Intercede Share Discussion Threads

[boadicea] 13/10/2010 20:38

GHF - Yes, well-spotted - and could it explain the early solution to the patent dispute?
One thing a potential acquirer doesn't like in a target is an open litigation with unquantifiable cost implications - it muddies the due diligence investigations. Hence a quick close-out (demanded by Assa-Abloy/HID??) was perhaps the necessary answer for them - and equally a slice of luck for IGP.

There's nothing like a run of luck to magnify success and IGP now looks to be on a roll.

[fft] 13/10/2010 15:17

I guess that if someone offered $162m for IGP, we may consider it :-)

IGP still seems an incredibly small company to be in the apparent position it is. And having quite a big part in so many heavy security areas in the USA, i wouldnt be surprised if there isnt some nervousness in the dept of homeland security dept. They have a budget of 42.7 *billion* dollars in 2010. Wonder if they might actually launch a bid to protect USA interests and take this part of security 'inhouse'.

[rambutan2] 13/10/2010 15:05

GHF, good spot!

And all in all, v good news for IGP I think.

[igoe104] 13/10/2010 14:42

More information about the usa government contract 22/9/10.




The deal includes a contract for support, software maintenance and training that will be worth several million pounds over a number of years.

* Mr Parris said that the deal also placed Intercede in a leading position to compete for other opportunities.*

He said: "Our experience with contracts with federal government departments is that they're nearly always for a minimum of five years.

"But the stuff we sell is difficult to pull out once it's in place, so once we're in, we're there for the long haul.

"Every deal, even with modest revenues, has the potential to be a worth millions over the years."

[wjccghcc] 13/10/2010 13:11

Thanks GHF - missed that.

They're going to roll AI into their HID Global subsidiary.



Apart from the valuation implications for IGP which are significant, I think it will be a big help business-wise as well, particularly in the US.

Pros:
1. HID is a competitor of the other big card producers - Gemalto, Oberthur etc. Do you think they're going to carry on using a competitor's product if they can help it?

2. With the recent Corestreet acquisition not yet having bedded down, the business disruption from being integrated into a Swedish company could be considerable.

3. AI can no longer play the US card - they're now a US subsidiary of a foreign company, just like intercede myid inc.

Cons:
1. HID will be able to provide a one-stop solution from card and ID management through to document production. May be attractive to some clients, particularly in Europe.

2. HID will provide a onestop solution for logical and physical access. Good going forward but what is actually needed (and what IGP provides) is a solution that integrates with the multitude of existing physical and logical access systems.

[glasshalfull] 13/10/2010 12:40

Surprised nobody noticed that our "enemy" were acquired at a 45% premium to prevailing shareprice last night.

If this consistently loss making enterprise are valued at $162 million, then pray tell what IGP are worth ;-)



Regards
GHF

[igoe104] 13/10/2010 01:11

Good spot rivaldo.

THIS LOOKS INTERESTING usa GOVERNMENT CARDS COULD BE EXPANDED, and used for other things, could be good news for igp.

[accumulat0r] 12/10/2010 19:30

A couple of jobs going in Washington DC:

[rivaldo] 12/10/2010 17:08

IGP mentioned as one of ten companies to change your life :o))

PS : another company selected is LOQ, whose shares I also own and are also on AIM:



"INTERCEDE

What it does: ID and credential management – unique technology to keep your identity safe

What do the NHS, Barclays and at least ten US federal government agencies have in common?

The answer is Intercede, one of Britain's best (but least known) exports and a market leader in identity and credential management. This 40-employee company, based in Leicestershire, serves major corporations and governmental organisations around the world.

The international market for computer and physical security is growing rapidly, and if Richard Parris, the company's founder, has anything to do with it, Intercede will take over the world – and your life.

Parris trained as a chartered engineer and worked at Boeing before forming Intercede in 1992, to provide computer security consulting services and to sell third-party security products such as smart cards. After three years, he identified the opportunity to develop software to manage the process of registering digital identities – his software was branded as MyID.

Intercede's growth hasn't stopped since. As well as managing the process of allocating smart cards, MyID integrates various features of security systems that previously had to be handled by external software, such as the ability to capture biometric data (ie fingerprints and facial features).

"The core of our business today is helping organisations – be those governments or large corporates or financial service organisations – establish trusted identities, and then issuing some kind of device or token through which the individual can assert that trust," explains Parris.

Intercede's technology is so good that it's used all over the world, from Britain's NHS (1.2 million MyID licences – the largest civilian IT programme in the world), to Queensland Police in Australia, the Alexandria Stock Exchange in Egypt, and providing ID cards for all Kuwaiti nationals.

Forty per cent of Intercede's business is conducted in the US, including establishing digital IDs on behalf of the Transport Security Administration for 1.6 million dock workers.

"The whole world is becoming identity-centric," says Parris. "As the only company that is providing a truly end-to-end, highly secure platform that can manage the whole process, we believe that Intercede's technology really does have universal application."

The diversity and number of Intercede customers suggests that MyID is on track to become the de-facto standard for smart-card identity and credential management."

[boadicea] 12/10/2010 14:20

yump - LOL.

[boadicea] 12/10/2010 13:31

?

(adjective 1)

[yump] 12/10/2010 12:53

wtf ?
Please don't bring your history here - talk about starting an argument from nothing. Anyway its been shown you can't start something from nothing as per the lapse of the big bang theory. So your argument must have pre-existed.
Erm... need a break.

[staverly] 12/10/2010 10:20

Boadicea

Try Websters for starters:

Definition of SEVERAL
1a : separate or distinct from one another b (1) : individually owned or controlled : exclusive - compare common (2) : of or relating separately to each individual involved c : being separate and distinctive : respective
2a : more than one b : more than two but fewer than many c chiefly dialect : being a great many

Upset me, no; unlike you I try to post useful information. People like you just clutter up this useful facility with banal postings - keep watching yer charts.

[boadicea] 11/10/2010 21:36

staverly - I'm sorry if I upset you. Unfortunately I feel you may have some difficulty in providing an actual reference for your categorical "any good dictionary" assertion.

[staverly] 10/10/2010 17:41

boadicea - I refer you to any good dictionary where you will note that "several" can mean "more than one"; which was the case in this instance as the litigation ran for around 18m. Next time might I suggest a constructive posting - you're overdue.

[boadicea] 09/10/2010 22:06

Staverly - The patent litigation might well have gone on for "several years" if allowed to take its full legal course. However, it didn't as both Actividentity and IGP, each for their own reasons, realised the futility of such a situation.
It lasted in fact for a bare 18 months, from Oct 2008 to March of this year for which we should all be extremely grateful.

[staverly] 09/10/2010 16:35

iiCB - 29 Sep'10 - 19:51 - 2269 of 2308
PS : Also, I think this is why we see very limited share buys from directors etc. They know the share price isn't going to move much really ...

As the CEO & FD hold 11.4% and c3% respectively I think it unlikely that they would necessarily add to their positions (note that Parris's wife is a quasi director)despite the recent positive newsflow.

Given that the 2008 AR carried the ominous "Emphasis of Matter - Going Concern" paragraph, it is not surprising that professional investors are not still ready to rush to market, though I expect things might be about to change. Additionally the litigation (recently settled) hung like a dark cloud for several years. Add in the fact there has been no broker coverage for a long time (till Finncap replaced KBC)and I think you have the recipe for considerable upside over the eighteen months.

[igoe104] 08/10/2010 15:44

Latest news on the twic project.



The good thing about this project, is its on-going plus every 5 years the cards need up-grading.

the latest figures are on the link below. (130,000 at top wack coming igp way soon.)

TWIC Statistics
--------------------------------------------------------------------------------

Total # Enrolled:
1,701,856
Total # Cards Issued:
1,572,160

[wjccghcc] 07/10/2010 17:08

I suspect they'd rather underpromise and overdeliver after last year's experience so upgrades may have to wait until nearer the end of the FY.

Having said that, assuming costs have gone up 5-10% from H2 (should be okay since staff numbers haven't increased much since last year), then your're looking at H1 PBT of 1-1.2mm which is a 45-75% increase on last year.

The wonders of operating leverage when you have a 99% gross margin :-)

[rivaldo] 07/10/2010 15:39

Terrific update. No more need be said :o))

I assume broker upgrades will wait for the actual numbers. In the meantime from HB FYI:



"Intercede (IGP, 44p, £21.20m) Trading update for H1 to September 2010 reports sales up 20% against 2009 with improved profitability. Contract wins in the USA now makes it the largest region for the group. Cash has been held at £4.47m (£4.64m at the year end) which reflects a £0.5m or so generation given exceptional relating to last year were paid in H1. On just over 10x PER with a positive momentum confirmed we return the group to a BUY with a 13x PER target - or 53p. (Julian Tolley)"

[igoe104] 07/10/2010 15:34

This is worth a read, it just shows how big the usa market is going to be.



ps i like the sound of Electronic Medical Records.

mmmmmmmmmm interesting looks like the ssa is expanding.

SSA awards Lockheed Martin contract for NHIN connectivity
The Social Security Administration has awarded Lockheed Martin a $2.8 billion, seven-year contract. One of the service requirements is to integrate EMRs into SSA's processes, leveraging the NHIN.

[igoe104] 07/10/2010 14:51

A peice about real id a project igp mentions in various statments. looks like states will have to get their act together by may 2011.

which is continuing to work toward complying with the federal Real ID Act by the extended deadline, May 11, set by the Department of Homeland Security, Moriyama said.

The act requires all states to issue driver's licenses and state IDs that meet federal standards, with enhanced security features and proof of legal presence in the United States.

[igoe104] 07/10/2010 09:57

One project to look out for. it would tick igp boxers because we already have experiance in this industry plus we already working for the australian government.

[wjccghcc] 07/10/2010 09:17

Further to what igoe said, IGP don't provide the biometrics part anyway. They provide the platform that pulls it all together. Whether it's iris, facial recognition, fingerprint, dongle, password, PIN etc. they will interface with whatever security elements the client requires.