SAN DIEGO, August 2, 2001 (PRIMEZONE) -- ImageWare Systems, Inc. (AMEX:IW) today reported its financial results for the second quarter ended June 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 second quarter total revenues grew to $3.5 million, compared with $2.7 million in the year ago quarter. Net loss was $2.0 million, or $0.42 per share, compared with a net loss of $273,000, or $0.08 per share, for the same quarter last year. Gross profit was $2.0 million, the same as for the 2000 second quarter. Per share calculations are based on approximately 4.9 million weighted average shares outstanding, compared with 3.8 million shares in the 2000 second quarter.
For the six months ended June 30, 2001, revenues rose to $6.3 million, compared with $5.2 million in the comparable period a year ago. Net loss was $2.9 million, or $0.65 per share, compared with a net loss of $1.6 million, or $0.80 per share, for the six months ended June 30, 2000. Gross profit was $3.6 million, compared with $3.3 million in the corresponding period a year ago.
The backlog of product orders as of June 30, 2001 was approximately $845,000.
Jim Miller, chairman and chief executive officer, said, "Our financial results largely reflect the general market slowdown impacting companies in the technology sector. Despite current economic conditions, we are building a fundamentally sound company with staying power. Our approach is to grow ImageWare by enhancing our product offerings, improving our sales efforts, acquiring companies in complementary markets and keeping our expenses in line with revenues. We are seeing signs that these strategies will have a positive impact during the second half of this year."
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.
SELECTED COMPARATIVE FINANCIAL HIGHLIGHTS
In thousands, except per share amounts
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- -------------------------
2001 2000 2001 2000
----------- ----------- ----------- -----------
Revenues
Product $ 2,948 $ 2,311 $ 5,262 $ 4,481
Maintenance 591 411 1,038 701
----------- ----------- ----------- -----------
Total Revenues 3,539 2,722 6,300 5,182
Cost of Revenue
Product 1,209 454 2,129 1,266
Maintenance 307 312 591 619
----------- ----------- ----------- -----------
Gross Profit 2,023 1,956 3,580 3,297
Operating,
gen. & admin 1,788 944 3,004 1,772
Sales and
marketing 1,044 493 1,606 1,049
Research and
development 590 394 1,048 816
Depreciation and
amortization 642 252 915 496
----------- ----------- ----------- -----------
Loss from
operations (2,041) (127) (2,993) (836)
Interest
(income)
expense, net (2) (67) (71) 1,010
Other (income)
expense, net (6) 213 (6) 363
----------- ----------- ----------- -----------
Loss before
extraordinary
items (2,033) (273) (2,916) (2,209)
Extraordinary
gain on debt
extinguishments,
net of tax 0 0 0 (622)
Income Taxes (40) 0 (40) 0
----------- ----------- ----------- -----------
Net loss $ (1,993) $ (273) $ (2,876) $ (1,587)
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Per share data
- basic
Net loss $ (0.42) $ (0.08) $ (0.65) $ (0.80)
Weighted
average shares
- basic 4,855,662 3,845,989 4,532,347 2,823,346
CONSOLIDATED BALANCE SHEETS
In thousands
June 30, December 31,
2001 2000
--------- --------
Assets:
Cash $ 709 $ 6,900
restricted cash and cash equivalents $ 1,058 $ 530
Accounts receivable, net 3,552 2,945
Other current assets 2,101 467
Property and equipment, net 862 535
Intangible assets, net 6,756 1,628
--------- --------
Total Assets $ 15,038 $ 13,005
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Liabilities and Stockholders' Equity:
Current liabilities $ 3,867 $ 2,773
Notes payable 651 342
Stockholders' equity 10,520 9,890
--------- --------
Total Liabilities and
Stockholders' Equity $ 15,038 $ 13,005
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