SOURCE: ImageWare Systems, Inc.

ImageWare Systems, Inc.

November 16, 2015 16:05 ET

ImageWare Systems Issues Corporate Update

Q3 Revenues up 29% to $1.2 Million

SAN DIEGO, CA--(Marketwired - Nov 16, 2015) - ImageWare Systems, Inc. (OTCQB: IWSY) (ImageWare), a leader in mobile and cloud-based, multi-modal biometric identity management solutions, has issued financial results for the third quarter ended September 30, 2015, as well as a corporate update to highlight the company's progress since its last quarterly update on August 10, 2015.

Operational Highlights

  • Strategic partnership with Extenua has gone live on Amazon Web Services. American Systems Corporation along with several U.S. federal agencies have already signed up as initial users of the joint product.

  • Partnered with CDW Corporation to provide ImageWare's GoVerifyID® and IWS Cloud ID® products to CDW customers.

Management Commentary

"We continue to make progress on various partnerships," said Jim Miller, ImageWare's chairman and CEO. "As recently announced, our partnership with Extenua has advanced to the next stage of its product launch cycle. This partnership has evolved from testing, to agreement, to integration, and now official market launch. The operating cycle of these events is what we've expected from the outset of our go-to-market strategy, and we will continue to validate this strategy through the advancement of our commercial partnerships.

"We continue to believe we have the right products in the right place at the right time, especially as consumer adoption gains traction across the globe. The growing need for biometric solutions is further demonstrated by the organizations that experience security breaches each and every day. These secular trends drive our strong outlook for ImageWare as we look to leverage our commercial partners to reach millions of users across the globe."

Third Quarter 2015 Financial Results

Total revenues in the third quarter of 2015 increased 29% to $1.2 million compared to $0.9 million in the third quarter of 2014, primarily due to software license revenues in connection with the U.S. Department of Veteran Affairs.

Gross margin in the third quarter of 2015 was essentially unchanged at 72.9% compared to 73.0% in the third quarter of 2014.

Net loss in the third quarter of 2015 was $1.9 million or ($0.02) per basic share, compared to a net loss of $2.2 million or ($0.02) per basic share in the third quarter of 2014.

At September 30, 2015, cash and cash equivalents totaled $4.9 million compared to $0.2 million at December 31, 2014. The increase is a result of the company's convertible preferred offering completed in February 2015.

Conference Call

ImageWare will hold a conference call tomorrow at 11:00 a.m. Eastern time (8:00 a.m. Pacific time) to discuss its third quarter 2015 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, November 17, 2015
Time: 11:00 a.m. Eastern time (8:00 a.m. Pacific time)
Toll-free dial-in number: 1-877-856-1968
International dial-in number: 1-719-325-4745
Conference ID: 1418145

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=116924 and via ImageWare's investor relations section at www.iwsinc.com.

A replay of the conference call will be available after 2:00 p.m. Eastern time tomorrow through December 17, 2015.

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 1418145

About ImageWare Systems, Inc.

ImageWare Systems, Inc. (OTCQB: IWSY) is a leading developer of mobile and cloud-based identity management solutions, providing biometric, secure credential and law enforcement technologies. Scalable for worldwide deployment, ImageWare's biometric product line includes a multi-biometric engine that is hardware and algorithm independent, enabling the enrollment and management of unlimited population sizes. ImageWare's identification products are used to manage and issue secure credentials, including national IDs, passports, driver's licenses, smart cards and access control credentials. ImageWare's digital booking products provide law enforcement with integrated mug shot, fingerprint livescan and investigative capabilities. ImageWare is headquartered in San Diego, CA, with offices in Portland, OR, Washington, D.C., and Ottawa, Ontario. For more information on ImageWare Systems, Inc., please visit www.iwsinc.com.

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, 2014 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.

 
IMAGEWARE SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, except share and per share data)
           
    September 30,   December 31,  
    2015   2014  
Assets:              
  Cash   $ 4,933   $ 218  
  Accounts receivable, net     1,044     266  
  Inventories     378     916  
  Other current assets     139     86  
  Property and equipment, net     182     211  
  Other assets     110     153  
  Intangible assets, net     124     144  
  Goodwill     3,416     3,416  
Total Assets   $ 10,326   $ 5,410  
               
Liabilities and Shareholders' Equity:              
  Current liabilities   $ 2,568   $ 3,299  
  Convertible line of credit to related party net of discount     -     1,311  
  Pension obligation     1,867     1,834  
  Shareholders' equity (deficit)     5,891     (1,034 )
Total Liabilities and Shareholders' Equity   $ 10,326   $ 5,410  
               
               
 
IMAGEWARE SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, except share and per share amounts)
(Unaudited)
 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2015     2014     2015     2014  
Revenues                                
  Product   $ 552     $ 362     $ 1,952     $ 1,077  
  Maintenance     629       557       1,916       1,842  
Total Revenues     1,181       919       3,868       2,919  
                                 
Cost of Revenue                                
  Product     124       77       786       195  
  Maintenance     197       171       618       536  
                                 
Gross Profit     860       671       2,464       2,188  
      73 %     73 %     64 %     75 %
Operating Expenses                                
  General & administrative     907       971       2,611       2,861  
  Sales and marketing     663       567       2,030       1,781  
  Research and development     1,203       1,210       3,350       3,391  
  Depreciation and amortization     40       45       123       134  
    Total Operating Expenses     2,813       2,793       8,114       8,167  
                                 
Loss from operations     (1,953 )     (2,122 )     (5,650 )     (5,979 )
                                 
Interest (income) expense, net     1       104       436       288  
Other (income) expense, net     (99 )     (1 )     (145 )     (289 )
                                 
Income (loss) from continuing operations before income taxes     (1,855 )     (2,225 )     (5,941 )     (5,978 )
                                 
Income taxes     3       3       11       15  
                                 
Income (loss) from continuing operations     (1,858 )     (2,228 )     (5,952 )     (5,993 )
                                 
Net income (loss)   $ (1,858 )   $ (2,228 )   $ (5,952 )   $ (5,993 )
Preferred dividends     (306 )     (13 )     (812 )     (38 )
Net income (loss) available to common shareholders   $ (2,164 )   $ (2,241 )   $ (6,764 )   $ (6,031 )
                                 
Per share data - basic                                
  Net income (loss) from continuing operations   $ (0.02 )   $ (0.02 )   $ (0.06 )   $ (0.07 )
  Preferred dividends     -       -       (0.01 )     -  
  Basic income (loss) per share available to common shareholders   $ (0.02 )   $ (0.02 )   $ (0.07 )   $ (0.07 )
                                 
Basic weighted-average common shares     93,876,339       93,162,548       93,690,097       91,260,530  
                                 

Contact Information

  • Investor Relations:

    Liolios
    Cody Slach
    Tel 1-949-574-3860
    Email Contact