- Email: [email protected]
Forget privacy, give us biometrics!
BTT JULAUG.qxd
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www.compseconline.com July/August 2002
ISSN 0969-4765
Company news/Fingerprint
Identix shuns optical sensor market Identix has shocked the biometric industry by pulling out of the low-cost optical reader market – where it was one of the market leaders. The news came as the merger between Visionics Corporation and Identix was given the green light by shareholders. In a update on its pre- and post-merger integration activities, Joseph Atick, president and CEO of the new company, and Erik Prusch, the chief financial officer, told investors that: “After considerable thought and deliberation, we have decided our product roadmap does not include the DFR 400, which was designed to be our next generation single finger reader. Many market conditions have dramatically changed since Identix introduced its first optical reader. In our opinion these changes limit the viability of the DFR 400 and we don’t consider it prudent to continue to invest in a next generation reader at this time.”
Atick said that Identix had been in the single finger market as a necessity in order to sell its software. “There were no alternatives,” Atick commented, “That is not the case today. Silicon sensors have plummeted in price, become smaller and increasingly more stable. Thus it does not make sense to continue down this expensive path when viable alternatives exist.” Instead, Identix plans to support the majority of silicon-based sensors and third party readers. The company will, for the time being, continue to support the DFR200 optical reader and will remain in the 500dpi forensic quality sensor market. Dropping the DFR400 is expected to cost Identix some US$1.5 million in inventory write-offs and capital costs. Shareholders gave approval to the merger on 24 June. The mega-merger – by biometric industry standards – has created the largest multi-biometric company, covering facial, fingerprint and livescan technology. The
combined company will operate under the name Identix Incorporated and will continue to trade on the Nasdaq National Market under the ticker “IDNX”. Elsewhere in its product range, Identix said its Fingerprint Bio-Engine has been enhanced using Visionics’ facial matching R&D knowhow; new SDKs are to be released for both fingerprint and facial recognition, itrust will continue to be developed and new versions of IBIS, BioLogon, Argus, the V20 access control unit and livescan products would be released. Contact: Damon Wright at Identix, Tel: +1 408 335 1400, email:[email protected]
Contents Application news Product news
3 4, 5
Company news
6
Feature:
7
Privacy
Forget privacy, give us biometrics! Two polls looking at public opinion on privacy issues and biometrics should give heart to the industry and leave extreme privacy advocates feeling abashed that their high-profile attacks seem to have fallen on deaf ears. Both polls indicate that the majority of US citizens are happy to use biometrics in their daily life, with more than 70% in favour of carrying identification cards with fingerprints. The latest statistics may come as a surprise to many, as the torrent of negative
news stories in the national media, and from privacy groups, would have suggested a strong revulsion to the idea of a national ID card in the US – particularly one using biometrics. The two nationwide polls – one from biometric supplier Saflink and the other from The Gallup Organization – interviewed 500 and 934 people respectively. According to Elaine Christiansen, senior
Improving travel safety with enhanced personal ID Survey:
9
Silicon sensors sweep up Regulars Events
5
Business Watch
6
Comment
Continued on Back Page...
ISSN 0969-4765/02/$22.00 © 2002 Elsevier Science Ltd. All rights reserved This journal and the individual contributions contained in it are protected under copyright by Elsevier Science Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.
12
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NEWS Company News
...continued from page 1
Keyware kicks biometric strategy into touch
...biometrics are not a privacy threat
Keyware has announced a major strategic shift in its business, which includes abandoning its focus as a biometrics supplier. The Belgian company is one of the leading suppliers in the industry with its centralised and layered approach to biometrics. However, the company decided to jettison its biometrics image in favour of boosting the smart card side of its business. Despite its shift in focus, the company has not withdrawn itself completely from the biometrics market. In a statement the company explained: “Our raison d’être is n longer to market biometric technology per se, but on becoming a multi-application smart card solution provider with a competence in biometrics.” The company hopes to achieve a positive cash flow by the end of the year. A recent private placement worth approximately US$1.9 million, plus recent divestments amounting to US$3 million should be enough to execute the company’s new plan.
research director for The Gallup Organization: “It was amazing the percentage of people who are willing to give up freedom to get back some sense of personal security.’’ Meanwhile, the Saflink poll revealed that only 11% of those interviewed perceived biometric identification to be an invasion of privacy. Around 50% of those surveyed said they would be more willing to purchase products online if the transactions required biometric authentication, and 65% would prefer that hospitals and doctors used biometrics in place of passwords to protect patient records. In addition, 78% felt that biometric authentication would make their workplace computers more secure.
Contact: Chris Buyse at Keyware, Tel: +32 2526 1616, email: [email protected]
Other results from the Saflink poll included: • 94% supporting the use of biometric devices to enhance airline security; • 84% would like to see biometric devices increase security at stadiums and public events;
•
•
•
•
86% willing to incorporate biometric technology in driver’s licenses and passports; 26% said they would prefer to use a stockbroker or financial institution that used biometrics compared with ones that used PINs to verify identity; 46% of those surveyed still prefer PINs with their ATM card, compared with 36% favouring biometrics; 41% of those surveyed had used a biometric device.
The validity of the Saflink poll may be criticised by privacy advocates, as the company is a biometric vendor, but the numbers do tally well with those from the independent Gallup Organization. Saflink told Btt that the majority of the interviewing was performed on the streets of Chicago over a six-week period. Contact: Thomas Doggett at Saflink Corporation, Tel: +1 425 278 1100, email: [email protected]
Comment The biometric industry is in a state of flux this month as it absorbs the news that two of the leading suppliers have made strategic moves that change the biometric landscape – Identix is withdrawing from producing mainstream optical fingerprint sensors, while Keyware is redefining itself as a smart card player. Identix decided to pull out of the mainstream optical fingerprint sensor market, as it wants to focus on products that will generate a significant profit margin. The company said it does not see itself being able to do that in light of strong competition from silicon sensor manufacturers. The company is even converting its fingerprint software to work with silicon sensors. Keyware, meanwhile, announced it would focus on providing smart card solutions, although it retains a competence in biometrics. Although the move comes
12
as a shock, it seems to make good business sense – the company had plenty of success in the smart card market, but most of its customers chose not to add the supplier’s biometric option to their solutions. Many companies in the biometric industry could do worse than follow the example of these two companies. Both manufacturers took a hard look at their businesses and then made brave decisions based on their conclusions. Such drastic action following an appraisal is rare, and perhaps arose because the companies were already in a state of flux. Identix’s decision came as shareholders gave the go ahead to its merger with Visionics. The merged entity is now a substantial company, and one that could sway industry direction. Its decision to ditch optical sensor technology could turn out to be a severe blow to that particular market. Mark Lockie
Editorial Office: Elsevier Advanced Technology, PO Box 150, Kidlington, Oxford, UK, OX5 1AS Tel: +44 1491 411224 Fax: +44 1865 843971 E-mail: [email protected] Website: http://www.biometrics-today.com
Editor: Mark Lockie Production Co-ordinator: Victoria Hill
In next month’s issue In next month’s issue of Btt we will be focusing on the development of standards within the industry. Much work has already been done, but what is still left to do and how is the work being adopted by suppliers in the industry? Plus all the regular sections, including news, comment, features and in depth business analysis.
Biometric Technology Today • July/August 2002
7/5/02
12:04 PM
Page 1
www.compseconline.com July/August 2002
ISSN 0969-4765
Company news/Fingerprint
Identix shuns optical sensor market Identix has shocked the biometric industry by pulling out of the low-cost optical reader market – where it was one of the market leaders. The news came as the merger between Visionics Corporation and Identix was given the green light by shareholders. In a update on its pre- and post-merger integration activities, Joseph Atick, president and CEO of the new company, and Erik Prusch, the chief financial officer, told investors that: “After considerable thought and deliberation, we have decided our product roadmap does not include the DFR 400, which was designed to be our next generation single finger reader. Many market conditions have dramatically changed since Identix introduced its first optical reader. In our opinion these changes limit the viability of the DFR 400 and we don’t consider it prudent to continue to invest in a next generation reader at this time.”
Atick said that Identix had been in the single finger market as a necessity in order to sell its software. “There were no alternatives,” Atick commented, “That is not the case today. Silicon sensors have plummeted in price, become smaller and increasingly more stable. Thus it does not make sense to continue down this expensive path when viable alternatives exist.” Instead, Identix plans to support the majority of silicon-based sensors and third party readers. The company will, for the time being, continue to support the DFR200 optical reader and will remain in the 500dpi forensic quality sensor market. Dropping the DFR400 is expected to cost Identix some US$1.5 million in inventory write-offs and capital costs. Shareholders gave approval to the merger on 24 June. The mega-merger – by biometric industry standards – has created the largest multi-biometric company, covering facial, fingerprint and livescan technology. The
combined company will operate under the name Identix Incorporated and will continue to trade on the Nasdaq National Market under the ticker “IDNX”. Elsewhere in its product range, Identix said its Fingerprint Bio-Engine has been enhanced using Visionics’ facial matching R&D knowhow; new SDKs are to be released for both fingerprint and facial recognition, itrust will continue to be developed and new versions of IBIS, BioLogon, Argus, the V20 access control unit and livescan products would be released. Contact: Damon Wright at Identix, Tel: +1 408 335 1400, email:[email protected]
Contents Application news Product news
3 4, 5
Company news
6
Feature:
7
Privacy
Forget privacy, give us biometrics! Two polls looking at public opinion on privacy issues and biometrics should give heart to the industry and leave extreme privacy advocates feeling abashed that their high-profile attacks seem to have fallen on deaf ears. Both polls indicate that the majority of US citizens are happy to use biometrics in their daily life, with more than 70% in favour of carrying identification cards with fingerprints. The latest statistics may come as a surprise to many, as the torrent of negative
news stories in the national media, and from privacy groups, would have suggested a strong revulsion to the idea of a national ID card in the US – particularly one using biometrics. The two nationwide polls – one from biometric supplier Saflink and the other from The Gallup Organization – interviewed 500 and 934 people respectively. According to Elaine Christiansen, senior
Improving travel safety with enhanced personal ID Survey:
9
Silicon sensors sweep up Regulars Events
5
Business Watch
6
Comment
Continued on Back Page...
ISSN 0969-4765/02/$22.00 © 2002 Elsevier Science Ltd. All rights reserved This journal and the individual contributions contained in it are protected under copyright by Elsevier Science Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.
12
BTT JULAUG.qxd
7/5/02
12:04 PM
Page 12
NEWS Company News
...continued from page 1
Keyware kicks biometric strategy into touch
...biometrics are not a privacy threat
Keyware has announced a major strategic shift in its business, which includes abandoning its focus as a biometrics supplier. The Belgian company is one of the leading suppliers in the industry with its centralised and layered approach to biometrics. However, the company decided to jettison its biometrics image in favour of boosting the smart card side of its business. Despite its shift in focus, the company has not withdrawn itself completely from the biometrics market. In a statement the company explained: “Our raison d’être is n longer to market biometric technology per se, but on becoming a multi-application smart card solution provider with a competence in biometrics.” The company hopes to achieve a positive cash flow by the end of the year. A recent private placement worth approximately US$1.9 million, plus recent divestments amounting to US$3 million should be enough to execute the company’s new plan.
research director for The Gallup Organization: “It was amazing the percentage of people who are willing to give up freedom to get back some sense of personal security.’’ Meanwhile, the Saflink poll revealed that only 11% of those interviewed perceived biometric identification to be an invasion of privacy. Around 50% of those surveyed said they would be more willing to purchase products online if the transactions required biometric authentication, and 65% would prefer that hospitals and doctors used biometrics in place of passwords to protect patient records. In addition, 78% felt that biometric authentication would make their workplace computers more secure.
Contact: Chris Buyse at Keyware, Tel: +32 2526 1616, email: [email protected]
Other results from the Saflink poll included: • 94% supporting the use of biometric devices to enhance airline security; • 84% would like to see biometric devices increase security at stadiums and public events;
•
•
•
•
86% willing to incorporate biometric technology in driver’s licenses and passports; 26% said they would prefer to use a stockbroker or financial institution that used biometrics compared with ones that used PINs to verify identity; 46% of those surveyed still prefer PINs with their ATM card, compared with 36% favouring biometrics; 41% of those surveyed had used a biometric device.
The validity of the Saflink poll may be criticised by privacy advocates, as the company is a biometric vendor, but the numbers do tally well with those from the independent Gallup Organization. Saflink told Btt that the majority of the interviewing was performed on the streets of Chicago over a six-week period. Contact: Thomas Doggett at Saflink Corporation, Tel: +1 425 278 1100, email: [email protected]
Comment The biometric industry is in a state of flux this month as it absorbs the news that two of the leading suppliers have made strategic moves that change the biometric landscape – Identix is withdrawing from producing mainstream optical fingerprint sensors, while Keyware is redefining itself as a smart card player. Identix decided to pull out of the mainstream optical fingerprint sensor market, as it wants to focus on products that will generate a significant profit margin. The company said it does not see itself being able to do that in light of strong competition from silicon sensor manufacturers. The company is even converting its fingerprint software to work with silicon sensors. Keyware, meanwhile, announced it would focus on providing smart card solutions, although it retains a competence in biometrics. Although the move comes
12
as a shock, it seems to make good business sense – the company had plenty of success in the smart card market, but most of its customers chose not to add the supplier’s biometric option to their solutions. Many companies in the biometric industry could do worse than follow the example of these two companies. Both manufacturers took a hard look at their businesses and then made brave decisions based on their conclusions. Such drastic action following an appraisal is rare, and perhaps arose because the companies were already in a state of flux. Identix’s decision came as shareholders gave the go ahead to its merger with Visionics. The merged entity is now a substantial company, and one that could sway industry direction. Its decision to ditch optical sensor technology could turn out to be a severe blow to that particular market. Mark Lockie
Editorial Office: Elsevier Advanced Technology, PO Box 150, Kidlington, Oxford, UK, OX5 1AS Tel: +44 1491 411224 Fax: +44 1865 843971 E-mail: [email protected] Website: http://www.biometrics-today.com
Editor: Mark Lockie Production Co-ordinator: Victoria Hill
In next month’s issue In next month’s issue of Btt we will be focusing on the development of standards within the industry. Much work has already been done, but what is still left to do and how is the work being adopted by suppliers in the industry? Plus all the regular sections, including news, comment, features and in depth business analysis.
Biometric Technology Today • July/August 2002