ChangeWave Research Survey Shows Usage of Smart Cards and Biometric Identification is Mushrooming

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A recent ChangeWave Research survey of homeland security professionals shows a surge occurring in everyday use of Smart Cards and Biometric Identification systems.

Rockville, Maryland, July 20 – A recent ChangeWave Research survey of homeland security professionals shows a surge occurring in everyday use of Smart Cards and Biometric ID systems.

In a clear sign of mushrooming usage, nearly 4 in 10 respondents said their company now uses a Smart Card or Biometric ID system in the workplace – 9-points higher than a previous ChangeWave survey conducted in April 2005. Contactless Proximity Access Cards - 52 pecent, and Standard Swipe Cards - 35 percent were named as the dominant systems in today’s workspace.

ChangeWave surveyed nearly 600 professionals working for companies providing homeland security products/services or who are knowledgeable about the industry.

Looking ahead, industry respondents see a slew of new solutions headed toward market. By a wide margin, Fingerprint IDs and Advanced ID Cards are seen as the leading technologies in this expanding arena. Not only are they considered the most technologically advanced, but Fingerprint IDs and Advanced ID Cards are seen as best suited to meet current market needs and attract the most spending over the next 12 months.

"Clearly, our recent survey makes a powerful case for Biometric ID and Smart Card solutions, and a great deal of the enthusiasm is coming from the private sector,” said Jon Najarian, editor of ChangeWave Options Investor. “But don’t overlook the government sector, as both Homeland Security and Immigration will be driving massive demand there as well.”

In fact, 2 in 5 respondents see the Government market experiencing the biggest increase in Smart Card and Biometric ID Systems over the next two years, followed by the Military - 24 percent.

Focusing on the company level, industry respondents were asked which firms are likely to be the biggest winners in the Biometric space.

Identix (IDNX) was cited as the company most likely to benefit in several key areas of the market, including Fingerprint ID, Facial Recognition, and Iris Recognition. Industry respondents also see Identix as the company most likely to pick-up market share over the next year. As one respondent put it, Identix is “the largest tenprint manufacturer, and can combine their fingerprint technology with facial recognition.”

Viisage Technology (VISG) was also mentioned as a top company in Facial Recognition and Iris Recognition.

Notably, Identix and Viisage expect to complete a merger during 3rd quarter 2006, which could create a Biometric ID powerhouse. As one respondent puts it, “Viisage can take advantage of the best of their own technology and that of Identix due to their merger.”

Jon Najarian concurs, saying “There is significant upside for both Identix (DNX) and Viisage Technology (VISG) over the next 2-3 quarters.”

The survey also focused on companies most likely to lead in the Smart Card space. While there weren’t any clear cut winners, ActivIdentity (ACTI) (formerly ActivCard) was seen as most likely to gain share in the Smart Card market over the next year, followed by SCM Microsystems (SCM) and Cubic Corp. (CUB)

About ChangeWave: The ChangeWave Alliance is a network of 7,500 highly qualified business, technology, and medical professionals in leading companies of select industries—credentialed experts who spend their everyday lives working on the frontline of technological change. ChangeWave Research surveys its Alliance members on a range of business and investment research and intelligence topics, collects feedback from them electronically, and converts the information into proprietary quantitative and qualitative reports.

For more information contact: Darlene March 1-949-975-1858, ext. 260

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