NXT-ID, Inc, (NASDAQ: NXTD) -
May 21, 2015
NXT-ID, Inc Announces Participation as Member
of Team Battelle for TIES Contract Award - See the Full Story Below the
Following The SoundView Research News
NXT-ID, Inc. Research Note Update from SoundView; Commercial
Ramp of Wocket Smart Wallet
"Our current IV estimate remains $8 for this year and
would step up sharply to $17 in 2016 with continued success."
The full update is available for download here:
BOSTON, /PRNewswire/ -- SoundView Technology Group issues a new research note
on the NXT-ID, Inc. (NASDAQ: NXTD) Wocket smart wallet (www.wocketwallet.com)
Back in March we published an NXT-ID update note on the first "early access"
Wockets shipping which allowed the company to gather feedback from field use. I
had good success with my own Wocket even though it was a pre-release version
which had a handmade prototype card that was too thick for some types of usage.
Sixty days later, NXT-ID is preparing to fulfill their existing pre-orders this
month which will put several hundred units into the market. The plan for June is
to ship a few thousand units to customers who have requested invitations to
order a unit. By July, the company should reach their baseline production
capability of 10,000 units/month, which will coincide with initiatives in
marketing and sales as well as some new distribution partners who will help with
market penetration and fulfillment.
What follows are some new usage notes for the commercial version and a
restatement of our assumptions behind our model that supports an NXTD intrinsic
value of $8/share for 2015 and path to $17 in 2016.
Using the New Wocket
I took my updated Wocket out for a spin and noticed a few additional features.
First of all, the card is production quality and has my name on it. It's thin
enough to put into any device from swipe to dip to full insertion, so I can use
it in any scenario. There's also a subtle backlight, so it's easier to use in
the dark which comes up in cabs and romantic restaurants.
There is one new minor feature that turned out to be a major benefit for me –
the "note" option. I believe that this is a giant differentiator between the
Wocket and "smart card" solutions like Coin. The Wocket has a place that
effectively eliminates all those little slips of paper you often put in your
wallet – like the access code for a gate you sometimes go through, the number
for AAA and your membership number, your passport number, etc. These all fit
into a class of information that is short, alphanumeric and seldom used. Yes,
you can have all of this on your phone, but that's not the best place for it in
terms of security or ease of access.
The day to day use of the card works just fine in all types of scenarios – we
used both Visa and American Express credit cards, and a debit card too. Again,
we found the awareness level of the technology in general "that's one of those
cards you can store all your cards on." Where discussion ensued, the top issue
was security. When I described the encryption, lack of network access, PIN and
biometric identification, every person responded favorably across a broad
demographic range. Anecdotally I'd say the older a person was, the more
concerned they seemed to be with security and the more thrilled to feel that
they could make their cards more secure with this kind of approach.
Not every reader works with the Wocket, so one does need to keep a single card
along with your ID or license in the extra pocket. For example, my tennis club
in NY is a small one with a reader literally taped to the counter and it
wouldn't swipe the Wocket card even with several attempts. Our sample size isn't
big enough to make specific predictions, but for us we had about a 9 out of 10
success rate. Not 100%, but for me good enough. It's worth noting that the
design of the Wocket doesn't prevent it from eventually reaching the goal of
100% acceptance but it's not there yet.
NXTD investors have had to endure fairly high volatility as the shares surged on
news of initial shipments and sagged as the company went into "heads down mode"
to iron out the last bits for commercial production and get manufacturing scaled
up to begin to deliver pre-orders.
In our March note, we pointed out the two remaining major risks as the
production ramp and consumer reaction/adoption. Now that we have a production
unit in our hands and pre-orders are to be filled this month, the production
ramp risk is fading away and the focus will now shift to consumer adoption.
Fortunately, NXTD is not alone in their enthusiasm for the Wocket. Ever since
CES in January, there has been strong and steady interest from a range of
distribution partners. We expect the ramp in marketing in the July timeframe
will coincide with one or more of the smaller partners helping the Wocket to
reach more consumers.
We remain comfortable with our 40,000 unit assumption for 2015, which we will
revise if the company succeeds in reaching close to 10,000 units in July or
August. Aggregating a number of market data points, there is initial demand from
early adopters for something like 100,000 to 200,000 units right now, and this
number will increase as more people see, feel and use the technology.
Despite a few delays, the company performance is consistent with our existing IV
model shown below and we are not making any changes to it yet. Our current IV
estimate remains $8 for this year and would step up sharply to $17 in 2016 with
We do plan to break down our volume and revenue estimates into quarterly periods
so we can compute annual trajectory more accurately. Based on current plans, NXT-ID
should be able to produce close to 30,000 units in Q3 and even more in Q4.
Obviously, if the demand is adequate, they would greatly exceed our current
40,000 unit target for the year.
NXT-ID, Inc Announces Participation as Member of Team
Battelle for TIES Contract Award
SHELTON, Conn., (PR Newswire) - NXT-ID,
- announces that its wholly owned subsidiary, 3D-ID LLC, a company engaged
in biometric identification is an official contractor under Team Battelle for
the biometrics technology portion of the recently awarded TIES (Technical
Information Engineering Services) Unrestricted Suite Contract from the
Department of the Army.
3D-ID LLC has a suite of 3D facial recognition products developed for
government, law enforcement and security agencies.
Gino Pereira, Chief Executive Officer said, "We are very proud to be part of
and contributing our expertise in biometric technologies. This award is the
culmination of 2 years hard work by many parties involved. Although the
Company's primary focus has been on our biometric smart wallet, the Wocket®,
currently being shipped to our pre-order customers, we have continued to develop
opportunities for our core biometric products. We look forward to supporting
Battelle on future task orders. "
The contracts were awarded on 08 May 2015, and include nine total awardees. The
estimated total contract value of the entire TIES program is $994M. This IDIQ
contract will be Task Order driven and Task Orders under the Unrestricted Suite
will be issued on a Full and Open Competition Basis among all nine Awardees.
The work conducted under TIES will span multiple areas of interest supporting
the Information and Intelligence (I2WD) mission including Biometric Enabled
Intelligence (BEI). I2WD is the Intelligence and Information Warfare Directorate
which is part of the US Army's Communication's-Electronics Research, Development
and Engineering Center (CERDEC).
Every day, the people of Battelle apply science and technology to solving what
matters most. At major technology centers and national laboratories around the
world, Battelle conducts research and development, designs and manufactures
products, and delivers critical services for government and commercial
customers. Headquartered in Columbus, Ohio since its founding in 1929, Battelle
serves the national security, health and life sciences, and energy and
environmental industries. For more information, visit www.battelle.org.
See more at: http://www.battelle.org
About NXT- ID Inc. - Mobile Security for a Mobile World: (NXTD)
NXT-ID, Inc.'s innovative MobileBio® solution mitigates consumer risks
associated with mobile computing, m-commerce and smart OS-enabled devices. The
company is focused on the growing m-commerce market, launching its innovative
MobileBio® suite of biometric solutions that secure consumers' mobile platforms
led by Wocket®; a next generation smart wallet designed to replace all the cards
in your wallet, no smart phone required. Wocket was recognized as one of the top
technology products at CES 2015 by multiple media outlets including Wired.com.
The Wocket works anywhere credit cards are accepted and only works with your
biometric stamp of approval. http://www.wocketwallet.com/
NXT-ID' wholly owned subsidiary, 3D-ID LLC, is engaged in biometric
identification and has 22 licensed patents in the field of 3D facial recognition
Forward-Looking Statements for NXT-ID: This press release contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements reflect management's
current expectations, as of the date of this press release, and involve certain
risks and uncertainties. Forward-looking statements include statements herein
with respect to the successful execution of the Company's business strategy. The
Company's actual results could differ materially from those anticipated in these
forward-looking statements as a result of various factors. Such risks and
uncertainties include, among other things, our ability to establish and maintain
the proprietary nature of our technology through the patent process, as well as
our ability to possibly license from others patents and patent applications
necessary to develop products; the availability of financing; the Company's
ability to implement its long range business plan for various applications of
its technology; the Company's ability to enter into agreements with any
necessary marketing and/or distribution partners; the impact of competition, the
obtaining and maintenance of any necessary regulatory clearances applicable to
applications of the Company's technology; and management of growth and other
risks and uncertainties that may be detailed from time to time in the Company's
reports filed with the Securities and Exchange Commission.
NXT- ID Inc Contact:
Corporate info: email@example.com
D. Van Zant
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/nxt-id-inc-announces-participation-as-member-of-team-battelle-for-ties-contract-award-300086359.html
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