SOURCE: ImageWare Systems, Inc.

ImageWare Systems, Inc.

March 16, 2016 08:30 ET

ImageWare Systems Issues Corporate Update

SAN DIEGO, CA--(Marketwired - Mar 16, 2016) - 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 fourth quarter and full year ended December 31, 2015, as well as a corporate update to highlight the company's progress since its last quarterly update on November 16, 2015.

Operational Highlights

  • ImageWare Systems partnered with Aruba, a Hewlett Packard Enterprise, to integrate ImageWare's GoVerifyID with Aruba's ClearPass Policy Manager -- a multi-vendor, wired and wireless network access security solution for mobile and loT devices.
  • Received a notice of allowance from the United States Patent and Trademark Office that its "Multi-Modal Biometric Database Searching Methods" patent will be granted. This will represent ImageWare's 11th U.S. patent.

Management Commentary

"During the fourth quarter, we continued to make progress with our go-to-market partnership strategy," said Jim Miller, ImageWare's chairman and CEO. "As announced earlier this month, we integrated our GoVerifyID with Aruba's ClearPass Policy Manager -- a wired and wireless network access security solution used to manage over 65 million endpoint users. Not only does this partnership enable us to reach a large population on a global scale, it was also structured very differently compared to our past partnerships. In this instance, we were able to integrate the product and make ready for sale within a couple of days.

"From this point forward, we plan to execute our partnerships in the same manner in order to get our products out to the commercial market as fast as possible. We believe ImageWare offers the best all-around biometric product and according to Gartner, the world's leading IT research company, 30% of organizations will use biometric authentication for mobile devices by this year. With the biometric space beginning to move into the mainstream, we believe that all the right pieces of the puzzle are in place for ImageWare to grow our business."

Fourth Quarter 2015 Financial Results

Total revenues in the fourth quarter of 2015 were $0.9 million compared to $1.2 million in the fourth quarter of 2014, with the decrease primarily due to reduced software royalty revenue from our channel partners for our traditional identification card software.

Gross margin in the fourth quarter of 2015 was 40.2% compared to 79.0% in the fourth quarter of 2014. The decline was due to the write-off in the quarter of capitalized project expenses as their recoverability became questionable.

Net loss in the fourth quarter of 2015 was $2.6 million or $(0.03) per basic share, compared to a net loss of $1.9 million or ($0.02) per basic share in the fourth quarter of 2014.

At December 31, 2015, cash and cash equivalents totaled $3.4 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 today at 11:00 a.m. Eastern time (8:00 a.m. Pacific time) to discuss its fourth 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: Wednesday, March 16, 2016
Time: 11:00 a.m. Eastern time (8:00 a.m. Pacific time)
Toll-free dial-in number: 1-877-874-1571
International dial-in number: 1-719-325-4772
Conference ID: 8622449

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=118636 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 April 17, 2016.

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 8622449

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.

           
           
CONSOLIDATED BALANCE SHEETS  
           
    December 31,   December 31,  
    2015   2014  
Assets:              
  Cash   $ 3,352   $ 218  
  Accounts receivable, net     349     266  
  Inventories     46     916  
  Other current assets     69     86  
  Property and equipment, net     162     211  
  Other assets     98     153  
  Intangible assets, net     117     144  
  Goodwill     3,416     3,416  
Total Assets   $ 7,609   $ 5,410  
               
Liabilities and Shareholders' Equity:              
  Current liabilities   $ 2,406   $ 3,299  
  Convertible line of credit to related party net of discount     -     1,311  
  Pension obligation     1,511     1,834  
  Shareholders' equity (deficit)     3,692     (1,034 )
Total Liabilities and Shareholders' Equity   $ 7,609   $ 5,410  
               
               
   
   
SELECTED COMPARATIVE FINANCIAL HIGHLIGHTS  
In thousands, except share and per share amounts  
                         
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
    2015     2014     2015     2014  
Revenues                                
  Product   $ 241     $ 557     $ 2,192     $ 1,634  
  Maintenance     661       683       2,577       2,525  
Total Revenues     902       1,240       4,769       4,159  
                                 
Cost of Revenue                                
  Product     330       62       1,117       257  
  Maintenance     209       199       827       735  
                                 
Gross Profit     363       979       2,825       3,167  
      40 %     79 %     59 %     76 %
Operating Expenses                                
  General & administrative     826       958       3,437       3,818  
  Sales and marketing     761       690       2,791       2,471  
  Research and development     1,293       1,104       4,643       4,495  
  Depreciation and amortization     41       45       164       179  
    Total Operating Expenses     2,921       2,797       11,035       10,963  
                                 
Loss from operations     (2,558 )     (1,818 )     (8,210 )     (7,796 )
                                 
Interest (income) expense, net     11       128       447       416  
Other (income) expense, net     0       (8 )     (145 )     (297 )
                                 
Income (loss) from continuing operations before income taxes     (2,569 )     (1,938 )     (8,512 )     (7,915 )
                                 
Income taxes     10       10       22       25  
                                 
Income (loss) from continuing operations     (2,579 )     (1,948 )     (8,534 )     (7,940 )
                                 
Net income (loss)   $ (2,579 )   $ (1,948 )   $ (8,534 )   $ (7,940 )
Preferred dividends     (253 )     (13 )     (1,065 )     (51 )
Net income (loss) available to common shareholders   $ (2,832 )   $ (1,961 )   $ (9,599 )   $ (7,991 )
                                 
Per share data - basic                                
  Net income (loss) from continuing operations   $ (0.03 )   $ (0.02 )   $ (0.09 )   $ (0.09 )
  Preferred dividends     -       -       (0.01 )     -  
  Basic income (loss) per share available to common shareholders   $ (0.03 )   $ (0.02 )   $ (0.10 )   $ (0.09 )
                                 
Basic weighted-average common shares     94,070,895       93,384,834       93,786,079       91,795,971  
                                 
                                 

Contact Information

  • Investor Relations:
    Liolios
    Cody Slach
    Tel 1-949-574-3860
    Email Contact