ink and then onto a piece of paper. images without the use of ink, are widely used by government agencies, law enforcement, airports, banks and other commercial institutions in the US. IBIS is a revolutionary mobile identification system that captures forensic Belonging to courts of justice. forensic 1) adj. from Latin forensis for "belonging to the forum," ancient Rome's site for public debate, and currently meaning pertaining to the courts. quality fingerprints and photographs for wireless and standard data transmission to law enforcement and other legacy databases for real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. identification. BNP is the only commercially available platform for delivering scalable biometric solutions. It incorporates FaceIt(R) technology for implementation over large-scale large-scale adj. 1. Large in scope or extent. 2. Drawn or made large to show detail. large-scale Adjective 1. wide-ranging or extensive 2. networks and real-time identification. Visionics' complete product offerings are reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of its leadership position in the biometric industry and commitment to the innovation of identification technologies. More information on Visionics can be accessed via the Company web site at http://www.visionics.com or by calling Frances Zelazny, Director of Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. at +1 201-332-9213. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. For a more complete description of these and other risk factors which may affect the future performance of Visionics Corporation, see "Risk Factors" in Digital Biometrics' Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the period ended September 30, 2000 and its quarterly report on Form 10-Q Form 10-Q See 10-Q. for the period ended June June: see month. 30, 2001, Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. dated February 15, 2001 and the related Form 8-K/A, all of which have been filed with the SEC.
VISIONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Twelve Months Ended
September 30, September 30,
2001 2000 2001 2000
---------- ---------- ---------- ----------
Revenue:
Live scan
identification
systems $ 5,020,884 $ 5,869,096 $18,093,286 $17,866,769
Live scan
maintenance 2,195,595 1,584,667 7,914,479 5,073,699
FaceIt license 628,368 569,194 2,978,392 1,760,056
FaceIt service 314,270 353,599 1,486,903 874,536
---------- ---------- ---------- ----------
Total revenue 8,159,117 8,376,556 30,473,060 25,575,060
---------- ---------- ---------- ----------
Cost of revenue:
Live scan
identification
systems 3,019,429 4,201,933 11,583,539 11,202,458
Live scan
maintenance 1,764,917 1,061,600 6,055,975 3,616,927
FaceIt license 123,562 99,831 494,999 182,030
FaceIt service 261,855 192,570 1,150,859 476,273
---------- ---------- ---------- ----------
Total cost of
revenue 5,169,763 5,555,934 19,285,372 15,477,688
---------- ---------- ---------- ----------
Gross margin 2,989,354 2,820,622 11,187,688 10,097,372
---------- ---------- ---------- ----------
Selling, general and
administrative
expenses:
Sales and marketing 1,358,681 1,115,676 4,669,000 3,566,545
Engineering and
development 1,508,009 912,573 5,047,305 3,871,641
General and
administrative 834,629 845,415 3,765,693 3,620,048
Non-recurring
charges (89,017) 267,555 2,111,761 300,162
---------- ---------- ---------- ----------
Total expenses 3,612,302 3,141,219 15,593,759 11,358,396
---------- ---------- ---------- ----------
Loss from operations (622,948) (320,597) (4,406,071) (1,261,024)
Other income, net 56,236 64,219 173,520 355,618
---------- ---------- ---------- ----------
Loss before income
taxes (566,712) (256,378) (4,232,551) (905,406)
Provision for (benefit
of) income taxes (34) 12 123,054 (37,538)
---------- ---------- ---------- ----------
Loss before accounting
change (566,678) (256,390) (4,355,605) (867,868)
Cumulative effect of
change in accounting
principle - - (1,435,652) -
---------- ---------- ---------- ----------
Net loss $ (566,678) $ (256,390)$(5,791,257) $ (867,868)
========== ========== ========== ==========
Loss per common share
- basic and diluted
Loss before accounting
change $(0.02) $(0.01) $(0.18) $(0.04)
Cumulative effect of
change in accounting
principle - - (0.06) -
---------- ---------- ---------- ----------
Net loss per common
share $(0.02) $(0.01) $(0.24) $(0.04)
========== ========== ========== ==========
Weighted average
common shares
outstanding 24,899,736 23,094,341 23,677,228 22,840,110
========== ========== ========== ==========
VISIONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 2001 and 2000
2001 2000
----------- -----------
ASSETS
Cash and cash equivalents $ 9,716,772 $ 3,623,574
Restricted cash 80,915 -
Accounts receivable, net 6,704,761 9,779,796
Inventory 5,999,894 3,900,754
Prepaid expenses and other costs 452,847 269,088
----------- -----------
Total current assets 22,955,189 17,573,212
----------- -----------
Property and equipment 4,775,102 3,986,750
Less accumulated depreciation and
amortization (3,052,603) (2,616,184)
----------- -----------
1,722,499 1,370,566
----------- -----------
Capitalized software costs, net 683,635 839,430
Other assets, net 54,556 122,595
----------- -----------
$25,415,879 $19,905,803
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 1,690,642 $ 2,093,384
Deferred revenue 7,653,552 3,956,270
Other accrued expenses 1,460,576 1,760,280
Current installments of notes payable 16,857 15,071
Current installments of capital lease
obligations 2,406 2,017
----------- -----------
Total current liabilities 10,824,033 7,827,022
Convertible debentures - -
Notes payable, excluding current
installments 12,258 28,334
Deferred revenue, excluding current
portion 1,101,614 511,976
Capital lease obligations, less current
installments 1,134 3,540
----------- -----------
Total liabilities 11,939,039 8,370,872
----------- -----------
Stockholders' equity:
Preferred stock, undesignated, par
value $.01 per share, 5,000,000
shares authorized, none issued - -
Common stock, $.01 par value.
Authorized, 40,000,000 shares; issued
and outstanding 25,431,298 and
23,115,781 shares, respectively 254,313 231,158
Additional paid-in capital 60,090,870 52,355,044
Deferred compensation (126,250) (93,750)
Accumulated deficit (46,748,577) (40,957,320)
Accumulated other comprehensive income
(loss) 6,484 (201)
----------- -----------
Total stockholders' equity 13,476,840 11,534,931
----------- -----------
$25,415,879 $19,905,803
=========== ===========
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