HI all, again many investors seem to like making statements without doing their homework.The fact are that any takeover of Gemalto by Thales will have little effect on Senetas because of 3 main reasons. 1 Thales already are a rival to Senetas as they have layer2 encryption that they sell in Europe, but they do not have certification in the UK and with NATO, 2 The major cyber security market is in the US and US govt and most major instuitions will not buy any technology from the French and 3. thales do not have any accreditation with FIPS in the US. Now the facts are that the US defence dept are already using 1-10 encryptors and are testing the 100gb and Microsoft have been using 10gb for last 12-18 months and are in process of changing their systems over to take the 100gb box. The US govt made it clear that all sales to its depts. have to be made in the US, which is what is happening through Safenet Assured technologies and not from the French. If thales decide to cancel the agreement with Senetas/ Gemalto it will put Senetas in a stronger position as by dealing directly will double their revenue. Finally Senetas have 3 other sources of revenue that will not be affected by Thales---Sales in Europe by ADVA of the virtual encryption, Sales of Suredrop technology worldwide and allsales to Eastern Europe ( including Russia) of a specaially designed encryptor for their needs. None of these sales come under the agreement with Gemalto, so I believe that Thales may look at Senetas in a way that gives them greater exposure in cybersecurity.
SEN Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
