Defense Stocks News - SAIC, Inc. (NYSE: SAI ) Announces Financial Results for First Quarter of Fiscal Year 2010; Operating Income: Up 17 percent to $204 million
- Diluted EPS from Continuing Operations: Up 16 percent to $0.29
- Reaffirming Guidance for Fiscal Year 2010
SAN DIEGO and MCLEAN, Va., June 3 -- SAIC, Inc. (NYSE: SAI ), a scientific, engineering, and technology applications company, today announced financial results for the first quarter of fiscal year 2010, which ended April 30, 2009.
After the quarter ended, the U.S. Department of Defense indicated that it intends to restructure the Future Combat Systems (FCS) program, which represents about 3 percent of the company's annual revenue. The company currently expects to have a significant role under the restructured program, but the level of effort and terms and conditions remain under negotiation.
"In the first quarter of fiscal year 2010, we continued to demonstrate a pattern of solid program execution and financial performance," said Ken Dahlberg, SAIC chairman and chief executive officer. "I am especially pleased that the results were so uniformly positive. That is, all of our major metrics -- revenue, operating margin, earnings per share, and cash flow -- were robust, and virtually all of our business units met or exceeded our expectations. Although the potential restructuring of FCS provides some uncertainty, based on our strong market position across our wide business base, we expect fiscal year 2010 to be another solid year for the company."
Summary Operating Results
Revenues for the quarter were $2.65 billion, up 12 percent from $2.37 billion in the first quarter of fiscal year 2009. Internal, or non-acquisition, growth represented 11 percentage points of the consolidated growth for the quarter. Key drivers of internal growth included the initial ramp of recent wins in defense logistics, information technology, cyber-security, and intelligence support as well as increased tasking on existing defense and intelligence programs.
Operating income for the quarter was $204 million (7.7 percent of revenue), up 17 percent from $174 million (7.4 percent of revenue) in the first quarter of fiscal year 2009. Growth in quarterly operating margin percentage was driven by continued improvements in cost efficiency and contract fees. Income from continuing operations for the quarter was $117 million, up 11 percent from $105 million in the first quarter of fiscal year 2009. Income from continuing operations grew more slowly than operating income primarily because of a $7 million reduction in interest income net of interest expense and a $5 million reduction in other income resulting from joint venture activities and a gain on the sale of two venture capital portfolio investments in the year-ago period.
Diluted earnings per share (EPS) from continuing operations for the quarter were $0.29, up 16 percent from $0.25 in the first quarter of fiscal year 2009, driven by the increase in income from continuing operations and a lower share count compared to the prior year quarter. The diluted share count for the quarter was 397 million, down 3 percent from 410 million in the first quarter of fiscal year 2009, due primarily to share repurchases made over the last four quarters. Diluted earnings per share, which include discontinued operations, were $0.28 for the quarter, up 17 percent from $0.24 in the first quarter of fiscal year 2009. Discontinued operations include Telcordia Technologies, Inc., which was sold in the first quarter of fiscal year 2006, and the Applied Marine Technology, Inc. products business, which was sold in the first quarter of fiscal year 2010.
Earnings per share and share count figures quoted for fiscal year 2009 differ from those cited previously because on February 1, 2009, the company adopted Financial Accounting Standards Board (FASB) Staff Position (FSP) No. EITF 03-6-1 "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities," which requires retrospective application to prior periods. Upon adoption, basic EPS from continuing operations, basic EPS, diluted EPS from discontinued operations and diluted EPS for the three months ended April 30, 2008 each decreased by $0.01. The new methodology had a similarly dilutive effect for the three months ended April 30, 2009.
Cash Generation and Capital Deployment
Cash flow from operations for the quarter was $163 million (or 1.4 times income from continuing operations) compared to $14 million in the first quarter of fiscal year 2009. Cash collections continued to be strong as days sales outstanding (DSO) were 68 days, flat sequentially and an improvement of five days year-over-year.
During the quarter, the company used $223 million to repurchase approximately 12 million common shares including 11 million under the company's stock repurchase program and the remainder in recurring repurchases from employees in settlement of withholding taxes associated with stock option exercises and vesting events. Whether any future repurchases are made and the timing and actual number of shares repurchased under the stock repurchase program will depend on a variety of factors, including share price, corporate capital requirements, and other market conditions. As of April 30, 2009, the company had $898 million in cash and cash equivalents and $1.1 billion in long-term debt.
New Business Awards
Net new business bookings totaled $2.6 billion in the first quarter, representing a book-to-bill ratio of 1.0. Net bookings are calculated as the current period ending backlog plus the current period's revenue less prior period ending backlog and backlog obtained in acquisitions. No bookings value is assigned unless the company has received a signed contract for a priced statement of work.
Large, competitive definite delivery contract awards received during the quarter include:
Armed Forces Health Longitudinal Technology Application/Composite Health Care System (AHLTA/CHCS) Support. Under a 30-month, $158 million task order, SAIC will provide engineering, logistics and sustainment support to AHLTA/CHCS to ensure the quality care of 9.4 million beneficiaries at more than 135 Military Treatment Facilities worldwide. Together, the AHLTA electronic health record and the CHCS integrated hospital information system enable the Military Health System to track clinical care and exposures of deployed units, monitor demand-management effectiveness, better understand disease prevalence and prevention, and study both clinical and management outcomes.
Tactical Biometrics Systems (TBS) Support. SAIC was awarded a subcontract by Sensor Technologies Incorporated to support the U.S. Army Communications and Electronics Command by providing operations and user maintenance support to TBS. SAIC's subcontract has a four-year period of performance and a total contract value of more than $115 million. TBS devices collect fingerprints, iris scans, facial photos and biographical information on persons of interest. The biometric data is then matched against a database, potentially identifying wanted or dangerous persons. SAIC will provide operations and user maintenance support to help ensure continued, reliable technical support of TBS systems, peripherals and networks.
Center for Domestic Preparedness (CDP) Support. SAIC received a five-year, $104 million contract from the Department of Homeland Security to provide training support to the CDP. CDP offers all-hazards training at the only federally chartered weapons of mass destruction training center, catering to emergency responders from all 50 states, the District of Columbia, and the U.S. territories. SAIC will design and develop emergency responder curriculum, provide qualified instructors to teach each course, and manage training logistics and sustainment activities.
U.S. Joint Forces Command (USJFCOM) Joint Capability Development Directorate (J8) Support. Under a five-year, $81 million task order, SAIC will support USJFCOM J8 in the areas of engineering, analysis, test, and evaluation. SAIC will perform work in the areas of command and control, capability engineering, system engineering and integration, capability portfolio management, and net-enabled command capability to help address the complex challenges associated with joint capability development.
Hawaii Energy Efficiency Program Administration. SAIC was awarded a contract to administer the rate-payer funded Hawaii Energy Efficiency Program, helping Hawaiian residents and businesses become more energy efficient. The contract potentially runs through 2016; the contract has a value of $38 million for the first two years. SAIC will provide program design and implementation, customer incentives and rebates, new initiatives, interface with the Hawaii Clean Energy Initiative, and manage efforts concerning commercial, industrial, residential, and renewable energy programs.
In addition, SAIC also won several indefinite delivery/indefinite quantity (IDIQ) contracts that are not included in net bookings. The most notable IDIQ awards during the quarter were:
General Services Administration (GSA) Alliant. SAIC was awarded a prime contract on the Alliant government-wide acquisition contract from the GSA. Alliant is a multiple-award contract with a 10-year period of performance and a total ceiling value for all awardees of $50 billion. The scope of work includes all components of an integrated information technology solution, including future technologies that may emerge during the life of the contract.
Simulation and Training Omnibus Contract (STOC II). SAIC will provide simulation, training and instrumentation services and products under STOC II, which was awarded by the U.S. Army's Program Executive Office for Simulation Training and Instrumentation (PEO STRI). This ten-year, multiple-award contract has a total ceiling value of $17.5 billion for all awardees. SAIC will perform a full range of life cycle management to include front end analysis, design, development, fielding, and sustainment of training and testing systems, instrumentation, and gaming system simulators.
U.S. Strategic Command (USSTRATCOM) Support Services. SAIC received a contract to provide technical analysis and studies for programs and strategies for USSTRATCOM. This multiple-award contract has a five-year period of performance and a ceiling value of $900 million for all awardees. USSTRATCOM's missions include Space Operations; Cyberspace Operations; Strategic Deterrence; Combating Weapons of Mass Destruction; Global Command and Control; Global Strike and Integration; Information Operations; Integrated Missile Defense; and Intelligence, Surveillance and Reconnaissance.
The company's backlog of signed business orders at the end of the first quarter of fiscal year 2010 was $16.7 billion, of which $5.7 billion was funded. As compared to the end of the first quarter of fiscal year 2009, total backlog increased 11 percent and funded backlog increased 6 percent. The negotiated unfunded backlog of $11.0 billion represents the estimated amount to be earned in the future from firm orders for which funding has not been appropriated or otherwise authorized and unexercised priced contract options. Negotiated unfunded backlog does not include any estimate of future expected task orders to be awarded under IDIQ or other master agreement contract vehicles.
Included within the backlog is approximately $0.1 billion in funded backlog and $1.0 billion in negotiated unfunded backlog related to FCS through the current contract end date of December 31, 2014. The company expects that it will soon stop work on the manned ground vehicle component of FCS but continue work on the system-of-systems integration component and the new technology spin-outs under a new or modified contract. The company expects that approximately $0.2 billion of the FCS backlog will be recognized as revenues throughout the remainder of fiscal 2010.
Forward Guidance
Despite the FCS developments, SAIC maintains a healthy backlog and a strong market position across its wide business base. Absent further disruptions in government funding, the company currently expects to achieve all of its long-term, average annual financial goals in fiscal year 2010:
Growing revenue internally in the six percent to nine percent range;Improving operating margin by 20 to 30 basis points until reaching a sustainable level between eight percent and nine percent; and Growing earnings per share from 11 percent to 18 percent.
Mark Sopp, SAIC chief financial officer commented, "The company has built a resilient and diversified base of business and new opportunities that enables us to reaffirm our expectation that we will achieve our long-term financial growth goals again in fiscal year 2010 despite the restructuring of FCS. The strength of this company lies not with one contract, but with thousands of contracts and 45,000 employees dedicated to solving our customers' most difficult problems."
About SAIC
SAIC is a FORTUNE 500® scientific, engineering, and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy and the environment, critical infrastructure, and health. The company's approximately 45,000 employees serve customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets. SAIC had annual revenues of $10.1 billion for its fiscal year ended January 31, 2009. For more information, visit www.saic.com.
SAIC: From Science to Solutions®
Forward-Looking Statements
Certain statements in this release contain or are based on "forward-looking" information within the meaning of the Private Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "anticipates," "believes," "estimates," "guidance" and similar words or phrases. Forward-looking statements in this release include, among others, estimates of future revenues, earnings, backlog, outstanding shares and cash flows. These statements reflect our belief and assumptions as to future events that may not prove to be accurate. Actual performance and results may differ materially from the guidance and other forward-looking statements made in this release depending on a variety of factors, including: changes in the U.S. Government defense budget or budgetary priorities or delays in the U.S. budget process; changes in U.S. Government procurement rules and regulations; our compliance with various U.S. Government and other government procurement rules and regulations; the outcome of U.S. Government reviews, audits and investigations of our company; our ability to win contracts with the U.S. Government and others; our ability to attract, train and retain skilled employees; our ability to maintain relationships with prime contractors, subcontractors and joint venture partners; our ability to obtain required security clearances for our employees; our ability to accurately estimate costs associated with our firm-fixed-price and other contracts; resolution of legal and other disputes with our customers and others; our ability to successfully acquire and integrate businesses; our ability to manage risks associated with our international business; our ability to compete with others in the markets in which we operate; and our ability to execute our business plan effectively and to overcome these and other known and unknown risks that we face. These are only some of the factors that may affect the forward-looking statements contained in this release. For further information concerning risks and uncertainties associated with our business, please refer to the filings we make from time to time with the SEC, including the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Legal Proceedings" sections of our latest annual report on Form 10-K and quarterly report on Form 10-Q, which may be viewed or obtained through the Investor Relations section of our Web site at www.saic.com.
All information in this release is as of June 3, 2009. SAIC expressly disclaims any duty to update the guidance or any other forward-looking statement provided in this release to reflect subsequent events, actual results or changes in the company's expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
CONTACTS: Investor Relations: Stuart Davis 703-676-2283 stuart.davis@saic.com
Media Relations: Laura Luke Melissa Koskovich 703-676-6533 703-676-6762 laura.luke@saic.com
melissa.l.koskovich@saic.com
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Thursday, June 4, 2009
Monday, June 1, 2009
Northrop Grumman Opens New Facility for Ministry of Defence Gyrocompass Technical Support in New Malden, U.K.
Northrop Grumman Opens New Facility for Ministry of Defence Gyrocompass Technical Support in New Malden, U.K.
LONDON, June 1, 2009 -- Northrop Grumman Corporation (NYSE:NOC) today officially opened its new U.K. technical support centre to provide service, repair and maintenance for the company's inertial navigation systems (INS) used in Royal Navy ships and submarines.
The new naval gyrocompass support centre, located at Northrop Grumman's Sperry Marine facility in New Malden, U.K., contains a full repair and calibration workshop to support NATO ship INS (SINS) installed on Royal Navy surface warships and attack submarines. Sperry Marine is under contract with the U.K. Ministry of Defence (MoD) to provide ongoing in-service support for these systems.
The event was attended by Northrop Grumman executives, as well as MoD officials and local political leaders. They received a tour of the facility as well as briefings on and demonstrations of its capabilities.
"This new facility will significantly enhance Northrop Grumman's U.K.-based technical capabilities and marks a major milestone in our continuing programme of improving the support we provide to our MoD customers," said Sir Nigel Essenhigh, chairman of Northrop Grumman U.K. "The gyro support centre in New Malden will enable us to provide faster turnaround times and more responsive service support for these important mission-critical shipboard components."
"The new workshop will enable our U.K. employees to perform repairs and re-calibration services for the sophisticated inertial measurement units, which are at the heart of these military shipboard systems," said J. Nolasco DaCunha, vice president of Northrop Grumman Sperry Marine. "Today's opening represents the culmination of many months of work to install the workshop facilities and establish the security systems required by the U.K. MoD."
Northrop Grumman Sperry Marine's offices in New Malden are responsible for a number of major MoD programmes, including the integrated platform management systems being fitted on the Type 45 destroyers and the new Astute-class submarines, as well as the integrated navigation and bridge system being developed for the next generation of Royal Navy aircraft carriers. In addition, the New Malden facility is Sperry Marine's primary centre of excellence for navigation radar and electronic charting technology for commercial marine and international defence markets.
"The gyro support centre is part of a major investment we are making in our New Malden facility," said Dhanvant Goradia, director of Sperry Marine's New Malden business unit. "We are currently nearing the completion of a large-scale modernisation programme for our Burlington House office, which will make the building more attractive and energy efficient as we continue to play an important role in the local economy as a major employer."
Based on Sperry Marine's proprietary ring-laser gyro technology, the SINS devices provide extremely precise 3-D position and attitude reference data for the vessels' navigation and weapons systems. Sperry Marine is a world leader in ring-laser gyro inertial navigation technology, having supplied the vast majority of SINS shipboard devices currently deployed with NATO and international naval forces around the world.
Northrop Grumman Sperry Marine, headquartered in Charlottesville, Va., and with major engineering and support offices in New Malden, United Kingdom and Hamburg, Germany, provides smart navigation and ship control solutions for the international marine industry with customer service and support through offices in 16 countries, sales representatives in 47 countries and authorized service depots in more than 250 locations worldwide.
Northrop Grumman in the U.K. operates from primary locations in London, Fareham, Chester, Coventry, New Malden, Peterborough, RAF Waddington and Solihull and provides avionics, communications, electronic warfare systems, marine navigation systems, robotics, C4ISR solutions and mission planning, IT systems and software development, aircraft maintenance and airport security solutions.
Northrop Grumman Corporation is a leading global security company whose 120,000 employees provide innovative systems, products, and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.
CONTACT: Ken Beedle Northrop Grumman Corporation (London) +44 207 747 1910 +44 7787 174092 ken.beedle@euro.ngc.com
Tom Delaney Northrop Grumman Electronic Systems +1 (410) 993-6454 thomas.delaney@ngc.comResearch defense stocks with the global defense stocks directory at Investorideas.com
click here:
http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
LONDON, June 1, 2009 -- Northrop Grumman Corporation (NYSE:NOC) today officially opened its new U.K. technical support centre to provide service, repair and maintenance for the company's inertial navigation systems (INS) used in Royal Navy ships and submarines.
The new naval gyrocompass support centre, located at Northrop Grumman's Sperry Marine facility in New Malden, U.K., contains a full repair and calibration workshop to support NATO ship INS (SINS) installed on Royal Navy surface warships and attack submarines. Sperry Marine is under contract with the U.K. Ministry of Defence (MoD) to provide ongoing in-service support for these systems.
The event was attended by Northrop Grumman executives, as well as MoD officials and local political leaders. They received a tour of the facility as well as briefings on and demonstrations of its capabilities.
"This new facility will significantly enhance Northrop Grumman's U.K.-based technical capabilities and marks a major milestone in our continuing programme of improving the support we provide to our MoD customers," said Sir Nigel Essenhigh, chairman of Northrop Grumman U.K. "The gyro support centre in New Malden will enable us to provide faster turnaround times and more responsive service support for these important mission-critical shipboard components."
"The new workshop will enable our U.K. employees to perform repairs and re-calibration services for the sophisticated inertial measurement units, which are at the heart of these military shipboard systems," said J. Nolasco DaCunha, vice president of Northrop Grumman Sperry Marine. "Today's opening represents the culmination of many months of work to install the workshop facilities and establish the security systems required by the U.K. MoD."
Northrop Grumman Sperry Marine's offices in New Malden are responsible for a number of major MoD programmes, including the integrated platform management systems being fitted on the Type 45 destroyers and the new Astute-class submarines, as well as the integrated navigation and bridge system being developed for the next generation of Royal Navy aircraft carriers. In addition, the New Malden facility is Sperry Marine's primary centre of excellence for navigation radar and electronic charting technology for commercial marine and international defence markets.
"The gyro support centre is part of a major investment we are making in our New Malden facility," said Dhanvant Goradia, director of Sperry Marine's New Malden business unit. "We are currently nearing the completion of a large-scale modernisation programme for our Burlington House office, which will make the building more attractive and energy efficient as we continue to play an important role in the local economy as a major employer."
Based on Sperry Marine's proprietary ring-laser gyro technology, the SINS devices provide extremely precise 3-D position and attitude reference data for the vessels' navigation and weapons systems. Sperry Marine is a world leader in ring-laser gyro inertial navigation technology, having supplied the vast majority of SINS shipboard devices currently deployed with NATO and international naval forces around the world.
Northrop Grumman Sperry Marine, headquartered in Charlottesville, Va., and with major engineering and support offices in New Malden, United Kingdom and Hamburg, Germany, provides smart navigation and ship control solutions for the international marine industry with customer service and support through offices in 16 countries, sales representatives in 47 countries and authorized service depots in more than 250 locations worldwide.
Northrop Grumman in the U.K. operates from primary locations in London, Fareham, Chester, Coventry, New Malden, Peterborough, RAF Waddington and Solihull and provides avionics, communications, electronic warfare systems, marine navigation systems, robotics, C4ISR solutions and mission planning, IT systems and software development, aircraft maintenance and airport security solutions.
Northrop Grumman Corporation is a leading global security company whose 120,000 employees provide innovative systems, products, and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.
CONTACT: Ken Beedle Northrop Grumman Corporation (London) +44 207 747 1910 +44 7787 174092 ken.beedle@euro.ngc.com
Tom Delaney Northrop Grumman Electronic Systems +1 (410) 993-6454 thomas.delaney@ngc.comResearch defense stocks with the global defense stocks directory at Investorideas.com
click here:
http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
Sector Close-Up on Tech Stocks, Tech Security a Key Issue for Defense
Sector Close-Up on Tech Stocks, Tech Security a Key Issue for Defense
CyberSecurity Stocks Close –Up Following President Obama’s Statements on Securing Cyber Infrastructure; Versar (AMEX: VSR) up 11.60%
Point Roberts, WA- June 1, 2009 Investorideas.com and www.TechSectorStocks.com, a Technology Stocks Investor Portal within Investorideas.com, issues a sector close- up on Technology stocks in the cybersecurity sector following recent remarks from President Obama on securing the cyber infrastructure.
Tech Stocks Sector Close –Up – Cyber Security as of Close May 29th
MCAFEE, INC (NYSE: MFE) closed at $39.23, up $ 0.19 (0.49%). President and Chief Executive Officer Dave DeWalt attended the presentation of the Obama administration’s cybersecurity review at the White House in Washington, D.C., on Friday, May 29, 2009.
Microsoft Corporation (NasdaqGS: MSFT) closed at $ 20.89, up $ 0.44 (2.15%)
Symantec Corporation (NasdaqGS: SYMC), providing security, storage and systems management solutions, closed at$ 15.63, up $ 0.44 (2.90%) and was up again in after hours trading.
Versar (AMEX: VSR) had a big run closing at $ 4.52, up $ 0.47 (11.60%). Versar is a services firm supporting government and industry in national defense/homeland defense programs, environmental health and safety and infrastructure revitalization.
Unisys Corporation (NYSE: UIS), an IT company that specializes in helping clients secures their operations closed at $ 1.39, up$ 0.04 (2.96%)
USA Video Interactive Corporation (OTCBB:USVO) (CDNX:US.V ) just announced Mr. Von Johnson joined USA Video Advisory Board to assist with marketing the Company's Anti-Piracy technologies, closed at $ 0.0520.
Also read Investorideas.com article Defense Budget Winners and Losers – as it relates to cyber security: http://www.investorideas.com/News/050609a.asp
REMARKS BY THE PRESIDENT ON SECURING CYBER INFRASTRUCTURE
May 29, 2009
“We will begin a national campaign to promote cybersecurity awareness and digital literacy from our boardrooms to our classrooms, and to build a digital workforce for the 21st century. And that's why we're making a new commitment to education in math and science, and historic investments in science and research and development. Because it's not enough for our children and students to master today's technologies -- social networking and e-mailing and texting and blogging -- we need them to pioneer the technologies that will allow us to work effectively through these new media and allow us to prosper in the future. “
"It is encouraging to see President Obama and his advisers recognize the seriousness of technology security in all aspects of our lives," said USA Video (OTCBB: USVO) (CDNX: US.V) (Berlin: USF.BE) (Frankfurt: USF.F), President and CEO, Edwin Molina. "Our company's evolving technology offers enforcement solutions that catch criminals who steal and pirate multiple forms of proprietary content, and more and more owners and authorities are realizing that our enforcement strategy works much better than the prevention strategies they have been trying for years."For more than a year USA Video has been providing digital watermarking services to the Hollywood film studio of one of the world's leading media content companies, and is poised to expand its services for content protection and forensic tracking to the education and government sectors.
Featured Tech Stock Showcase Company – Anti- Piracy Technology
Techsectorstocks.com feature the company profile for USA Video Interactive Corporation (OTCBB: USVO) (CDNX: US.V) (Berlin: USF.BE) (Frankfurt: USF.F), a company that designs and markets technology for delivery of digital media. The Company's products add anti-piracy solutions to existing distribution channels and extend distribution into interactive channels with Video-on-Demand.
USA Video Interactive's current focus is on MediaEscort™ and SmartMarks, to help the film and television industry fight piracy, providing a robust means for producers and distributors to invisibly mark their content with the proof authorities need to catch the crooks who steal films, television shows, and video content.
About MediaEscort(TM):
MediaEscort(TM) is an industry first, IP-centric, real-time online watermarking product, with its own administrative infrastructure fully integrated into customer's video servers. It will automatically and seamlessly embed SmartMarks -- imperceptible forensic information in every frame of video content -- during Internet delivery, providing the proof courts need to protect intellectual property rights, indicting and convicting the individuals who steal the original material. Using MediaEscort, copyright holders are able to protect their content without restricting the fair uses of legitimate customers. MediaEscort's SmartMarks work across all distribution and presentation channels and technologies. It seamlessly provides an entire system for piracy protection without frustrating consumers, who will continue to have the freedom to enjoy content in their own way. In addition, MediaEscort has the ability to support all major codecs in the industry, while preserving the SmartMark and the process is fully compatible with DRM.
Read the full company profile:
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Research defense stocks with the global defense stocks directory at Investorideas.com
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CyberSecurity Stocks Close –Up Following President Obama’s Statements on Securing Cyber Infrastructure; Versar (AMEX: VSR) up 11.60%
Point Roberts, WA- June 1, 2009 Investorideas.com and www.TechSectorStocks.com, a Technology Stocks Investor Portal within Investorideas.com, issues a sector close- up on Technology stocks in the cybersecurity sector following recent remarks from President Obama on securing the cyber infrastructure.
Tech Stocks Sector Close –Up – Cyber Security as of Close May 29th
MCAFEE, INC (NYSE: MFE) closed at $39.23, up $ 0.19 (0.49%). President and Chief Executive Officer Dave DeWalt attended the presentation of the Obama administration’s cybersecurity review at the White House in Washington, D.C., on Friday, May 29, 2009.
Microsoft Corporation (NasdaqGS: MSFT) closed at $ 20.89, up $ 0.44 (2.15%)
Symantec Corporation (NasdaqGS: SYMC), providing security, storage and systems management solutions, closed at$ 15.63, up $ 0.44 (2.90%) and was up again in after hours trading.
Versar (AMEX: VSR) had a big run closing at $ 4.52, up $ 0.47 (11.60%). Versar is a services firm supporting government and industry in national defense/homeland defense programs, environmental health and safety and infrastructure revitalization.
Unisys Corporation (NYSE: UIS), an IT company that specializes in helping clients secures their operations closed at $ 1.39, up$ 0.04 (2.96%)
USA Video Interactive Corporation (OTCBB:USVO) (CDNX:US.V ) just announced Mr. Von Johnson joined USA Video Advisory Board to assist with marketing the Company's Anti-Piracy technologies, closed at $ 0.0520.
Also read Investorideas.com article Defense Budget Winners and Losers – as it relates to cyber security: http://www.investorideas.com/News/050609a.asp
REMARKS BY THE PRESIDENT ON SECURING CYBER INFRASTRUCTURE
May 29, 2009
“We will begin a national campaign to promote cybersecurity awareness and digital literacy from our boardrooms to our classrooms, and to build a digital workforce for the 21st century. And that's why we're making a new commitment to education in math and science, and historic investments in science and research and development. Because it's not enough for our children and students to master today's technologies -- social networking and e-mailing and texting and blogging -- we need them to pioneer the technologies that will allow us to work effectively through these new media and allow us to prosper in the future. “
"It is encouraging to see President Obama and his advisers recognize the seriousness of technology security in all aspects of our lives," said USA Video (OTCBB: USVO) (CDNX: US.V) (Berlin: USF.BE) (Frankfurt: USF.F), President and CEO, Edwin Molina. "Our company's evolving technology offers enforcement solutions that catch criminals who steal and pirate multiple forms of proprietary content, and more and more owners and authorities are realizing that our enforcement strategy works much better than the prevention strategies they have been trying for years."For more than a year USA Video has been providing digital watermarking services to the Hollywood film studio of one of the world's leading media content companies, and is poised to expand its services for content protection and forensic tracking to the education and government sectors.
Featured Tech Stock Showcase Company – Anti- Piracy Technology
Techsectorstocks.com feature the company profile for USA Video Interactive Corporation (OTCBB: USVO) (CDNX: US.V) (Berlin: USF.BE) (Frankfurt: USF.F), a company that designs and markets technology for delivery of digital media. The Company's products add anti-piracy solutions to existing distribution channels and extend distribution into interactive channels with Video-on-Demand.
USA Video Interactive's current focus is on MediaEscort™ and SmartMarks, to help the film and television industry fight piracy, providing a robust means for producers and distributors to invisibly mark their content with the proof authorities need to catch the crooks who steal films, television shows, and video content.
About MediaEscort(TM):
MediaEscort(TM) is an industry first, IP-centric, real-time online watermarking product, with its own administrative infrastructure fully integrated into customer's video servers. It will automatically and seamlessly embed SmartMarks -- imperceptible forensic information in every frame of video content -- during Internet delivery, providing the proof courts need to protect intellectual property rights, indicting and convicting the individuals who steal the original material. Using MediaEscort, copyright holders are able to protect their content without restricting the fair uses of legitimate customers. MediaEscort's SmartMarks work across all distribution and presentation channels and technologies. It seamlessly provides an entire system for piracy protection without frustrating consumers, who will continue to have the freedom to enjoy content in their own way. In addition, MediaEscort has the ability to support all major codecs in the industry, while preserving the SmartMark and the process is fully compatible with DRM.
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Sunday, May 31, 2009
Read Investorideas.com article Defense Budget Winners and Losers – as it relates to cyber security
Read Investorideas.com article Defense Budget Winners and Losers – as it relates to cyber security
http://www.investorideas.com/News/050609a.asp
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http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
http://www.investorideas.com/News/050609a.asp
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DHS Announces Guidance for More than $500 Million in Recovery Act-Funded Preparedness
DHS Announces Guidance for More than $500 Million in Recovery Act-Funded Preparedness Grants Release Date: May 29, 2009
For Immediate ReleaseOffice of the Press SecretaryContact: 202-282-8010
The U.S. Department of Homeland Security (DHS) today released application guidance for more than $500 million in Federal Emergency Management Agency (FEMA) preparedness grants for fire station construction, port and transit security—funded by the American Recovery and Reinvestment Act (ARRA).
“These Recovery Act funds will strengthen our economy while improving our ability to prepare for terrorist attacks, major disasters and other emergencies,” said DHS Secretary Janet Napolitano. “The grants announced today will go directly to local projects, revitalizing communities while updating our nation’s infrastructure and enhancing our security.”
The guidance released today includes $150 million for the Port Security Grant Program, $150 million for the Transit Security Grant Program and $210 million for the Fire Station Construction Grant Program. Signed into law by the President on Feb. 17, ARRA committed more than $3 billion to DHS and GSA in support of homeland security programs across the country.
The Port Security Grant Program provides $150 million to protect critical port infrastructure from terrorism; enhance maritime domain awareness and risk management capabilities to protect against improvised explosive devices and other non-conventional weapons; and support the implementation of the Transportation Worker Identification Credential (TWIC). These funds are in addition to the $388.6 million in DHS port security grants announced in April 2009.
The Transit Security Grant Program provides $150 million to hire transit law enforcement officers, mobile explosive detection screening teams, and anti-terrorism teams; shovel-ready anti-terrorism security enhancements that must begin within 90 days of the release of funds and be completed within two years; and other security projects, including improvements to high-density tunnels, stations and bridges. These funds are in addition to the $388.6 million in DHS transit security grants announced in April 2009.
The Fire Station Construction Grant Program will provide $210 million directly to fire departments to build new or modify existing fire stations in order to enhance response capabilities and protect communities from fire-related hazards. These grants will replace unsafe or uninhabitable structures and expand fire protection coverage to meet increased service demand in compliance with National Fire Protection Association standards. These fire grants are in addition to the $565 million in Assistance to Firefighters grants announced earlier this year.
Applications for the Port Security Grant Program and Transit Security Grant Program will be submitted electronically to DHS-FEMA through www.grants.gov. Applications for the Fire Station Construction Grant Program will be submitted electronically at https://portal.fema.gov. Full guidance and more information on preparedness grant programs can be found at www.dhs.gov.
Related InformationFEMA Grants and Assistance Programs
Research defense stocks with the global defense stocks directory at Investorideas.com
click here:
http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
For Immediate ReleaseOffice of the Press SecretaryContact: 202-282-8010
The U.S. Department of Homeland Security (DHS) today released application guidance for more than $500 million in Federal Emergency Management Agency (FEMA) preparedness grants for fire station construction, port and transit security—funded by the American Recovery and Reinvestment Act (ARRA).
“These Recovery Act funds will strengthen our economy while improving our ability to prepare for terrorist attacks, major disasters and other emergencies,” said DHS Secretary Janet Napolitano. “The grants announced today will go directly to local projects, revitalizing communities while updating our nation’s infrastructure and enhancing our security.”
The guidance released today includes $150 million for the Port Security Grant Program, $150 million for the Transit Security Grant Program and $210 million for the Fire Station Construction Grant Program. Signed into law by the President on Feb. 17, ARRA committed more than $3 billion to DHS and GSA in support of homeland security programs across the country.
The Port Security Grant Program provides $150 million to protect critical port infrastructure from terrorism; enhance maritime domain awareness and risk management capabilities to protect against improvised explosive devices and other non-conventional weapons; and support the implementation of the Transportation Worker Identification Credential (TWIC). These funds are in addition to the $388.6 million in DHS port security grants announced in April 2009.
The Transit Security Grant Program provides $150 million to hire transit law enforcement officers, mobile explosive detection screening teams, and anti-terrorism teams; shovel-ready anti-terrorism security enhancements that must begin within 90 days of the release of funds and be completed within two years; and other security projects, including improvements to high-density tunnels, stations and bridges. These funds are in addition to the $388.6 million in DHS transit security grants announced in April 2009.
The Fire Station Construction Grant Program will provide $210 million directly to fire departments to build new or modify existing fire stations in order to enhance response capabilities and protect communities from fire-related hazards. These grants will replace unsafe or uninhabitable structures and expand fire protection coverage to meet increased service demand in compliance with National Fire Protection Association standards. These fire grants are in addition to the $565 million in Assistance to Firefighters grants announced earlier this year.
Applications for the Port Security Grant Program and Transit Security Grant Program will be submitted electronically to DHS-FEMA through www.grants.gov. Applications for the Fire Station Construction Grant Program will be submitted electronically at https://portal.fema.gov. Full guidance and more information on preparedness grant programs can be found at www.dhs.gov.
Related InformationFEMA Grants and Assistance Programs
Research defense stocks with the global defense stocks directory at Investorideas.com
click here:
http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
Saturday, May 30, 2009
REMARKS BY THE PRESIDENTON SECURING OUR NATION'S CYBER INFRASTRUCTURE
THE WHITE HOUSEOffice of the Press Secretary
For Immediate Release May 29, 2009
REMARKS BY THE PRESIDENTON SECURING OUR NATION'S CYBER INFRASTRUCTURE
THE PRESIDENT:
Everybody, please be seated. We meet today at a transformational moment -- a moment in history when our interconnected world presents us, at once, with great promise but also great peril.
Now, over the past four months my administration has taken decisive steps to seize the promise and confront these perils. We're working to recover from a global recession while laying a new foundation for lasting prosperity. We're strengthening our armed forces as they fight two wars, at the same time we're renewing American leadership to confront unconventional challenges, from nuclear proliferation to terrorism, from climate change to pandemic disease. And we're bringing to government -- and to this White House -- unprecedented transparency and accountability and new ways for Americans to participate in their democracy.
But none of this progress would be possible, and none of these 21st century challenges can be fully met, without America's digital infrastructure -- the backbone that underpins a prosperous economy and a strong military and an open and efficient government. Without that foundation we can't get the job done.
It's long been said that the revolutions in communications and information technology have given birth to a virtual world. But make no mistake: This world -- cyberspace -- is a world that we depend on every single day. It's our hardware and our software, our desktops and laptops and cell phones and Blackberries that have become woven into every aspect of our lives.
It's the broadband networks beneath us and the wireless signals around us, the local networks in our schools and hospitals and businesses, and the massive grids that power our nation. It's the classified military and intelligence networks that keep us safe, and the World Wide Web that has made us more interconnected than at any time in human history.
So cyberspace is real. And so are the risks that come with it.
It's the great irony of our Information Age -- the very technologies that empower us to create and to build also empower those who would disrupt and destroy. And this paradox -- seen and unseen -- is something that we experience every day.
It's about the privacy and the economic security of American families. We rely on the Internet to pay our bills, to bank, to shop, to file our taxes. But we've had to learn a whole new vocabulary just to stay ahead of the cyber criminals who would do us harm -- spyware and malware and spoofing and phishing and botnets. Millions of Americans have been victimized, their privacy violated, their identities stolen, their lives upended, and their wallets emptied. According to one survey, in the past two years alone cyber crime has cost Americans more than $8 billion.
I know how it feels to have privacy violated because it has happened to me and the people around me. It's no secret that my presidential campaign harnessed the Internet and technology to transform our politics. What isn't widely known is that during the general election hackers managed to penetrate our computer systems. To all of you who donated to our campaign, I want you to all rest assured, our fundraising website was untouched. (Laughter.) So your confidential personal and financial information was protected.
But between August and October, hackers gained access to emails and a range of campaign files, from policy position papers to travel plans. And we worked closely with the CIA -- with the FBI and the Secret Service and hired security consultants to restore the security of our systems. It was a powerful reminder: In this Information Age, one of your greatest strengths -- in our case, our ability to communicate to a wide range of supporters through the Internet -- could also be one of your greatest vulnerabilities.
This is a matter, as well, of America's economic competitiveness. The small businesswoman in St. Louis, the bond trader in the New York Stock Exchange, the workers at a global shipping company in Memphis, the young entrepreneur in Silicon Valley -- they all need the networks to make the next payroll, the next trade, the next delivery, the next great breakthrough. E-commerce alone last year accounted for some $132 billion in retail sales.
But every day we see waves of cyber thieves trolling for sensitive information -- the disgruntled employee on the inside, the lone hacker a thousand miles away, organized crime, the industrial spy and, increasingly, foreign intelligence services. In one brazen act last year, thieves used stolen credit card information to steal millions of dollars from 130 ATM machines in 49 cities around the world -- and they did it in just 30 minutes. A single employee of an American company was convicted of stealing intellectual property reportedly worth $400 million. It's been estimated that last year alone cyber criminals stole intellectual property from businesses worldwide worth up to $1 trillion.
In short, America's economic prosperity in the 21st century will depend on cybersecurity.
And this is also a matter of public safety and national security. We count on computer networks to deliver our oil and gas, our power and our water. We rely on them for public transportation and air traffic control. Yet we know that cyber intruders have probed our electrical grid and that in other countries cyber attacks have plunged entire cities into darkness.
Our technological advantage is a key to America's military dominance. But our defense and military networks are under constant attack. Al Qaeda and other terrorist groups have spoken of their desire to unleash a cyber attack on our country -- attacks that are harder to detect and harder to defend against. Indeed, in today's world, acts of terror could come not only from a few extremists in suicide vests but from a few key strokes on the computer -- a weapon of mass disruption.
In one of the most serious cyber incidents to date against our military networks, several thousand computers were infected last year by malicious software -- malware. And while no sensitive information was compromised, our troops and defense personnel had to give up those external memory devices -- thumb drives -- changing the way they used their computers every day.
And last year we had a glimpse of the future face of war. As Russian tanks rolled into Georgia, cyber attacks crippled Georgian government websites. The terrorists that sowed so much death and destruction in Mumbai relied not only on guns and grenades but also on GPS and phones using voice-over-the-Internet.
For all these reasons, it's now clear this cyber threat is one of the most serious economic and national security challenges we face as a nation.
It's also clear that we're not as prepared as we should be, as a government or as a country. In recent years, some progress has been made at the federal level. But just as we failed in the past to invest in our physical infrastructure -- our roads, our bridges and rails -- we've failed to invest in the security of our digital infrastructure.
No single official oversees cybersecurity policy across the federal government, and no single agency has the responsibility or authority to match the scope and scale of the challenge. Indeed, when it comes to cybersecurity, federal agencies have overlapping missions and don't coordinate and communicate nearly as well as they should -- with each other or with the private sector. We saw this in the disorganized response to Conficker, the Internet "worm" that in recent months has infected millions of computers around the world.
This status quo is no longer acceptable -- not when there's so much at stake. We can and we must do better.
And that's why shortly after taking office I directed my National Security Council and Homeland Security Council to conduct a top-to-bottom review of the federal government's efforts to defend our information and communications infrastructure and to recommend the best way to ensure that these networks are able to secure our networks as well as our prosperity.
Our review was open and transparent. I want to acknowledge, Melissa Hathaway, who is here, who is the Acting Senior Director for Cyberspace on our National Security Council, who led the review team, as well as the Center for Strategic and International Studies bipartisan Commission on Cybersecurity, and all who were part of our 60-day review team. They listened to a wide variety of groups, many of which are represented here today and I want to thank for their input: industry and academia, civil liberties and private -- privacy advocates. We listened to every level and branch of government -- from local to state to federal, civilian, military, homeland as well as intelligence, Congress and international partners, as well. I consulted with my national security teams, my homeland security teams, and my economic advisors.
Today I'm releasing a report on our review, and can announce that my administration will pursue a new comprehensive approach to securing America's digital infrastructure.
This new approach starts at the top, with this commitment from me: From now on, our digital infrastructure -- the networks and computers we depend on every day -- will be treated as they should be: as a strategic national asset. Protecting this infrastructure will be a national security priority. We will ensure that these networks are secure, trustworthy and resilient. We will deter, prevent, detect, and defend against attacks and recover quickly from any disruptions or damage.
To give these efforts the high-level focus and attention they deserve -- and as part of the new, single National Security Staff announced this week -- I'm creating a new office here at the White House that will be led by the Cybersecurity Coordinator. Because of the critical importance of this work, I will personally select this official. I'll depend on this official in all matters relating to cybersecurity, and this official will have my full support and regular access to me as we confront these challenges.
Today, I want to focus on the important responsibilities this office will fulfill: orchestrating and integrating all cybersecurity policies for the government; working closely with the Office of Management and Budget to ensure agency budgets reflect those priorities; and, in the event of major cyber incident or attack, coordinating our response.
To ensure that federal cyber policies enhance our security and our prosperity, my Cybersecurity Coordinator will be a member of the National Security Staff as well as the staff of my National Economic Council. To ensure that policies keep faith with our fundamental values, this office will also include an official with a portfolio specifically dedicated to safeguarding the privacy and civil liberties of the American people.
There's much work to be done, and the report we're releasing today outlines a range of actions that we will pursue in five key areas.
First, working in partnership with the communities represented here today, we will develop a new comprehensive strategy to secure America's information and communications networks. To ensure a coordinated approach across government, my Cybersecurity Coordinator will work closely with my Chief Technology Officer, Aneesh Chopra, and my Chief Information Officer, Vivek Kundra. To ensure accountability in federal agencies, cybersecurity will be designated as one of my key management priorities. Clear milestones and performances metrics will measure progress. And as we develop our strategy, we will be open and transparent, which is why you'll find today's report and a wealth of related information on our Web site, www.whitehouse.gov.
Second, we will work with all the key players -- including state and local governments and the private sector -- to ensure an organized and unified response to future cyber incidents. Given the enormous damage that can be caused by even a single cyber attack, ad hoc responses will not do. Nor is it sufficient to simply strengthen our defenses after incidents or attacks occur. Just as we do for natural disasters, we have to have plans and resources in place beforehand -- sharing information, issuing warnings and ensuring a coordinated response.
Third, we will strengthen the public/private partnerships that are critical to this endeavor. The vast majority of our critical information infrastructure in the United States is owned and operated by the private sector. So let me be very clear: My administration will not dictate security standards for private companies. On the contrary, we will collaborate with industry to find technology solutions that ensure our security and promote prosperity.
Fourth, we will continue to invest in the cutting-edge research and development necessary for the innovation and discovery we need to meet the digital challenges of our time. And that's why my administration is making major investments in our information infrastructure: laying broadband lines to every corner of America; building a smart electric grid to deliver energy more efficiently; pursuing a next generation of air traffic control systems; and moving to electronic health records, with privacy protections, to reduce costs and save lives.
And finally, we will begin a national campaign to promote cybersecurity awareness and digital literacy from our boardrooms to our classrooms, and to build a digital workforce for the 21st century. And that's why we're making a new commitment to education in math and science, and historic investments in science and research and development. Because it's not enough for our children and students to master today's technologies -- social networking and e-mailing and texting and blogging -- we need them to pioneer the technologies that will allow us to work effectively through these new media and allow us to prosper in the future. So these are the things we will do.
Let me also be clear about what we will not do. Our pursuit of cybersecurity will not -- I repeat, will not include -- monitoring private sector networks or Internet traffic. We will preserve and protect the personal privacy and civil liberties that we cherish as Americans. Indeed, I remain firmly committed to net neutrality so we can keep the Internet as it should be -- open and free.
The task I have described will not be easy. Some 1.5 billion people around the world are already online, and more are logging on every day. Groups and governments are sharpening their cyber capabilities. Protecting our prosperity and security in this globalized world is going to be a long, difficult struggle demanding patience and persistence over many years.
But we need to remember: We're only at the beginning. The epochs of history are long -- the Agricultural Revolution; the Industrial Revolution. By comparison, our Information Age is still in its infancy. We're only at Web 2.0. Now our virtual world is going viral. And we've only just begun to explore the next generation of technologies that will transform our lives in ways we can't even begin to imagine.
So a new world awaits -- a world of greater security and greater potential prosperity -- if we reach for it, if we lead. So long as I'm President of the United States, we will do just that. And the United States -- the nation that invented the Internet, that launched an information revolution, that transformed the world -- will do what we did in the 20th century and lead once more in the 21st.
Thank you very much, everybody. Thank you. (Applause.)
END
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For Immediate Release May 29, 2009
REMARKS BY THE PRESIDENTON SECURING OUR NATION'S CYBER INFRASTRUCTURE
THE PRESIDENT:
Everybody, please be seated. We meet today at a transformational moment -- a moment in history when our interconnected world presents us, at once, with great promise but also great peril.
Now, over the past four months my administration has taken decisive steps to seize the promise and confront these perils. We're working to recover from a global recession while laying a new foundation for lasting prosperity. We're strengthening our armed forces as they fight two wars, at the same time we're renewing American leadership to confront unconventional challenges, from nuclear proliferation to terrorism, from climate change to pandemic disease. And we're bringing to government -- and to this White House -- unprecedented transparency and accountability and new ways for Americans to participate in their democracy.
But none of this progress would be possible, and none of these 21st century challenges can be fully met, without America's digital infrastructure -- the backbone that underpins a prosperous economy and a strong military and an open and efficient government. Without that foundation we can't get the job done.
It's long been said that the revolutions in communications and information technology have given birth to a virtual world. But make no mistake: This world -- cyberspace -- is a world that we depend on every single day. It's our hardware and our software, our desktops and laptops and cell phones and Blackberries that have become woven into every aspect of our lives.
It's the broadband networks beneath us and the wireless signals around us, the local networks in our schools and hospitals and businesses, and the massive grids that power our nation. It's the classified military and intelligence networks that keep us safe, and the World Wide Web that has made us more interconnected than at any time in human history.
So cyberspace is real. And so are the risks that come with it.
It's the great irony of our Information Age -- the very technologies that empower us to create and to build also empower those who would disrupt and destroy. And this paradox -- seen and unseen -- is something that we experience every day.
It's about the privacy and the economic security of American families. We rely on the Internet to pay our bills, to bank, to shop, to file our taxes. But we've had to learn a whole new vocabulary just to stay ahead of the cyber criminals who would do us harm -- spyware and malware and spoofing and phishing and botnets. Millions of Americans have been victimized, their privacy violated, their identities stolen, their lives upended, and their wallets emptied. According to one survey, in the past two years alone cyber crime has cost Americans more than $8 billion.
I know how it feels to have privacy violated because it has happened to me and the people around me. It's no secret that my presidential campaign harnessed the Internet and technology to transform our politics. What isn't widely known is that during the general election hackers managed to penetrate our computer systems. To all of you who donated to our campaign, I want you to all rest assured, our fundraising website was untouched. (Laughter.) So your confidential personal and financial information was protected.
But between August and October, hackers gained access to emails and a range of campaign files, from policy position papers to travel plans. And we worked closely with the CIA -- with the FBI and the Secret Service and hired security consultants to restore the security of our systems. It was a powerful reminder: In this Information Age, one of your greatest strengths -- in our case, our ability to communicate to a wide range of supporters through the Internet -- could also be one of your greatest vulnerabilities.
This is a matter, as well, of America's economic competitiveness. The small businesswoman in St. Louis, the bond trader in the New York Stock Exchange, the workers at a global shipping company in Memphis, the young entrepreneur in Silicon Valley -- they all need the networks to make the next payroll, the next trade, the next delivery, the next great breakthrough. E-commerce alone last year accounted for some $132 billion in retail sales.
But every day we see waves of cyber thieves trolling for sensitive information -- the disgruntled employee on the inside, the lone hacker a thousand miles away, organized crime, the industrial spy and, increasingly, foreign intelligence services. In one brazen act last year, thieves used stolen credit card information to steal millions of dollars from 130 ATM machines in 49 cities around the world -- and they did it in just 30 minutes. A single employee of an American company was convicted of stealing intellectual property reportedly worth $400 million. It's been estimated that last year alone cyber criminals stole intellectual property from businesses worldwide worth up to $1 trillion.
In short, America's economic prosperity in the 21st century will depend on cybersecurity.
And this is also a matter of public safety and national security. We count on computer networks to deliver our oil and gas, our power and our water. We rely on them for public transportation and air traffic control. Yet we know that cyber intruders have probed our electrical grid and that in other countries cyber attacks have plunged entire cities into darkness.
Our technological advantage is a key to America's military dominance. But our defense and military networks are under constant attack. Al Qaeda and other terrorist groups have spoken of their desire to unleash a cyber attack on our country -- attacks that are harder to detect and harder to defend against. Indeed, in today's world, acts of terror could come not only from a few extremists in suicide vests but from a few key strokes on the computer -- a weapon of mass disruption.
In one of the most serious cyber incidents to date against our military networks, several thousand computers were infected last year by malicious software -- malware. And while no sensitive information was compromised, our troops and defense personnel had to give up those external memory devices -- thumb drives -- changing the way they used their computers every day.
And last year we had a glimpse of the future face of war. As Russian tanks rolled into Georgia, cyber attacks crippled Georgian government websites. The terrorists that sowed so much death and destruction in Mumbai relied not only on guns and grenades but also on GPS and phones using voice-over-the-Internet.
For all these reasons, it's now clear this cyber threat is one of the most serious economic and national security challenges we face as a nation.
It's also clear that we're not as prepared as we should be, as a government or as a country. In recent years, some progress has been made at the federal level. But just as we failed in the past to invest in our physical infrastructure -- our roads, our bridges and rails -- we've failed to invest in the security of our digital infrastructure.
No single official oversees cybersecurity policy across the federal government, and no single agency has the responsibility or authority to match the scope and scale of the challenge. Indeed, when it comes to cybersecurity, federal agencies have overlapping missions and don't coordinate and communicate nearly as well as they should -- with each other or with the private sector. We saw this in the disorganized response to Conficker, the Internet "worm" that in recent months has infected millions of computers around the world.
This status quo is no longer acceptable -- not when there's so much at stake. We can and we must do better.
And that's why shortly after taking office I directed my National Security Council and Homeland Security Council to conduct a top-to-bottom review of the federal government's efforts to defend our information and communications infrastructure and to recommend the best way to ensure that these networks are able to secure our networks as well as our prosperity.
Our review was open and transparent. I want to acknowledge, Melissa Hathaway, who is here, who is the Acting Senior Director for Cyberspace on our National Security Council, who led the review team, as well as the Center for Strategic and International Studies bipartisan Commission on Cybersecurity, and all who were part of our 60-day review team. They listened to a wide variety of groups, many of which are represented here today and I want to thank for their input: industry and academia, civil liberties and private -- privacy advocates. We listened to every level and branch of government -- from local to state to federal, civilian, military, homeland as well as intelligence, Congress and international partners, as well. I consulted with my national security teams, my homeland security teams, and my economic advisors.
Today I'm releasing a report on our review, and can announce that my administration will pursue a new comprehensive approach to securing America's digital infrastructure.
This new approach starts at the top, with this commitment from me: From now on, our digital infrastructure -- the networks and computers we depend on every day -- will be treated as they should be: as a strategic national asset. Protecting this infrastructure will be a national security priority. We will ensure that these networks are secure, trustworthy and resilient. We will deter, prevent, detect, and defend against attacks and recover quickly from any disruptions or damage.
To give these efforts the high-level focus and attention they deserve -- and as part of the new, single National Security Staff announced this week -- I'm creating a new office here at the White House that will be led by the Cybersecurity Coordinator. Because of the critical importance of this work, I will personally select this official. I'll depend on this official in all matters relating to cybersecurity, and this official will have my full support and regular access to me as we confront these challenges.
Today, I want to focus on the important responsibilities this office will fulfill: orchestrating and integrating all cybersecurity policies for the government; working closely with the Office of Management and Budget to ensure agency budgets reflect those priorities; and, in the event of major cyber incident or attack, coordinating our response.
To ensure that federal cyber policies enhance our security and our prosperity, my Cybersecurity Coordinator will be a member of the National Security Staff as well as the staff of my National Economic Council. To ensure that policies keep faith with our fundamental values, this office will also include an official with a portfolio specifically dedicated to safeguarding the privacy and civil liberties of the American people.
There's much work to be done, and the report we're releasing today outlines a range of actions that we will pursue in five key areas.
First, working in partnership with the communities represented here today, we will develop a new comprehensive strategy to secure America's information and communications networks. To ensure a coordinated approach across government, my Cybersecurity Coordinator will work closely with my Chief Technology Officer, Aneesh Chopra, and my Chief Information Officer, Vivek Kundra. To ensure accountability in federal agencies, cybersecurity will be designated as one of my key management priorities. Clear milestones and performances metrics will measure progress. And as we develop our strategy, we will be open and transparent, which is why you'll find today's report and a wealth of related information on our Web site, www.whitehouse.gov.
Second, we will work with all the key players -- including state and local governments and the private sector -- to ensure an organized and unified response to future cyber incidents. Given the enormous damage that can be caused by even a single cyber attack, ad hoc responses will not do. Nor is it sufficient to simply strengthen our defenses after incidents or attacks occur. Just as we do for natural disasters, we have to have plans and resources in place beforehand -- sharing information, issuing warnings and ensuring a coordinated response.
Third, we will strengthen the public/private partnerships that are critical to this endeavor. The vast majority of our critical information infrastructure in the United States is owned and operated by the private sector. So let me be very clear: My administration will not dictate security standards for private companies. On the contrary, we will collaborate with industry to find technology solutions that ensure our security and promote prosperity.
Fourth, we will continue to invest in the cutting-edge research and development necessary for the innovation and discovery we need to meet the digital challenges of our time. And that's why my administration is making major investments in our information infrastructure: laying broadband lines to every corner of America; building a smart electric grid to deliver energy more efficiently; pursuing a next generation of air traffic control systems; and moving to electronic health records, with privacy protections, to reduce costs and save lives.
And finally, we will begin a national campaign to promote cybersecurity awareness and digital literacy from our boardrooms to our classrooms, and to build a digital workforce for the 21st century. And that's why we're making a new commitment to education in math and science, and historic investments in science and research and development. Because it's not enough for our children and students to master today's technologies -- social networking and e-mailing and texting and blogging -- we need them to pioneer the technologies that will allow us to work effectively through these new media and allow us to prosper in the future. So these are the things we will do.
Let me also be clear about what we will not do. Our pursuit of cybersecurity will not -- I repeat, will not include -- monitoring private sector networks or Internet traffic. We will preserve and protect the personal privacy and civil liberties that we cherish as Americans. Indeed, I remain firmly committed to net neutrality so we can keep the Internet as it should be -- open and free.
The task I have described will not be easy. Some 1.5 billion people around the world are already online, and more are logging on every day. Groups and governments are sharpening their cyber capabilities. Protecting our prosperity and security in this globalized world is going to be a long, difficult struggle demanding patience and persistence over many years.
But we need to remember: We're only at the beginning. The epochs of history are long -- the Agricultural Revolution; the Industrial Revolution. By comparison, our Information Age is still in its infancy. We're only at Web 2.0. Now our virtual world is going viral. And we've only just begun to explore the next generation of technologies that will transform our lives in ways we can't even begin to imagine.
So a new world awaits -- a world of greater security and greater potential prosperity -- if we reach for it, if we lead. So long as I'm President of the United States, we will do just that. And the United States -- the nation that invented the Internet, that launched an information revolution, that transformed the world -- will do what we did in the 20th century and lead once more in the 21st.
Thank you very much, everybody. Thank you. (Applause.)
END
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Defense Video - Gates: N. Korea Nukes a Grave Threat
Gates: N. Korea Nukes a Grave Threat
watch video
http://www.youtube.com/watch%3Fv%3DHV0D2PQC67s
Research defense stocks with the global defense stocks directory at Investorideas.com
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http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
watch video
http://www.youtube.com/watch%3Fv%3DHV0D2PQC67s
Research defense stocks with the global defense stocks directory at Investorideas.com
click here:
http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
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