ImageWare Systems Issues Corporate Update
SAN DIEGO, Aug. 14, 2017 (GLOBE NEWSWIRE) -- 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 second quarter ended June 30, 2017, as well as a corporate update to highlight the company’s progress since its last quarterly update on May 10, 2017.
Operational Highlights
- Expanded agreement with Fujitsu to support mobile devices and actively market the GoVerifyID suite of products in Europe, Middle East, India, Africa and the Americas.
- Entered a resell agreement with Info X Distribution, a global distributor of storage and networking solutions, to market and sell the GoVerifyID Enterprise Suite.
- Recognized by CIO Applications as one of the “Top 25 Cyber Security Companies for 2017.”
- Finalized the integration of biometric identity management and credentialing software into five Alaskan airports.
Management Commentary
“Our second quarter was highlighted by several partnership developments,” said Jim Miller, ImageWare’s chairman and CEO. “In addition to expanding Fujitsu’s biometric security portfolio to support mobile devices, we entered into a reseller agreement with Info X Distribution for our GoVerifyID Enterprise Suite and SaaS solutions, and also completed the integration of our identity management and credentialing software into five Alaskan airports. In May, we were honored to be recognized by CIO Applications as one of the ‘Top 25 Cyber Security Companies for 2017,’ further validating our strong positioning and brand awareness in the marketplace.”
Second Quarter 2017 Financial Results
Total revenues in the second quarter of 2017 were up 6% to $1.1 million compared to $1.0 million in the same year-ago period.
Gross margin in the second quarter of 2017 increased 400 basis points to 76.4% from 72.4% in the year-ago quarter. The increase was primarily due to higher software licensing revenues.
Net loss in the second quarter of 2017 was $2.5 million or $(0.03) per share, compared to a net loss of $2.1 million or $(0.02) per share in the year-ago quarter.
On June 30, 2017, cash and cash equivalents totaled $0.1 million compared to $1.6 million on December 31, 2016. As of June 30, 2017, the company carried $6.0 million in debt compared to $2.5 million at December 31, 2016.
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 2017 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: Monday, August 14, 2017
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-800-334-0872
International dial-in number: 1-719-457-2652
Conference ID: 2666419
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 here 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 14, 2017.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 2666419
About ImageWare Systems, Inc.
ImageWare Systems, Inc. is a leading developer of mobile and cloud-based identity management solutions, providing biometric authentication solutions for the enterprise. The company delivers next-generation biometrics as an interactive and scalable cloud-based solution. ImageWare brings together cloud and mobile technology to offer multi-factor authentication for smartphone users, for the enterprise, and across industries.
ImageWare’s products support multi-modal biometric authentication including, but not limited to, face, voice, fingerprint, iris, palm, and more. All the biometrics can be combined with or used as replacements for authentication and access control tools, including tokens, digital certificates, passwords, and PINS, to provide the ultimate level of assurance, accountability, and ease of use for corporate networks, web applications, mobile devices, and PC desktop environments. ImageWare is headquartered in San Diego, Calif., with offices in Portland, OR, Ottawa, Ontario, and Mexico City, Mexico. To learn more about ImageWare, visit http://iwsinc.com; follow us on Twitter, LinkedIn, YouTube and Facebook.
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, 2016 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.
| IMAGEWARE SYSTEMS, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands, except share and per share data) | ||||||||
| June 30, | December 31, | |||||||
| 2017 | 2016 | |||||||
| Assets: | ||||||||
| Cash | $ | 104 | $ | 1,586 | ||||
| Accounts receivable, net | 332 | 287 | ||||||
| Inventories | 53 | 23 | ||||||
| Other current assets | 148 | 135 | ||||||
| Property and equipment, net | 62 | 93 | ||||||
| Other assets | 35 | 34 | ||||||
| Intangible assets, net | 100 | 106 | ||||||
| Goodwill | 3,416 | 3,416 | ||||||
| Total Assets | $ | 4,250 | $ | 5,680 | ||||
| Liabilities and Shareholders' Deficit: | ||||||||
| Current liabilities | $ | 2,188 | $ | 2,516 | ||||
| Convertible line of credit to related party net of discount | 5,687 | 2,528 | ||||||
| Pension obligation | 1,955 | 1,895 | ||||||
| Shareholders' deficit | (5,580) | (1,259) | ||||||
| Total Liabilities and Shareholders' Deficit | $ | 4,250 | $ | 5,680 | ||||
| IMAGEWARE SYSTEMS, INC. | |||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| (In thousands, except share and per share amounts) | |||||||||
| Three Months Ended | |||||||||
| June 30, | |||||||||
| 2017 | 2016 | ||||||||
| Revenues | |||||||||
| Product | $ | 407 | $ | 356 | |||||
| Maintenance | 653 | 640 | |||||||
| Total Revenues | 1,060 | 996 | |||||||
| Cost of Revenue | |||||||||
| Product | 36 | 56 | |||||||
| Maintenance | 214 | 219 | |||||||
| Gross Profit | 810 | 721 | |||||||
| 76% | 72% | ||||||||
| Operating Expenses | |||||||||
| General & administrative | 1,042 | 899 | |||||||
| Sales and marketing | 702 | 743 | |||||||
| Research and development | 1,479 | 1,318 | |||||||
| Depreciation and amortization | 17 | 35 | |||||||
| Total Operating Expenses | 3,240 | 2,995 | |||||||
| Loss from operations | (2,430) | (2,274) | |||||||
| Interest (income) expense, net | 164 | 36 | |||||||
| Other (income) expense, net | (50) | (200) | |||||||
| Income (loss) from continuing operations before income taxes | (2,544) | (2,110) | |||||||
| Income taxes | 3 | 4 | |||||||
| Income (loss) from continuing operations | (2,547) | (2,114) | |||||||
| Net income (loss) | $ | (2,547) | $ | (2,114) | |||||
| Preferred dividends | (514) | (309) | |||||||
| Net income (loss) available to common shareholders | $ | (3,061) | $ | (2,423) | |||||
| Per share data - basic | |||||||||
| Net income (loss) from continuing operations | $ | (0.03) | $ | (0.02) | |||||
| Preferred dividends | (0.00) | (0.01) | |||||||
| Basic income (loss) per share available to common shareholders | $ | (0.03) | $ | (0.03) | |||||
| Basic weighted-average common shares | 92,539,230 | 94,298,567 | |||||||
Investor Relations: Liolios Cody Slach Tel 1-949-574-3860 IWSY@liolios.com
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