ImageWare® Systems Reports 2019 Second Quarter Financial Results
SAN DIEGO, Aug. 14, 2019 (GLOBE NEWSWIRE) -- ImageWare® Systems, Inc. (OTCQB: IWSY), a leader in mobile and cloud-based, multi-modal biometric identity management solutions, reported financial results for the second quarter ended June 30, 2019.
Q2 Summary of Results
- Revenue for the quarter ended June 30, 2019 decreased to $812,000 from $1,885,000 in the second quarter 2018. The 2018 quarter included $1,050,000 in onetime non-recurring orders from government agencies with no such orders in the second quarter of 2019.
- Gross profit for the second quarter 2019 was $672,000 (83%) as compared with $1,579,000 (84%) in the second quarter 2018.
- Net loss was $2.5 million in the second quarter 2019 compared with $2.3 million in the second quarter 2018.
Significant Events
- A revitalized marketing and sales effort with Fujitsu’s (OTCMKTS: FJTSY) Latin America sales team campaign in Mexico and Fujitsu’s RunMyProcess.
- In July, ImageWare launched Biointellic™, a completely frictionless solution to determine a person’s ‘liveness’ when presenting themselves for facial recognition authentication.
Jim Miller, Chairman and CEO of ImageWare Systems said, “Although results for the quarter are less than we expected, we remain optimistic on key deals and partnership opportunities. Working largely through our partners and with Federal and State agencies, we are beholden to their delays and integration schedules. We continue to see very positive changes in the biometric authentication adoption landscape and our confidence that ImageWare is positioned strategically to capitalize remains steadfast.”
2019 Second Quarter Financial Results Conference Call
The Company will host an investor update call on Wednesday, August 14, 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 August 14, 2019. The call can also be accessed “live” online at http://public.viavid.com/index.php?id=135563.
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 August 14, 2019, at 7:30pm ET through August 21, 2019 at 11:59 pm ET. Please use PIN Number 10007359.
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 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 | ||||||||||||||||
| Unaudited | Unaudited | |||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Revenues | ||||||||||||||||
| Product | $ | 160 | $ | 1,182 | $ | 438 | $ | 1,279 | ||||||||
| Maintenance | 652 | 703 | 1,305 | 1,322 | ||||||||||||
| Total Revenues | 812 | 1,885 | 1,743 | 2,601 | ||||||||||||
| Cost of Revenue | ||||||||||||||||
| Product | 34 | 139 | 117 | 165 | ||||||||||||
| Maintenance | 106 | 167 | 226 | 390 | ||||||||||||
| Gross Profit | 672 | 1,579 | 1,400 | 2,046 | ||||||||||||
| 83% | 84% | 80% | 79% | |||||||||||||
| Operating Expenses | ||||||||||||||||
| General & administrative | 894 | 970 | 2,001 | 2,141 | ||||||||||||
| Sales and marketing | 934 | 816 | 1,939 | 1,680 | ||||||||||||
| Research and development | 1,840 | 1,865 | 3,614 | 3,664 | ||||||||||||
| Depreciation and amortization | 17 | 11 | 36 | 24 | ||||||||||||
| Total Operating Expenses | 3,685 | 3,662 | 7,590 | 7,509 | ||||||||||||
| Loss from operations | (3,013 | ) | (2,083 | ) | (6,190 | ) | (5,463 | ) | ||||||||
| Interest (income) expense, net | (31 | ) | 184 | (53 | ) | 356 | ||||||||||
| Change in fair value of derivative liabilities | (481 | ) | - | (57 | ) | - | ||||||||||
| Other componsents of net periodic pension expense | 45 | 17 | 78 | 49 | ||||||||||||
| Other expense | 1 | - | 1 | - | ||||||||||||
| Loss from continuing operations before income taxes | (2,547 | ) | (2,284 | ) | (6,159 | ) | (5,868 | ) | ||||||||
| Income taxes | 1 | - | 1 | 1 | ||||||||||||
| Loss from continuing operations | (2,548 | ) | (2,284 | ) | (6,160 | ) | (5,869 | ) | ||||||||
| Net loss | $ | (2,548 | ) | $ | (2,284 | ) | $ | (6,160 | ) | $ | (5,869 | ) | ||||
| Preferred dividends | (1,374 | ) | (720 | ) | (2,668 | ) | (1,489 | ) | ||||||||
| Net loss available to common shareholders | $ | (3,922 | ) | $ | (3,004 | ) | $ | (8,828 | ) | $ | (7,358 | ) | ||||
| Per share data - basic | ||||||||||||||||
| Net income (loss) from continuing operations | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.06 | ) | $ | (0.06 | ) | ||||
| Preferred dividends | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.02 | ) | ||||||||
| Basic income (loss) per share available to common shareholders | $ | (0.04 | ) | $ | (0.03 | ) | $ | (0.09 | ) | $ | (0.08 | ) | ||||
| Basic weighted-average common shares | 103,431,623 | 95,161,570 | 100,928,835 | 94,749,904 | ||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| Unaudited | ||||||||||
| June 30, | December 31, | |||||||||
| 2019 | 2018 | |||||||||
| Assets: | ||||||||||
| Cash | $ | 6,734 | $ | 5,694 | ||||||
| Accounts receivable, net | 376 | 968 | ||||||||
| Inventories | 319 | 29 | ||||||||
| Other current assets | 271 | 233 | ||||||||
| Property and equipment, net | 222 | 244 | ||||||||
| Other assets | 286 | 332 | ||||||||
| Operating lease right-of-use assets | 2,060 | - | ||||||||
| Intangible assets, net | 76 | 82 | ||||||||
| Goodwill | 3,416 | 3,416 | ||||||||
| Total Assets | $ | 13,760 | $ | 10,998 | ||||||
| Liabilities and Shareholders' Deficit: | ||||||||||
| Current liabilities | $ | 4,218 | $ | 3,846 | ||||||
| Pension obligation | 1,928 | 1,876 | ||||||||
| Lease liabilities | 1,942 | - | ||||||||
| Other long-term liabilities | 118 | 147 | ||||||||
| Mezzanine equity | 8,526 | 8,156 | ||||||||
| Shareholders' deficit | (2,972 | ) | (3,027 | ) | ||||||
| Total Liabilities and Shareholders' Deficit | $ | 13,760 | $ | 10,998 | ||||||
