Software Helps Find Stolen Computers
Every year, as many as 5% of laptops used by companies are stolen, according to Absolute Software Corp. And Absolute, which makes software that helps pinpoint the location of stolen computers, would like nothing better than to recover them all.
Absolute's software, called Computrace, works by sending a regular signal from a computer to the company's data center in Vancouver, British Columbia. The signal, sent daily when a computer is online, provides important information that can be used to locate the machine, such as the computer's IP address and serial number. When a computer is reported stolen, Absolute flags the machine and asks it to signal the data center every 15 minutes. When the machine logs on to the Internet, Absolute knows it almost immediately and gives information to police to help recover the computer and apprehend the thief.
Absolute's 96 employees include a computer-recovery team that works with police and Internet service providers. The company recovers about 25 stolen computers a week, according to Absolute Chief Executive John Livingston.
A laptop stolen recently from a Fidelity Investments employee, jeopardizing personal data on 196,000 current and former Hewlett-Packard Co. workers, wasn't equipped with its tracing software, Absolute says. Other stolen laptops, however, have been tracked down in far-flung places. Last year, one stolen machine was traced to Iraq. A U.S. serviceman had bought it not realizing it was stolen. When contacted, the serviceman readily agreed to ship the machine stateside and Absolute sent him a replacement, for no charge. (Absolute says this was an exception -- it doesn't routinely replace stolen computers.)
Computrace is embedded in the BIOS, or basic input-output system, of a computer. The BIOS is a mini-operating system that enables the computer's keyboard and display screen, among other things. It's extremely difficult to remove from a computer, remaining on the machine even when its main operating system, such as Microsoft Windows, is reinstalled. "Our reason for existence," Mr. Livingston says, "is to be the most tamper-resistant piece of software on the market."
As of Dec. 31, Absolute had 550,000 subscribers, up from 370,000 a year earlier. The company is targeting 1 million subscribers by June 30, 2007. There is a version of the Computrace software that works with MacIntosh laptops, and Absolute says that the product will also be compatible with Microsoft Corp.'s new Vista operating system.
Fred Tarca, director of administration and project management at Quinnipiac University, said the Hamden, Conn., school began selling Computrace-equipped laptops to students four years ago, before improvements were made to the system.
The earlier version of the product was good at tracking lost computers, Mr. Tarca says, but it wasn't very good at recovering stolen machines, as the software could be circumvented by deleting the contents of the hard drive. Then last year, Quinnipiac's laptop supplier, Dell Inc., began embedding Computrace in the BIOS. "Not only is it a much better technology," Mr. Tarca says. "We have had success recovering lost and stolen laptops."
The decision by Dell and other original equipment manufacturers to embed Computrace in the BIOS was like finding the "holy grail," says Absolute Chief Financial Officer Rob Chase. The company had tried unsuccessfully for years to convince OEMs to make the move, he said. Last year, things changed. In February, Absolute said Lenovo Group Ltd. would begin embedding Computrace in the BIOS of its machines. Gateway Inc. followed in August, Hewlett-Packard in October and Dell in December.
Absolute pays its OEM partners half of the contract fee that it receives from subscribers. Consumers typically pay $100 for a three-year contract for the product, called LoJack for Laptops, under a license to use the well-known name of the stolen-car tracking device.
Corporations pay $129 per computer for a three-year contract. While that won't make or break the fortunes of its OEM partners, Mr. Chase says margins on computer sales are down, prompting OEMs to look for new sources of high-margin revenue.
When the Lenovo announcement was made last February, Absolute's stock was trading on the Canadian Venture Exchange at 65 Canadian cents. The stock is up more than five-fold since then and now trades on the Toronto Stock Exchange. It currently trades around 3.50 Canadian dollars (US$3).
Absolute isn't profitable yet, because accounting rules require the firm to recognize revenue from subscriber contracts on a deferred basis, Mr. Livingston says. Contracts, which typically last 36 months, are amortized evenly over the life of the agreement, he says. However, subscribers usually pay the fee up front, which explains how Absolute can generate positive operating cash flow, despite posting a net loss.
In its second quarter ended Dec. 31, Absolute posted a loss of C$709,000 or three Canadian cents a share, compared with a loss of C$467,000 or three Canadian cents a year earlier. Cash flow from operations was C$1.2 million, up from C$243,000. The company exited the quarter with C$14.5 million in cash and equivalents, up from C$11.9 million on June 30, 2005.
The company has 13 patents, about half of them in the U.S., and it hasn't been shy about asserting its intellectual-property rights. Six companies have signed license agreements with Absolute, including CyberAngel Security Solutions Inc. last month, and another six have left the industry.
Mr. Livingston says the company expects to add 20 employees in 2006 and open a U.S. data center. The company is also considering extending its technology to hand-held devices, he says.
担心电脑被盗？软件帮你跟踪
Absolute Software Corp.预计每年被盗的公司电脑多达总数的5%。而Absolute开发的软件可以锁定被盗电脑的位置，让他们最高兴的事莫过于把这些电脑追回来。
Absolute这款软件名为Computrace。安装过Computrace的电脑可以向位于不列颠哥伦比亚省温哥华的公司数据中心发出有规律的信号。这台电脑与互联网连接时会发出信号，这就提供了可以锁定电脑方位的重要信息，比如IP地址和序列号。一旦电脑被盗，Absolute会要求这台电脑每隔15分钟向数据中心发信号。而当这台电脑与互联网连接时，Absolute会立刻得到消息，并通知警察追回电脑并抓住窃贼。
在Absolute 96名员工中有一个小组专门和警察以及互联网服务提供商协作，负责追回电脑。Absolute首席执行长约翰?利文斯顿(John Livingston)表示，公司每星期追回的被盗电脑约有25台。
Absolute表示，最近被Fidelity Investments员工盗走的一台电脑很可能导致惠普公司(Hewlett-Packard Co.) 196,000名前任及现任员工的个人数据被泄漏，这台电脑恰恰没有安装Absolute的跟踪软件。而其他很多被盗电脑，即便被带到千里之外，也逃不过Absolute的跟踪。去年，一台被盗的笔记本被跟踪到伊拉克。一位美国军人在不知情的情况下将其买走。Absolute与其联系后，他爽快地答应将电脑原璧归赵。作为答谢，Absolute免费赠送了他一台。（Absolute称，这次是个例外，通常情况下公司不会以物换物。）
用户可以将Computrace安装在电脑的基础输入输出系统(basic input-output system, BIOS)内。BIOS是一种小型操作系统，控制电脑的键盘、显示器等诸多元件。将该系统移除极为困难，即便将主操作系统（例如Microsoft Windows）重新设置也很难办到。这种依存的原理将成为市场上最卓越的抗外力入侵技术。
截至去年12月31日，Absolute的用户达到55万，远高于1年前37万的水平。公司正力争在2007年6月30日前吸引用户100万。Absolute表示，公司还推出可以兼容MacIntosh电脑的版本，并将兼容微软即将推出的Vista操作系统。琴尼派克大学(Quinnipiac University)经营与项目管理系主任佛瑞德?塔卡(Fred Tarca)说，学校4年前就开始向学生出售配置Computrace的笔记本，之后该系统又有了升级版。
最初的版本能够准确地跟踪被盗电脑，塔卡说，但在恢复设备方面做得不够，人们在删除硬盘驱动器内容的同时会将软件破坏掉。于是，琴尼派克大学的笔记本供应商戴尔公司(Dell Inc.)从去年起开始在BIOS上安装Computrace。“不只是技术改善了，”塔卡说，“我们还能成功地恢复丢失和被盗的笔记本。”
Absolute首席财务长罗布?蔡斯(Rob Chase)说，戴尔以及其他很多原设备生产商就像发现了圣杯一样，纷纷在BIOS中装上了Computrace。很多年前公司就开始劝说原设备生产商这么做，但总是屡屡碰壁。去年，情况大为改观。2月份，联想集团(Lenovo Group Ltd.)率先在BIOS装上Computrace。8月份，Gateway Inc.紧随其后，接下来惠普和戴尔也如法炮制。
Absolute将从用户手中获取的合约费付一半给原设备生产商。消费者通常支付100美元享用3年的丢失寻回系统(LoJack for Laptops)，这个名字经授权借鉴了一种广为人知的失窃汽车跟踪设备的名字。
企业为每台电脑的合约要支付129美元，期限也为3年。蔡斯说，虽然这笔钱对原设备生产商而言不痛不痒，然而随著电脑销售利润率的下降，原设备生产商不得不寻找新的高利润率的收入来源。
联想去年2月份宣布采用Computrace时，Absolute在加拿大上市的股票仅报0.65加元。目前该股上涨了近4倍，在多伦多交易所现报3.50加元左右。
