Document Security Systems and Zappar to Combine Technologies

- March 27th, 2019

The partnership will see the companies blend their technologies to change the way products are protected and authenticated.

Document Security Systems (NYSEAMERICAN:DSS) and Zappar have partnered to combine their technologies as a means of changing how products are protected and authenticated, the company said in a statement on Wednesday (March 27).

Together, the companies will use secure marking and augmented reality (AR) to create a product packaging platform focused on “engagement, discovery and product safety.”

Their goal is for the platform to engage consumers with brands and help decrease product fraud. In doing so, they will also generate data that will allow brands to learn more about consumers.

Zappar, the developer of the Zappar app, enables its users to build their own AR and virtual reality content. Aside from packaging, Zappar serves industries including events, retail and education with brands including 7-Eleven, Warner Bros., Rovio (HEL:ROVIO), Nestle (OTC Pink:NSRGY), Unilver (NYSE:UN) and Hasbro (NASDAQ:HAS).

“With Zappar’s technology, packaging is a launch pad for a completely new owned media channel, always on, and controlled by the brand. Product fraud is undermining brand trust and putting customers at risk,” Mike Tobin, vice president of sales, marketing and product management at Document Security Systems, said in the release.

“In partnership, through the mobile phone camera, we can create powerful new experiences for brands and their customers that inform and delight but also protect.”

Caspar Thykier, co-founder and CEO of Zappar, echoed Tobin’s sentiments and said that this is now an era where AR can “take its place among the communication channels” used by consumers and businesses alike.

“The potential impact to the top and bottom line for brand owners is direct, measurable and sizeable,” Thykier said when explaining how Document Security Systems’ anti-counterfeit protection is an important component in providing confidence for consumers when they are purchasing goods.

Wednesday’s announcement follows Document Security Systems’ Q4 and full-year 2018 financial results, which were released on March 18. In the results, the company highlighted that its revenues increased 12 percent during the quarter to US$5.96 million, up from US$5.83 million when compared to the same quarter in 2017. Its full-year financials dipped to US$18.5 million from US$18.7 million in 2017, representing a 1-percent decrease.

Also in March, the company signed an exclusive master distributor agreement with Advanced Cyber Security (ACS). The deal will allow Document Security Systems to circulate ACS’ EndpointLockV software, used for fighting keylogging spyware, exclusively in 13 countries in Asia and Australia. The company will also be able to distribute ACS’ EndPointLockI software non-exclusively in the US and Middle East. 

Shares of Document Security Systems were up 3.15 percent over Wednesday’s trading period to close at US$1.30. Year-to-date, the company’s stock has moved up 63.7 percent from US$0.81 on January 2.

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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.

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