RNS Number:1962G
Secure Design KK
14 July 2006
FOR RELEASE 7:00AM 14 JULY 2006
SECURE DESIGN KK
("Secure Design" or "the Company")
Introduction of 31,400,000 Shares to AIM at 47p per share
Company offers a range of fingerprint authentication solutions and products
using biometrics
Core strategy of organic growth and selective biometric acquisitions
Admission to trading on AIM
Nominated Adviser and Broker
Charles Stanley Securities
Highlights:
* Secure Design offers fingerprint authentication products
- using biometrics to establish high levels of security which can be
tailored to specific client needs
- ITube(TM), USB memory stick with embedded authentication hardware and
software
- acquires proprietary technologies, products, research and development
technologies from Technoimagia on 28 December 2005
* Demand for Biometrics estimated to be increasing by 30% per annum
- Worldwide demand for biometrics is estimated to be increasing by
approximately 30% per year for security in personal, commercial, government
and military organisations
- Market estimated to grow from US $2 billion in 2006 to US $6 billion in
2010
- new opportunities as biometric applications move into commercial markets
including financial, IT, telecommunications and medical industries
* Platform for organic growth and selective acquisitions
- Strategy to acquire both domestically in Japan and internationally through
acquisition of other biometric technology and biometric services companies
Taketoshi Kashiwabara, the Chairman of Secure Design, commented:
"We are delighted to be the first Japanese company be admitted to AIM,
establishing Secure Design on an international platform.
With the biometric market estimated to reach $6 billion US by 2010, we look
forward to pursuing the exciting growth opportunities that exist through
increasing our financial and commercial profile.
The flotation on AIM will further support our plans to pursue both international
growth and carefully targeted acquisitions."
For further information, please contact:
Secure Design KK
Satoshi Takahashi (Chief Executive Officer) Japan +81-3-3516-9303
Shinil Cho (Chief Information Officer) United Kingdom +44(0) 7738 842 662
Japan +81-3-3516-9303
United States +1-412-367-7063
Charles Stanley Securities
Dugald Carlean +44(0) 20 7953 2000
Freddy Crossley +44(0) 20 7953 2000
Carl Holmes +44(0) 20 7953 2000
Cubitt Consulting
Brian Coleman-Smith / Allison Reid / Leanne Denman +44(0) 20 7367 5100
Mobile +44(0) 7802 724 400
EXPECTED TIMETABLE OF PRINCIPAL EVENTS
Issue Price 47 pence
Total Number of Shares in issue on Admission 31,400,000
Market capitalisation of the Company on Admission #14.758m
Date of Admission 14 July
2006
FOR RELEASE 7:00AM 14 JULY 2006
SECURE DESIGN KK
("Secure Design" or "the Company")
Introduction of 31,400,000 Shares to AIM at 47p per share
Company offers a range of fingerprint authentication solutions and products
using biometrics
Demand for Biometrics estimated to be increasing by 30% per annum
Core strategy of organic growth and selective biometric acquisitions
INTRODUCTION
Secure Design is a Japanese company that offers fingerprint authentication
products to companies and individuals that wish to establish high levels of
security using biometrics. Biometrics uses a physical attribute of the body,
such as a fingerprint to identify and verify the individual with the aim of
making individual authentication efficient and secure.
The Company offers a range of fingerprint authentication products and systems,
from an integrated system to a mobile device. The Company designs and outsources
the production of these products and can tailor them to individual client
specific needs and applications.
Biometric applications provide convenient and reliable security which reduces
the cost associated with the failure of conventional authentication methods. The
principal factor which distinguishes biometrics from conventional password based
authentication is the enhanced security level it provides while maintaining the
privacy of individual users.
The worldwide demand for biometrics is estimated to be increasing by
approximately 30 per cent per year with the market estimated to grow to almost
$6 billion by 2010 from $2 billion in 2006. Biometric applications and systems
are already being used for security in personal, commercial, government and
military organisations. Many governments, including the UK, have adopted or are
currently reviewing the need for biometric applications in passport and national
ID card systems. The Directors believe that as biometric applications in
national identification become commonplace the commercial applications will
proliferate. The commercial market for biometrics is expanding to financial, IT,
telecommunication and medical segments.
The Directors believe that Secure Design has a good platform from which to
develop its business both through domestic growth in its home market of Japan
and through international growth. A core strategy for the Company is to develop
the Company through selective acquisitions of other biometric technology and
biometric services companies both domestically and internationally. The
Directors believe that Admission will increase the financial and commercial
profile of the Company and that it is a key step in Secure Design's
international growth and acquisition strategy. The Directors believe that the
international nature of AIM fits the profile and growth strategy of the Company.
The Company will aim to attract and retain key personnel through the grant of
stock options.
Pursuant to the Admission of the entire issued share capital to trading on AIM,
the Company has placed 50,000 Shares in the Company at 47 pence per share
to satisfy market maker positions. Dealings in the new Shares is expected to
take place on 19 July 2006. Following this application, the enlarged issued
share capital of the Company will be 31,450,000 Shares.
BUSINESS
History
Secure Design was incorporated in November 2005 in Tokyo, Japan. On 28 December
2005 the Company acquired the fingerprint authentication business of
Technoimagia, including proprietary technologies, products and research and
development resources. Technoimagia is owned as to 40.6 per cent. by Taketoshi
Kashiwabara, the Chairman of Secure Design. Mr. Shoichi Kiyomoto, the Chief
Technology Officer of Secure Design was the Vice President and the Chief
Technology officer of Technoimagia Co., Ltd. when it was established. Mr
Kiyomoto served as CTO of Technoimagia Co., Ltd. until he became CTO of Secure
Design.
Currently, the Company has four executive directors; one UK based non-executive
director and twelve full time employees, seven of whom were transferred to the
Company as part of the Technoimagia Acquisition.
Products
The Company develops fingerprint authentication systems for the business and
consumer market. Since the development of the Company's first fingerprint image
scanner and matching algorithm, it has continued to improve its technology,
developing various application concepts, and providing customers with its
proprietary products.
The Directors believe that one of the core strengths of the Company is that it
offers a wide variety of integrated solutions, including PC-based 1: N
identification and 1:1 verification, minutiae matching on card, web based
fingerprint authentication protocol and several different types of fingerprint
image scanner.
Currently, Secure Design is improving the specifications of its products. The
products detailed below include those supplied by the Company to existing and
former customers of Technoimagia, and for which the Company is now responsible
for the after sales services. Broadly the products fall within two distinct
categories: complete tailored authentication systems and individual mobile
authentication devices.
Secure Design Solution Systems
Secure Design tailors biometric technology systems to suit its customer's
specific needs, through the provision and installation of tailored systems for
fingerprint authentication. These bespoke systems have both high accuracy and
fast processing speeds. For example, Secure Design have been requested to
produce a customer tailored solution for physical access controls for Honda
Motor Japan, which is similar to what was installed before. The National
Hospital Organisation Tokyo Medical Centre also requested post-sales technical
support from the Company, where the Company's 1:N system has been installed. The
installation of these Secure Design systems will provide a set of products,
including fingerprint scanners, software, encryption and hardware, which will
facilitate secure access to areas of buildings or server-based software and data
files.
The Company also markets a number of pieces of hardware incorporated within
their bespoke systems separately. One example of this is a module which the
Company has marketed separately and which is now incorporated in a variety of
applications ranging from cash registers to time attendance recorders, with
customers including Amano Corporation.
The Directors believe that the Company offers the industry's smallest
fingerprint thermal image scanners FP-Stick. FP-Stick uses a line sensor
manufactured by Atmel Corporation and captures fingerprint image slices as the
user sweeps his finger on the sensor. The images registered by the sensor are
then combined into a two-dimensional image. FP-Stick is recognised as an
official third party product of Atmel. The Company offers a new generation of
thin film technology (TFT) through the optical scanner FP-Plus with Casio
Computer Co. Ltd. In a venture with Texas Instruments (TI), the CTO of the
Company designed and constructed a daughterboard for TI's DSP starter kit. The
daughter board is recognized as an official third party DSP product of Texas
Instruments. In addition, the Company developed a fingerprint verification
system for smartcards with Dai Nippon Printing Co. Ltd.
MOBILE IDENTIFICATION DEVICES
ITube(TM)
The ITube is a USB memory stick with embedded authentication hardware and
software. ITube was launched by Technoimagia in October 2005 and the Directors
are pleased with the penetration this product has had in the market place.
ITube consists of flash memory, a fingerprint image sensor, CPU and ASIC that
contains a fingerprint matching programme. ITube can be used by any Windows
based PC via a standard USB interface. The ITube performs fingerprint
verification of the user inside the device itself (i.e. the memory stick) and
not in the connected PC. This is a distinct difference from other memory stick
fingerprint security devices, which carry out the verification by way of a
"matching program" stored in an attached PC. Such fingerprint memory stick
devices cannot be used with a PC unless the PC is installed with the "matching
program" whereas ITube does not have this limitation. The Directors believe that
the ITube has an advantage over similar competing products as data and programs
are encrypted on the ITube with a secret key assigned to each ITube and then
stored in the flash memory of the ITube.
PC-Tube
PC-Tube is a USB based mobile terminal that has a fingerprint authentication
function, operating system and built-in user specific programs for the work
place. Once it is inserted into a PC the PC-Tube authenticates the owner
following which the owner is free to run the built-in program to establish the
user's working environment in any PC. PC-Tube was launched by Secure Design in
December 2005 and the Directors are encouraged by the penetration this product
has had in the marketplace. PC-Tube works with either Windows or Linux based
personal computers. No program and data will remain in a connected PC, which
guarantees the security and privacy of the PC-Tube user.
Customers that are currently using the PC-Tube are Nippon Telephone and Telegram
(NTT) Communications Corporation who have been supplied with the PC Tube by
SecuGen Japan. Currently Secure Design has a contract with NTT Communications to
deliver 4,000 units of PC-Tube this year. In addition, NTT DoCoMo, Inc., another
member of the NTT group, purchased 20 units of PC-Tube via SecuGen Japan in
April 2006. The Directors believe that the PC-Tube will be attractive to
companies that use field engineers, online booking companies and web application
service providers.
Secure Design's product advantages
The Directors believe that the Company's products offer the combined advantages
of lower cost and competitive performance, particularly when compared to the
AFIS, a system originally developed for use by law enforcement agencies, which
compares a single fingerprint with a database of fingerprint images and has
subsequently been developed for use in commercial applications. In addition the
Directors believe that the Company's products also offer the following
advantages:
* Compact design and algorithms
* High-speed verification and identification without compromising
accuracy and speed
* Optimal set of parameters appropriate to any customer's preferred
sensor type
* Small data size to store fingerprint minutiae. The Directors believe
that Secure Design is one of the only companies to have commercialised
minutiae based "match on card" (both contact and non-contact types). This
offers high-speed verification and identification using a PC for commercial
applications without reducing the matching accuracy and speed for practical
physical and logical access controls. Because the minutiae matching is the
defacto worldwide standard required for National ID card and e-passport, by
using such technology in the Company's smartcard gives it an advantage in
global applications
* High Reliability. The Directors are not aware of any products
manufactured by the Company in the past 2 years having been the subject of
any product recall, return or customer complaint. For instance, one of the
Company's physical access control systems has recorded a
continuous operation without any down time since its installation a
decade ago.
There are many businesses in the sector which offer 1:1 verification systems.
However, the Directors believe applications such as time attendance, a
user-privileged door access control, and membership authentication require
practical and effective 1 :N identification systems for enhanced functionality,
where the systems are able to identify a particular person for recording events
and user-specified tasks.
The Directors believe that the advantages offered by its products and
technologies place the Company in an excellent position to offer the practical
and effective systems they believe are required by the market and the Directors
are confident that its products are ideally suited to meet the demand within the
market for such systems.
Intellectual Property
The Directors believe that the Company owns or has licensed to it all necessary
intellectual property required to carry on its business. The Company has a
number of proprietary technologies relating to its products which are protected
in a variety of ways including patents, patent applications and confidentiality
arrangements.
The majority of the intellectual property that relates to the business of the
Company is, for historical reasons, owned by IO Network, a Japanese company
wholly owned by Shoichi Kiyomoto, the Chief Technology Officer of Secure Design.
The Company has secured several world-wide exclusive licences of all the
intellectual property used in its business which is owned by IO Network and Mr
Kiyomoto for a royalty of JPY 6,000,000 (#28,302) per year.
Secure Design is applying for a patent to the Japan Patent Office for its ITube
product (Japan Patent Application 2003-97945). The application was disclosed by
JPO on 28 October 2004 as a Japan Laid-open Publication 2004-303140 and expects
registration to take place within the next 12 months.
Product Marketing & Sales
Secure Design targets the commercial sector for product sales in Japan and
intends to target the same sector internationally going forward. The Company's
marketing strategy is based on a two stage process, involving both the expansion
of its distribution networks and raising awareness of the brand and products
internationally.
The Company is targeting customers through sales partnerships and advertising in
professional journals and internet media. The Directors believe sales channel
partners (sales representatives/ distributors) are vital for product
introductions, logistics and after-sales service. Secure Design intends to
continue to build a network of key sales distributors in various territories in
Asia, Europe, and North America and intends to fully support the agents it
engages to target local customers.
Secure Design has business alliances with several companies as a result of the
Technoimagia Acquisition and as such the Company has a number of relationships
including Casio Computers Co, Ltd., and Texas Instruments, Inc., and a
distribution relationship with Nippon Secure Generation (SecuGen Japan) Ltd. The
Company has an agreement with SecuGen Japan, a biometric company in Japan,
pursuant to which both companies have agreed to distribute each others products.
SecuGen Japan is presently marketing Secure Design's mobile authentication
devices (ITube and PC-Tube) to its customers. The Company is also seeking global
business and technological alliances for increasing customers, reducing the
product cost, improving product performance, and developing interdisciplinary
technology.
INFORMATION ON THE MARKET
It is expected that the biometric technology sector will be worth US$ 2.2
billion in 2006, US$3.8 billion in 2008, and US$ 5.7 billion in 2010.
Fingerprint technology including the AFIS dominates the biometrics market, and
is forecasted to generate approximately US$ 1.5 billion sales in 2006, US$ 2.4
billon in 2008, and US$ 3.4 billion in 2010. (Source: "Biometric Market &
Industry Report 2006-20 10"). Several factors are driving the biometrics
industry including improvements in software algorithms, decreases in sensor
pricing and the ability for database formats to handle large-scale deployments.
Market growth is predicted to continue as biometrics becomes a cost effective
and viable solution in an increasing number of applications including consumer
electronics, financial services, and health care.
The Directors expect that the U.S. and other national governments will continue
to be the largest consumers of biometric products. Full deployment of US Federal
programs such as the US-VISIT and the National Transportation Workers Identity
Card schemes, along with other governmental programs such as the UK National ID
card and the global Visa Waiver program, are expected to serve as near-term
catalysts for the sector.
Biometric Market Revenue Prediction
Year Predicted Revenue from Biometric Market
(billions of US dollars)
2005 1.53
2006 2.17
2007 3.01
2008 3.84
2009 4.70
2010 5.74
From: "Biometric Market and Industry Report 2006-2010 (IBG, 2006)
Fingerprint scanning is the most established subset of the biometric access
control industry, with large law enforcement databases, accuracy, and
cost-effectiveness being the major reasons for its widespread use.
The Directors believe silicon fingerprint sensors are therefore gaining market
share and being reduced in price as the fingerprint authentication market grows.
Biometric Market Share by Technology
Area of analysis Market share
fingerprint 43.6%
face 19.0%
middleware 11.5%
hand 8.8%
iris 7.1%
voice 4.4%
multimodal 4.0%
signature 1.7%
From: "Biometric Market and Industry Report 2006 - 2010 (IBG, 2006)
The increasing threat of identity fraud is expected to result in the increased
strengthening of security features in passports. The International Civil
Aviation Organisation has nominated facial recognition as the primary biometric
for passport with iris and fingerprint as non-mandatory backup. The use of
biometric information to link a person to a passport can significantly reduce
identity fraud.
Biometric verification can also be employed at border controls and to verify the
image on a passport renewal application against images held on record.
The Directors expect that the market will increase in the foreseeable future as
the national applications pave the way for a proliferation of commercial
applications and expect that there will be further growth in the market through
the increased use of secure authentication protocol resulting from the
development and expansion of internet based sales.
CURRENT TRADING AND FUTURE PROSPECTS
In the five month period ended 31 May 2006 the revenue of Secure Design was JPY
101,181,689 (#477,272). This revenue was principally attributable to
client-server systems with fingerprint authentication capability.
The Directors believe that Secure Design has a good platform from which to
develop its business both through domestic growth in its home market of Japan
and through international growth. A core strategy for the Company is to develop
the Company through selective acquisitions of other biometric technology and
biometric services companies both domestically and internationally.
The business of the Company is still in its early growth stage and the Company
does not yet have an established trading record; however, the Directors are
pleased that the Company has had some notable success in securing some important
contracts, commercial trials and other arrangements that will underpin the
growth that the Directors expect in its sales and underlying business. Key
highlights include:
* The sale in of a complete server based fingerprint system to ACII
Solutions, Inc, a major Japanese systems integrator in December 2005. The
system can administer 150 client terminals, each of which has the
fingerprint image scanner to ACII Solutions, Inc, a major system integrator
in Japan.
* The sale of ten units of PC-Tube and SDK to SecuGen Japan to facilitate
a trial of the products by SecuGen.
* The purchase of 110 units of LS- 120 and ASIC by Technoimagia as sales
agent for the Company.
* NTT DoCoMo has purchased 20 units of the PC-Tube via Secugen Japan in
order to evaluate the product.
* The finalisation of a contract with SecuGen Japan for delivery of 4,000
PC-Tube units to NTT Communications in the third quarter of 2006.
* The adoption of the Company's products by Honda Motor Co., Ltd. to
establish a server based door control system which controls 15 different
door accesses in a production plant with 3,000 employees. The sophisticated
system provides for different privilege requirement for each employee
permitting the server to recognise permitted entry by a person dependant on
location, status of access privilege and time of day.
* Post-sales service maintenance for of a client-server system installed
by Technoimagia at National Hospital Organisation Tokyo Medical Centre. The
system has 700 client PCs each of which has the Company's fingerprint image
scanner FP-Plus permitting doctors and technicians to gain access to medical
records and groupware via fingerprint identification.
* Negotiating a sales contract with Laurel Bank Machines to deliver
internal bank systems.
* Negotiating a sales contract with a major game machine company, Namco,
to deliver a smartcard system with fingerprint matching.
* Business with Ides, a system service provider, to deliver fingerprint
matching modules.
In addition to organic growth through the opportunities outlined above, the
Directors intend to grow the Company through a number of strategic acquisitions
in the near to medium term. Such acquisitions may be of the whole or a part of a
business or the acquisition of the entire issued share capital of a company. A
number of targets have already been identified and the Directors are confident
that these opportunities will provide excellent opportunities and synergies for
the Company to develop and expand its current operations. It is likely that the
first such acquisition undertaken by the Company will constitute a reverse
takeover for the purposes of the AIM Rules and will require the publication of
an admission document relating to the Company as enlarged by such acquisitions
and be conditional upon the consent of shareholders in general meeting. It is
envisaged that the consideration for any such acquisition will be satisfied by
way of the issue of Shares, although the Company may make such acquisitions for
cash. In the event that the consideration is wholly or partly in cash completion
of any such acquisition is expected to be conditional on the raising of finance
(whether by the way of debt or equity) by the Company.
New Products under Development
Smartcard and RFID application:
The Company is currently developing a prototype product incorporating a minutiae
matching routine for smart cards to address the vulnerability of smart cards to
ID theft resulting from the lack of owner identification in current smart cards.
Smart cards are now widely used for various purposes including railroad passes,
vending machines, and fee payments but are non-contact based in that they have
embedded in them Radio Frequency Identification (RFID) but do not have the
owner's verification. The Directors believe the Company's technology can
significantly enhance the security transaction of smart card transactions with
only a modest investment by the customer.
Biometric Certificate Authority Service (local & global):
One of Secure Design's business strategies is to establish a fingerprint
authentication service through the Internet by using its proprietary
communication protocol. The Company is jointly developing the project with a
sub-contractor Wizcast Inc. Technoimagia in collaboration with Wizcast
constructed a pilot project with 3,000 users for Technoimagia in 2005, in
respect of the project which generated monthly revenue of JPY 1,000,000 for
Technoimagia. The Directors expect there to be an additional BCA service in the
U.S. in 2007.
The Director's anticipate that revenue structure of BCA service will be similar
to a telephone or CATV system with the Company charging a service fee to each
user. As far as the Directors are aware none of the Company's competitors have
implemented a similar service due to their lack of appropriate 1 :N
identification technology.
Fingerprint image sensor and ASIC:
Since its incorporation, the Company has been purchasing fingerprint image
scanner components from Fingerprint Card AB (a company listed on the Stockholm
Stock Exchange). Technoimagia Sweden, a wholly owned subsidiary of Technoimagia
Co., Ltd., currently holds 50.4% of the shares in Fingerprint Card AB. The
component consists of a semiconductor (capacitive) type sensor and ASIC utilised
for in-device verification and is an important component in the Company's ITube
product. Cost effective, high performance fingerprint sensors and ASIC for
matching programmes are critical to effective penetration of the consumer market
for fingerprint technology. Current target customers for the ITube and PC-Tube
are corporate organisations due to the high price of the sensor components.
Secure Design is planning to produce the semiconductor sensor and ASIC for ITube
and PC-Tube at a substantially reduced cost. The Company is in advanced
negotiations with a household-name home-electronics manufacturer to produce a
low cost semiconductor sensor and ASIC.
Multi-modal (fingerprint +finger vein) matching:
Secure Design is currently carrying out a research and development project for
simultaneous finger and vein authentication capability. The Directors believe
such multi-modal scheme will dramatically improve the accuracy and the process
efficiency of 1 :N identification, and be particularly effective for unattended
automated transaction machines
SELECTED UNAUDITED FINANCIAL INFORMATION
Secure Design KK
Period from November 22, 2005 to December 31, 2005
31 December
2005
JPY'000
Turnover 14,470
Gross profit 11,639
Profit / (Loss) before
taxation (15,289)
The above financial information is unaudited and has been extracted from the
Financial Information set out in full in the Admission Document without material
adjustment.
DIVIDEND POLICY
The Board intends to adopt a dividend policy appropriate to the Company's
financial performance. This will take into account its ability to operate and
grow and the need to retain a prudent level of cash resources.
REASONS FOR THE ADMISSION
The Directors believe that Admission will increase the financial and commercial
profile of the Company, furthermore they believe it is a key step in Secure
Design's international growth and acquisition strategy. The Directors believe
that the international nature of AIM fits the profile and growth strategy of the
Company. The Company aims to attract and retain key personnel through the grant
of stock options.
DIRECTORS AND PROPOSED DIRECTORS
The Board currently comprises five Directors as follows:
Taketoshi Kashiwabara, aged 59, Chairman of the Board
Taketoshi joined Tokyo University of Foreign Studies to undertake a B.A. in
Chinese in 1969. However, he decided to pursue his business career before
completing his degree and joined Cannon Sales Co., Ltd. in 1970. In 1984 he
founded Subaru International, a company developing machine translation systems
for Nippon Univac and collaborated closely with Toshiba. Customers of Subaru
International included NTT Research Institute and IBM Japan Research Center. In
2003 he became the Chief Executive Officer at Fuji Digital Imaging Inc. In
February 2004 he became a management adviser to Technoimagia and he became
Chairman of the Board in July 2005. He became a non-executive director of
Technoimagia on 31 March 2006.
Satoshi Takahashi, aged 56, Chief Executive Officer
Satoshi graduated in 1972 with a B.S. in Mathematics from Hokkaido University.
He became a Director of System Development at 3A Systems, and in 1998 he became
the Chief Marketing Officer at Dream Technologies where he was involved with the
sales and marketing of image processing technology. In June 2001 he was
appointed Chief Marketing Officer of Crosslanguage and four years later he
became an Executive Director at Fuji Digital Imaging.
Shoichi Kiyomoto, aged 56, Chief Technology Officer
Shoichi graduated with a B.S. in Physics from Rikkyo (St. Paul) University,
Tokyo in 1972 and then completed a doctorate at the Tokyo Metropolitan
University in applied physics in 1978. Mr Kiyomoto has undertaken extensive
research and development of fingerprint and authentication technologies and
related products. In 1978 he became President of Shinwa System Products and he
co-founded and joined Technoimagia in 1995 as Chief Technology Officer.
Shinil Cho, aged 54, Chief Information Officer
Shinil has an extensive academic background in experimental physics. He
graduated from Rikkyo (St. Paul) University in Tokyo with a B.S. in physics and
went on to gain an M.S. at the Seoul National University as well as completing a
doctorate in experimental physics at Ohio State University. Between 1984 and
2003 he has held a number of research posts at universities in America and he
was also appointed Research Physicist at Doty Scientific Inc between the years
of 1988 - 1991. Following this position he was President at Sci Tran until 2005.
He was appointed Assistant Professor of the Department of Physics & Mathematics
at La Roche College in Pittsburgh, Pennsylvania in 2000, and then Associate
Professor in 2006. He has been serving as the Chair of the Department since
2003.
David Evans, aged 45, Non Executive Director
David graduated with B.Com First Class Honours from Edinburgh University in 1982
and awarded an Institute Gold Medalist of Institute of Chartered Accountants in
1986. He also received M.B.A. with distinction from University of Dundee in
1992. David is Chairman of BBI Holdings plc and Immunodiagnostic Systems
Holdings plc both of whom he helped achieve a successful flotation on AIM in
2004. He is also Chairman of Physiomics plc and the only non-executive director
of Chromgenex plc both of which are AIM quoted companies. Additionally he holds
a number of other directorships primarily in the life sciences field.
KEY MANAGEMENT AND EMPLOYEES
Currently, there are three software engineers employed by Secure Design, and the
chief research engineer, Takio Asagiri, is in charge of software development and
customisation. Takio has played major developmental role in the core technology
of the Company. Takio graduated with a B.S. in Mathematics from Stanford
University, California, and went on to gain a Masters in Computer Science at
Vanderbilt University in Tennessee. He came to Japan in 1979 and worked for
Shinwa System Products. He has worked for Technoimagia since its establishment,
developing the authentication algorithm.
Definitions
The following definitions apply throughout this document unless the context
otherwise requires: the
"Act" Companies Act 1985, as amended;
"Admission" admission of the Issued Share Capital to
trading on AIM and such admission becoming
effective in accordance with the AIM Rules;
"AIM" the market of that name operated by the
London Stock Exchange;
the rules for AIM companies and their
nominated advisers as issued by the London
"AIM Rules" Stock Exchange, as amended from time to time;
"Articles" the articles of incorporation of the Company;
"Board" or "Directors" the directors of the Company whose names are
set out on page 3 of this document;
"Capita" Capita IRG Trustees Limited;
Charles Stanley Securities, a division of
Charles Stanley & Co Plc. which is regulated
"Charles Stanley" for the conduct of investment business in the
UK by the Financial Services Authority and is
a member of the London Stock Exchange, the
Company's Nominated Adviser and Broker;
the Combined Code on corporate governance
published by the Financial Reporting Council
"Combined Code" appended to but not forming part of the
Listing Rules;
means any person who has the following
relationship with the relevant person: (a)
"Connected Persons" kin or a spouse or a relative within the
first degree of the relevant person; (b) or
an entity in respect of which the relevant
person has effective control or is an officer
of such entity;
"Corporation Act" Corporation Act of Japan, as amended;
the computerised settlement system operated
by CRESTCo which facilitates the transfer of
"CREST" title to shares in uncertificated form;
CRESTCo Limited;
"CRESTCo"
the depository interests in the Company
created by a trust deed dated - entered into
"Depository Interests" by Capita Registrars;
Yugen Kaisha IO Network, a company
incorporated and registered in Japan with
"IO Network" company number 0108-02-001004;
the entire issued share capital of the
Company as at the date of Admission;
"Issued Share Capital"
"London Stock Exchange" London Stock Exchange plc;
"Official List" The Official List of the UK Listing
Authority;
"Secure Design" or "the Secure Design KK (Secure Design Kabushiki
Company" Kaisha) a limited liability company
incorporated and registered in Japan under
the Corporation Act of Japan;
"Shares" shares in the capital of the Company;
"Shareholders" holders of Shares;
"Share Option Scheme" the share option scheme in respect of
1,820,000 shares adopted by the Company on 31
January 2006 and described in paragraph 6.1
of Part V of this document;
"Technoimagia" Technoimagia, Co. Ltd a company incorporated
in Japan whose issued share capital is owned
as to 40.6 per cent. by Taketoshi Kashiwabara
and which is controlled by Taketoshi
Kashiwabara;
the acquisition of the Technoimagia Business
pursuant to the Technoimagia Acquisition
"Technoimagia Acqusition" Agreement;
the fingerprint authentication business and
the assets relating thereto transferred to
"Technoimagia Business" the Company pursuant to the Technoimagia
Acquisition Agreement;
the agreement dated 1 December 2005 and made
between Technoimagia and the Company relating
"Technoimagia Acqusition to the sale and purchase of the Technoimagia
Agreement" Business;
"Time" all reference to time are references to
London time;
"United Kingdom" or "UK" the United Kingdom of Great Britain and
Ireland;
"UK Listing Authority" the Financial Services Authority acting in
its capacity as the competent authority for
the purposes of Part VI of the Financial
Services and Markets Act 2000;
"Yen (Y) or JPY" where a figure denominated in Japanese Yen is
expressed as an amount of GB pounds sterling
and vice versa in this document the exchange
rate used for this purpose was #1: JPY 212.
GLOSSARY OF TERMS
Algorithm A sequence of instructions that tells a
system how to solve a problem, used by
biometric systems, for example, to tell
whether a sample and a template are a match.
AFIS Automated Fingerprint Identification System.
A system originally developed for use by law
enforcement agencies, which compares a single
fingerprint with a database of fingerprint
images.
Application Specific Integrated Circuit. An
integrated circuit developed for specific
ASIC applications to improve performance.
Biometrics The science and technology of automated
authentication of individuals based on their
physiological or behavioural characteristics.
Central Processing Unit. The CPU is the main
processing centre of the computer. Sometimes
referred to simply as the processor or
central processor, the CPU is where most
CPU calculations take place. In terms of
computing power, the CPU is the most
important element of a computer system.
DSP Digital Signal Processor. A special
integrated circuit designed to perform signal
processing.
Encryption The scrambling of data so that it becomes
difficult to unscramble or decipher. Data
encryption is done by the use of an algorithm
and a key. The key is used by the algorithm
to scramble and unscramble the data.
Encryption does not make unauthorised
decryption impossible, but merely difficult.
The process of determining a person's
identity by performing matches against
Identification multiple biometric templates (1: N).
Identification systems are designed to
determine identity based solely on biometric
information. There are two types of
identification systems: positive
identification and negative identification.
Positive identification systems are designed
to find a match for a user's biometric
information in a database of biometric
information.
Matching The comparison of biometric templates to
determine their degree of similarity or
correlation on order to carry out
Identification.
Minutiae, in fingerprinting terms, are
patterns of local ridge characteristics that
Minutiae Points occur at either a ridge bifurcation or a
ridge ending. They are arrays of sweat glands
in the skin formed in humans at the age of
three that remain unchanged for the entire
life of an individual and are believed to be
unique to the individual.
Positive Authentication Establishing whether the person is who he
claims to be using his biometric
characteristics.
RFID An automatic identification method, relying
on storing and remotely retrieving data using
devices called RFID tags or transponders. An
RFID tag is a small object that can be
attached to or incorporated into a product,
animal, or person.
SDK Software Development Kit.
Template A mathematical representation of biometric
data. There are two types of template:
"enrolled" template being the reference
template and "fresh" template being the
template to be authenticated.
USB Universal Serial Bus. An external peripheral
interface standard for communication between
a computer and external peripherals.
Verification The process of establishing the validity of a
claimed identity by comparing a verification
template to an enrolment template 1:1.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCDGGMNRFFGVZM
Secure Design Kk (LSE:SDKK)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Secure Design Kk (LSE:SDKK)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024
