Realignment aims to better position Identix
MINNETONKA, Minn. - Biometric technology company Identix has made yet another move to streamline operations and focus solely on the biometrics market.
In late February, the company eliminated 30 full-time positions, a reduction that is expected to save the company more than $3.5 million beginning in 2005. The move followed the recent sale of its project management services subsidiary to Alion Science and Technology Corp. for $11.25 million and its acquisition of Sylvan Identix Fingerprint Centers, a joint venture between Identix and Sylvan Learning Centers.
The changes are part of the companyÃ¢â‚¬â„¢s new go-to-market strategy, according to Frances Zelazny, spokesperson for Identix. She said the eliminated positions came from a variety of departments and several positions had become duplicated as a result of IdentixÃ¢â‚¬â„¢s acquisition of Sylvan Identix Fingerprint Centers. The eliminated positions accounted for about six percent of the companyÃ¢â‚¬â„¢s workforce, which now numbers less than 500 people.
According to a report by Brian Ruttenbur, an analyst with Morgan Keegan & Co., IdentixÃ¢â‚¬â„¢s acquisition of the Sylvan Identix Fingerprint Centers was a Ã¢â‚¬Å“continuation of the companyÃ¢â‚¬â„¢s strategic plan to focus on biometric products and products related services that provide the strongest growth opportunities.Ã¢â‚¬Â
Identix paid $875,000 to buyout Sylvan Learning Centers stake in the joint venture, but it is expected to generate $6 million in additional annual revenues. The business has been renamed Identix Identification Services and offers corporations and government agencies fingerprint background checks through the FBI using its 10-print biometric capture and transmission service.
The sale of IdentixÃ¢â‚¬â„¢s project management services subsidiary, Identix Public Sector, to Alion Science and Technology Corp., immediately helped to strengthen IdentixÃ¢â‚¬â„¢s balance sheet, according to company officials. Alion paid $8.85 million and expects to receive another $1.1 million in equal installments from Alion over the next four months.
Additional funds have also been retained in escrow and on IdentixÃ¢â‚¬â„¢s balance sheet, as part of arrangements.
Zelazny said as a result of these changes, company officials expect to hit between $50 and $60 million in revenue by the end of the year.