Rainbow wins $60 million encryption contract

Rainbow Technologies, Inc., Irvine, Calif., has won a contract from the National Security Agency, worth up to $60 million, to provide the company's high security encryption modules to federal agencies, the company announced this week.

The 30-month indefinite-delivery, indefinite-quantity contract was won by Rainbow subsidiary, Rainbow Mykotronx.

Rainbow will make its KIV-7HSB encryption modules available to all federal civil and defense agencies. The company said that its products have been chosen by the Department of Homeland Security as a means to provide protection of state capitals and federal agencies.

The KIV-7HSB module encrypts data traffic Time Division Multiple Access-based networks, the protocol used by the Defense Department's Milstar satellites.

Founded in 1984, Rainbow Technologies sells information security solutions, including those for Web server acceleration, anti-piracy distribution, public key infrastructure and authentication. The company employs 550 people and had $126.1 million in sales, with a net loss of $37.6 million, for fiscal 2001, according to Hoover's Online of Austin, Texas.

Subsidiary Rainbow Mykotronx focuses on developing and selling custom cryptographic solutions.