ImageWare Systems Issues Corporate Update
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SAN DIEGO, CA -- (Marketwired) -- 11/14/16 -- ImageWare Systems, Inc. (ImageWare or IWS) (OTCQB: IWSY), a leader in mobile and cloud-based, multi-modal biometric identity management solutions, has issued financial results for the third quarter ended September 30, 2016, as well as a corporate update to highlight the company's progress since its last quarterly update on August 9, 2016.
Operational Highlights
- Debuted the first ever multi-modal biometric authentication solution for the Microsoft Ecosystem.
- Partnered with Fortscale Security to provide the industry's first integrated biometric solution powered by user and entity behavior analytics.
- Integrated GoVerifyID® with SAP HANA® Cloud Platform, providing SAP users with multi-modal biometric user authentication for various applications.
- Partnered with Fujitsu to provide integration of GoVerifyID for their Smart Origination product offering.
- Entered into a three-year OEM engagement with Aurionpro to integrate GoVerifyID with their Digital Branch DX-multi service Kiosk.
Management Commentary
"We forged several key partnerships during the third quarter while building upon our product offerings," said Jim Miller, ImageWare's chairman and CEO. "We joined forces with Fortscale Security to provide new levels of account security to the global enterprise security market, integrated GoVerifyID with the SAP HANA Cloud Platform, and expanded our strong partnership with Fujitsu to provide our technology for their Fujitsu Smart Origination Offering.
"As announced earlier today, we introduced GoVerifyID Enterprise Suite, the first ever end-to-end, cloud-based biometric platform that quickly and seamlessly integrates with the Microsoft infrastructure. This is a truly revolutionary, scalable and affordable solution that will provide corporations with an unprecedented level of security. Moreover, this plugin to the Microsoft infrastructure can be deployed in just a matter of hours, which is an incredible feat at this level of scale. Given the magnitude of Microsoft enterprise users, we see a considerable opportunity as GoVerifyID Enterprise Suite is backward compatible with Windows 7, 8 and 10.
"As we close out the year and look ahead to 2017, we plan to continue executing our go-to-market strategy and capitalize on the growing adoption of biometrics, both at the commercial and enterprise level."
Third Quarter 2016 Financial Results
Total revenues in the third quarter of 2016 were $0.8 million compared to $1.2 million in the same year-ago period. The decrease of $0.4 million was primarily due to non-recurring revenue in the 2015 period from certain identity management projects.
Gross margin in the third quarter of 2016 was 72.6% compared to 72.8% in the year-ago quarter.
Net loss in the third quarter of 2016 was $2.4 million or $(0.03) per basic share, compared to $1.9 million or $(0.02) per basic share in the year-ago quarter.
On September 30, 2016, cash and cash equivalents totaled $1.7 million compared to $3.4 million on December 31, 2015. Total debt was $2.1 million compared to no debt at December 31, 2015.
Conference Call
ImageWare will hold a conference call today at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss its third quarter 2016 results. The company's Chairman and CEO Jim Miller and CFO Wayne Wetherell will host the conference call, followed by a question and answer period.t
Date: Monday, November 14, 2016 Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time) Toll-free dial-in number: 1-877-718-5095 International dial-in number: 1-719-325-4798 Conference ID: 9866916
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.
The conference call will be broadcast live and available for replay at http://public.viavid.com/index.php?id=121692 and via ImageWare's investor relations section at www.iwsinc.com.
A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through December 14, 2016.
Toll-free replay number: 1-844-512-2921 International replay number: 1-412-317-6671 Replay ID: 9866916
About ImageWare Systems, Inc.
ImageWare Systems is a leading developer of mobile and cloud-based identity management solutions, providing biometric secure credential and law enforcement technologies. Scalable for worldwide deployment, ImageWare's patented biometric product line includes a highly scalable, multi-modal biometric engine capable of working with a wide array of sensors, modalities, and algorithms. ImageWare's identity management products are used for secure credentials, national IDs, passports, driver's licenses, and smart cards as well as both application and physical access control systems. ImageWare products support a wide range of biometric modalities including face, voice, fingerprint, eye, DNA, and more.
ImageWare is headquartered in San Diego, CA, with offices in Portland, OR, Ottawa, Ontario, and Mexico. For more information about ImageWare Systems, Inc., please visit www.iwsinc.com.
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. ("ImageWare") are intended to identify such forward-looking statements. ImageWare may from time to time update these 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, 2015 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.
CONSOLIDATED BALANCE SHEETS
----------------------------------------------------------------------------
September 30, December 31,
2016 2015
------------------------------------------------------------- -------------
Assets:
Cash $ 1,685 $ 3,352
Accounts receivable, net 199 349
Inventories 81 46
Other current assets 237 69
Property and equipment, net 115 162
Other assets 30 98
Intangible assets, net 109 117
Goodwill 3,416 3,416
------------- -------------
Total Assets $ 5,872 $ 7,609
============= =============
Liabilities and Shareholders' Equity:
Current liabilities $ 2,417 $ 2,406
Convertible line of credit to related party
net of discount 2,026 -
Pension obligation 1,615 1,511
Shareholders' equity (186) 3,692
------------- -------------
Total Liabilities and Shareholders' Equity $ 5,872 $ 7,609
============= =============
SELECTED COMPARATIVE FINANCIAL HIGHLIGHTS
In thousands, except share and per share amounts
---------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ ------------------------
2016 2015 2016 2015
----------- ----------- ----------- -----------
Revenues
Product $ 209 $ 552 $ 968 $ 1,952
Maintenance 639 629 1,919 1,916
----------- ----------- ----------- -----------
Total Revenues 848 1,181 2,887 3,868
Cost of Revenue
Product 32 124 162 786
Maintenance 200 197 624 618
----------- ----------- ----------- -----------
Gross Profit 616 860 2,101 2,464
73% 73% 73% 64%
Operating Expenses
General &
administrative 904 907 2,810 2,611
Sales and marketing 717 663 2,133 2,030
Research and
development 1,301 1,203 3,932 3,350
Depreciation and
amortization 33 40 103 123
----------- ----------- ----------- -----------
Total Operating
Expenses 2,955 2,813 8,978 8,114
----------- ----------- ----------- -----------
Loss from operations (2,339) (1,953) (6,877) (5,650)
Interest (income)
expense, net 89 1 135 436
Other (income) expense,
net 0 (99) (200) (145)
----------- ----------- ----------- -----------
Income (loss) from
continuing operations
before income taxes (2,428) (1,855) (6,812) (5,941)
Income taxes 3 3 10 11
----------- ----------- ----------- -----------
Income (loss) from
continuing operations (2,431) (1,858) (6,822) (5,952)
Net income (loss) $ (2,431) $ (1,858) $ (6,822) $ (5,952)
Preferred dividends (317) (306) (986) (812)
----------- ----------- ----------- -----------
Net income (loss)
available to common
shareholders $ (2,748) $ (2,164) $ (7,808) $ (6,764)
=========== =========== =========== ===========
Per share data - basic
Net income (loss) from
continuing operations $ (0.03) $ (0.02) $ (0.07) $ (0.06)
Preferred dividends (0.00) (0.00) (0.01) (0.01)
----------- ----------- ----------- -----------
Basic income (loss)
per share available
to common
shareholders $ (0.03) $ (0.02) $ (0.08) $ (0.07)
=========== =========== =========== ===========
Basic weighted-average
common shares 94,550,721 93,876,339 94,309,309 93,690,097
Investor Relations: Liolios Cody Slach Tel 1-949-574-3860 Email Contact
Source: ImageWare Systems, Inc.
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