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Communication Intelligence Corporation Reports Third Quarter 2008 Financial Results
Date:10/23/2008

iluted loss per share was $0.01 on approximately 129.1 million weighted average common shares outstanding for the three months ended September 30, 2008 and $0.01 on approximately 111.5 million shares outstanding for the comparable prior year period.

Total revenues of $1,558,000 for the nine months ended September 30, 2008 increased $213,000, or 16%, compared to revenues of $1,345,000 in the corresponding prior year period.

The operating loss for the nine months ended September 30, 2008, before interest expense and amortization of the loan discount, and deferred financing cost, was $1,880,000 compared to an operating loss of $1,751,000 in the prior year period. The increase in the operating loss is due to an increase in cost of sales related to engineering cost, increased amortization of product development cost and third party hardware. The Company's net loss applicable to common stockholders for the nine months ended September 30, 2008 and 2007 was $3,090,000 and $2,755,000, respectively. The increase in the net loss applicable to common stockholders is due primarily to a non-cash expense for the beneficial conversion feature of the convertible preferred shares issued in June 2008 of $371,000. There was no such charge in the comparable period of the prior year. The basic and diluted loss per share was $0.02 on approximately 129.1 million weighted average common shares outstanding for the nine months ending September 30, 2008 and $0.02 on approximately 108.9 million shares outstanding for the comparable prior year period.

"We continue to experience demand for our electronic signature technology in the insurance sector despite the turmoil and volatility in the financial markets. Based upon prior large scale deployments at AEGON/WFG, AIG, Prudential and State Farm, two new customer wins with top tier insurance companies together with pending orders from other insurance companies, we believe CIC is emerging as the leading and preferred supplier of
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SOURCE Communication Intelligence Corporation
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