ActivIdentity F4Q07 (Qtr End 9/30/07) Earnings Call Transcript

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2007-12-05 19:34:41.0

Tags: ActivIdentity Corp.

Question-and-Answer Session

Operator

(Operator Instructions) One moment please for the first question.

Your first question comes from Sterling Auty.

Sterling Auty - JP Morgan

Yes, thank you. As you look through the upcoming year you kind of give this range of 10 to 22%, can you give us a sense of all the different opportunities that you described in the prepared remarks, is there a backlog, or if not a contractual backlog at least a pipeline, how much of that 10 to 22% growth is basically already done and how much of it do you still need to go and get?

Thomas Jahn

Well that is very difficult to answer. One thing we already have in the bank of course is the maintenance, because the maintenance is like a subscription moving forward. And you have seen during the last fiscal year already that we have increased the maintenance part of the revenue and this will continue to grow the more solutions you implement, deploy with the customers.

Except for that, of course it depends on deals coming in, I think the normal way these things work.

Sterling Auty - JP Morgan

Okay and then in terms of you have a cost-cutting plan in place that you described, how shall we think about cash-burn and where we may see the bottom in cash balances. Or do you have guidance for where you think cash will be at the end of the next fiscal year.

Thomas Jahn

We have no guidance where the cash balance is for the next fiscal year. We have seen during fiscal year 2007 already quite a significant reduction of the burn-rate. And I think that is something we want to continue, but I don’t want to give you a specific bottom of the cash balances.

Sterling Auty - JP Morgan

Okay, thank you.

Operator

The next question comes from Nick Andrews.

Nick Andrews - Citigroup

Good evening, guys.

Mark Lustig

Hi, Nick.

Nick Andrews - Citigroup

Could you just give us a little bit of detail on the competitive environment out there and who you guys are seeing in the market in different segments?

Thomas Jahn

We see in our different areas, of course, different competitors. It is Vasco in the token business to companies like Intercede and Bell ID, we have RSA. . I think this is all very much known for the different sectors want to get into our market. And for us being 80% of the government deployment up till now, at least that is what we think. It is very difficult to answer that question. But with what we have built especially in the government area, we have built a barrier to entry. And that is an important one and we want to continue to work on that barrier to entry. And that is based on the IP we have. That is based on the industry knowledge we have. It’s based on our installed base and of our industry experts. So that is our strategy to really make it difficult for our competitors to get into our market space.

 

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