Viisage Receives $56 Million Contract Extension from US Department of State; Total Contract Value at $121 Million
March 02 2006 - 6:00AM
Business Wire
Increase Reflects the Rising Demand for US Passports; Innovative
Electronic Passport and Western Hemisphere Travel Initiative are
Key Drivers for Growth Viisage (NASDAQ: VISG), a leading provider
of advanced technology identity solutions, through its wholly owned
subsidiary Trans Digital Technologies (TDT), today announced that
the US Department of State (DoS) increased its existing sole source
IDIQ contract ceiling with the Company by $56 million, bringing the
total potential value to $121 million. The Department of State
expects demand for US passports to increase by approximately 20
percent per year and estimates that the US will produce 17 million
passports annually by 2009. The original five year contract awarded
in 2003 to TDT was valued at $65 million. Viisage enables the
production of highly secure credentials. The Company's solution is
the cornerstone to ensuring counterfeit-resistant US passports. The
DoS has demonstrated leadership and excellence in employing cutting
edge technologies to develop programs for securing the US passport
for American citizens and US borders. Such programs include the
Electronic Passport program and the Western Hemisphere Travel
Initiative announced last year. These initiatives, along with the
increase in travel abroad, have led to this demand and growth for
new travel documents. "More secure management of borders continues
to be a growing need both domestically and internationally," said
Bernard Bailey, president and CEO of Viisage. "The value Viisage
provides in these efforts is tried and proven, and we are delighted
that the DoS has expanded their partnership with us." About Viisage
Viisage (NASDAQ: VISG) delivers advanced technology identity
solutions for governments, law enforcement agencies and businesses
concerned with enhancing security, reducing identity theft, and
protecting personal privacy. Viisage solutions include secure
credentials such as passports and drivers' licenses, biometric
technologies for uniquely linking individuals to those credentials,
and credential authentication technologies to ensure the documents
are valid before individuals are allowed to cross borders, gain
access to finances, or granted other privileges. With over 3,000
installations worldwide, Viisage's identity solutions stand out as
a result of the Company's industry-leading technology and unique
understanding of customer needs. Viisage's product suite includes
FaceTOOLS(R) SDK, Viisage PROOF(TM), FaceEXPLORER(R), Viisage
iA-thenticate(R), BorderGuard(R), PIER(TM), HIIDE(TM),
AutoTest(TM), FacePASS(TM) and FaceFINDER(R). This news release
contains forward-looking statements that involve risks and
uncertainties. Forward-looking statements in this document and
those made from time to time by Viisage through its senior
management are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements reflect the Company's current views with
respect to the future events or financial performance discussed in
this release, based on management's beliefs and assumptions and
information currently available. When used, the words "believe",
"anticipate", "estimate", "project", "should", "expect", "plan",
"assume" and similar expressions that do not relate solely to
historical matters identify forward-looking statements.
Forward-looking statements concerning future plans or results are
necessarily only estimates and actual results could differ
materially from expectations. Certain factors that could cause or
contribute to such differences include, among other things, in
particular, the size and timing of contract awards, performance on
contracts, performance of acquired companies, availability and cost
of key components, unanticipated results from audits of the
financial results of the Company and acquired companies, changing
interpretations of generally accepted accounting principles,
outcomes of government reviews, developments with respect to
litigation to which we are a party, potential fluctuations in
quarterly results, dependence on large contracts and a limited
number of customers, lengthy sales and implementation cycles,
market acceptance of new or enhanced products and services,
proprietary technology and changing competitive conditions, system
performance, management of growth, dependence on key personnel,
ability to obtain project financing, general economic and political
conditions and other factors affecting spending by customers, and
the unpredictable nature of working with government agencies. In
addition, such risks and uncertainties include, among others, the
following risks: that the merger with Identix will not close, that
the regulatory or shareholder approvals will not be obtained, that
the closing will be delayed, that customers and partners will not
react favorably to the merger, integration risks, the risk that the
combined companies may be unable to achieve cost-cutting synergies,
and other risks described in Viisage's and Identix' Securities and
Exchange Commission filings, including the Registration Statement
on Form S-4 filed with the SEC in connection with the transaction,
Viisage's Annual Report on Form 10-K for the year ended December
31, 2004 and its Quarterly Reports on Form 10-Q for the quarters
ended April 3, 2005, July 3, 2005 and October 2, 2005 under the
captions "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations," and Identix'
Annual Report on Form 10-K for the year ended June 30, 2005 and its
Quarterly Report on Form 10-Q for the quarter ended September 30,
2005 under the captions "Risk Factors" and "Management's Discussion
and Analysis of Financial Condition and Results of Operations."
Viisage expressly disclaims any obligation to update any
forward-looking statements.
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