SoundView Technology Group Issues NXT-ID (NASDAQ:
NXTD) Update; Scaling Up
BOSTON
- October 5, 2015 (Investorideas.com Newswire) SoundView Technology Group (http://soundview.co) releases the
following market and company update for NXT-ID, Inc. (NASDAQ:
NXTD),
a biometric authentication company focused on the growing mobile commerce
market.
NXT-ID (NXTD $0.80)
Scaling Up
Kris Tuttle
Scaling Up
Kris Tuttle
Recent Highlights
We've
been holding regular monthly meetings with NXT-ID to more closely track their
progress since things are moving much faster now that the Wocket is in
production. Here are some recent highlights:
Production
ramp: NXT-ID is currently shipping their Wocket in steadily increasing numbers.
Revenues are growing rapidly on a sequential basis - from $100K in Q2 to $400K
in Q3 with a solid Q4 expected. The company continues to track very closely to
our IV model projections which suggest a stock price of $7.47. Our unit sales
estimates for 2016 and beyond appear to be low but we will re-evaluate those
numbers as we exit 2015.
Expanded
distribution: NXT started working with Touch of Modern which is a kind of
high-style-geek batch sale site. NXTD also announced[1] that they would be
available on Amazon taking advantage of Amazon stocking and shipping services.
These new outlets are a measured expansion intended to line up with the ability
to build and ship units. As manufacturing capacity expands we can expect to see
more distribution arrangements. We still love the idea of using QVC where the
value proposition and audience seem like a very good fit.
Influential
advisors: Bill Fields has joined with NXT-ID as a senior advisor to help
oversee market strategy and distribution. Mr. Fields brings 25 years of
experience from Wal-Mart where he rose to position of President and CEO of the
Wal-Mart Stores Division. This will bring greater access and expertise in
retail distribution. We also like the demonstration of a high standard of
corporate governance despite the small size of the company.
Product
pipeline: NXTD has released an App that provides customers with tools to update
and manage their Wocket via the smartphones. They are also working on
EMV-compatible designs for release later this year. Since they have solved what
we view as the harder problem in smart wallets they are in a good position to
do an easier one like a smart credit card linked to your phone. (This is what
many others like Stratos have done.) It's less secure but it is convenient. The
Wocket card works at far more points of sale than the others and the company
will release a phone/card solution that expands their TAM and probably puts a
dent in the opportunity for Stratos and that ilk of product. Card issuers
believe they will still be issuing twice as many conventional cards versus EMV
in 2019.
Possible
bluebird: We haven't focused too much on the biometric side of the NXT-ID
business due to all the excitement around the Wocket. However the 3D-ID business
is part of the company and has been working with Battelle as a subcontractor on
some major military initiatives. Specifically 3D-ID has been selected as the
technology to be used for 3D facial recognition. This probably amounts to an
incremental $150K to $200K of high margin revenue so it's not dramatic (but is
high margin.) However having military-grade biometric technology is an asset in
digital wallets and payments. We recount some of the important NXT-ID biometric
technology below.
The
full NXTD research update (PDF) is published and available here:
Past
reports and related research can be found on our website at
Disclosures
SoundView
serves as a strategic advisor to NXT-ID and provides this research note for
informational purposes only. SoundView does not have "ratings" and is
not an investment bank, broker/dealer or registered investment advisor. We've
undertaken to research all facts presented here but can make no promises that
they are correct or that our reasoning and supporting intrinsic valuation model
is an accurate depiction of the future. SoundView employees may have positions
in stocks they work on, however at the time of this writing we are not aware of
any outstanding positions in the shares of NXT-ID.
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 most anywhere credit cards
are accepted and only works with your biometric stamp of approval or passcode. http://www.wocketwallet.com/
NXT-ID's wholly owned subsidiary, 3D-ID LLC, is
engaged in biometric identification and has 22 licensed patents in the field of
3D facial recognition http://www.nxt-id.com/, http://3d-id.net/
Contact:
SOURCE SoundView Technology Group
Published at Investorideas.com
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