Intercede Share Discussion Threads

[wjccghcc] 15/12/2005 10:56

Yup. A big thank you to garth, rambutan and yump who've been following them pretty much since flotation for keeping the thread going and up to date. Oh, and also to the seller at 18p who allowed me to build up a significant stake over the last six months :)

It will be interesting to see if the market catches on to the potential here now or if interest wanes again. Frankly, I'm not sure I mind which - could always do with adding a few more under 30p and it's too difficult to trade this short term.

I think at some point they'll need to re-engage a corporate broker to really get things moving but that won't happen until some of their VC backers want to sell which I doubt will be for another 6-12 months unless the share price really takes off. After all, they did float at 60p.

[yump] 15/12/2005 10:36

...and to think, at 15p there was panic in the ranks !

>pyman
I would have thought the flurry will die down at some point inbetween now and full year, during which time there are certain to be some more announcements and while its not a well known stock there should be time to get some at a reasonable price - although a quick 2 bagger that holds its price would be nice ;-)

[rambutan2] 15/12/2005 10:33

well, been waiting a long time for these results, but it does look as though they've made it to safety. well done intercede - a global de facto 96% margin security software annuity machine. happy days here we come...

[pyman] 15/12/2005 09:07

Can t find who are san Mackenzie are. Hmmm. Nice results, cash flow. Hope the mark up evaporates and theres no press- I m not finished buying yet.

[jailbird] 15/12/2005 08:42

mkt cap now about 11M..34M shares in issue

[thecleaner] 15/12/2005 08:32

I think there is a serious stock shortage out there at the moment. I might have been lying about the 1p rise today. Looks like it may be more than 1p.

[wjccghcc] 15/12/2005 08:26

Pretty impressive IMHO - things are starting to build nicely. I particularly liked the 358k cash inflow from operations and associated 250k rise in net cash.

The thing to remember is that it can take 9-12 months after a contract win before they start booking the revenues. Usually there is a pilot project implemented before full rollout commences 6-12 months later. As they themselves say: "The main sales during the period related to the completion of prior year commitments i.e. DoT Ireland, European Notaries and RSA European aerospace contractor along with the impact of the new licensing deal with RSA Security, a further significant order from Gemplus for a major UK customer and orders from the Met Police and Siemens."

So most of the recent contract awards won't have come through yet, and there is nothing from the Federal employee rebadging of 7mm employees which process must begin by Oct 2006 and for which IGP must have a good chance of getting a chunk of the business working with RSA and G&D.

This about sums it up for me: "Intercede has succeeded in signing new OEM licence contracts with both RSA Security and Verisign, arguably the largest and most influential security software and service vendors in the world. These industry majors, along with our existing partners, are rapidly establishing Intercede's MyID smart card management system as the global de facto standard for interoperable smart card management across the smart card and IT security industries."

The market may not truly realise the potential here yet - after all they have no corporate broker or forecasts (which is nice as revenues can be lumpy and they have little control of timing of contract implementation) but I suspect the full year results will begin to show it.

[jailbird] 15/12/2005 08:03

oh well, hindsight is a great thing..always wish one had piled in when these
were teens..will hold for longer now..the is just beginning and will get better.

[thecleaner] 15/12/2005 08:01

Yes it was me. Got in just before the results. Results look reasonable. The net cash position is pretty good and it is nice to see turnover building up.

[garth] 15/12/2005 07:50

Interesting afterclose trade yesterday:

1 404DAYET05 30.0 17961 O 16:31:04

Was that the Cleaner?

G.

[garth] 15/12/2005 07:48

Looks very positive.

[grupo guitarlumber] 15/12/2005 07:22

Interim Results

RNS Number:6930V
Intercede Group PLC
15 December 2005


INTERCEDE GROUP plc

Interim Results for the Six months Ended 30 September 2005

Chairman's Statement

Business and Product Development
I am pleased to report that the Group has achieved a very strong six month
period in terms of year on year revenue growth and partnership development. The
Group has now been profitable and cash generating for two consecutive half year
periods.

From a business development perspective this has been a transformational period,
as our technology and business model have proven themselves around the world.
Intercede has succeeded in signing new OEM licence contracts with both RSA
Security and Verisign, arguably the largest and most influential security
software and service vendors in the world. These industry majors, along with our
existing partners, are rapidly establishing Intercede's MyID smart card
management system as the global de facto standard for interoperable smart card
management across the smart card and IT security industries.

Major sales successes during the period include:

UK

1. Gemplus have now delivered 300,000 MyID licences to a major European
customer.
2. Siemens have sold 200,000 MyID licences to a leading UK retailer.
3. Oberthur Card Systems have collaborated with Intercede to build a UK National
ID demonstrator in their Tewkesbury facility. Intercede and Oberthur will
jointly market the demonstrator to UK Government and major integrators.

USA

1. RSA Security - Intercede has concluded an OEM licence agreement valued at a
minimum of $2m over the next three years. The first $500,000 has already
been received and a further $500,000 is due to be received prior to the end
of the financial year. Under this agreement, RSA have launched the RSA Card
Management solution based on Intercede's MyID technology.
2. Verisign - Following a competitive RFP process, Intercede has entered into a
global OEM licensing agreement with Verisign. Under this agreement, Verisign
will pay Intercede to produce a custom version of MyID to closely integrate
with the Verisign Managed PKI environment and reimburse Intercede a
percentage of all its associated service fees.
3. Major US Aerospace Contractor - Following a competitive procurement process,
Intercede and a US partner secured a contract to install a pilot deployment
of MyID within a major US aerospace contractor. This pilot has been
successfully completed during the period and production roll-out is
anticipated within the next 12-18 months.
4. Major US Bank - An order has been received for the first stage of a MyID
deployment within a major US bank in partnership with a major US computer
manufacturer.
5. SafeNet - Intercede has activated a further 20,000 MyID licences for a major
SafeNet banking customer.

Europe
1. Thales e-Security have secured their first contract in the Middle East
for their OEM version of MyID.
2. Siemens are supplying a major European telecoms company with MyID to
issue smart cards loaded with qualified certificates.

Results
Sales during the period totalled #1,241,000 which, at a gross margin of 96%,
resulted in an operating profit of #2,000. This compares to prior year
comparative period sales of #535,000 at a gross margin of 87% and an operating
loss of #538k. The increase in gross margin reflects an increase in the
proportion of own technology sales from 76% to 92%.

The main sales during the period related to the completion of prior year
commitments i.e. DoT Ireland, European Notaries and RSA European aerospace
contractor along with the impact of the new licensing deal with RSA Security, a
further significant order from Gemplus for a major UK customer and orders from
the Met Police and Siemens.

As at 30 September 2005, the Group had net cash balances totalling #1,030,000.
During the six months ended 30 September 2005, the cash inflow before financing
was #358,000 which compares with a cash outflow of #451,000 during the
comparative period.

Outlook
The Company expects to see continued strong growth in our market sector and in
our share of this market over the coming months. We anticipate that our new and
existing distribution partners will start to generate recurring revenues as they
respond to increasing demand for identity cards for corporate and governmental
applications around the World.


Richard Parris
Chairman & Chief Executive
15 December 2005

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

[thecleaner] 14/12/2005 20:10

price will rise 1p tomorrow

[igoe104] 13/12/2005 17:43

you have also got to remember. japan, france, australia, are having the national id card as well. there could be huge growth in the medium term.

[rambutan2] 12/12/2005 23:56

just reminding myself...

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).

The combined effect of higher sales and margins coupled with continued control
over costs has resulted in a further reduction in full year losses and, more
significantly, second half profits totalling #152,000 and #132,000k at the
operating and pre tax levels respectively.

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.

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.

[wjccghcc] 12/12/2005 22:13

Agree igoe104 but I'd say 18 months (by the time of next year's final results in May 2007).

rambutan, I'm looking for 3-3.5mm revenues this year rising to 5-5.5mm next. That ignores any participation in the UK national ID card scheme.

[thecleaner] 12/12/2005 18:19

looks very interesting. Verisign are a major player. Mkt cap very low for what could happen.

[igoe104] 12/12/2005 18:01

i believe this company could go up, over 500% in the next 12 months. so much kicking in soon. its just going from strength to strength

[rambutan2] 12/12/2005 16:52

i would love to know where they see themselves a couple of years down the line. and what sort of revenue projections they play with.

[wjccghcc] 12/12/2005 16:38

Interims should be out this week or next (20th Dec last year). Should make interesting reading.

[rambutan2] 12/12/2005 16:13

very nice one!

Under this contract Intercede will be paid to produce a custom version of MyID that will be exclusively integrated with a number of Verisign products and services. This agreement guarantees Intercede a share of Verisign's future services revenues for all services that incorporate the Verisign version of MyID to manage smart cards and other devices.

[wjccghcc] 12/12/2005 14:24

Thanks GGL, saw that. It looks like the US is really waking up to the need for card and user authentication management systems, not just for ID cards but for any IT user as the world moves to an open system architecture with people accessing their company network from home, mobiles etc. as well as within corporate premises. The use of USB keys, tokens and other ID devices along with passwords seems the way forward and someone's got to manage the issuing and authorisation changes etc. over their lifecycle.

From the verisign website:

"VeriSign Inc (NASDAQ: VRSN) operates intelligent infrastructure services that enable and protect billions of interactions every day across the world's voice and data networks. Every day, we process over 14 billion Internet interactions and 3 billion telephony interactions. We also provide the services that help over 3,000 enterprises and 450,000 Web sites to operate securely, reliably, and efficiently.

As next-generation networks emerge, VeriSign is there, deploying the intelligent infrastructures necessary for everything from RFID supply chains to VoIP to mobile content. Whether you're a carrier looking to rapidly deploy new services, a Fortune 500 enterprise needing comprehensive, proactive security services, or an organization looking to evolve its trading-partner network, we can help. We're VeriSign. Where it all comes together.™"

Nice one Intercede!

[Abuse team] 10/12/2005 01:39

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