REDWOOD SHORES, Calif., Aug. 14 /PRNewswire-FirstCall/ -- Communication Intelligence Corporation (OTC Bulletin Board: CICI) ("CIC" or the "Company"), a leading supplier of electronic signature solutions for business process automation in the Financial Industry and the recognized leader in biometric signature verification, announced today its financial results for the three and six-month periods ended June 30, 2007.
Total revenue of $555,000 for the three month period ended June 30, 2007 increased 24% compared to $448,000 in the corresponding three month period of the prior year and increased 66% over the first quarter of 2007. Revenue for the second quarter of 2007 was primarily attributable to Advanced Computer Technology, County of Summit Ohio, IntegraSys/Fiserv, Misys Healthcare Systems, Norfolk Circuit Court, PalmSource Inc., Prudential Financial Inc., Snap-On Credit LLC, the Tennessee Valley Authority, Wells Fargo Bank NA and one of the world's largest financial institutions.
The Company's net loss applicable to common stockholders for the three month period ended June 30, 2007 was $843,000 compared to a net loss of $925,000 for the corresponding prior year period. The operating loss for the three months ended June 30, 2007, before interest expense and amortization of the loan discount, warrants and prepaid financing cost, was $558,000 compared to an operating loss of $812,000 in the prior year period. Non-operating expenses for the three months ended June 30, 2007 were $285,000 compared to $113,000 for the corresponding prior year period. Non-cash loan amortization expense, included in non-operating expense for the three months ended June 30, 2007, was $215,000 compared to $104,000 in the corresponding prior year period. This increase is attributable to additional amortization of warrant costs associated with financings completed late in 2006 and during the six months ended June 30, 2007. Amortization of loan discount and prepaid financing costs decreased in the current year period, due to notes being converted in the corresponding prior year period. The basic and diluted loss per share was $0.01 on approximately 108 million weighted average common shares outstanding for the three months ended June 30, 2007 and 2006, respectively.
Total revenues of $889,000 for the six months ended June 30, 2007, decreased 23% compared to revenues of $1,149,000 in the corresponding prior year period. The Company's net loss applicable to common stockholders for the six months ended June 30, 2007 and 2006 was $1,650,000 and $1,736,000, respectively. The operating loss for the six month period ended June 30, 2007, before interest expense and amortization of the loan discount, warrants and prepaid financing cost, was $1,146,000 compared to $1,310,000 in the prior year period. Non-cash loan amortization expense for the six months ended June 30, 2007 was $390,000 compared to $405,000 in the corresponding prior year period. This decrease is attributable to the conversion of notes in the prior year period. The basic and diluted loss per share was $0.02 on approximately 108 million weighted average common shares outstanding for the six months ended June 30, 2007 as compared to a basic and diluted loss of $0.02 per share on approximately 107 million weighted average common shares outstanding for the corresponding prior year period.
"Progress with targeted accounts in the second quarter supports our belief that we will close sufficient orders during the second half of the year necessary to achieve profitability. Further, we believe our current sales activity indicates that we now have the breadth of eSignature product offerings, derived from our experience with large scale deployments with credible top-tier financial enterprises, required to sell effectively to both end-users and channel partners thereby providing CIC competitive differentiation and the foundation necessary for sustained revenue growth and profitability," stated CIC Chairman & CEO, Guido DiGregorio. "We are encouraged by the increased interest in license and teaming agreements with leading enterprise software solutions providers that enhance CIC's market access and sales coverage and contributes to achieving sustained sales growth. Even though the timing of orders remains challenging, we believe the strong and growing pipeline we have built is nearing the critical mass required to achieve a reasonable level of predicable sales results."
Selected financial information follows. Detailed corporate and financial information is available on CIC's website at http://www.cic.com.
Communication Intelligence Corporation ("CIC") is a leading supplier of electronic signature solutions for business process automation in the Financial Industry and the recognized leader in biometric signature verification. CIC's products enable companies to achieve truly paperless work flow in their eBusiness processes by enabling them with "The Power to Sign Online(R)" with multiple signature technologies across virtually all applications. Industry leaders such as AIG, Charles Schwab, Prudential, Nationwide (UK), Snap-On Credit and Wells Fargo chose CIC's products to meet their needs. CIC sells directly to enterprises and through system integrators, channel partners and OEMs. CIC is headquartered in Redwood Shores, California and has a joint venture, CICC, in Nanjing, China. For more information, please visit our website at http://www.cic.com.
Forward Looking Statement
Certain statements contained in this press release, including without limitation, statements containing the words "believes", "anticipates", "hopes", "intends", "expects", and other words of similar import, constitute "forward looking" statements within the meaning of the Private Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual events to differ materially from expectations. Such factors include the following (1) technological, engineering, quality control or other circumstances which could delay the sale or shipment of products; (2) economic, business, market and competitive conditions in the software industry and technological innovations which could affect the Company's business; (3) the Company's inability to protect its trade secrets or other proprietary rights, operate without infringing upon the proprietary rights of others or prevent others from infringing on the proprietary rights of the Company; and (4) general economic and business conditions. These forward-looking statements speak only as of the date hereof and the Company disclaims any intent or obligation to update these forward-looking statements.
CIC and its logo and The Power to Sign on Line are registered trademarks of Communications Intelligence Corporation. All other trademarks and registered trademarks are the property of their respective holders.
COMMUNICATION INTELLIGENCE CORPORATION
Selected Consolidated Statement of Operations Information
(Dollars in thousands, except per share amounts)
Three Months Ended Six Months Ended
06/30/07 06/30/06 06/30/07 06/30/06
Revenues $555 $448 $889 $1,149
Net (loss) applicable
to common stockholders $(843) $(925) $(1,650) $(1,736)
Basic and diluted
(loss) per common share $(0.01) $(0.01) $(0.02) $(0.02)
Weighted average common
shares outstanding 107,557 107,552 107,557 107,199
Selected Consolidated Balance Sheet Information
(Dollars in thousands)
Cash & cash equivalents $867 $727
Total current assets $1,410 $1,319
Total assets $6,153 $6,126
Short-term debt - Convertible notes (1) $1,291 $1,154
Short-term debt - related party (2) $431 $ --
Deferred revenue (3) $507 $404
Total current liabilities (4) $2,858 $2,135
Long-term debt related party (5) $674 $334
Total stockholder's equity $2,553 $3,584
(1) Net of $91 and $228 unamortized fair value assigned to the
beneficial conversion feature and warrants at June 30, 2007 and
December 31, 2006, respectively.
(2) Includes $450 to a related party net of unamortized fair value
assigned to warrants of $169 at June 30, 2007.
(3) Deferred revenues consist principally of advances from customers and
deferred maintenance contract revenue.
(4) Includes deferred revenues of $507 and $404 as of June 30, 2007 and
December 31, 2006, respectively.
(5) Includes $770 and $450 to a related party at June 30, 2007 and
December 31, 2006, respectively, net of $446 and $266 unamortized
fair value assigned to warrants at June 30, 2007 and December 31,
Contact: Frank V. Dane
|SOURCE Communication Intelligence Corporation|
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