Cogent Systems recently announced the availability of the BlueCheck, a Bluetooth enabled mobile fingerprint scanner for law enforcement applications. Weighing only 3 ounces, the BlueCheck is equipped with a durable LCD display for real-time feedback, a 500 dpi fingerprint sensor and Cogent’s SecurASIC technology for embedded encryption, image compression and on-device matching. Used with Cogent’s LiveID and MobileID software BlueCheck allows users to quickly and easily perform in-the-field fingerprint capture and identifications.
Using Bluetooth communication, BlueCheck can remotely transfer secure captured fingerprint data to any COTS Bluetooth enabled PDA, laptop or cell phone. This modular feature enables law enforcement agencies to configure the use of BlueCheck with their existing equipment and infrastructure. With Cogent’s BlueCheck host applications, the host device can submit ANSI-NIST format files via SMTP or FTP to a remote server, or to a statewide Automated Fingerprint Identification System (AFIS). BlueCheck receives the search results from the host and displays the results on its LCD display, providing timely and accurate information for law enforcement personnel. BlueCheck is a completely wireless solution that can be easily taken into buildings, crime scenes, the far end of an airport terminal and many other remote locations.
“First implementations of BlueCheck into some of our existing customers’ AFIS have been very promising and successful,” commented Ming Hsieh, President and CEO of Cogent. “We believe that BlueCheck is the most cost effective mobile fingerprinting solution in the industry as it can be implemented with existing IT infrastructure and COTS PDA or laptop. In addition, this solution has other uses such as the issuance of electronic traffic citations where the identity of the ticket recipient is commonly disputed.”
The announcement comes just a week after Cogent revealed its financial results for the second quarter (ending 30 June 2006). Second quarter 2006 revenues were $13.2 million, which compares with $39.4 million in the same period last year. Net income on a GAAP basis for the second quarter of 2006 was $3.6 million, or $0.04 per diluted share, which compares with GAAP net income of $14.4 million, or $0.16 per diluted share in the same year ago period.
Cogent’s second quarter of 2006 GAAP results included $1.2 million of non-cash share based compensation charges related to the adoption of SFAS 123. Excluding the effects of share-based compensation and the net tax effect, non-GAAP net income for the second quarter of 2006 was $4.4 million, or $0.05 per diluted share. This compares to $15.7 million or $0.17 per diluted share in the same period last year, excluding the effects of similar items.
“Our lower second quarter revenues reflect lumpiness in our business, the timing of revenue recognition of contracts and the delay of projects from key existing customers,” commented Mr Hsieh. “Last year, our two largest customers — the Department of Homeland Security (DHS) and National Electoral Council of Venezuela (CNE) — accounted for approximately $59 million in revenue during the first half of the year. In the same period this year, these two customers have accounted for approximately $14 million in revenue. Despite this drop, we believe our position with these two customers is very strong and are encouraged by the prospects for future growth in the coming years. During the next 11 months, we will be recognizing $26 million in revenues from the CNE and have an additional revenue opportunity tied to national elections in the fourth quarter. Even more importantly, we expect the DHS to ramp up in the second half of 2006 and into 2007 based on existing orders and key projects coming on line.”
“We are working hard to grow our business and diversify our revenue stream to provide more consistent results,” added Mr Hsieh. “We continue to win new contracts and expect greater contributions from important existing customers, like Morocco and the Royal Canadian Mounted Police. Recently, we won five new contract awards in North America, including serving 105 police departments in Oakland County, Michigan, and providing a state-wide system for background checking and application processing in Tennessee. Looking ahead, we are aggressively targeting multiple large scale deployments for Automated Fingerprint Identification Systems (AFIS) that are expected to be awarded during the next 12 months.
Our competitive positioning remains very strong, based on both our technological performance and our track record with our customers.”
www.cogentsystems.com