STONY BROOK, NY--(Marketwired - December 03, 2013) - Applied DNA Sciences (OTCQB: APDN), (Twitter: @APDN), a provider of DNA-based anti-counterfeiting technology and product authentication solutions, announced today the availability of an additional version of its SigNature® DNA mark for electronic components, for use exclusively by authorized distributors. Each SigNature DNA authorized distributor would be given a unique mark, specifically identifying that authorized distributor, to be applied to incoming components, or legacy inventory before shipment per customer request. From that point forward, the marked components will be absolutely identifiable as sourced from the authorized channel.
Company officials pointed out that the new mark will enable all participants in a supply-chain to distinguish the authorized-sourced parts as those which are at an extremely low risk of being counterfeit. Taken as a whole, the SigNature DNA marking platform is a truly holistic system: able to provide tools to monitor parts at all levels of risk as they arrive at different nodes in the supply chain.
The authorized channel is clearly the premier source of supply as companies incorporate risk mitigation protocols. Because authorized distributors have a direct link to the manufacturers of the parts, they are the first choice, when possible, for procurement of electronic components. The additional version of the SigNature DNA mark underscores APDN's commitment to this critical sector.
This APDN mark will only be made available to legally authorized distributors as defined in SAE Standard AS5553a (see below)*
There are immediate benefits to the authorized channel in that this would allow for a definitive way to accept returns and ensure counterfeits are not introduced into the authorized channel. While low, some observers have found a measure of risk in the need to process returns by the authorized channel.
The new version of the mark would also empower all users in the supply chain, downstream of the authorized distributor, to participate in absolute risk mitigation by authenticating a statistically meaningful sample size of components throughout the life cycle of the parts. Considering that manufacturing cycles are growing shorter, while obsolescence management is lasting longer, this is especially important. This does represent a new process but one of tremendous value to the supply chain. First adopters would be partnering on some of the finer integration details to ensure maximum efficiency.
When scanned in the field, the new mark version will appear green under UV light which will distinguish the mark from existing marks of Authenticity™ (red under UV light) and Provenance™ (yellow under UV light) already in place via Applied DNA Sciences' current partners in the electronics industry. While the appearance (only under UV light) is different, all other attributes of the other proven SigNature DNA marks are the same. The benefit of this difference allows the supply chain to have assurance that the part was sourced through the pristine authorized channel. As with all versions of the SigNature DNA mark, a sample of the mark may be sent to an APDN lab for absolute forensic identification.
Janice Meraglia, APDN Vice President of Government and Military Programs commented: "We are proud to introduce this legally authorized distributor mark in response to industry feedback. One of our strengths is the premier level of versatility we can incorporate into our solution set. To satisfy different segments of the marketplace with different optical array appearances and application methods has always been part of our technology roadmap. This is the natural progression of that evolution."
Dr. James A. Hayward, President and CEO of Applied DNA Sciences pointed out, "Our business model in other industries aligns us with manufacturers and their authorized distributors so this represents the part of the supply chain with which we are very familiar. We believe in offering options in a rational fashion and when technically ready."
* AUTHORIZED DISTRIBUTION: Transactions conducted by an OCM-Authorized Distributor distributing product within the terms of an OCM contractual agreement. Contractual Agreement terms include, but are not limited to, distribution region, distribution products or lines, and warranty flow down from the OCM. Under this distribution, the distributor would be known as an Authorized Distributor. For the purposes in this Standard, Franchised Distribution is considered synonymous with Authorized Distribution. "Fraudulent/Counterfeit Electronic Parts; Avoidance, Detection, Mitigation, and Disposition," SAE Standard AS5553a, p. 8
About Applied DNA Sciences
APDN is a provider of botanical-DNA based security and authentication solutions that can help protect products, brands and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. SigNature® DNA and DNANet, our principal anti-counterfeiting and product authentication solutions that essentially cannot be copied, provide a forensic chain of evidence and can be used to prosecute perpetrators.
The statements made by APDN may be forward-looking in nature. Forward-looking statements describe APDN's future plans, projections, strategies and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of APDN. Actual results could differ materially from those projected due to our short operating history, limited financial resources, limited market acceptance, market competition and various other factors detailed from time to time in APDN's SEC reports and filings, including our Annual Report on Form 10-K, filed on December 20, 2012 and our subsequent quarterly reports on Form 10-Q. APDN undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date hereof to reflect the occurrence of unanticipated events.