SAN DIEGO, Nov. 09, 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 third quarter ended September 30, 2017, as well as a corporate update to highlight the company’s progress since its last quarterly update on August 14, 2017.

Operational Highlights

• Received IBM PartnerWorld’s Ready for IBM Security Intelligence designation for ImageWare’s GoVerifyID Enterprise Suite.
• Demonstrated the GoVerifyID Enterprise Suite for IBM Security Access Manager (ISAM) at the 2017 Money 20/20 event.
• Integrated into Fujitsu’s Secure DirectClick™, an encrypted communications and data transfer solution that can be embedded in any website or mobile application, which has also been integrated into Biometrics-as-a-Service™, a SaaS solution providing mobile, out-of-band, multi-biometric user authentication.
• Received notice that ImageWare was awarded two additional Canadian patents around its IWS Biometric Engine®.
• Completed an $11 million registered direct offering.
• Appointed Robert Clutterbuck and Charles Frischer to its Board of Directors.

Management Commentary

“We continue to demonstrate the strength of our GoVerifyID Enterprise Suite,” said Jim Miller, ImageWare’s chairman and CEO. “Just last month, we received a highly accredited designation from IBM PartnerWorld, which validates our integration with IBM Security products to help protect their customers around the world. Ultimately, ISAM users will be able to utilize our multi-modal biometric authentication with mobile devices by swiping a fingerprint, taking a selfie, or even providing a voice sample to authenticate their identity.

“During the third quarter, we secured an $11 million financing to bolster our balance sheet and accelerate our sales and marketing efforts. We believe this financing is a reflection of the strong progress we’ve made to commercialize our leading identity management solutions and position them for growth. We plan to capitalize on our operational momentum to further expand our partnership agreements for our mobile and cloud-based products.”

Third Quarter 2017 Financial Results

Total revenues in the third quarter of 2017 were up 28% to $1.1 million compared to $0.8 million in the same year-ago period. The increase was primarily due to higher license revenue from identification projects.

Gross margin in the third quarter of 2017 increased 610 basis points to 78.7% from 72.6% in the year-ago quarter. The increase was primarily due to the higher license revenue with lower relative costs.

Net loss in the third quarter of 2017 was $2.4 million or $(0.03) per share, unchanged from the year-ago quarter.

On September 30, 2017, cash and cash equivalents totaled $9.9 million compared to $1.6 million on December 31, 2016. The increase was due to an $11 million registered direct offering completed in September. As of September 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 third 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: Thursday, November 9, 2017
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-800-239-9838
International dial-in number: 1-323-794-2551
Conference ID: 2862800

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 December 9, 2017.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671     
Replay ID: 2862800

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.    

Investor Relations:

Liolios
Cody Slach
Tel 1-949-574-3860
IWSY@liolios.com

IMAGEWARE SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)

		September 30,			December 31,
		2017			2016
Assets:
Cash		$	9,866		$	1,586
Accounts receivable, net			217			287
Inventories			100			23
Other current assets			196			135
Property and equipment, net			49			93
Other assets			35			34
Intangible assets, net			97			106
Goodwill			3,416			3,416
Total Assets		$	13,976		$	5,680
Liabilities and Shareholders' Deficit:
Current liabilities		$	3,054		$	2,516
Convertible line of credit to related party net of discount			5,729			2,528
Pension obligation			1,983			1,895
Shareholders' equity (deficit)			3,210			(1,259	)
Total Liabilities and Shareholders' Equity (Deficit)		$	13,976		$	5,680

 

IMAGEWARE SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2017				2016				2017				2016
Revenues
Product		$	425			$	209			$	1,105			$	968
Maintenance			659				639				1,967				1,919
Total Revenues			1,084				848				3,072				2,887
Cost of Revenue
Product			17				32				108				162
Maintenance			214				200				637				624
Gross Profit			853				616				2,327				2,101
			79%				73%				76%				73%
Operating Expenses
General & administrative			968				904				3,055				2,810
Sales and marketing			656				717				2,119				2,133
Research and development			1,496				1,301				4,439				3,932
Depreciation and amortization			16				33				54				103
Total Operating Expenses			3,136				2,955				9,667				8,978
Loss from operations			(2,283	)			(2,339	)			(7,340	)			(6,877	)
Interest (income) expense, net			178				89				443				135
Other (income) expense, net			(75	)			-				(125	)			(200	)
Income (loss) from continuing operations before income taxes			(2,386	)			(2,428	)			(7,658	)			(6,812	)
Income taxes			4				3				10				10
Income (loss) from continuing operations			(2,390	)			(2,431	)			(7,668	)			(6,822	)
Net income (loss)		$	(2,390	)		$	(2,431	)		$	(7,668	)		$	(6,822	)
Preferred dividends			(553	)			(317	)			(1,575	)			(986	)
Preferred stock exchange			(1,245	)			-				(1,245	)			-
Net income (loss) available to common shareholders		$	(4,188	)		$	(2,748	)		$	(10,488	)		$	(7,808	)
Per share data - basic
Net income (loss) from continuing operations		$	(0.03	)		$	(0.03	)		$	(0.08	)		$	(0.07	)
Preferred dividends			(0.00	)			-				(0.02	)			(0.01	)
Preferred stock exchange			(0.01	)			-				(0.01	)			-
Basic income (loss) per share available to common shareholders		$	(0.04	)		$	(0.03	)		$	(0.11	)		$	(0.08	)
Basic weighted-average common shares		93,197,689				94,550,721				92,538,582				94,309,309