L-1 Identity Solutions reports Q4 and 2008 results

Company records Q4 2008 non-cash goodwill and intangible asset impairment charges


* Domestic driver's license awards and contract extensions in 2008 totaled $203.2 million. International credentialing program contracts totaled $47.8 million from Latvia, Paraguay, Panama, Mexico, and Chile, among others.

* The U.S. Passport Card contract was awarded to L-1 with a negotiated value of $215.0 million over five years, as well as $24.8 million over five years for the new U.S. Border Crossing Card (BCC) as part of an expansion to the U.S. Passport Card program. Of that, approximately $19.0 million was recognized in 2008.

* Registered Traveler (RT) services were added to six new terminals in 2008 at the Denver, Oakland, Dulles, Reagan, Salt Lake City, Atlanta, and Boston airports. Today L-1 maintains over 150 RT kiosks in 34 terminals throughout 18 airports. The kiosk systems include L-1 iris algorithms, document authentication scanners and live scan fingerprint devices for enrollments and verification. There were 176,863 active members in the RT program at the end of 2008.

Biometrics Division

* The Department of Defense (DoD) next generation ABIS system went live on Jan. 29, 2009 and performance and functionality of the system are exceeding customer expectations. L-1 provided multi-biometric search technology for finger, face, iris and palm; fusion technologies that blend independent biometric match scores for increased probability of accurate matching; forensic examiner tools for use when searching on latent and/or poor quality images; and professional services for integration, implementation and data conversion.

* Awards in hardware, software and services in support of multimodal biometric devices totaled approximately $40.9 million in 2008. This included a $4.5 million order not previously announced for HIIDEs and other hardware and software to provide access control and enrollment capabilities at military base entry control points.

* The next generation HIIDE was designed and developed in conjunction with a key customer and will be available in the first quarter of 2009.

* A new Live Scan device was unveiled this year, the TouchPrintâ„¢ Enhanced Definition 4800 Live Scan, which captures forensic-quality ten print and palm images on a single platen. The device also is a modular component of the HIIDEâ„¢ Expansion Module (EM) Jumpkit.

Enterprise Access Division

* The acquisition of Bioscrypt was completed in 2008 and added biometric-based access control solutions to the L-1 Identity management portfolio.

* The division launched its next generation VisionAccess 3D Face Reader and orders are ahead of schedule.

* The division will unveil a new state-of-the-art ruggedized next generation finger-based access control device in early 2009 that will be used in programs like Transportation Worker Identification Credential (TWIC).

Enrollment Services Division

* The Transportation Security Administration (TSA) selected L-1 to continue to serve as the prime contractor for enrollment services to commercial drivers seeking a Hazardous Materials Endorsement (HME) on their Commercial Driver’s License (CDL).

* New contracts in excess of $300 million were announced in 2008 from NY, TX, WA, CA. The division grew organically in excess of 26 percent in 2007 and is poised for significant growth in 2009 based on contracts already in backlog.

* The division opened more than 100 new enrollment centers across the country in 2008, bringing the total to more than 700. The division processed 1.5 million applicants in 2008, representing 50 percent growth over 2007.

Government Consulting Services Division