ImageWare Systems Issues Corporate Update
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SAN DIEGO, CA -- (Marketwired) -- 05/10/17 -- 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 first quarter ended March 31, 2017, as well as a corporate update to highlight the company's progress since its last quarterly update on March 30, 2017.
Management Commentary
"During the first quarter, we continued to focus on integrating our patented Biometric Engine® into the cloud and mobile markets, principally via our GoVerifyID® product for enterprise and consumer use, while also expanding into non-government sectors such as commercial, consumer and healthcare," said Jim Miller, ImageWare's chairman and CEO. "Due to our business strategy relying on long-term engagements with large organizations, results from these initiatives continue to take time to materialize from a revenue perspective. We remain encouraged by the continued strong demand we are receiving behind the scenes and we anticipate further positive developments in strategic partnerships during the first half of 2017.
"In addition to strong market demand, in March, Frost & Sullivan recognized ImageWare with the 2017 New Product Innovation Award for our GoVerifyID enterprise suite. Each year, Frost & Sullivan identifies companies that have successfully introduced new and innovative products into their markets, with emphasis on product quality and customer value. We believe this award further validates our technology and our strategy to bring our solution to market.
"Subsequent to the end of the quarter, ImageWare was selected to provide biometric identity management and credentialing software to five Alaskan airports with delivery expected to commence in the second quarter of this year. This represents the third agreement in which an airport has entrusted our multi-modal biometric authentication software to confirm the identity and background of their employees."
First Quarter 2017 Financial Results
Total revenues in the first quarter of 2017 were $0.9 million compared to $1.0 million in the same year-ago period.
Gross margin in the first quarter of 2017 was 71.8% compared to 73.3% in the year-ago quarter. The decline was primarily due to lower product revenue.
Net loss in the first quarter of 2017 was $2.7 million or $(0.03) per share, compared to a net loss of $2.3 million or $(0.03) per share in the year-ago quarter.
On March 31, 2017, cash and cash equivalents totaled $0.5 million compared to $1.6 million on December 31, 2016. Total debt was $3.9 million 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 first 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: Wednesday, May 10, 2017 Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time) Toll-free dial-in number: 1-877-741-4244 International dial-in number: 1-719-325-4772 Conference ID: 3531599
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 June 10, 2017.
Toll-free replay number: 1-844-512-2921 International replay number: 1-412-317-6671 Replay ID: 3531599
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, mobile clients, and desktop devices.
ImageWare's products support multi-modal biometric authentication including, but not limited to, face, voice, fingerprint, eye, DNA, and more. All can be combined with or used as replacements of 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. 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)
---------------------------------------------------------------------------
March 31, December 31,
2017 2016
------------ ------------
Assets:
Cash $ 475 $ 1,586
Accounts receivable, net 304 287
Inventories 43 23
Other current assets 142 135
Property and equipment, net 75 93
Other assets 34 34
Intangible assets, net 103 106
Goodwill 3,416 3,416
------------ ------------
Total Assets $ 4,592 $ 5,680
============ ============
Liabilities and Shareholders' Deficit:
Current liabilities $ 2,343 $ 2,516
Convertible line of credit to related party net
of discount 3,938 2,528
Pension obligation 1,909 1,895
Shareholders' deficit (3,598) (1,259)
------------ ------------
Total Liabilities and Shareholders' Deficit $ 4,592 $ 5,680
============ ============
IMAGEWARE SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
Three Months Ended
March 31,
--------------------------
2017 2016
------------ ------------
Revenues
Product $ 273 $ 403
Maintenance 655 640
------------ ------------
Total Revenues 928 1,043
Cost of Revenue
Product 54 74
Maintenance 208 205
------------ ------------
Gross Profit 666 764
72% 73%
Operating Expenses
General & administrative 1,044 1,006
Sales and marketing 761 673
Research and development 1,464 1,314
Depreciation and amortization 21 35
------------ ------------
Total Operating Expenses 3,290 3,028
------------ ------------
Loss from operations (2,624) (2,264)
Interest (income) expense, net 100 11
Other (income) expense, net 0 (1)
------------ ------------
Income (loss) from continuing operations before
income taxes (2,724) (2,274)
Income taxes 3 3
------------ ------------
Income (loss) from continuing operations (2,727) (2,277)
Net income (loss) $ (2,727) $ (2,277)
Preferred dividends (507) (348)
------------ ------------
Net income (loss) available to common
shareholders $ (3,234) $ (2,625)
============ ============
Per share data - basic
Net income (loss) from continuing operations $ (0.03) $ (0.03)
Preferred dividends (0.01) -
------------ ------------
Basic income (loss) per share available to
common shareholders $ (0.04) $ (0.03)
============ ============
Basic weighted-average common shares 91,864,174 94,073,367
Investor Relations: Liolios Cody Slach Tel 1-949-574-3860 Email Contact
Source: ImageWare Systems, Inc.
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