SAN DIEGO, March 28, 2002 (PRIMEZONE) -- ImageWare Systems, Inc. (AMEX:IW) today reported financial results for the fourth quarter and year-ended December 31, 2001.
Total revenues for the 2001 fourth quarter more than doubled to $5.6 million from $2.1 million in the year ago quarter. Net loss for the fourth quarter was $1.3 million, or $0.24 per share, compared with a net loss of $1.3 million, or $0.32 per share, for the same period a year ago. Per share calculations for the 2001 fourth quarter are based on approximately 5.5 million average shares outstanding, compared with 4.2 million average shares in the 2000 fourth quarter. Total gross profit for the 2001 fourth quarter improved to $3.3 million, or 59 percent of revenues, from $860,000, or 42 percent of revenues, for the same period in 2000.
For the year ended December 31, 2001, total revenues increased 73 percent to $16.3 million from $9.4 million reported a year ago. Net loss amounted to $5.9 million, or $1.22 per share, compared with a net loss of $4.1 million, or $1.21 per share, for the year ended December 31, 2000. Per share calculations for the year 2001 are based on approximately 4.9 million average shares outstanding, compared with 3.5 million shares for the same period in 2000. Total gross profit increased to $9.2 million, or 57 percent of revenues, from $5.2 million, or 55 percent of revenues, for the year ended December 31, 2000.
The company said its backlog of product orders as of December 31, 2001 was approximately $727,000 and has increased substantially since year-end, now standing at approximately $1.7 million.
Jim Miller, chairman and chief executive officer, said the revenue increase primarily reflects the benefits of acquisitions that were consummated during the past year.
"ImageWare, as with most U.S. businesses, particularly in the technology sector, was not immune from the challenging economic environment of 2001," Miller said. "The tragic events of September 11 placed attention on our specialized security niche, although the nature of our business typically requires long lead times before contracts are consummated. We are pleased that since year-end, our order flow has accelerated. We look forward to a better year ahead as we realize the full benefits of our newly acquired companies and as the economic environment improves."
About ImageWare Systems
ImageWare Systems, Inc. is a security technology company that specializes in digital imaging for crime-solving and smart ID. Through its ID Group, ImageWare applies its core technology to create secure identification systems. The company's smart card ID systems include an associated information database, and are designed to provide facility security for public and private organizations including airports, universities, government agencies and businesses of all sizes. 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. ImageWare clients include the United Nations, the U.S. Senate and House of Representatives, FBI and the New York Police Department, as well as corporations including Prudential Insurance, IBM, Volkswagen AG, JP Morgan Bank, Viacom and Intel. Through its Digital Photography Systems Group, ImageWare creates software and Web-based solutions for professional photographers.
Forward-looking Statements
Statements in this press release that are not strictly historical in nature are forward-looking statements. These statements include, but are not limited to, references to increased order flow and expectations for fiscal year 2002. Forward-looking statements involve known or unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements, or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include but are not limited to: risks related to our acquisition strategies and the integration of acquired companies; risks associated with our dependence on a small number of large sales to customers with political purchasing constraints; risks related to our lengthy sales cycle; our reliance on third party systems integrators and on third party technology licenses; fluctuations in our operating results; continued new product introductions and market acceptance of our new products; new product introductions by competitors; technological changes in the digital imaging industry; uncertainties regarding intellectual property rights. For a discussion of these and other factors which may cause our actual events or results to differ from those projected, please refer to the company's most recent annual report on Form 10-KSB and quarterly reports on Form 10-QSB, as well as other subsequent filings with the Securities and Exchange Commission.
SELECTED COMPARATIVE FINANCIAL HIGHLIGHTS
In thousands, except per share amounts
Three Months Ended Twelve Months Ended
December 31, December 31,
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2001 2000 2001 2000
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Revenues
Product $ 4,882 $ 1,591 $ 13,897 $ 7,896
Maintenance 734 467 2,356 1,503
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Total Revenues 5,616 2,058 16,253 9,399
Cost of Revenue
Product 2,032 883 5,884 2,975
Maintenance 262 311 1,141 1,252
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Gross Profit 3,322 864 9,228 5,172
59% 42% 57% 55%
Operating, gen. &
admin 2,164 1,015 6,807 4,284
Sales and marketing 1,322 593 4,121 2,009
Research and
development 399 454 2,090 1,629
Depreciation and
amortization 871 275 2,445 1,019
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Loss from operations (1,434) (1,473) (6,235) (3,769)
Interest (income)
expense, net (47) (87) (127) 844
Other (income) expense,
net 36 (56) 11 674
Income tax benefit (103) -- (185) --
Extraordinary gain on
debt extinguishments,
net of tax -- -- -- 1,168
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Net loss $ (1,321) $ (1,330) $ (5,934) $ (4,119)
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Per share data --
basic
Loss before
extraordinary item $ (0.24) $ (0.32) $ (1.22) $ (1.55)
Extraordinary item $ -- $ -- $ -- $ 0.34
Net loss $ (0.24) $ (0.32) $ (1.22) $ (1.21)
Weighted average
shares -- basic 5,476,668 4,188,169 4,937,588 3,467,711
CONSOLIDATED BALANCE SHEETS
In thousands
Dec. 31, Dec. 31,
2001 2000
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Assets:
Cash $ 388 $ 6,900
Accounts receivable, net 4,476 2,945
Other current assets 2,001 997
Property and equipment, net 1,189 535
Intangible assets, net 7,580 1,628
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Total Assets $15,634 $13,005
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Liabilities and Stockholders' Equity:
Current liabilities 5,728 2,905
Notes payable to related parties 380 210
Stockholders' equity 9,526 9,890
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Total Liabilities and Stockholders' Equity $15,634 $13,005
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