SYS-CON MEDIA Authors: Lori MacVittie, Pat Romanski, Sean Houghton, Glenn Rossman, Ignacio M. Llorente

News Feed Item

ImageWare Systems Issues Corporate Update

SAN DIEGO, CA -- (Marketwired) -- 05/12/14 -- 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 first quarter ended March 31, 2014, as well as provided a corporate update to highlight the company's progress since its last update on March 17, 2014.

Operational Highlights

  • Partnered with IBM to provide ImageWare's cloud-based, multi-modal biometric identity management and user authentication platform on the IBM Cloud Platform, BlueMix.

  • Signed agreement to provide ImageWare's GoMobile Interactive product via Fujitsu's Global Cloud Platform with Maxie Mobile for their mobile wallet offering, initially targeted towards the gaming industry.

  • T-Systems and ImageWare have secured the first customer under the new partnership. The first customer is Deutsche Bahn, the German national rail company. ImageWare expects this implementation to commence and begin producing revenues in the third quarter of 2014.

First Quarter 2014 Financial Results
Total revenues in the first quarter of 2014 increased to $1.1 million from $0.9 million in the first quarter of 2013, primarily due to higher sales of identification software license revenue.

Gross margin in the first quarter of 2014 increased by 410 basis points to 76.4% compared to 72.3% in the first quarter of 2013. The increase was primarily due to the increased software license revenues.

Net loss in the first quarter of 2014 was $1.7 million or ($0.02) per basic share, compared to a net loss of $2.8 million or ($0.04) per basic share in the first quarter of 2013.

At March 31, 2014, cash and cash equivalents totaled $2.2 million compared to $2.4 million at December 31, 2013. The company continues to carry virtually no debt and its $3.5 million line of credit that remains untapped.

Management Commentary
"Our strategy to target large IT service providers and provide security for their cloud customers and applications is gaining traction, as demonstrated by our most recent partnership with IBM," said Jim Miller, chairman and CEO of ImageWare. "IBM marks our third secured agreement with a major cloud partner, and we expect more to come. These large, established partners offer the support, brand name and worldwide cloud platform needed to seamlessly distribute our products. While IBM's BlueMix is in the early stages, we've already received referrals from their customers -- several of which we are in active discussions.

"At the beginning of April, Fujitsu announced the kick-off and worldwide expansion of our partnership model with a dedicated sales team covering the Americas. Since then, Fujitsu has set up proof of concept pilots with three of their major customers, with more expected in the near future.

"By working closely with our technology partners, we continue to build a healthy active pipeline of potential customers. One includes a new partnership with Maxie Mobile, where we will provide our GoMobile Interactive product via Fujitsu's Global Cloud Platform for Maxie's mobile wallet offering, which is initially targeted towards the gaming industry.

"Our partnership with T-Systems continues to progress quickly. In fact, T-Systems has recently secured an agreement with Deutsche Bahn, the German national railroad, who will become the first customer receiving our joint product offering. We expect more to follow and anticipate this agreement will begin producing revenues in the third quarter of 2014.

"We see our relationships with IBM, Fujitsu, T-Systems and others representing just the tip of the iceberg in terms of our opportunities in the commercial and consumer marketplaces. All of these partnerships are progressing well, and although they have not yet produced revenue, there is every indication that the steps we have been taking are building shareholder value and will ultimately provide a steady stream of recurring revenue."

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 2014 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: Monday, May 12, 2014
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-877-941-1427
International dial-in number: 1-480-629-9664
Conference ID: 4681530

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=108991 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 today through June 12, 2014.

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 4681530

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, 2013 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)


                                                    March 31,   December 31,
                                                      2014          2013
                                                  ------------  ------------
Assets:
  Cash                                            $      2,159  $      2,363
  Accounts receivable, net                                 491           302
  Inventories                                              568           505
  Other current assets                                     538           148
  Property and equipment, net                              226           245
  Other assets                                              34           395
  Intangible assets, net                                   165           172
  Goodwill                                               3,416         3,416
                                                  ------------  ------------
Total Assets                                      $      7,597  $      7,546
                                                  ============  ============

Liabilities and Shareholders' Equity:
  Current liabilities                             $      2,946  $      3,127
  Derivative liabilities                                     -            57
  Pension obligation                                     1,045         1,031
  Other long-term liabilities                                0             0
  Shareholders' equity                                   3,606         3,331
                                                  ------------  ------------
Total Liabilities and Shareholders' Equity        $      7,597  $      7,546
                                                  ============  ============



                           IMAGEWARE SYSTEMS, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (In Thousands, except share and per share amounts)
                                 (Unaudited)


                                                     Three Months Ended
                                                          March 31,
                                                 --------------------------
                                                     2014          2013
                                                 ------------  ------------
Revenues
  Product                                        $        434  $        207
  Maintenance                                             629           649
                                                 ------------  ------------
Total Revenues                                          1,063           856

Cost of Revenue
  Product                                                  70            44
  Maintenance                                             181           193
                                                 ------------  ------------

Gross Profit                                              812           619
                                                           76%           72%
Operating Expenses
  General & administrative                              1,016           898
  Sales and marketing                                     618           475
  Research and development                              1,030           920
  Depreciation and amortization                            42            23
                                                 ------------  ------------
   Total Operating Expenses                             2,706         2,316

                                                 ------------  ------------
Loss from operations                                   (1,894)       (1,697)

Interest (income) expense, net                             79             1
Change in fair value of derivative liabilities              0         1,176
Other (income) expense, net                              (283)         (104)

                                                 ------------  ------------
Income (loss) from continuing operations before
 income taxes                                          (1,690)       (2,770)

Income taxes                                                0             3

                                                 ------------  ------------
Income (loss) from continuing operations               (1,690)       (2,773)

Net income (loss)                                $     (1,690) $     (2,773)
Preferred dividends                                       (13)          (13)
                                                 ------------  ------------
Net income (loss) available to common
 shareholders                                    $     (1,703) $     (2,786)
                                                 ============  ============

Per share data - basic
  Net income (loss) from continuing operations   $      (0.02) $      (0.04)
  Preferred dividends                                       -             -
                                                 ------------  ------------
  Basic income (loss) per share available to
   common shareholders                           $      (0.02) $      (0.04)
                                                 ============  ============

Basic weighted-average common shares               88,604,221    76,846,563

Investor Relations:
Liolios Group, Inc.
Cody Slach or Greg Falesnik
Tel 1-949-574-3860
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
AppZero has announced that its award-winning application migration software is now fully qualified within the Microsoft Azure Certified program. AppZero has undergone extensive technical evaluation with Microsoft Corp., earning its designation as Microsoft Azure Certified. As a result of AppZero's work with Microsoft, customers are able to easily find, purchase and deploy AppZero from the Azure Marketplace. With just a few clicks, users have an Azure-based solution for moving applications to the...
SYS-CON Media announced today that Aruna Ravichandran, VP of Marketing, Application Performance Management and DevOps at CA Technologies, has joined DevOps Journal’s authors. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Aruna's inaugural article "Four Essential Cultural Hacks for DevOps Newbies" discusses how to demonstrate the...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...