On the Move: Acquisition Boosts Comnetix’s Presence in Southeast

CARROLLTON, Ga. – ComnetiX SE, a new subsidiary of Toronto-based ComnetiX, is filling orders from five Georgia counties to provide software-based solutions for jail management and record management components of its Eagle Advantage product line.

Jefferson, Thomas, Calhoun, Appling and Barrow counties all recently placed orders with the company.

The new subsidiary, is a direct result of ComnetiX’s merger with Paragon Total Solutions, which was completed earlier this year.

“Given that these orders come as a result of our acquisition of Paragon Total Solutions, I am pleased to be able to say that these installations include the Eagle-brand jail and record management systems,” says James P. Scullion, Comnetix CEO.

Eagle Advantage was the flagship product of Paragon. It includes a comprehensive suite of software solutions designed specifically for law enforcement and public safety agencies.

Paragon was incorporated in 1998 and recorded approximately $2.9 million in sales in calendar year 2004. Approximately 200 customers in the Southeast were using Paragon at the time of its merger with Comnetix in July.

“This acquisition allows us to round out our suite of biometric software solutions for law enforcement and public safety agencies, particularly in the jail and records management areas,” Scullion says. “Just as important, however, it adds Paragon’s established customer base in a part of the country that we need to serve – the southeastern United States. Our goal has been to expand our presence from Canada, New York and the Northeast to other parts of North America.

“We’ve made initial strides in building a customer base in the Midwest and California and now Paragon provides us an immediate operation and sales force that is known and respected in the Southeast.”

Before the acquisition, Comnetix primarily focused on live scan technologies, criminal intelligence, imaging archiving, work-flow management, remote IT servicing, identification matching and fingerprint services. It is also a provider of emerging biometric technology.

The company reported a 117 percent year-over-year revenue increase for its 2005 fiscal year and a 35 percent increase over 2004’s fourth quarter.

“The quarter, and indeed the year, saw a number of very positive developments that contributed significantly to the growth of ComnetiX, not only in terms of revenue, but in overall scope, resources and capability of the company” Scullion says.

However, the company’s net loss increased over the quarter and the year primarily because of operational expansion, according to company executives.