ImageWare Systems Issues Corporate Update
SAN DIEGO, CA – August 10, 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 second quarter ended June 30, 2015, as well as a corporate update to highlight the company’s progress since its last quarterly update on May 11, 2015.
- Awarded patents by the Canadian Intellectual Property Office and Patent Office of Australia for technology used in ImageWare’s multi-modal Biometric Engine® product.
- Signed agreement with OnlineAuction.com to provide ImageWare’s patented GoVerifyID® mobile biometric security software to 200,000 online auction members, beginning August 2015.
- Signed a three year licensing agreement with Lockheed Martin (NYSE: LMT) under which ImageWare will integrate its patented Biometric Engine into the Lockheed Martin cloud-based multimodal biometric IDHaystack® Identity as a Service Platform.
“ImageWare’s strategy to target large IT service providers and deliver security for their cloud and mobile customers remains on track,” said Jim Miller, ImageWare’s chairman and CEO. “Ultimately our model is dependent upon our partners, and we have formed very significant relationships with Fujitsu, TransUnion, CA Technologies, IBM, Deutsche Telekom, Agility, Extenua, and more recently, with Lockheed Martin and Online Auction. All of these partners have now moved from the testing to integration phase and some are even moving to the launch of aggressive marketing campaigns.
“These companies see and live in the same world as we do—a world that saw 50% of all organizations experience some form of data breach in the last 12 months, with two-thirds of those breaches involving the compromise of pins and passwords. So we have the right products in the right place at precisely the right time. We believe that we are now at the start of large consumer adoption and that our technology will be front and center as that rollout commences.”
Second Quarter 2015 Financial Results
Total revenues in the second quarter of 2015 increased 81% to $1.7 million compared to $0.9 million in the second quarter of 2014, primarily due to the recognition of revenue for the biometric identification project for Los Angeles World Airports (LAX).
Gross margin in the second quarter of 2015 was 52.9% compared to 75.2% in the second quarter of 2014. The decrease was due to the LAX project, which was drawn out over a significantly longer period than was originally expected.
Net loss in the second quarter of 2015 was $1.8 million or ($0.02) per basic share, compared to a net loss of $2.1 million or ($0.02) per basic share in the second quarter of 2014.
At June 30, 2015, cash and cash equivalents totaled $6.4 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.
ImageWare will hold a conference call today at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss its second 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: Monday, August 10, 2015
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-800-289-0498
International dial-in number: 1-913-312-0382
Conference ID: 9108573
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=115644 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 September 10, 2015.
Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 9108573
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.
Liolios Group, Inc.