Boulder, CO – May 17, 2010 – eCrypt Technologies (OTCBB:ECRY) is pleased to announce the completion of a financial report by premier research company, Cohen Independent Research Inc., which concludes with a Price Index Target of $2.60.
The report evaluates eCrypt Technologies’ (the “Company”) potential by assessing the company’s potential to capitalize on the fast growing trend towards wireless communications. It recognizes eCrypt’s Associate Member status of the BlackBerry® Alliance Program.
The report considers the Company’s management, and makes a case for ‘eCrypt,’ the Company’s flagship product with proprietary intellectual property.
Key highlights from the Cohen Independent Research Report include:
- An endorsement of the Company’s technology, stating, “The information security industry is highly competitive and the market is saturated with free security softwares. eCrypt’s competitive edge is its superior quality, comprehensive data protection capabilities, and the Export Authorization with Mass Market Commodity Status. The Company’s product can be used without the complicated requirements of servers, Service Providers, IT Administrators, or experience with encryption technology, unlike the easily available free software, and the more complex and highly expensive corporate solutions from providers such as PGP. Additionally encryption keys generated by ‘eCrypt’ software are stored only on the user’s handheld device, thus offering true data security.”
- An evaluation of the fast paced growth of the wireless communications market is expected to rise in excess of 619% by 2013.
- The report suggests an increase in the percentage share of devices such as the BlackBerry® smartphone in the wireless arena, and the inherent need for additional security with that growth.
- The report estimates Company revenues to exceed $200 million by fiscal 2014, with an annual growth rate of 66%. The report states, “The BlackBerry® smartphone is one of the most used devices in the world and market trends suggest a growing demand in the coming years. eCrypt’s recurring revenue will be generated from existing licensees that will replace or upgrade their handsets. This licensing strategy will create a steady revenue source for the Company… We expect robust revenue growth on the back of a favorable industry outlook coupled with ECRY management’s significant industry experience and expertise.” The report goes on to state these revenue estimates may be low depending on the Company’s ability to leverage different platforms.
The Cohen Price Index Target share price was calculated as follows:
“The Cohen Price Target is calculated using market-based multiple valuation, Discounted Cash Flow (DCF) and by applying the Cohen Price Performance Index approach. The multiple based valuation approach uses the expected 2010 Price-to-Earnings and Price-to-Capital Employed ratio. We also include the Cohen Price Performance Index, which is representative of the past coverage performance of all stocks evaluated by us. The last component in calculating the Cohen Price Target is the value derived using the long-term Cohen Discounted Cash Flow (DCF) valuation approach. Based on an average of these methods, ECRY common stock is valued at $2.60 per share.”
Bradley Lever, CEO of eCrypt Technologies Inc., commented on the report stating, “Naturally we are encouraged that the Cohen Independent Research Report gives our shares a price target 400% of what it is today. We’re doing our best to let the world know about our technology through our international advertising campaign on CNBC, and now to have our Company valued so highly by such a respected independent research firm, it seems the Company will soon be just as well known in the investment community.”
The report will be available at the company’s website at www.eCryptinc.com
About eCrypt Technologies
eCrypt Technologies, Inc. is an information security firm with a focus on the wireless industry. Its flagship product “eCrypt” is a first-of-its-kind encryption software for wireless email on BlackBerry® smartphones, and is available under a perpetual license or on a pay-per-use basis. Using the strongest encryption algorithms available for the BlackBerry® smartphone OS, eCrypt software prevents unwanted access to email messages during transmission and storage on servers and PCs. Users may communicate freely with each other knowing that no one has access to the content of their emails.
eCrypt is an Associate Member of the BlackBerry® Alliance Program and has successfully obtained a Mass Market Status for its product from the U.S. Department of Commerce, Bureau of Industry and Security. This status allows eCrypt to export and re-export the software under section 742.15(B)(2) of the Export Administration Regulations, and is recognized by the Wassenaar Arrangement.
eCrypt is available for BlackBerry® Internet Service and BlackBerry® Enterprise Server customers.
For further information go to: www.eCryptinc.com, or www.YourPrivacyIsOurBusiness.com
The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited.