A new distribution partnerâ€”announced by Document Security Systems Inc. late last weekâ€”has placed an order that, if successful, could have a significant impact on 2007 revenues at the local anti-counterfeiting technology firm.
The partnership with Identification Data & Imaging includes a $1 million minimum guarantee for an initial order for secure driverâ€™s licenses to be delivered next month.
The deal is to be part of the companyâ€™s premier marketing and distribution partner program. In that arrangement, DSS and selected marketing partners enter into agreements under which DSS is guaranteed a minimum level of revenue in exchange for limited exclusivity and preferred pricing.
DSS expects to announce additional partner agreements over the coming months.
IDIâ€™s order for driverâ€™s licenses will be completed by DSSâ€™ recently acquired Plastic Printing Professionals subsidiary, also known as P3.
â€œIDI is winning new business as a result of our combining DSS technology with P3â€™s existing product line. This partnership has the potential to be a major step in our goal of achieving profitability by the end of 2007,â€ DSS president Peter Ettinger said in a statement.
Jeff Brodsky, president of IDI, said DSS technology and manufacturing capabilities will enable IDI to penetrate new markets.
Located in Port Washington, Long Island, IDI is a distributor of visual and electronic identification items such as room keys, identification badges and promotional cards.
This afternoon, DSS stock (AMEX: DMC) was trading at $10.08, down 11 cents from $10.19 at Fridayâ€™s close.
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