SAN DIEGO, CA--(Marketwired - Aug 9, 2016) - ImageWare Systems, Inc. (ImageWare or IWS) (
Operational Highlights
- Partnered with Fujitsu RunMyProcess to provide turnkey integration of ImageWare's GoVerifyID® for solutions developed on the RunMyProcess platform used by Fortune 1000 companies in 45 nations.
- Licensed GoVerifyID to Telos Corporation for use with HPE Aruba ClearPass, which is being sold on Amazon Web Services (AWS) as well as Telos' own private and secure Telos Ghost™ cloud.
- Commenced sales efforts with HPE Aruba Clear pass reseller network.
- Launched IWS Biometric authentication service with partner AWS and TransUnion to provide turnkey biometric service.
- GoVerifyID successfully integrated with CA Technologies security products.
- Appointed Dot Hill veteran and current Seagate Technology Executive Vice President Dana Kammersgard to board of directors.
Management Commentary "Biometrics is now forecasted to be a $30 billion-plus market over the next few years and we continued to make progress with our various commercial partners to be ready to address this market," said Jim Miller, ImageWare's chairman and CEO. "This included an expansion of our partnership with Fujitsu to provide turnkey integration of GoVerifyID onto Fujitsu's RunMyProcess platform, enabling digital transformation for leading companies around the world. We also signed an agreement with Telos Corporation, which is the first reseller agreement signed through our partnership with Aruba. Telos will now become a reseller of GoVerifyID in conjunction with their sales and distribution of HPE Aruba ClearPass.
"To help expand our footprint in the commercial market, we recently appointed technology veteran Dana Kammersgard to the board of directors, who brings extensive industry expertise to ImageWare. We look forward to leveraging his deep industry contacts, as well as his proven ability in taking small organizations and growing them into leaders of their respective industries."
"Subsequent to the quarter," continued Miller, "we signed a five-year OEM agreement with a major mobile ID management provider, bringing multi-modal biometric user authentication to the identity governance and administration market. Given the growing commercial adoption for biometrics across a wide range of industries, we continue to believe we are well positioned to grow and scale our business in the out years."
Second Quarter 2016 Financial Results Total revenues in the second quarter of 2016 were $1.0 million compared to $1.7 million in the same year-ago quarter. The difference is primarily due to the impact of non-recurring revenue recognized in 2015 upon completion of a major identity management project for Los Angeles World Airports.
Gross margin in the second quarter of 2016 increased significantly to 72.4% compared to 52.9% in the year-ago quarter, primarily due to 2015 containing an uncharacteristically high cost of professional services revenue incurred with the project discussed above.
Net loss in the second quarter of 2016 was $2.1 million or $(0.02) per basic share, compared to $1.8 million or $(0.02) per basic share in the year-ago quarter.
On June 30, 2016, cash and cash equivalents totaled $0.3 million compared to $3.4 million on December 31, 2015. Total debt was $1.5 million compared to no debt at December 31, 2015. Subsequent to the quarter, the company borrowed an additional $0.5 million and now has approximately $3.5 million available on its existing line of credit.
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 second 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.
Date: Tuesday, August 9, 2016 Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time) Toll-free dial-in number: 1-888-504-7960 International dial-in number: 1-719-325-2341 Conference ID: 4356802
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=120606 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 September 9, 2016.
Toll-free replay number: 1-877-870-5176 International replay number: 1-858-384-5517 Replay ID: 4356802
About ImageWare Systems, Inc.
ImageWare Systems, Inc. (
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 3 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 | ||||||||
| June 30, | December 31, | |||||||
| 2016 | 2015 | |||||||
| Assets: | ||||||||
| Cash | $ | 327 | $ | 3,352 | ||||
| Accounts receivable, net | 274 | 349 | ||||||
| Inventories | 74 | 46 | ||||||
| Other current assets | 185 | 69 | ||||||
| Property and equipment, net | 141 | 162 | ||||||
| Other assets | 31 | 98 | ||||||
| Intangible assets, net | 112 | 117 | ||||||
| Goodwill | 3,416 | 3,416 | ||||||
| Total Assets | $ | 4,560 | $ | 7,609 | ||||
| Liabilities and Shareholders' Equity (Deficit): | ||||||||
| Current liabilities | $ | 3,036 | $ | 2,406 | ||||
| Convertible line of credit to related party net of discount | - | - | ||||||
| Pension obligation | 1,592 | 1,511 | ||||||
| Shareholders' equity (deficit) | (68 | ) | 3,692 | |||||
| Total Liabilities and Shareholders' Equity (Deficit) | $ | 4,560 | $ | 7,609 | ||||
| SELECTED COMPARATIVE FINANCIAL HIGHLIGHTS | ||||||||||||||||||
| In thousands, except share and per share amounts | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||
| Revenues | ||||||||||||||||||
| Product | $ | 356 | $ | 1,022 | $ | 759 | $ | 1,400 | ||||||||||
| Maintenance | 640 | 673 | 1,280 | 1,287 | ||||||||||||||
| Total Revenues | 996 | 1,695 | 2,039 | 2,687 | ||||||||||||||
| Cost of Revenue | ||||||||||||||||||
| Product | 56 | 589 | 130 | 663 | ||||||||||||||
| Maintenance | 219 | 209 | 424 | 420 | ||||||||||||||
| Gross Profit | 721 | 897 | 1,485 | 1,604 | ||||||||||||||
| 72 | % | 53 | % | 73 | % | 60 | % | |||||||||||
| Operating Expenses | ||||||||||||||||||
| General & administrative | 899 | 788 | 1,905 | 1,704 | ||||||||||||||
| Sales and marketing | 743 | 717 | 1,416 | 1,368 | ||||||||||||||
| Research and development | 1,318 | 1,114 | 2,631 | 2,148 | ||||||||||||||
| Depreciation and amortization | 35 | 41 | 70 | 83 | ||||||||||||||
| Total Operating Expenses | 2,995 | 2,660 | 6,022 | 5,303 | ||||||||||||||
| Loss from operations | (2,274 | ) | (1,763 | ) | (4,537 | ) | (3,699 | ) | ||||||||||
| Interest (income) expense, net | 36 | (2 | ) | 46 | 435 | |||||||||||||
| Other (income) expense, net | (200 | ) | - | (200 | ) | (46 | ) | |||||||||||
| Income (loss) from continuing operations before income taxes | (2,110 | ) | (1,761 | ) | (4,383 | ) | (4,088 | ) | ||||||||||
| Income taxes | 4 | 6 | 6 | 8 | ||||||||||||||
| Income (loss) from continuing operations | (2,114 | ) | (1,767 | ) | (4,389 | ) | (4,096 | ) | ||||||||||
| Net income (loss) | $ | (2,114 | ) | $ | (1,767 | ) | $ | (4,389 | ) | $ | (4,096 | ) | ||||||
| Preferred dividends | (309 | ) | (302 | ) | (657 | ) | (506 | ) | ||||||||||
| Net income (loss) available to common shareholders | $ | (2,423 | ) | $ | (2,069 | ) | $ | (5,046 | ) | $ | (4,602 | ) | ||||||
| Per share data - basic | ||||||||||||||||||
| Net income (loss) from continuing operations | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.04 | ) | ||||||
| Preferred dividends | (0.01 | ) | - | - | (0.01 | ) | ||||||||||||
| Basic income (loss) per share available to common shareholders | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.05 | ) | ||||||
| Basic weighted-average common shares | 94,298,567 | 93,674,349 | 94,185,967 | 93,595,433 | ||||||||||||||
Investor Relations: Liolios Cody Slach Tel 1-949-574-3860 Email Contact
