Financial Results
In my Postings this week of the match up between the Iris and the Fingerprint, I neglected some other very important news. That is, this is Earnings Season, and Biometric/Security Companies have been coming out with the results.
The latest Vendor which has released 3rd Quarter Results (from what I have seen on the Internet) is Cogent Systems. Apparently, 3rd Quarter Revenues were valued at $28.9 Million versus $35 Million from just a year ago, and Net Income for the 3rd Quarter was valued at $5.7 Million versus $12 Million from a year ago.
It should be noted that all of the numbers mentioned are on a GAAP basis.
The Vendor expects to have good revenue growth with orders from the Department of Homeland Security, or DHS. Specifically, this has to deal with the US-VISIT Program, and its use of 10 Fingerprints instead of the usual two (in fact, the US-VISIT Program is a major piece in my upcoming newsletter). Other contracts are also in the pipeline from the Government side of things, especially with AFIS.
The Vendor also announced a stock buy back program valued at $100 Million.
Final Thoughts On Today’s Posting
While revenue and net income numbers are down, this is pretty much true across the board of most of the Biometric/Security Vendors. The global recession has not let up its grip on this sector either.
But in my view, the good news is that at least in the Biometrics Sector, while numbers appear to be down, there is no volatility in the numbers. So, hopefully this supports my hypothesis I have made earlier this year of slow, steady growth for Biometrics.
I would take this type of development rather than a sudden, explosive growth tapered off with a massive downturn. But this is me, and I always tend to think about the long term impacts more than short term impacts.
The only thing I take issue with is that the Federal Government is still the major customer for Biometrics Products and Solutions. It would really be encouraging to see the private sector have more in this.
But with everybody cutting back on spending (usually in time of recessions or other types of economic downturns, it is the IT and Security Budgets which get the axe first, because outsourcing is always a viable option because of its much cheaper costs), this shouldn’t be expected for quite some time.
Just recently, there seemed to be a little spurt in the increase of the private sector just recently, but it seems it has faded since then.
Source for this Posting: http://findbiometrics.com/industry-news/i/7489/