Tuesday, 16 August 2011

ACI Worldwide To Solicit Proxies Against Proposed S1-Fundtech Transaction

ACI Worldwide, Inc. yesterday announced that it has filed preliminary proxy materials with the Securities and Exchange Commission (SEC) in connection with the solicitation of votes against proposals related to the proposed merger of S1 Corporation and Fundtech Ltd.

"As we have said from the outset, ACI remains ready and willing to complete our proposed acquisition of S1. Our filing of preliminary proxy materials to solicit against the proposed Fundtech transaction reflects our commitment to this goal," said Philip G. Heasley, President and Chief Executive Officer of ACI. "We expect that many S1 shareholders share our strong belief that ACI's acquisition proposal is superior to and provides S1 shareholders with significantly greater value than the proposed transaction with Fundtech.

In response S1 announced "On August 2, 2011, S1 announced that its Board of Directors had rejected ACI's proposal to acquire S1 and had affirmed its commitment to S1's pending business combination with Fundtech. The S1 Board, in consultation with its financial and legal advisors, gave careful consideration to each of the proposed terms and conditions of ACI's proposal and determined that ACI's proposal is not in the best interests of S1 and its stockholders."

A Special Meeting of Stockholders has been arranged on Thursday, September 22, 2011 to consider and vote on proposals related to the combination with Fundtech.

OTI Reports First Six Months 2011 Financial Results

On Track Innovations Ltd. has announced results for the first half ended June 30, 2011. The following are various financial figures that compare first half of 2011 to the same period last year.

  • Total revenues of $26.7 million, a 4% decrease compared to $27.8 million last year
  • Revenues from Licensing and Transaction Fees of $2.7 million, a 49% increase compared to $1.8 million last year
  • Gross margin of 50% for the first half of 2011
  • Non-GAAP operating expenses of $15.0 million, a 16% increase compared to $13.0 million last year. GAAP operating expenses of $16.4 million, a 9% increase compared to $15.1 million last year
  • Non-GAAP operating loss of $1.6 million, compared to non-GAAP operating profit of $2.2 million last year. GAAP operating loss was $3.1 million, compared to GAAP operating profit of $27,000 last year
  • Strong balance sheet with cash, cash equivalents and short-term investments of $33.1 million as of June 30, 2011

Oded Bashan, Chairman and Chief Executive Officer of OTI, said, "Following the first six months of 2011, with better than expected revenues, OTI is well positioned to enjoy its expected growth and the investments we have made in the recent years. We are involved in a larger number of projects that have progressed to their commercial implementation stage, resulting in the increase in recurring and transaction fee revenues. We have a larger number of opportunities that are in pilot stages with a clear path to rollouts, which will mainly impact 2012 and 2013 revenues, ultimately increasing our long term visibility and profitability. In addition, we have created new alliances with channel partners in the vertical markets that we focus on, especially in the petroleum and parking markets, which will help us increase revenues from these sectors. The advancements increase our confidence level in meeting the previously provided guidance for the year of $55-$60 million in revenues."

Fortumo Selects Payfone to Power Mobile Payments

Payfone, a leading mobile payment processing service, and Fortumo, a leading provider of mobile payments, announced yesterday that Fortumo has selected Payfone to power the direct billing option for its in-app purchasing SDK. This direct billing mobile payment method offers better reliability and higher security as well as better payouts for developers. Through the partnership, Fortumo's clients will be able to provide consumers with the ability to make safe and secure mobile payments in real-time from any device, such as PC, smartphone, tablet or Wi-Fi.

Payfone's Mobile Commerce Service is directly integrated into the mobile operator's network, which provides the ability to intelligently identify a consumer's profile in the system and offers true payment authorisation and authentication. Payfone's Device DNA authenticates the consumer across a wide variety of parameters during the transaction, ensuring they get exactly what they paid for. By pairing the Device DNA to each transaction, Payfone is able determine if a transaction is from a lost or stolen mobile device or if the owner of the mobile account has changed. This translates into one of the most secure and frictionless user experiences, across any device.

Fortumo's in-app purchasing SDK for Android is the preferred international monetization tool for some of the most popular mobile game and app developers. Payment is done in a single click with no login or registration required. Fortumo's in-app purchasing library supports both direct mobile operator billing and premium SMS, automatically selecting the best option depending on country, operator and user. It comes with built-in support for consumable and non-consumable items and virtual currencies.

"We are excited to work with Payfone because of their deep integration with mobile operators' billing systems," said Rain Rannu, co-founder of Fortumo. "This in turn will allow us to continue to provide the highest converting in-app purchasing with more payment options for our clients."

Hackers Bypass Google Security to Execute 80,000 Daily Queries for Cyber Reconnaissance

Imperva's Hacker Intelligence Initiative (HII) today revealed that hackers are leveraging the power of search engines to successfully carry out attacks - and it's risk free. Hackers, armed with a browser and specially crafted search queries ("Dorks"), are using botnets to generate more than 80,000 daily queries, identify potential attack targets and build an accurate picture of the resources within that server that are potentially exposed. Automating the query and result parsing enables the attacker to issue a large number of queries, examine all the returned results and get a filtered list of potentially exploitable sites in a very short time and with minimal effort. As searches are conducted using botnets, and not the hacker's IP address, the attacker's identity remains concealed.

"Hackers have become experts at using Google to create a map of hackable targets on the Web. This cyber reconnaissance allows hackers to be more productive when it comes to targeting attacks which may lead to contaminated web sites, data theft, data modification, or even a compromise of company servers" explained Imperva's CTO, Amachai Shulman. "These attacks highlight that search engine providers are need to do more to prevent attackers from taking advantage of their platforms."

During May and June its Application Defense Centre (ADC) observed a specific botnet attack on a popular search engine. For each unique search query, the botnet examined dozens and even hundreds of returned results using paging parameters in the query.

The volume of attack traffic was huge: nearly 550,000 queries (up to 81,000 daily queries, and 22,000 daily queries on average) were requested during the observation period. The attacker was able to take advantage of the bandwidth available to the dozens of controlled hosts in the botnet to seek and examine vulnerable applications.

Auckland Transport Launches the A-PASS

Auckland Transport launched a special public transport pass targeted at tourists visiting Auckland during Rugby World Cup 2011 on Monday.

Specifically developed for tourists and visitors to Auckland for RWC 2011, the A-PASS is a 'limited time' public transport pass, which will provide all day travel across the Auckland Transport network (train, bus and ferry).

Tourists can buy and load multiple day passes onto their A-PASS selecting which days they plan to travel (e.g. Monday, Tuesday, Thursday or Saturday), they will also be able to reload the same card with additional day passes. The PASS includes a number of special discount offers to attractions around the city.

Auckland Transport's Chief Executive, David Warburton, says; "The A-PASS marks the first introduction of Auckland Transport's Ticketing partner, Thales, and Thales technology, into the city's smart-card mix".

Peter Beggs, Chief Executive Officer, Thales New Zealand says, "The A-PASS and the RWC has always been part of the rollout schedule for the AIFS project and Thales is pleased to be part of the launch today. Using the A-PASS during the RWC provides an excellent opportunity to have an early demonstration of some of the key functionality of the Thales system, prior to the full rollout of HOP smartcard system from mid - 2012".

It will be available for sale in the lead up to and during the RWC between 1 September and 24 October.

BIO-Key International Plans to Acquire S.I.C. Biometrics

BIO-key International, Inc. has announced that the company has signed a letter of intent to acquire Montreal-based S.I.C. Biometrics Inc, manufacturers of biometric plug-in mobile fingerprint scanners, biometric proximity cards and access control solutions, through a combination of asset purchase and exclusive license arrangements. S.I.C. Biometrics is credited with developing the first fingerprint reader for Apple mobile devices. While the terms of the definitive acquisition agreements will be made public when signed, BIO-key anticipates that the acquisition would be accretive to the company in the fourth quarter of 2011. In addition to due diligence and definitive documentation, the transaction will be subject to customary closing conditions, including any necessary regulatory approvals.

BIO-key expects that combining with S.I.C. would strengthen BIO-key's overall market reach, expanding opportunities for new projects and partnerships that can be fully satisfied via complete solutions for mobility, access control and consumer security . S.I.C. founded in 1999, designs, manufactures and internationally commercializes biometrics security products. BIO-key is recognized for developing software which utilizes a patented algorithm to deliver the fastest and most accurate commercially viable finger biometric solutions available.

Eric Talbot, President, S.I.C. Biometrics Inc, said "combining with BIO-key and their world class finger matching software used by many commercial and government entities worldwide would open an incredible opportunity to market our unique snap-on biometric reader for the iFamily of products. Also, it would rapidly expand the visibility and market reach for our other unique identity control solutions on a global basis."

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