Viisage Reports Fourth Quarter and Full Year 2005 Results; Reaffirms Vision and Strategy for Future Growth
02 Marzo 2006 - 1:05PM
Business Wire
Viisage (NASDAQ: VISG), a leading provider of advanced technology
identity solutions, today reported results for its fourth quarter
and full-year ended December 31, 2005. The Company's fourth quarter
and 2005 full year results are subject to the completion of the
year end independent audit. The Company anticipates filing its Form
10-K with the Securities and Exchange Commission in a timely
manner. Revenue for the 2005 fourth quarter was $15.0 million
compared to $14.3 million for the 2005 third quarter. Gross margin
in the fourth quarter was 24 percent compared to 30 percent in the
third quarter, reflecting slightly higher royalty costs and other
adjustments. The Company reported a fourth quarter net loss of $3.0
million, or $0.14 per share compared to a net loss of $2.1 million,
or $0.11 per share in the third quarter of 2005. The fourth quarter
figures include revenue of approximately $0.6 million from the
Integrated Biometric Technology (IBT) acquisition that closed on
December 16, 2005. Revenue for the full year 2005 aggregated $66.2
million compared to $67.5 million in 2004, and net loss for 2005
was $7.4 million compared to $7.0 million in 2004. Recent
milestones for Viisage include an agreement to merge with Identix
Incorporated; and the addition of iris recognition with the
acquisition of privately-held SecuriMetrics. This merger, upon
completion, and acquisition will position the Company as a market
leader in the biometric identity solutions sector and will create a
combined company with projected pro-forma 2006 revenue of $235
million and EBITDA of $43 million. "I could not be more pleased to
see our vision coming into clearer focus and our value proposition
so positively embraced by all of our key constituents," said Mr.
Robert V. LaPenta, chairman of the board of Viisage. "Our efforts
to consolidate the fragmented biometric industry continue with this
merger and acquisition and serve as important elements in our
strategy, enhancing our secure credentialing capabilities and
adding additional modalities to our technology platform." LaPenta
added, "Additionally, the Identix merger is moving ahead and we are
on schedule to close in the second quarter. This is an exciting
time for the industry, and I look forward to continued success in
the coming year." Strategic Highlights for the Fourth Quarter --
L-1 Investment Partners accelerated the Viisage growth strategy
with a $100 million cash investment in the Company. This
strengthened the Viisage capital position and furthered the
Company's ability to become a leading identity solutions company.
-- Directorship of Viisage was bolstered with two important
appointments. Bob LaPenta joined as chairman of the board, and
former director of the Central Intelligence Agency, George Tenet
took a board seat. -- Viisage acquired Integrated Biometric
Technology (IBT). The IBT proprietary fingerprint technology and
background screening solutions add an important multi-modal
recognition capability to the Viisage portfolio. Customer Adoption
Remains Steady Adoption of Viisage solutions remained steady at all
levels of local, state, federal and international government, with
the following customer milestones announced: -- The US Department
of State (DoS) increased its existing sole source IDIQ contract
ceiling with the Company (via the Viisage wholly owned subsidiary
Trans Digital Technologies) by $56 million. This brings the total
potential value of the contract to $121 million. -- The state of
North Dakota awarded Viisage a five year contract for secure
driver's license credentialing. -- The U.S. Department of Defense's
Technical Support Working Group (TSWG) awarded Viisage a research
and development contract to continue developing face recognition
technology for use in terrorist watch list applications. -- Viisage
expanded its customer base in Europe through the Driver and Vehicle
Licensing Agency in the United Kingdom, one of Europe's largest
governmental repositories of facial image data. The agency awarded
Viisage a contract to test its facial recognition tools against the
Agency's database. Bernard Bailey, president and CEO of Viisage,
commented, "We are pleased to report that the company has made
significant progress in positioning itself as the leader in the
field through strategic acquisitions and organic growth. The
momentum and success among the federal government in using
biometric-enabled identity programs to support visa and passport
issuance, border control and other access card requirements should
pave the way for greater commercial enterprise adoption." Guidance
For the 2006 first quarter, the Company is anticipating that
revenue will be in the range of $20 to $22 million, representing a
sequential increase of 33 percent to 47 percent, based on the
preliminary 2005 fourth quarter results. Gross margin is expected
to be 30 percent. The Company expects gross margin to increase
during 2006, as the contributions from SecuriMetrics and IBT,
performance improvements in its existing business, and the impact
of the pending merger and integration of Identix are reflected in
the operations. EPS will range from a loss of (including a stock
option expense of $1 million or $0.03 per share, and excluding any
merger related integration costs) $0.10 to a loss of $0.14.
Sarbanes-Oxley Compliance In connection with the Company's
Sarbanes-Oxley Section 404 compliance review, management expects to
conclude that it will likely continue to have from last year an
unremediated material weakness with respect to its year end
financial closing, and as a result, management will conclude that
the Company's internal controls over financial reporting are not
effective as of December 31, 2005. Conference Call information The
Company will host a conference call with the investment community
to discuss its operating results beginning at 11:00 a.m. EST on
Thursday, March 2, 2006. The dial-in number for the call is
888-396-2369, confirmation code 77467844. Internationally, please
dial 617-847-8710, using the same confirmation code. The call also
will be available via live audio webcast, found under the
Conference Calls page of the Investors section of the company's Web
site www.viisage.com. To access the webcast, please go to the
company's Web site at least 10 minutes prior to the start of the
call and follow the directions. A replay of the webcast will be
available at Viisage's Web site beginning an hour after completion
of the call. EBITDA Viisage uses EBITDA as a non-GAAP financial
performance measurement. EBITDA is calculated by adding back to net
income (loss) interest, taxes, depreciation and amortization.
EBITDA is provided to investors to complement results provided in
accordance with GAAP, as management believes the measures help
illustrate underlying operating trends in the Company's business
and uses the measures to establish internal budgets and goals,
manage the business, and evaluate performance. EBITDA should not be
considered in isolation or as a substitute for comparable measures
calculated and presented in accordance with GAAP. Viisage has not
provided a quantitative reconciliation of EBITDA with projected net
income (loss) because such reconciliation cannot be provided
without unreasonable efforts. About Viisage Viisage (NASDAQ: VISG)
delivers advanced technology identity solutions for governments,
law enforcement agencies and businesses concerned with enhancing
security, reducing identity theft, and protecting personal privacy.
Viisage solutions include secure credentials such as passports and
drivers' licenses, biometric technologies for uniquely linking
individuals to those credentials, and credential authentication
technologies to ensure the documents are valid before individuals
are allowed to cross borders, gain access to finances, or granted
other privileges. With over 3,000 installations worldwide,
Viisage's identity solutions stand out as a result of the Company's
industry-leading technology and unique understanding of customer
needs. Viisage's product suite includes FaceTOOLS(R) SDK, Viisage
PROOF(TM), FaceEXPLORER(R), Viisage iA-thenticate(R),
BorderGuard(R), PIER(TM), HIIDE(TM), AutoTest(TM), FacePASS(TM) and
FaceFINDER(R). This news release contains forward-looking
statements that involve risks and uncertainties. Forward-looking
statements in this document and those made from time to time by
Viisage through its senior management are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements reflect the Company's
current views with respect to the future events or financial
performance discussed in this release, based on management's
beliefs and assumptions and information currently available. When
used, the words "believe", "anticipate", "estimate", "project",
"should", "expect", "plan", "assume" and similar expressions that
do not relate solely to historical matters identify forward-looking
statements. Forward-looking statements concerning future plans or
results are necessarily only estimates and actual results could
differ materially from expectations. Certain factors that could
cause or contribute to such differences include, among other
things, in particular, the size and timing of contract awards,
performance on contracts, performance of acquired companies,
availability and cost of key components, unanticipated results from
audits of the financial results of the Company and acquired
companies, changing interpretations of generally accepted
accounting principles, outcomes of government reviews, developments
with respect to litigation to which we are a party, potential
fluctuations in quarterly results, dependence on large contracts
and a limited number of customers, lengthy sales and implementation
cycles, market acceptance of new or enhanced products and services,
proprietary technology and changing competitive conditions, system
performance, management of growth, dependence on key personnel,
ability to obtain project financing, general economic and political
conditions and other factors affecting spending by customers, and
the unpredictable nature of working with government agencies. In
addition, such risks and uncertainties include, among others, the
following risks: that the merger with Identix will not close, that
the regulatory or shareholder approval will not be obtained, that
the closing will be delayed, that customers and partners will not
react favorably to the merger, integration risks, the risk that the
combined companies may be unable to achieve cost-cutting synergies,
and other risks described in Viisage's and Identix' Securities and
Exchange Commission filings, including the Registration Statement
on Form S-4 filed (of February 14, 2006) with the SEC in connection
with the transaction, Viisage's Annual Report on Form 10-K for the
year ended December 31, 2004 and its Quarterly Reports on Form 10-Q
for the quarters ended April 3, 2005, July 3, 2005 and October 2,
2005 under the captions "Risk Factors" and "Management's Discussion
and Analysis of Financial Condition and Results of Operations."
Viisage expressly disclaims any obligation to update any
forward-looking statements. Additional Information and Where to
Find It Investors and security holders of both Viisage and Identix
are advised to read the joint proxy statement/prospectus regarding
the business combination transaction referred to in the material
below because it contains important information. Viisage and
Identix expect to mail a joint proxy statement/prospectus about the
transaction to their respective stockholders. This joint proxy
statement/prospectus will be filed with the Securities and Exchange
Commission by both companies. Investors and security holders may
obtain a free copy of the joint proxy statement/prospectus and
other documents filed by the companies at the Securities and
Exchange Commission's web site at http://www.sec.gov. The joint
proxy statement/prospectus and such other documents may also be
obtained from Viisage or Identix by directing such requests to the
companies. Participants In Solicitation Viisage, Identix and their
respective directors and executive officers and other members of
management and employees may be deemed to be participants in the
solicitation of proxies in respect of the merger. Information
concerning Viisage's participants is set forth in the proxy
statement dated, November 21, 2005, for Viisage's special meeting
of shareholders held on December 16, 2005 as filed with the SEC on
Schedule 14A. Information concerning Identix' participants is set
forth in the proxy statement, dated October 6, 2005, for Identix'
2005 annual meeting of shareholders as filed with the SEC on
Schedule 14A. Additional information regarding the interests of
participants of Viisage and Identix in the solicitation of proxies
in respect of the merger will be included in the registration
statement and joint proxy statement/prospectus filed with the SEC.
-0- *T VIISAGE TECHNOLOGY, INC. Condensed Consolidated Balance
Sheets (in millions) (Unaudited) December 31, December 31, 2005
2004 -------------- -------------- Current assets: Cash $ 72.4 $
11.3 Other current assets 20.5 21.7 -------------- --------------
Total current assets 92.9 33.0 Property and equipment, net 19.5
19.9 Goodwill and net intangible assets 179.5 119.5 Other assets
3.2 3.2 --------------- --------------- $ 295.1 $ 175.6
============== ============== Liabilities & Shareholders Equity
Current liabilities: Accounts payable, accrued expenses and other
current liabilities 12.6 15.7 Current deferred revenue 4.0 2.0
-------------- -------------- Total current liabilities 16.6 17.7
Deferred tax liability 2.0 0.9 Deferred revenue 1.4 1.6 Other
liabilities 0.5 0.6 -------------- -------------- Total Liabilities
20.5 20.8 Shareholders' equity 274.6 154.8 --------------
-------------- $ 295.1 $ 175.6 ============== ==============
VIISAGE TECHNOLOGY, INC. Condensed Consolidated Statements of
Operation (in millions, except per share amounts) (Unaudited) Three
Months Ended Twelve Months Ended -------------------
------------------- December December December December 31, 31, 31,
31, 2005 2004 2005 2004 -------- -------- -------- --------
Revenues: Services revenue $ 10.0 $ 11.8 $ 40.8 $ 45.9 Product
revenue 5.0 7.3 25.4 21.6 -------- -------- -------- -------- Total
revenue 15.0 19.1 66.2 67.5 -------- -------- -------- --------
Cost of revenues: Services cost of revenue 7.7 7.1 29.0 29.4
Product cost of revenue 2.9 5.7 13.9 16.1 Amortization of purchased
intangible assets 0.8 0.8 3.2 2.7 -------- -------- --------
-------- Total cost of revenue 11.4 13.6 46.1 48.2 --------
-------- -------- -------- Gross Profit: 3.6 5.4 20.1 19.3 --------
-------- -------- -------- Operating expenses: Sales and marketing
1.9 2.3 7.8 6.9 Research and development 1.1 1.3 4.7 3.8 General
and administrative 2.9 3.0 12.2 9.8 Impairment of long-lived assets
- 2.0 - 2.0 Amortization of purchased intangible assets 0.5 0.5 2.1
0.8 -------- -------- -------- -------- Total operating expenses
6.4 9.1 26.8 23.3 -------- -------- -------- -------- Loss from
operations (2.8) (3.7) (6.7) (4.0) Interest income (expense), net
0.1 (0.4) 0.2 (1.7) Other income (expense) 0.1 (0.3) 0.5 (0.2)
-------- -------- -------- -------- Income (loss) before income
taxes (2.6) (4.4) (6.0) (5.9) Provision for income taxes 0.4 0.9
1.4 (1.0) -------- -------- -------- -------- Net loss $ (3.0) $
(5.3) $ (7.4) $ (6.9) ======== ======== ======== ======== Net loss
per share: Net income (loss) per basic share $ (0.14) $ (0.28) $
(0.38) $ (0.45) ======== ======== ======== ======== Net income
(loss) per diluted share $ (0.14) $ (0.28) $ (0.38) $ (0.45)
======== ======== ======== ======== Weighted average basic shares
20.9 18.9 19.6 15.5 ======== ======== ======== ======== Weighted
average diluted shares 20.9 18.9 19.6 15.5 ======== ========
======== ======== *T
Grafico Azioni Viisage (NASDAQ:VISG)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Viisage (NASDAQ:VISG)
Storico
Da Giu 2023 a Giu 2024