Codercard, a small Newport Beach company that makes computer security devices, has received a $4.8-million order from its Australian distributor.
The order is by far the largest to date for Codercard, a 5-year-old company that has recently begun to market its products after years of research and development.
Codercard President Willis D. Marsing said Tuesday that the Australian distributor, Codercard Pty. Ltd., has received "a firm order" from a financial services company in Australia. He declined to identify the firm.
"We have put a lot of effort into our work over there" in Australia, Marsing said. "We think this is the year it will begin to pay off."
Codercard said the agreement covers a one-year period and is subject to approval by the U.S. State Department, which has not yet granted Codercard an export license for the products. Codercard said it expects the license to be approved within two months.
Founded in 1983, the Newport Beach firm makes electronic cards and machines that "read" them. The security systems are designed to foil computer hackers and others trying to gain unauthorized access to computer files. The cards allow only authorized persons to use computers.
Codercard said it plans to create a joint venture with Securicom Pty. Ltd. of Brisbane, Australia, to manufacture and sell its products in Australia and other Pacific Rim countries.
The company also said it anticipates final approval of its Codercard device next week by the U.S. Treasury Department for use in computers used by the government to make electronic fund transfers. Treasury officials gave tentative approval to the device in May.
Codercard officials have said that the Treasury Department's certification of the Codercard security system should lead to wider acceptance of the product among government agencies, banks, stock brokerages and other financial institutions. Codercard has been trying for years to interest government agencies in its products but so far has not made any significant sales.
Codercard lost $150,921 on revenue of $106,792 for the nine months ended March 31. The company blamed the loss on increased spending to market its products, which until recently have largely been in the research and development stage.
Earlier this month, Codercard announced an agreement with AT & T under which it will adapt AT & T-made computerized plastic cards for financial and government markets.