AuthenTec, Inc.: A touch of technology
AuthenTec, Inc. (Nasdaq: AUTH)
Melbourne, FL 32901
http://www.authentec.net/
52-week low / high: $9.21 / $16.67
Shares Outstanding: 26.91 million
Market Capitalization: $445.15 million
In the days of yore (the mid to late ’90s), it would only take the swipe of a badge to gain access to a building or a simple password to log on to a computer. In the wake of the breakneck technology boom this decade, though, security vulnerability is an increased concern—one that’s being satiated with this small cap’s own authentic touch.
Started in 1998, AuthenTec, Inc. (Nasdaq: AUTH) is the world’s leading provider of fingerprint authentication sensors for security and convenience applications. Its products have been integrated into more than 20 million laptops, desktops, peripherals, mobile phones and access control (biometric security) devices.
AuthenTec’s technology captures an image of a fingerprint mathematically and compares it to future images of that same finger. Multiple applications include: cursor control, multiple password replacement, parental control, user switching, applications access and speed dialing.
AuthenTec also sells under the TruePrint technology trademark and sells to original equipment manufacturers, product design firms and contract manufacturers.
In the third quarter 2007, ended Sept. 30, the company reported revenues of $15.1 million, up 84% from $8.2 million in the same quarter of 2006 and up 23% from $12.3 million in the second quarter 2007. The growth rate proves that biometrics is becoming the de-facto standard and the market is accepting AuthenTec’s product.
Net income for the third quarter 2007 was $517,000, or $0.02 per share versus a net loss of $2.6 million, or $2.83 per share, in the year ago period.
Most analysts forecast a strong increase in revenues the coming years, calling for $51.3 million and $73.6 million in 2008. Analysts expect a small net loss per share of $0.05 in 2007, but expect the company to deliver positive net income in 2008, calling for $0.19 EPS in 2008.
While it may be too early to take a swipe at this stock just yet, investors should keep their finger on its future.
Note: AuthenTec, Inc. (AUTH) is on the “Watch List” of Rising Star Stocks, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, AuthenTec, Inc. displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Rising Star Stocks portfolio at a later date.
