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| Modified | DDT |>| MON.SEP,980921,10:57-4 | | CoSy/Home ; CoSy/Current | © Coherent Systems Inc . |
============================: THU.SEP,980917 :============================
WESTERGAARD/MALLON WALDORF SECURITY2001 Conference .
I got to :
DigitalDescriptor(OTC-BB:DDSI)
Identix(AMEX:IDX)
Keynote RichardClarke : Regan Asst sec terrorism .
Clinton just appointed National Coordinator for Security , Infrastructure
Protection and CounterTerrorism
Kroll-O`Gara(NASD:KROG)
AmerSci&Eng(AMEX:ASE)
SAC.Tech(NASD:SACM)
|10:8| DigitalDescriptor(OTC-BB:DDSI) : RogerLudwig : Contactless
fingerprint capture . %10 sec image , 10 sec process .
Nail to nail around finger . repeatable .
Minutia . No need for specialized Booking officer to roll prints .
In process of getting FBI approval - have list of stds
Computerized imaging tied to text . records mngt : Compu-Capture ,
Compu-Sketch sold thru 5 regional DDSI Sales Offices . 190 reps .
Mug shot system .
22 record mngt Busn Partners . ~ Same price as contacting .
>= 2000 FBI w only take electronic images , no paper
Biometric ID mkt : | 36E3 x 25E3 |>| 9E8 |#|
Public 3yrs . 3E6 % yr | rev now
SI-3000 ElecFileFolder : ODCB grab legacy text DBs & integrate w
MugShot 'Electronic File Folders' syss . 30-40k $ | .5E3 $ in 1st 6 mo .
Sales thru mkting partners w own products . IBM selling w AS400s Global .
|10:29|
|11:6| Identix(AMEX:IDX) RandyFowler
( Heard from BobFlaherty`s Equities conf : RayDirks pushed ChicagoTitle )
|11:15| : AMEX:IDX | Leader Biometrics by std #Units ,
Biometric Imaging - Live-scan - Evolved into Criminal Justice Info Systems .
Mng busn of identifying criminals or employees .
BioSecurity 1 fingerprint personel . Govt svcs . AFIS .
Total vertical soln .
FBI ImageQualSpec acred. of Dig Biometrics . ( IDX wins .8 of bids vs )
in 29 Stahes & DC . 9 state contractors . Sole Fingerprint taker in IL .
Just won Cook County - larger than NYC .
NYC Cmnsr : Overrun overtime budget . IDX equip saved .5 time & reduced
rejections . UK constabularies finding same . guarentee 2hr chek time .
Print DBs in NYC , Albany , WVa FBI .
IL Background checks -- IL foster parent checks backlog .
DennisCunningham , Prudential Securites asking knowledgable questions .
Que growing by 50E3 print cards % day . multiple rolled cards . .3 reject .
Every Cop wants one .
All Fed , state , gaming , investment employees are printed .
Sylvan Learning Ctr supplys service .
DB : history , images , booking , personnel
On second generation machines + 24-7 support for .1 cost of machine .
Invented Fingerprint reading . now becoming commodity .
They biggest Biometric : Developed pattern Recognition vs FBI minutia sys
Uses : as Person silicon interactions replace Person-Person :
Time&Attendenances . Australia eliminate .02 of payroll buddy punching .
Turkish Parlement voting .
Credit cards , perhaps all Wefare systs using any sys use theirs
DB , eg , Oracle , Computer Assoc - security .
Physical access , Finc transaction accesss : Bank of Central Asia ( bought
a lot & paid ) Bk of Cairo , Conavi Bank .
E-Commerce : Dig
TWA 800 had Cargo on passenger plane - FAA pilot prog @ Ohare .
Testing individual is who says they are : False rejection .01 - .02 . chk ,
prob failing in 3 | .01 *
In Law enforcemnt , 10k matchs on large DBs .
Optical card : 4E6Byte storage .
ANADC : Govt svcs . 40M$ & good growth since `91 .
Sylvan/Identix - does Brokers tests & ID . in 10 Cities . All IL .
, Just won CA dept Social svces . Sell machines - leased Sylvan -
maintanance contract w Identix .
Rev gro .51 last yr . | DonSwan : Unisys ? do some
are profitable Op Income | ý.14 ý.04 .05 .02 .06 | 94 - 98
Covering 50 countries . Divisionalized `97 .
Challenge to have net grow w rev .
Gross margind risen from .3 to .4 or better .
Industry gro .4-5 % yr | `95 `00 : 100M$ 1B$ | expect $100M this yr .
Last Qs : 16 - 21 on 52 79 M$ rev | plan : not public .
Assets 35.9 , Debt 0 M$
price 5+1%8 | Range $12+3%8 - 4.5 |
26E6 x 5.125 |>| 1.3325E8 | Mkt Cap .
Operating in all segs ov value chains . |
|12:1| Dif frm comp here : have sales , products , 450 emplyees .
Digital descriptors contactless -
.60 - .7 of total , .9 of fingerprint
Future : Eye scanning may go away not because bad , but intrusive . Swiss
army didn`t line , Cook Cty liked but went Police went for finger prints
for all .
2nd gen out 2-3 yrs , | Street expects . .19 .20 $%share .
.2 ’ 26E6 |>| 5200000 | r% 100E6 |>| 0.05 | net on sales .
Marcos system is OEM working w Lockeed . |
Fingerprint record | 2 * 8 10 |>| 256 1024 | bytes
Germany tried bunch of artifical fingers . |12:13|
|13:0| MarkHayes Sec2001 . JohnMallon intro JohnW : Kjakan Award - was given
to Greenspan yrs ago . Norwegan WW2 . Given to RandyFowler IDX SanJose CA .
Vision of company in 3-5 yrs : expect | .08 x 500E6 |>| 4E7
40 x Earnings | 4E7 % 26E6 |>| 1.54 | % share | r x 40 |>| 61.54 stock
price . Randy : This is for all those w just the right personality defects
to be entrepreneurs .
JohnM : Companies :
JulesKroll : Legend : J&J blazing path of designating Security as industry .
Keynote RichardClarke : Regan Asst sec terrorism .
Clinton just appointed National Coordinator for Security , Infrastructure
Protection and CounterTerrorism
|13:13| CyberSecurity & CounterTerrorism :
Near Future senario : US threated
in Pursan gulf . as start to move , find logistic systems have been
penetrated . Or systems controling Powergrids or Telecom , or Sabre .
or Pager Satilites spinning out of control -- all have happend .
Fragility of computer controled infrastructure : May decision to focus on
Homeland defense . We only SuperPower . Noone W repeat Sadam style attack .
Achilles heel : Manhattan , WDC . Vulnerable to multiple modes of attack .
Create Homeland defense against : Chem & Bio weapons : Is there a theat ?
Seren in Tokyo w tek learned off WWW . Chem Weapons worked , 1st resquers
died . NYC is prepared . Cert State Terrorism Sponsers & weapon developers
virtually same list . May shifted 300E6 on 1st of 5yrs on home security
. Congress agrees .
Will : equip & train largest 125 Metro areas for detect & analyze for
ChemBio attacks. Civilian stockpile of specialized antidotes .
Research in Recomb DNA etc to create antidotes for CW & BW agents .
Powergrids , banking , etc if can access nets on public switch nets .
Authorized small band of Hackers . achieve command of 4 comps in 3 days .
National Command & control in Pentagon by EoWeek .
Accused of trying to wasting tax money .
Before WW2 , looking to improve WW1 aircraft power .
Tek available WW . Bangalore or Ireland .
Even Terrorists or Criminal Cartels : Demand Stop backing Israel , Stop
fighting Cocaine .
It is private systems which are main targets . How Feds build walls around
them ? Work w Owners : red team attack - Vulnerablity assesment .
SolarSunrise Attack - took ~ 3 days for most to recognize attack . AirForce
caught . Navy & Army had to be pointed to evidence of breach ~ selfdetected
Need R&D reading M lines of code finding trapdoors .
NYTimes Monday - two yrs ago had hired security analyst - gave clean BoH .
Established : info ctr w/in FBI . Joint Task Force w DoD .
Asking for supliment 1.4 - 1.8 B rebuilding & Hardening embasies .
Not waiting for PearlHarbor , ` think ahead of power curve .
Have Idendified Threats . Believe are Real . Next war w not just be overseas
Loose utilities as effectively as if bombed . |13:43|
JW : 1M6 hits on Y2000.com . Blessing in disguise in forcing cleanout of old
systems ? Share - Do both . Y2k is known threat . forced problem up past CIO
to CEO & Board .
Defense vs Offense . Are excersizing Offensive attacks on terrorist grps .
Defense needs public awareness . Offense c
Trapdoors put in during off-shore re-codeing ? may not be off-shore .
Can only be found Line By Line . Are doing for selves .
JamesMeyer JanneyMontgommery : TWA800 , Gore commission recomenditions ?
Gov grps ordered to be done to extent resources available . abt 1.5 yrs
behind .
JM : of 5y Plan how much private : most to state & local govts , suits ,
detectors , etc . Orange Jello shut down FAA ctr in midwest . Also Medicines
RandyFowler : other than trapdoors . password failures ? no . can run a
dicitonary attack in no time at all . His on computer requires change every
quarter . | Principal weakness ? far too much which should be on isolated
LANs is on webs .
Do we have enough spys ? Scores of times when Tek intell has saved amer
lives . need both . |13:59|
|14:12| Kroll-O`Gara(NASD:KROG) : Risk Mitigation Company | Rev
190E6 % 1400 |>| 135714.3 | rev % employ
Armored Limos . Kroll - Asset searches
not in Guard svc . Investigative : Wall St : was .1 of total Busn .
400E6 % 17E6 |>| 23.53 | Mkt Cap % shr | , 3.2 M share new in May
Violent crime | 400B$ losses from fraud . 6500 kidnapings in `96 .
2900 casualties from terrorism .
Tot WW Securitiy busn : 55E9$ | 3%4 guard svcs . | 55 x .25 |>| 13.75
Fastest growth developing countries . PacRim , EastEurope .
Armor HumVees .
3 seg : Investgations & inteligence - forensic audit - due Dili .
Court ordered Monitoring of settlements . eg Gambino , LI Carters Assoc .
Teamsters election . Dade Cty Airport . | Acqd Canadian investig acntin
120 investigative acnts | 20M rev . see tremendous growth potential .
Competitors ? Kahn Consulting NYC , LewFreedmon Miami , Big 5 Acntants .
`97 , 3000 assignments up from 1200 in `92 .
MCI telecom fraud - hourly consulting .
BellAtlanic WW due dil . project fee .
EducTestSvc : Assesment , monitor & Hotline .
Teamsters , Court approved fees .
.75 of revs from repeat clients .
Deal w Boards & Sr mngt .
Security prods & svcs : commercial Vehicles ( O`Gara ) modified Suburbans
Cost loward by standardization & production . 45K to 1E6 $ .
Level 4 Kevlar encased . Demand increasing dramatically .
Sole provoder UpArmord HMMotorizedWheeledVehicle . $70 - $100k .
US contract : 60E6 % 738 |>| 81300.81 | 360 % yr
have armore 1000 out of 130k HumVee production ., Sell Kits
Voice & Data Security : Computer Forensics .
May get out of Voice . all in MidEast | 22M$ |
Tot Rev breakdown | +/ D 100 135 20 |>| 255 | PROPOFTOT P |>| 0.39 0.53 0.08
Growth : International local assembly . Bought Armoring & Glass co .
Cohelesce Fragmented industry . Acqs on mix of Cash & stock .
Except for Kroll - O`Gara pooling
To armor HMMWV 235 down from 465 hours . sice `94 . components 540 from 800
Suburban 1200 to 290 , 350 - 172 .
Found 2.5E6$ admin savings in pooling .
`97 tot 190E6$ rev this yr 112M 6mo . Margin up from .09 to .11 .
.42 % share 1st 6 mo . Issued | 3.5E6 x 20.5 |>| 7.175E7 | bunch invested
@ .05 , c\have 35E6 Invest Grade debt @ .08+ |
Done work for CIS , Brazil . comply w State Dept & other agencies .
O`Gara did all Prez limos except last batch which GM did for more than they
would have charged . Not in Limos anymore .
|15:19| SAC.Tech(NASD:SACM) : JoeGerard InvRel : reading written Forward
Stmnt Disclaimer .
CEO BarryWendt : Biometric SecureAccessControl technologies :
Notebook Ide from Print & voice on notebook . Print ID . VoicePrint .
SacMan Lookup Verification Browser .
Print Reader tek small enough to fit in mouse .
Incorp `93 - MN , Tek Showroom LasVagas , 15 emloyees .
Alliances w
Expect 1E9 internet users by 2005 . Biometrics used w firewalls .
Replace PINs .
Complete network security - flexible layers .
" The Biometrics Co " . Worlds 1st ICSA Bio ID Prod certification .
Robust Vector line type algorithm . & "BioKey"
look @ line types Catalog sweat glands & lines , do 1 way hash . SHA1 algo
like Digital Signature : Hash document into eg 20Byte signature .
BioKey like Dig Sig . ~ | 2 * 8 |>| 256 byte sig .
True real-time id - eliminates "aliases . Want real time ID of individuals
High Res image capture ,
SACMan DEvelop tool kit . SAC_REmotes PC-104 form factor board w input .
SACcat computer access terminal .
Desktop security apps . Pinnacle Tek . for multiple user machines .
HerbSenna : C2 level cert for OS2 . 250k seats in Securities indust .
Keyware Tek : Layerd Voice Verification .
Miros : Face recod for securty & time & attendance .
Baraka Intracom : London Video conferencing
Cericom : cryptograph Eliptic Curve engine .
Designs turnkey solns . available for private label .
`98 : wants to be seen as seen as overall Biometrics Co .
$500K revs . | focused on low cost . Mass mkt , embeded < $100 , Door
access $200 | Talking & looking . Door part of net work . look @ cert test
results . 6000 x more discriminating than some others . ''
Ownd .4 Mngt , .10 AIG
|16:14| AmerSci&Eng(AMEX:ASE) : JeffBernfeld Gen Counsel :
( Conversation about how lack of backup batteries on aircraft BlackBoxes is
typical of how bad an agency FAA is ) not in Air mkt cause can`t deal w FAA .
AS&E X-Ray - Duty Evasion . Drugs , explosives .
4.6E6 % 30E6 |>| 0.15 | net on gross . AMEX:ASE
Border Control : Drugs , weapons , ,
Hi risk Govt Buildings.
also : Defense force protection , Radioactive . Prisons .
Corporate Security ebbs & flows w headlines .
Niches driven by terrorism : | 311 + 2652 |>| 2963 | death & injury in `96 .
$30B cocaine comes into US annually .
Global trade grows . Duty Evasion as much a .1 . .05 in Europe VAT .
SouthAfrica estimates $10M % day loss .
Customers :
US Govt . Australia VietNam UK | New : SA . AbuDahbi , Egypt
XRa back Scatter : collimated , chopped , both transmission detector
BackScatter detects organics . Raster scan of whole truck . w back scatter
xmision & backscater from each sied of tru . Drug around
%2 foot % sec . | on conveyor . Mobile search .
Mar 31 fisc yr . good 1st half .
Conveyr like Car Wash . 6-8 min to do truck .| 8 x 3.3E6 |>| 2.64E7 | US$
Customs . current monopoly on US borders .
Customs goal .2 .25 inspection rate - no where near that now .
Customs mainly looking for drugs .
Relocatable Contanerized system for SouthAfrica .
10 Sys to Egypt : Lack of space - small footprint building .
Patent on Mobil search in adition to BackScatter . Mobile 1.7M$ domestic .
constant speed drive mechanism .
Got good press in Busn Wk & Bos Globe in May & June .
Parcel search systems& Van mounted unit .
health & safety good because pencil beam . Film , stowaway safe .
Eg&G & Heiman Dual power - larger more expensive .
Their small units premium .
Revs 17 28 32 36 Fy 96 97 98 , thru 9806
R&D
Backlog | 12.2 15.6 17.3 47.3. | 96 -- today . Egypt order 35E6$
Mngt & Sci team in place . Supplying Financial Engineering to devel Mkt .
Sell only in $US .
Service ~ .1 rev .
BackScatter proprietary . Acq Shurnberg - hi enery physics to increase power
Just measuring total ratio of back scatter .
Price went as low as 10 | Equip @ Capital - gunman would not go thru .
That`s why cop acosted him & got shot .
Components from vendors , can do 5 mobile @ time
Show income as delivered . 6-9 mo billing payout .
Rev | Cargo search .5 of busn . moving toward Mobile trucks .
|17:54| JW : original of Cyberstation was yrs ago @ Std&Poors commercial paper
rating . After PennCtrl , COs line up to pay fee to be rated .
WBN consults company , but gives Co no prior review . Role to present Co
Fairly , 5000$ Bounty for purposely misleading Web postings . 36k$ % yr .
Looking to retain people on contract basis 150-200k$ % yr to handle
portfolios . ( out in Millwalkee etc , where that reasonable amnt ) Want Sr
people , keep 2%3 of billing . Plan financing . did one mid `97 . been Cash
flow positive since June . John replacing AdamKaplan Y2K 1E6 hits % wk .
JW no longer gets paper NYTimes . Very different experience .
New " DNA " . Y2k spending 100s of B$ , producing inventory of systems .
Moynahan Aide finds Y2K blessing in disguise . Talked to GeorgeWill
yesterday . WSJ totally OTL on Y2K . NYT Cybertimes covering .
Economist having 9 articles on Y2K next week . Adam didn`t really want to
be security analyst . Don`t want to be training ground . |18:9|
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