Authentidate (nasd:ADAT) is an attractive,speculative play offering massive upside potential with little downside risk. ADAT trades @ near cash with a price / book multiple of 0.8x and has zero debt on its balance sheet. Optimistic expectations stemming from the USPS choosing Authentidate as the sole provider of the electronic postmark (EPM), drove ADAT’s shares to nearly $20 in 2004. As customer adoption has been much slower than expected, revenue traction has been soft causing shares to sink to all-time low price of $0.85. The concept of Authentidate’s product/service offerings has always been solid value proposition, yet support for customer implementation has been rather weak.
Authentidate restructured the company and adopted a new strategy resulting in the August release of its Inscrybe™ web-based platform. Inscrybe simplifies the implementation process, which will lead to increasing customer adoption and a dramatic acceleration in revenue growth. The prospects of accelerating revenue growth coupled with high gross margins make ADAT worth considering as a speculative holding given limited risk for further price deterioration.
Company Description: (from ADAT 10-k)
Authentidate Holding Corp. is a worldwide provider of software and web-based services that enable enterprises and individuals to exchange information securely and conduct trusted business transactions. Our offerings are targeted at enterprises and office professionals, and incorporate security technologies such as electronic signing, identity management, and content authentication to electronically facilitate secure and trusted transactions. In the United States, we also offer our proprietary and patent pending content authentication technology as a web-based service in the form of the United States Postal Service® Electronic Postmark. See
USPS EPM.
New Product: Inscrybe Office
Taken from company press release 8/15/2007-
Inscrybe Office is based on Authentidate's proven Inscrybe suite of capabilities serving the document exchange needs of large enterprises today. The new web-based service combines powerful features, such as electronic signatures, content authentication and trusted time stamps using the United States Postal Service® (USPS) Electronic Postmark (EPM) seal, along with a host of other features that simplify the online exchange of critical and time-sensitive documents. Inscrybe Office is available to anyone with web access, via MyInscrybe.com, a new self-serve portal designed to provide individual users personalized access to Authentidate offerings.
Inscrybe Office, is a user-friendly service designed for business or personal use, to securely and conveniently sign, seal and confirm receipt of important documents over the web. In addition to supporting multiple electronic signatures on the same document, the new service offers senders and recipients the benefits of secure and verifiable online document exchange, with optional features such as acknowledgment of receipt, verification of recipient identity, and audit trails. A user may employ any combination of these optional features to legitimize a document transaction.
Inscrybe Office is ideal for legally binding or compliance-dependent transactions such as business or personal contracts, agreements, closing documents, transcripts, offer letters, prescriptions, authorizations and much more.
