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TWST: As a foundation, perhaps we can begin with an introduction to Aladdin Knowledge Systems(Nasdaq: ALDN), bringing us up-to-date with who the company is today?

Mr. Margalit: Aladdin is a digital security company founded in 1985, so we are not a young company. Our product lines are divided into component security and the software security. Aladdin is truly an international company doing business in the US, Europe, Far East and Israel, with close to 30,000 customers worldwide.

TWST: Can you tell us a little more about who the customer is?

Mr. Margalit: We have two types of customers. The first type is software vendors, producers or publishers, who use our products to secure their software. We provide them with security against software piracy. This allows them to protect their software and sell it over the Internet, safely and securely. The other type of customers that we have is the enterprise or corporate-type of customers. They secure their networks, protect their proprietary content and verify the authentication of their own users.

TWST: Tell us some more, if you would, about the products you are bringing to both spaces and what advantages they have over alternative security solutions.

Mr. Margalit: When it comes to software publishers we are talking about two products. The first product is HASP (Hardware Against Software Privacy). It is a small key that provides protection against software piracy. Software piracy is truly a global issue and due to the economic situation around the world, there is an increased need for software protection: HASP fulfills that need. The second product is Privilege SCP (Privilege Software Commerce Platform). Privilege provides software vendors with the ability to fulfill, license and deliver their software over the Internet in a secure way.

TWST: What is the general consensus for market size, given that the security in all forms has climbed the priority list?

Mr. Margalit: Some market estimates project 25 billion up to 50 billion for information security, but that depends on how you define it. It is a large market that is expected to grow quite quickly over the next several years. Certainly the events we have experienced -- September 11, and others -- have increased the awareness for security in a very significant way. I would suggest that this is one of the areas we are not seeing companies losing revenues; on the contrary, we see companies that are either stable or growing. So the security business is a good place to be, particularly in the software piracy arena. As I mentioned earlier, our enterprise security products are increasing in awareness with risk-conscious CEO’s and COO’s.

TWST: Is that awareness translating into actual orders? Given that companies have been reducing their cap ex, have they left room for such a spend?

Mr. Margalit: It’s a very good point and you are right. We are seeing much more awareness but sometimes it doesn’t translate into revenue. You might look at it as two twins that are balancing one another. Yes, there is more awareness of security, but on the other side, people are now much more hesitant in spending their money. So getting the PO is a tricky business today; while we have increased market awareness, the market is moving more slowly.

TWST: Do you see this balance changing in the next let’s say 6-12 months?

Mr. Margalit: It’s very difficult for me to project the next 6-12 months. For the long-term, however, I am very optimistic.