SAN DIEGO, Nov. 12, 2019 (GLOBE NEWSWIRE) -- ImageWare® Systems, Inc. IWSY, a leader in mobile and cloud-based identity proofing and biometric authentication solutions, reported financial results for the third quarter ended September 30, 2019.
Q3 Summary of Results
- Revenue for the quarter ended September 30, 2019 increased to $785,000 from $736,000 in the third quarter 2018. The 2019 quarter included increased product revenue from professional services and software licensing.
- Gross profit for the third quarter 2019 was $647,000 (82%) as compared with $576,000 (78%) in the third quarter 2018.
- Net loss was $2.7 million in the third quarter 2019 compared with $3.5 million in the third quarter 2018.
Significant Events
- ImageWare announced the addition of macOS to the lineup of compatible operating systems for GoVerifyID. Combining with last quarter's launch of Biointellic™ Intelligent Anti-spoofing System into our existing Digital Identity Platform, ImageWare's innovative culture continues to drive our biometric technology roadmap.
- ImageWare has been in the news for its industry-leading product launches as well as thought-provoking executive interviews and articles on Forbes, CBS, ReadWrite, Corporate Compliance Insights, and Cyberwire.
- ImageWare and Fujitsu expanded their partnership to provide security for billions of IoT devices. Fujitsu added ImageWare's IoT DNA Security® to its DigitalSuite platform, providing an easy way to add multiple forms of authentication, including biometrics.
- In November, an on-site joint planning session with Fujitsu's FJTSY Latin America Sales and Marketing team in Mexico resulted in integrated account plans, sales opportunities, and campaign initiatives going into 2020.
Jim Miller, Chairman and CEO of ImageWare Systems, stated, "It is lamentable that most companies often have a ‘bare minimum' approach to cybersecurity, protecting their data and customers' information with breachable and insecure methods such as passwords and SIM-based 2FA. Consumer privacy rights have finally begun receiving the appropriate attention and respect they deserve."
Miller continued, "The California Consumer Privacy Act is just one of 15 robust data compliance laws that will come into effect in the next few months, forcing companies to better manage and secure consumers' data. Similar to GDPR and European companies, CCPA's hefty fines are moving data privacy conversations from the IT department into the boardroom. State legislation is the perfect storm for ImageWare's end-to-end, multi-modal, and multi-platform biometric solutions and we are perfectly positioned to capitalize on this revolution."
2019 Third Quarter Financial Results Conference Call
The Company will host an investor update call on Tuesday, November 12, 2019 at 1:30pm PT (4:30pm ET). The Participant Dial-In Number for the conference call is Domestic/International 631-891-4304. Participants should dial in to the call at least five minutes before 1:30pm PT (4:30pm ET) on November 12, 2019. The call can also be accessed "live" online at http://public.viavid.com/player/index.php?id=136798.
A replay of the recorded call will be available for 90 days on the Company's website (https://www.iwsinc.com/company/investor-relations/.) You can also listen to a replay of the call by dialing toll-free 1-844-512-2921 (international only 1-412-317-6671) starting November 12, 2019, at 7:30pm ET through November 19, 2019 at 11:59 pm ET. Please use PIN Number 10007968.
About ImageWare® Systems, Inc.
ImageWare Systems, Inc. is a leading developer of mobile and cloud-based identity management solutions, providing two-factor, biometric, and multi-factor cloud-based authentication solutions for the enterprise. The company delivers next-generation biometrics as an interactive and scalable cloud-based solution. ImageWare's products support multi-modal biometric authentication including, but not limited to, face, voice, fingerprint, iris, palm, and more. ImageWare Systems, Inc. is headquartered in San Diego, California, with offices in Oregon, Canada, Mexico, and Japan. For a full list of ImageWare partnerships with other leading global brands such as ForgeRock, Fujitsu, HPE, IBM, Microsoft, SAP, Verizon, and others, please visit https://www.iwsinc.com/partners/. To learn more about ImageWare, visit https://www.iwsinc.com and follow us on Twitter, LinkedIn, and YouTube.
Forward-Looking Statements
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "if," "should" and "will" and similar expressions as they relate to ImageWare Systems, Inc. are intended to identify such forward-looking statements. ImageWare may from time to time update publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see "Risk Factors" in ImageWare's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and its other reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
Investor Relations Contact
Harvey Bibicoff, CEO, Bibicoff + MacInnis, Inc.
(818) 379-8500 harvey@bibimac.com
Media Contact
Michael Senger, VP Corporate Communications, ImageWare Systems, Inc.
(858) 257-0358 media@iwsinc.com
| SELECTED COMPARATIVE FINANCIAL HIGHLIGHTS | |||||||||||||||
| In thousands, except share and per share amounts | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Revenues | |||||||||||||||
| Product | $ | 155 | $ | 78 | $ | 592 | $ | 1,357 | |||||||
| Maintenance | 630 | 658 | 1,935 | 1,980 | |||||||||||
| Total Revenues | 785 | 736 | 2,527 | 3,337 | |||||||||||
| Cost of Revenue | |||||||||||||||
| Product | 41 | 9 | 158 | 175 | |||||||||||
| Maintenance | 97 | 151 | 323 | 540 | |||||||||||
| Gross Profit | 647 | 576 | 2,046 | 2,622 | |||||||||||
| 82 | % | 78 | % | 81 | % | 79 | % | ||||||||
| Operating Expenses | |||||||||||||||
| General & administrative | 791 | 958 | 2,793 | 3,100 | |||||||||||
| Sales and marketing | 985 | 920 | 2,924 | 2,600 | |||||||||||
| Research and development | 1,898 | 1,820 | 5,511 | 5,483 | |||||||||||
| Depreciation and amortization | 17 | 10 | 53 | 34 | |||||||||||
| Total Operating Expenses | 3,691 | 3,708 | 11,281 | 11,217 | |||||||||||
| Loss from operations | (3,044 | ) | (3,132 | ) | (9,235 | ) | (8,595 | ) | |||||||
| Interest (income) expense, net | (27 | ) | 141 | (80 | ) | 497 | |||||||||
| Change in fair value of derivative liabilities | (388 | ) | 186 | (445 | ) | 186 | |||||||||
| Other components of net periodic pension expense | 35 | 23 | 113 | 72 | |||||||||||
| Other expense | - | - | 1 | - | |||||||||||
| Loss from continuing operations before income taxes | (2,664 | ) | (3,482 | ) | (8,824 | ) | (9,350 | ) | |||||||
| Income taxes | 1 | - | 1 | 1 | |||||||||||
| Loss from continuing operations | (2,665 | ) | (3,482 | ) | (8,825 | ) | (9,351 | ) | |||||||
| Net loss | $ | (2,665 | ) | $ | (3,482 | ) | $ | (8,825 | ) | $ | (9,351 | ) | |||
| Preferred dividends | (1,300 | ) | (949 | ) | (3,968 | ) | (2,437 | ) | |||||||
| Net loss available to common shareholders | $ | (3,965 | ) | $ | (4,431 | ) | $ | (12,793 | ) | $ | (11,788 | ) | |||
| Per share data - basic | |||||||||||||||
| Net income (loss) from continuing operations | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.09 | ) | $ | (0.10 | ) | |||
| Preferred dividends | (0.01 | ) | (0.01 | ) | (0.04 | ) | (0.02 | ) | |||||||
| Basic income (loss) per share available to common shareholders | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.13 | ) | $ | (0.12 | ) | |||
| Basic weighted-average common shares | 106,571,261 | 95,838,813 | 102,830,312 | 95,116,862 | |||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||||
| September 30, | December 31, | ||||||||||||||
| 2019 | 2018 | ||||||||||||||
| Assets: | |||||||||||||||
| Cash | $ | 4,363 | $ | 5,694 | |||||||||||
| Accounts receivable, net | 566 | 968 | |||||||||||||
| Inventories | 509 | 29 | |||||||||||||
| Other current assets | 337 | 233 | |||||||||||||
| Property and equipment, net | 218 | 244 | |||||||||||||
| Other assets | 286 | 332 | |||||||||||||
| Operating lease right-of-use assets | 1,991 | - | |||||||||||||
| Intangible assets, net | 73 | 82 | |||||||||||||
| Goodwill | 3,416 | 3,416 | |||||||||||||
| Total Assets | $ | 11,759 | $ | 10,998 | |||||||||||
| Liabilities and Shareholders' Deficit: | |||||||||||||||
| Current liabilities | $ | 4,775 | $ | 3,846 | |||||||||||
| Pension obligation | 1,921 | 1,876 | |||||||||||||
| Lease liabilities | 1,849 | - | |||||||||||||
| Other long-term liabilities | 118 | 147 | |||||||||||||
| Mezzanine equity | 8,707 | 8,156 | |||||||||||||
| Shareholders' deficit | (5,611 | ) | (3,027 | ) | |||||||||||
| Total Liabilities and Shareholders' Deficit | $ | 11,759 | $ | 10,998 | |||||||||||
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