Applied DNA supplier for Defense

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The U.S. Department of Defense has said it is now requiring all of its microcircuit suppliers to embed the high-tech devices with anticounterfitting stamps manufactured by Applied DNA Sciences Inc. of Stony Brook.

The move, announced this month, could be a boon for the struggling startup, which posted a $1.4 million loss this week for its third fiscal quarter. Applied DNA's president and chief executive, James A. Hayward, said the requirement will impact hundreds of companies, including some of the world's largest microcircuit makers.

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We are already receiving numerous inquiries, Hayward said Thursday in a letter to investors. Applied DNA, with 25 employees, marks microchips and other products with plant DNA that cannot be duplicated.

The company has struggled to turn a profit since its founding in 2002. Its stock jumped about 22 percent Thursday, to 7 cents a share, after Hayward told investors about the Department of Defense's requirement.

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