SAN DIEGO, Nov. 6, 2001 (PRIMEZONE) -- ImageWare Systems, Inc. (AMEX:IW) today reported its financial results for the third quarter ended September 30, 2001.
The company said results for all periods reported have been restated to reflect the acquisition of Imaging Technology Corporation on August 22, 2000, in a pooling of interest transaction.
For the 2001 third quarter total revenues rose to $4.3 million, compared with $2.1 million in the year ago quarter. Gross profit was $2.3 million, compared with $983,000 for the 2000 third quarter. Net loss was $1.7 million, or $0.35 per share, compared with a net loss of $1.2 million, or $0.31 per share, for the same quarter last year. Financial results for the 2000 third quarter include an extraordinary gain of $547,000, or $0.14 per share, related to debt extinguishments. Per share calculations are based on approximately 5.2 million weighted average shares outstanding, compared with 4.0 million shares in the 2000 third quarter.
For the nine months ended September 30, 2001, revenues grew to $10.6 million, compared with $7.3 million in the comparable period a year ago. Gross profit was $5.9 million, compared with $4.3 million in the corresponding period a year ago. Net loss was $4.6 million, or $1.00 per share, compared with a net loss of $2.8 million, or $0.89 per share, for the nine months ended September 30, 2000. Financial results for the nine months ended September 30, 2000 include an extraordinary gain of $1.2 million, or $0.36 per share related to debt extinguishments. Per share calculations are based on approximately 4.8 million weighted average shares outstanding, compared with 3.2 million shares in the 2000 period.
The backlog of product orders as of September 30, 2001 was approximately $2.3 million.
Jim Miller, chairman and chief executive officer, said, "Our identification and law enforcement divisions reported strong sequential revenue growth in each quarter of 2001, and our recently acquired digital photography business contributed solid topline sales in the 2001 third quarter."
Miller added, "The events of September 11 have focused attention on issues related to safety and security. Our technology addresses many of the needs facing airports, law enforcement agencies and other public and private organizations seeking effective and immediate solutions."
About ImageWare Systems:
ImageWare Systems, Inc. develops and markets software used to create and manage databases of digital images and accompanying text records. Through its ID Group, ImageWare creates software products that allow customers to create secure and smart digital identification documents. Through its C.R.I.M.E.S.(r) product line, ImageWare empowers its customers to quickly capture, archive, search, retrieve and share digital photographs and criminal history records on a stand alone, networked or web-based platform. Through its Digital Photography Systems Group, ImageWare creates software and web-based solutions for professional photographers to capture and modify digital photos for events such as sports or weddings, school photos and studio portraits.
SELECTED COMPARATIVE FINANCIAL HIGHLIGHTS
In thousands, except per share amounts
Three Months Ended Nine Months Ended
September 30, September 30,
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2001 2000 2001 2000
Revenues ------- -------- -------- --------
Product $ 3,753 $ 1,796 $ 9,015 $ 6,305
Maintenance 584 335 1,622 1,036
------- -------- -------- --------
Total Revenues 4,337 2,131 10,637 7,341
Cost of Revenue
Product 1,723 826 3,851 2,093
Maintenance 288 322 879 941
------- -------- -------- --------
Gross Profit 2,326 983 5,907 4,307
54% 46% 56% 59%
Operating, gen. & admin. 1,638 742 4,644 2,485
Sales and marketing 1,193 368 2,799 1,417
Research and development 644 360 1,691 1,175
Stock-based compensation 0 784 0 784
Depreciation and
amortization 659 249 1,574 744
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Total Operating Expenses 4,134 2,503 10,708 6,605
------- -------- -------- --------
Loss from operations (1,808) (1,520) (4,801) (2,298)
Interest (income)
expense, net (9) (79) (81) 931
Other (income)
expense, net (20) 331 (25) 730
-------- -------- -------- --------
Loss before
extraordinary items (1,779) (1,772) (4,695) (3,959)
Extraordinary gain on
debt extinguishments,
net of tax 0 547 0 1,168
Income Taxes (41) 0 (82) 0
-------- -------- -------- --------
Net loss $ (1,738) $(1,225) $(4,613) $(2,791)
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Per share data - basic
Net loss per share
before extraordinary
item $ (0.35) $(0.45) $ (1.00) $(1.25)
Extraordinary item -- 0.14 -- 0.36
-------- -------- -------- --------
Net loss (0.35) (0.31) (1.00) (0.89)
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Basic and diluted
common shares 5,194,792 4,001,229 4,755,589 3,219,671
CONSOLIDATED BALANCE SHEETS
In thousands
September 30, December 31,
2001 2000
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Assets:
Cash $ 659 $ 6,900
Restricted cash and cash equivalents 60 530
Accounts receivable, net 4,465 2,945
Other current assets 2,441 467
Property and equipment, net 1,218 535
Other assets 199 65
Intangible assets, net 7,865 1,563
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Total Assets $16,907 $13,005
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Liabilities and Stockholders' Equity:
Current liabilities $ 5,636 $ 2,773
Notes payable 474 342
Stockholders' equity 10,797 9,890
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Total Liabilities and Stockholders' Equity $16,907 $13,005
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