Intercede Share Discussion Threads

[kmacgre] 24/5/2005 17:16

Looks as if existing cash will suffice - excellent.

[rambutan2] 24/5/2005 16:22

what more can they do!

world leader - no arguments, def not going bust, made profit in second half, big forward order book (on fantastical margins) with reasonable likelyhood of picking up part of a mega order from us govt.

[garth] 24/5/2005 11:55

Somewhat underwhelming response from the market though....

[rambutan2] 24/5/2005 09:40

where did that cross trade come from?

[igoe104] 24/5/2005 09:32

with a cap just above 5 mill. it won,t take much to get this share moving. looking at the chart! when it goes past the 25p mark it will fly. looks like a very good medium term play. soon the market will wake up to this little gem of a company.

[rambutan2] 24/5/2005 09:27

strong hints of good/company making news t/c from across the pond...

Our strategy in the forthcoming year is to achieve full year profitability and
to consolidate our industry leadership credentials by:

• Exploiting our existing channel network to generate MyID licence sales
in Europe, the US and Asia.
• Establishing a significant revenue stream from the US Federal Government
HSPD 12 initiative.
• Increase our sales and support bandwidth by making our partners more
self-sufficient through the delivery of enhanced training, configuration
and integration capability.

and...
The momentum for the Group's technology, and the markets it serves, has continued to grow and there are clear signs of acceleration, notably in areas such as the US Federal Government as a result of Homeland Security Presidential Directive 12.

[rambutan2] 24/5/2005 09:17

great stuff, surely deserves a rerating!!!

[jailbird] 24/5/2005 08:27

yep me too..

"As at 31 March 2005, the Group had cash balances totalling #672,000 (2004:
#1,068,000). Whilst the full year cash outflow before financing was #394,000
(2004: #503,000), it is worthy of note that cash balances have increased by
#57,000 since the half year stage. The Group has therefore been both profitable
and cash generative in the second half of the current financial year."

Oh and another positive margins on sales increased from 83% to 94%.
The company is doing as it said would.

[kmacgre] 24/5/2005 08:23

Nice one IGP. Now a couple of order confirmations and this will be 25 P.
I am relieved at the cash position.

[jailbird] 24/5/2005 08:08

seen the 423k from yesterday I think @16p

[jailbird] 24/5/2005 08:05

well that's even better than!!

[maywillow] 24/5/2005 07:57

as far as i know yes

a nice little cash stream.

[jailbird] 24/5/2005 07:55

V good results...very much as trading statement stated.
next full yr will be profitable I believe.
The bit I like

"In many cases, the number of licences sold to these customers in the last twelve
months is only a small proportion of the licences still to be purchased over the
coming year and beyond. Along with recurring support and maintenance revenues,
Intercede is building an annuity stream from additional licence sales and now
has its largest ever forward looking sales pipeline of new customers."

Question: - Are licensing fees also re-occuring as well as support and maintenance revenues

[maywillow] 24/5/2005 07:14

RNS Number:6557M
Intercede Group PLC
24 May 2005


INTERCEDE GROUP plc
("Intercede", "the Company" or "the Group")

Preliminary Results for the Year Ended 31 March 2005

Intercede, a leading developer of electronic identity management software, today
announces its preliminary results for the year ended 31 March 2005.

SUMMARY

- Sales increased from #1.6m to #1.8m

- Pre-tax losses reduced from #0.7m to #0.4m

- Strong second half performance resulting in the first half year's profit
since the Group was admitted to AIM

- Full year cash outflow reduced from #0.5m to #0.4m and cash generative in
the second half

- Second patent granted and issued in February 2005

- New orders received from DoT Ireland, Gemplus, RSA Security, European
Notaries, The British Library, a major Russian Telecoms Company and a major
Israeli Corporate

- Successful year securing new channels to market and consolidating
activities with existing partners, notably Athena Smart Card Systems, Atos
Origin, Axalto, Giesecke & Devrient, Gemplus, Siemens and Thales e-Security

- Good progress continues to be made in the development of strategic
relationships with a number of other product companies and channel partners

- The Group is well placed to take advantage of a major new market that is
opening up rapidly in the US as a result of Homeland Security Presidential
Directive 12

- The Group's technology is increasingly being bid by major industry players
on smart card related projects in all parts of the world

Richard Parris, Chairman & Chief Executive of Intercede, said today:

"The Group has taken a major stride forward with significant new contracts in
Europe and the US delivering year on year revenue growth and profitability in
the second half of the year."

23 May 2005

ENQUIRIES:

Intercede Group plc Tel. [phone]
Richard Parris, Chairman & Chief Executive
Andrew Walker, Finance Director


CHAIRMAN'S STATEMENT

The Group has taken a major stride forward with significant new contracts in
Europe and the US delivering year on year revenue growth and profitability in
the second half of the year.

Introduction

Intercede is a leading developer of software to issue and manage smart cards and
digital identities.

In my report last year I indicated that the use of smart cards for
identification purposes, and hence the need for Intercede's MyID(TM) software,
would accelerate through the period. I am pleased to confirm gathering momentum
in this early stage market as evidenced by rapidly increasing demand from
partners and potential customers. Sales revenues in the second half of the year
increased substantially compared to the first six months and the Group traded
profitably during the second half period.

The major drivers fuelling this growth in the use of smart cards and devices,
requiring the use of MyID software, include:

1. Identity management and security is now one of the highest IT spending
priorities in many large organisations.

2. Homeland Security Presidential Directive (HSPD) 12 requires smart card
identity badges to be issued to all US Federal government employees by
October 2006.

3. Fears of identity theft and "phishing" for retail and corporate banking
customers is creating new demand within the financial services industry.

4. The use of smart cards, national identity cards and passports is becoming a
global inevitability in the fight against terrorism, crime and illegal
immigration.

5. The issuance of digital tachograph cards to all new trucks drivers
throughout the EU.

6. New service delivery mechanisms and legislation requiring the enhanced
protection of electronic medical records in the US and EU health care
industries.

7. Personal identity and loyalty cards that deliver financial benefits,
cashless vending and access control to campus communities,
e.g. universities, hospitals, major employers.

Intercede has been engaged in projects propelled by all of these drivers within
the last 12 months. MyID has now been successfully deployed in a wide range of
customer environments, including; a European aerospace contractor,
telecommunications companies in Russia and Israel, a major US Defence
contractor, a US Federal Financial Institution, two major UK clearing banks, a
world famous police force, a national association of Notary Publics, the Irish
Department of Transport, one of the world's largest health care providers, a
Dutch hospital and an African university.

In many cases, the number of licences sold to these customers in the last twelve
months is only a small proportion of the licences still to be purchased over the
coming year and beyond. Along with recurring support and maintenance revenues,
Intercede is building an annuity stream from additional licence sales and now
has its largest ever forward looking sales pipeline of new customers.

To ensure the scalability of our business model, we continue to grow an
international network of business partners who are working with Intercede to
establish the MyID product line as a de facto standard for a wide range of
identification applications around the world. MyID is the only technology of its
class that can now be purchased through:

* Each of the five largest smart card companies in the world, i.e. Axalto,
Gemplus, Giesecke & Devrient, Oberthur, Siemens.

* Specialist security companies, e.g. Athena Smart Card Systems, Thales
e-Security and RSA.

* Major systems integrators, e.g. Atos Origin, Fujitsu Services, Northrop
Grumman.

* Managed services providers, e.g. PinkRoccade and RBS Trust Assured
Services.

This list of partners continues to grow as the Group targets new market sectors
and geographical territories.

It is testimony to the vision of the management team and the quality of our
technical and sales staff that the Group has forged a position of global
leadership in a highly specialised niche. This is an enviable platform for
growth as smart cards move from a niche market to the technology mainstream and
the need for effective lifecycle management of those cards is increasingly being
recognised.

I will now describe our results and achievements in more detail.

Results

In the year ended 31 March 2005, turnover of #1.8m was achieved at a gross
margin of 94% (compared to #1.6m at a gross margin of 83% in the previous
period).

Over the past four years, Intercede has significantly reduced operating losses
from #2.2m to #0.4m and the cash outflow before financing has been reduced
during that time from #1.2m to #0.4m. As at 31 March 2005, the Group had a cash
balance of #0.7m.

Our strategy of concentrating on continuing to develop and promote our own
products, while maintaining tight control over costs, is succeeding and has
brought the Group much closer to breakeven for the whole year. I am particularly
pleased to report that the second half of the year was both profitable and cash
generative.

Strategy and Outlook

In my statement last year, I highlighted that in the 2004/05 year the Group
would be focused on executing its strategy to:

* Increase our software licence revenues from Europe and the US and to
establish distribution channels in the Asia Pacific region.
* Progress OEM partners from initial OEM licence fees through to recurring
licence revenues.
* Continue product development focused on the packaging of the MyID range
of solutions to meet a wider range of vertical markets.
* Expand the Company's turnover much faster than the associated cost base
by exploiting Intercede's product maturity, scalability, ease of use and
global distribution channels.

I also remarked in the 2004 Interim Report that "Intercede has the contracts and
the channels to market, to deliver a strong finish to the financial year and to
continue the trend towards profitability and rapid revenue growth."

After 12 months of continued progress, we have succeeded in executing this
strategy as demonstrated by the following new orders:

1) DoT Ireland
Intercede has been selected by the Irish Department of Transport to provide its
MyID smart card and identity management software for the secure enrolment,
processing and management of digital tachograph cards.

2) Gemplus
An order in excess of #0.5m has been received from Gemplus, a leading provider
of smart card solutions, for a major European customer.

3) RSA Security
Partnered with RSA Security to win an initial order with a prestigious European
aerospace contractor.

4) European Notaries
Secured a strategically important win with an Association of European Notaries
to issue smart cards to all of the notaries in that country.

5) The British Library
Following a public tender, Intercede was awarded a contract to issue smart cards
to all of the British Library's employees.

6) Major Russian Telecoms Company
After a successful test installation, the rollout of production licences has
commenced to a major Russian Telecoms Company via Athena Smart Card Systems, an
OEM partner.

7) Major Israeli Corporate Customer
Delivered a combined physical and logical security smart card management
solution in partnership with Athena Smart Card Systems and EDS.

Within the last few weeks, we have also been advised that we have been
successful in bids for a major US aerospace contractor, a major UK clearing
bank, and a major European insurance group. Further details will be provided as
appropriate as contracts are finalised.

Intercede has had a successful year securing new channels to markets and
consolidating activities with existing partners. In particular:

* Athena Smart Card Systems
Intercede's sales channels have been extended into Asia with Athena Smart
Card Systems, Japan, signing an OEM contract to adopt MyID as the Athena
Smart Card Manager. Two major customers have already been secured under
this contract.

* Atos Origin
Atos Origin, a leading global systems integrator, signed a European-wide
reselling contract for MyID in May 2004. Bids are outstanding on a number
of potential contracts across Europe.

* Axalto
In November 2004, Axalto (formerly part of Schlumberger and a world
leading smart card manufacturer) announced that it would adopt MyID as
its strategic smart card management system for major corporate customers.
Intercede is working closely with Axalto to implement a product
integration plan and strategy for those corporations already using
Axalto's previous card management offering.

* Giesecke & Devrient (G&D)
Following a recent major joint win in the US defence industry, G&D are
continuing to propose MyID to a number of major North American customers.

* Gemplus
In February 2005, Gemplus launched Gemplus SafesITe Corporate,
incorporating MyID, at the RSA Show in San Francisco. The Gemplus channel
has already generated revenues in excess of #0.5m and additional revenues
are expected from a number of prospective customers in the United States.

* Siemens
In March 2005, Intercede joined forces with Siemens in the UK to deliver
MyID to a number of Siemens customers in the UK. The first award under
this arrangement is anticipated during the first half of the 2006
financial year.

* Thales e-Security
Thales e-Security have now completed the integration of MyID into the
Thales SafeSign product range. Following a European launch in November
2004 and an Asian launch in February 2005, Thales have already submitted
a number of commercial proposals incorporating MyID licences and we are
awaiting contract award decisions.

Our strategy in the forthcoming year is to achieve full year profitability and
to consolidate our industry leadership credentials by:

* Exploiting our existing channel network to generate MyID licence sales
in Europe, the US and Asia.
* Establishing a significant revenue stream from the US Federal Government
HSPD 12 initiative.
* Increase our sales and support bandwidth by making our partners more
self-sufficient through the delivery of enhanced training, configuration
and integration capability.

The effectiveness of this strategy is dependent on the ongoing high calibre of
our products, the dedication and professionalism of our staff, the quality of
our partners and the ongoing support of our shareholders. In all of these
respects, Intercede has an impressive track record. Furthermore, a programme of
continuous product innovation and improvement continues to ensure that Intercede
remains a leader amongst a small number of global competitors.

The outlook for the next 12 months is one of accelerating growth in the number
of software licences sold to an increasing number of customers around the world.
Intercede is well positioned to take advantage of this emerging growth. The
management team is committed to maintaining the Group on its focused course and
I look forward to reporting further progress.

Richard Parris
Chairman & Chief Executive
23 May 2005

[igoe104] 23/5/2005 11:44

hope so. just topped up again another 10,000. ready for the end of year spike. expect this one to fly when the deals are finally ironed out. i don,t want to be moaning that i never topped up , when there sitting around the 50p near xmas. (been there done that before.)
looking to hold all my 70,000 for a least 2 years, to get the tax relief. from my huge profits that i,ll make, from this company.

[kmacgre] 23/5/2005 08:38

A good week to all, especially around thursday me thinks.

[topvest] 20/5/2005 20:19

rambutan2 - Yes, I think the results will be next week as well. I'm very bullish on this one still. Let's hope next week brings some further good news.

[rambutan2] 20/5/2005 16:52

i think results due out next week?

i worry when everything points to something igoe - except the share price! and i speak as a man of many disappointments!!

[igoe104] 20/5/2005 16:30

its just a matter of time with this one. everything points to big returns. could be looking at over a £1 this time next year. just have to look at at the bullish rns and web site for that.

[rambutan2] 12/5/2005 20:53

they wouldnt have said anything unless they were odds on to get something as they a pretty conservative board. of course, thats not to say it cant all go pear shaped late in the day.

[topvest] 12/5/2005 20:47

"late stage negotiations"....presumably that means close!

[kmacgre] 12/5/2005 09:04

Taken from latest release, March 31:

The Directors believe that Intercede is in a very strong position to harvest a
portion of this (US Federal) market - we have the technology and the US partners either in place or under late stage negotiations. Furthermore, recent Intercede contract wins have led to the viral marketing of our reputation as one of the 'best products' for the job within US smart card circles.

[topvest] 11/5/2005 21:40

Wow...looks rather exciting: it's amazing that people are not getting to grips with the potential here!

Start meeting HSPD 12 and complying with FIPS 201 today with help from Intercede's MyID™ PIV

Homeland Security Presidential Directive 12 (HSPD 12) mandates that all US Federal Government employees and contractors are to be issued with a standard and reliable form of identification. Consequently, Federal Information Processing Standard 201 (FIPS 201) was developed by the National Institute of Standards and Technology (NIST). In contrast to most other credentialing standards, FIPS 201 does not purely focus on technical content and form factor considerations, but acknowledges the crucial nature of a well managed issuance and deployment model. FIPS 201 defines both the credentials to be issued and acceptable standards for the processes of registration, identity-proofing and issuance of Personal Identity Verification (PIV) cards for new and existing Government employees and contractors.

MyID™ PIV is a comprehensive smart card and identity management system designed by Intercede to help US Federal Government agencies meet HSPD 12 by providing a single easy-to-use interface for the registration, identity-proofing, issuance and maintenance of PIV cards according to the processes defined in FIPS 201.

Through a roles-based, easy-to-use management interface, an agency can securely enroll applicants, graphically personalize PIV smart cards, deploy GSC-IS applets and PKI certificates from multiple vendors, capture and install biometric data, manage cryptographic keys and perform 'one pass' issuance of contact and contactless cards.

[rambutan2] 11/5/2005 13:14

yes, that looks the business kmacgre.
the dream scenerio is certainly possible...