SOURCE: ImageWare Systems, Inc.

ImageWare Systems, Inc.

March 30, 2017 16:30 ET

ImageWare Systems Issues Corporate Update

SAN DIEGO, CA--(Marketwired - Mar 30, 2017) - 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 fourth quarter and full year ended December 31, 2016, as well as a corporate update to highlight the company's progress since its last quarterly update on November 14, 2016.

Fourth Quarter Operational Highlights

  • Entered into a five-year agreement with Avatier to provide GoVerifyID® for their product suite.

  • Expanded partnership with Fujitsu to provide multi-modal biometric technology for use in onboarding solutions for financial institutions.

  • Recognized as one of the "20 Most Promising CA Technology Solutions Providers of 2016" by CIOReview.

  • Released a comprehensive newsletter, in conjunction with Gartner, featuring GoVerifyID as the first enterprise-ready biometric authentication solution to seamlessly integrate with Microsoft infrastructure.

  • Achieved official certification for the Microsoft Windows Server with GoVerifyID.

  • Showcased joint solution with SAP to integrate GoVerifyID with the SAP HANA® Cloud Platform at the Mobile World Congress.

Management Commentary

"During the fourth quarter, we continued to engage with various strategic partners to deploy our product offerings, a course of action we still view as imperative to our business model and overall long-term success," said Jim Miller, ImageWare's chairman and CEO. "We are making progress disrupting the longstanding yet troubled use of pins and passwords, however our business strategy relies on long-term engagements, often with very large organizations, that have continued to take more time than expected to materialize from a revenue perspective.

"As a pioneer in the biometric authentication space, we work tirelessly to understand the security needs of enterprises. In doing so, we are presented with the opportunity to educate the greater market. During the quarter, we released a comprehensive newsletter, in conjunction with Gartner, which profiles GoVerifyID as the first enterprise-ready biometric platform that seamlessly integrates with the Microsoft infrastructure. When combined with research previously released by Gartner, it is clear that our product offering and business model effectively addresses the previous barriers that have prevented organizations from implementing biometrics.

"In 2017, we will remain steadfast with our objective to solidify ourselves as the premier biometric authentication solutions provider. We will continue to pursue high-profile strategic partnerships that we believe will yield consistent revenue as demand for higher levels of security and biometrics continues to strengthen."

Fourth Quarter 2016 Financial Results

Total revenues in the fourth quarter of 2016 remained constant at $0.9 million when compared to the same year-ago period.

Gross margin in the fourth quarter of 2016 improved to 69.3% compared to 40.2% in the year-ago quarter, with the difference due to a write-off in the 2015 quarter related to capitalized project expenses.

Net loss in the fourth quarter of 2016 was $2.7 million or $(0.03) per share, compared to a net loss of $2.6 million or $(0.03) per share in the year-ago quarter.

On December 31, 2016, cash and cash equivalents totaled $1.6 million compared to $3.4 million on December 31, 2015. Total debt was $2.5 million compared to no debt at December 31, 2015.

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 fourth quarter and full year 2016 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, March 30, 2017
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-877-681-3376
International dial-in number: 1-719-325-4773
Conference ID: 7287545

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=123302 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 April 30, 2017.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 7287545

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, 2015 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.  
CONSOLIDATED BALANCE SHEETS  
(In thousands, except share and per share data)  
   
SELECTED COMPARATIVE FINANCIAL HIGHLIGHTS  
In thousands, except share and per share amounts  
                         
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
    2016     2015     2016     2015  
Revenues                                
  Product   $ 281     $ 241     $ 1,249     $ 2,192  
  Maintenance     644       661       2,563       2,577  
Total Revenues     925       902       3,812       4,769  
                                 
Cost of Revenue                                
  Product     81       330       243       1,117  
  Maintenance     203       209       827       827  
                                 
Gross Profit     641       363       2,742       2,825  
      69 %     40 %     72 %     59 %
Operating Expenses                                
  General & administrative     912       826       3,722       3,437  
  Sales and marketing     888       761       3,021       2,791  
  Research and development     1,400       1,293       5,332       4,643  
  Depreciation and amortization     26       41       129       164  
    Total Operating Expenses     3,226       2,921       12,204       11,035  
                                 
Loss from operations     (2,585 )     (2,558 )     (9,462 )     (8,210 )
                                 
Interest (income) expense, net     109       11       245       447  
Other (income) expense, net     0       0       (201 )     (145 )
                                 
Income (loss) from continuing operations before income taxes     (2,694 )     (2,569 )     (9,506 )     (8,512 )
                                 
Income taxes     11       10       21       22  
                                 
Income (loss) from continuing operations     (2,705 )     (2,579 )     (9,527 )     (8,534 )
                                 
Net income (loss)   $ (2,705 )   $ (2,579 )   $ (9,527 )   $ (8,534 )
Preferred dividends     (361 )     (253 )     (1,347 )     (1,065 )
Net income (loss) available to common shareholders   $ (3,066 )   $ (2,832 )   $ (10,874 )   $ (9,599 )
                                 
Per share data - basic                                
  Net income (loss) from continuing operations   $ (0.03 )   $ (0.03 )   $ (0.10 )   $ (0.09 )
  Preferred dividends     -       -       (0.02 )     (0 )
  Basic income (loss) per share available to common shareholders   $ (0.03 )   $ (0.03 )   $ (0.12 )   $ (0.10 )
                                 
Basic weighted-average common shares     94,779,243       94,070,895       94,426,783       93,786,079  
                                 
                                 
                                 
IMAGEWARE SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
 
CONSOLIDATED BALANCE SHEETS
           
    December 31,     December 31,
    2016     2015
Assets:              
  Cash   $ 1,586     $ 3,352
  Accounts receivable, net     287       349
  Inventories     23       46
  Other current assets     135       69
  Property and equipment, net     93       162
  Other assets     34       98
  Intangible assets, net     106       117
  Goodwill     3,416       3,416
Total Assets   $ 5,680     $ 7,609
               
Liabilities and Shareholders' Equity:              
  Current liabilities   $ 2,516     $ 2,406
  Convertible line of credit to related party net of discount     2,528       -
  Pension obligation     1,895       1,511
  Shareholders' equity     (1,259 )     3,692
Total Liabilities and Shareholders' Equity   $ 5,680     $ 7,609
               

Contact Information

  • Investor Relations:

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