ID

[calven]

Anyone watching this one? Looks like a nice lil breakout  

[vivdcosta]

Nice pick, 52 week high! According to TDAmeritrade, 15% about 10.8 million is sold short.

Recent news:

U.S. Government Testing Affirms Top Performance of L-1 Identity Solutions Facial and Iris Recognition Technologies
11:34a ET April 2, 2007 (Business Wire)

According to the Company's interpretation of the results:

-- L-1 facial recognition technology was the best "all around" performer. The L-1 facial algorithm scored at or near the top in every test conducted by NIST. This includes matching accuracy for 2D as well as 3D face recognition. In addition, the L-1 high resolution facial matching performance was comparable to iris matching performance.

-- L-1 iris recognition algorithms were two of the top three performers. The newest L-1 algorithm, developed by Professor John Daugman of Cambridge University and owned by exclusively by L-1, was validated as a top tier performer in accuracy. Dr. Daugman is L-1's Chief Scientist for Iris Recognition pursuant to a consulting agreement with the Company. The other L-1 algorithm was submitted by a third party under the name "Sagem-Iridian" and was based on a previous generation algorithm developed by Iridian Technology Inc., a wholly owned subsidiary of L-1 acquired by L-1 in August 2006. It should be noted that other than the top three performers, no other iris algorithm was able to complete the test in the allotted cutoff time of 3 weeks.

-- L-1's latest iris algorithm demonstrated unprecedented and unparalleled matching speed. The latest L-1 Daugman algorithm completed the test in 6 hours compared to almost 300 hours of its nearest competitor - almost 50 times faster - at comparable accuracy.

The specific facial recognition algorithm referred to in this announcement is from Viisage, an L-1 Identity Solutions company. Since the evaluation was conducted, L-1 Identity Solutions has continued advancing its facial and iris algorithms by combining the best elements of the algorithms produced by Viisage and Identix, another L-1 Identity Solutions Company that develops facial recognition technology.

The work to combine the two algorithms into the next generation - G8 - was undertaken by the L-1 Corporate Research Center, which has responsibility for further developing the company's core biometric algorithms. G8, expected to be released sometime in Q3 2007, results in a further significant boost in matching speed and accuracy. G8 also addresses an implementation issue in the handling of very large image file sizes that, while not typically encountered in real world implementations, were encountered in the FRVT 2006 and affected the performance of the previous Identix algorithm.

L-1 Identity Solutions packages its facial and iris technology in its ABIS(R) System, a multi-biometric identification platform that also incorporates fingerprint technology for traditional AFIS applications. Other iris products include mobile and handheld devices such as HIIDE Series 4, PIER(TM) and PIER-T(TM). Software developer kits also are available for building large-scale identification solutions.

Note that results shown from the Facial Recognition Vendor Test 2006 and the Iris Challenge Evaluation 2006 do not constitute endorsement of any particular system by the Government.

[vivdcosta]

Worth Noting: L-3 was formed in 1997 when Robert LaPenta, Frank Lanza, and Lehman Bros. (hence the three Ls) completed the leveraged buyout of ten advanced electronics business units from Lockheed Martin Corp. (NYSE: LMT - News). The company then embarked on a massive roll-up strategy, making acquisitions at a breakneck pace.

Lehman Bros. no longer holds any substantial stake in the company. Lanza, sadly, passed away suddenly last June while still serving as chairman & CEO. LaPenta, meanwhile, left the company in 2005 to start a private investment firm. He has since leveraged his expertise by creating a roll-up in the identity protection services space, L-1 Identity Solutions Inc. (NYSE: ID - News).

Last week, we issued a Research Note examining LePenta's recent buys at L-1 Identity Solution.  He owns 769,000 shares as of 16-Feb-07

16-Feb-07   LAPENTA ROBERT V 150,000 Direct   Purchase at $15.02 per share.   $2,253,000
15-Feb-07   LAPENTA ROBERT V 50,000   Direct   Purchase at $15.04 per share.   $752,000

[vivdcosta]

18.48
Change:   Up 0.46 (2.55%)

News:
12:49PM L-1 Identity Solutions awarded contract for $71 mln in HIIDE Biometric recognition devices, issues guidance (ID) 18.46 +0.44 : Co announecs it has been awarded a requirements contract that may receive awards totaling a maximum of $71 mln from the U.S. Department of Defense for the sale of HIIDE biometric recognition device and other related software. The contract is with the U.S. Army's Space Program Office which supports the Tactical Exploitation of National Capabilities Program. The period of performance under the contract is 24 months and the first task order under the contract, valued at $23.7 mln, has been received by SecuriMetrics. "... anticipated sales of approx $5 mln of HIIDE shipments in the first quarter that will now be recognized in our second quarter, and the additional shipments will improve results for the first half of the year." The co is now raising revenue expectations for the first half of the year ending June 30, 2007 to $158 to $162 mln compared to previous expectations of $153 to $155 mln. Adjusted EBITDA for the first half of 2007 is expected to be between $21 to $25 mln, compared to previously expected Adjusted EBITDA of $20 to 24 mln. EPS for the first half of 2007 is now expected to be in the range of a loss of ($0.01) to ($0.05) per share compared to original expectations of a loss of ($0.03) to ($0.07) per share. The co had previously forecasted Q1 rev to be $73.0 to $75.0 mln with Adjusted EBITDA of $9.0 to $11.0 mln with a loss per share in the range of ($0.04) to ($0.06). Due to the delay in the award of the contract, the co's Q1 rev is now expected to be $68 to $70 mln vs $74 mln consensus, with Adjusted EBITDA of $4 to $6 mln with a loss per share in the range of ($0.08) to ($0.12) vs ($0.04 consensus). The co expects Q2 rev to be between $90 and $92 mln vs $79.62 mln cosensus with Adjusted EBITDA of $17 to $19 mln and EPS in the range of $0.07 to $0.09 vs $0.00 consensus.

[calven]

ID nice 12% rally! 

[calven]

Now above 20$ per share - watch out for more contracts coming - their technology is awesome!