Viscount Systems (VSYS)

[Dobie Lama]

The report from Sound View.

Viscount Systems has launched a suite of new IP-based products that are changing the game in the physical security business, particularly building access control and management. The existing expen-sive, proprietary “stove-piped” industry is flipping over to modern technology. These systems are being merged with IT-based security tools and methods that leverage existing databases like Microsoft Active Directory. Investors have seen this before with telephony and more recently with video.
Viscount is the only public investment vehicle in this space and has the potential to reward investors with more than 4x returns from current levels given our base case intrinsic value (IV)1 estimate of $0.26. If the company ramps the business as planned our IV for 2012/2013 increases to $0.84. There are some additional key factors to consider:
? A combination of acute need to comply with regulations and intense pressure on costs is forc-ing enterprises to upgrade their existing access control approach and embrace open, modern technologies to lower costs and improve effectiveness.
? Organizations have invested billions in IT-based identity management and logical access securi-ty. It’s dawning on everyone that physical access control should be managed in the same way as an extension of these systems to eliminate the duplication of cost and effort.
? Viscount Systems has developed their “Freedom” product line into a unique and effective software solution that allows enterprises to manage identity and access management in one place and eliminate the need for expensive proprietary infrastructure.
? Viscount has substantially upgraded their company capability over the last 18 months – ex-panding their board of directors and advisors, opening their first field office in Washington D.C., and putting the required sales and marketing team in place.
? In the next few quarters Viscount will continue to add new revenues from the Freedom line to.....

http://s3.amazonaws.com/Published_Research/Viscount_VSYS_Report_Oct_11_2012.pdf