This excerpt taken from the IW 8-K filed Nov 15, 2005.
SAN DIEGO, November 10, 2005 ImageWare Systems, Inc. (AMEX: IW), a world leading developer and provider of identity management solutions, today reported a narrower net loss and an increase in quarter over quarter revenues for the third quarter ended September 30, 2005.
For the quarter ended September 30, 2005, total revenues increased to $2.5 million, up 39% from $1.8 million reported for the third quarter of 2004. The increase from the prior year is due to increases in revenues of $0.3 million from the Companys identification segment and $0.5 million from the sublicensing of our Image Editing System patent. The net loss for the quarter decreased 9.2% to $1.4 million, or $0.10 per share, compared with a net loss of $1.5 million, or $0.13 per share for the same period last year.
The loss from operations decreased 5.4% to $1.5 million in the quarter as compared to $1.6 million in the third quarter of 2004. The decrease is due to higher sales in our identification segment combined with sublicensing revenues offset by lower gross margins due to our product mix. The 2005 quarter contains a higher percentage of sales from hardware and consumables (which have higher costs than software only solutions) than the comparable 2004 period which contained an unusually high percentage of software.
As evidenced by our third quarter deliveries of products to NEC and the U.S. government, we continue to see keen interest in both the private and public sectors in our biometrically enabled identify management solutions, said IWS Chairman and CEO Jim Miller.
We look forward to what we believe will be an accelerated adoption of the types of solutions we offer and to the increase in shareholder value that adoption will bring. During the third quarter we saw the continued validation of ImageWares products and capabilities with the following positive developments:
The selection by a Mexican government entity to deliver a comprehensive multi-biometric identity management system for visitor and access control at a government installation. The initial order is valued at approximately $200,000 and is expected to be completed in the 4th quarter. Options for additional implementations, which are expected to be exercised by the end of this year or during the first quarter of 2006, will result in a total contract value of approximately $600,000.
The execution of a licensing agreement with NEC Personal Products, Ltd, a wholly owned subsidiary of NEC Corporation that will bring the power of IWS Desktop Security to the largest personal computer provider in Japan. IWS Desktop Security is a comprehensive authentication management platform that is optimized to enhance corporate security and usability, avoiding unauthorized access to mission-critical data. NEC will incorporate the technology in 34 models of computers by including an embedded TPM chip with IWS Desktop Security as a standard configuration. This technology will provide users with an additional layer of security such as password management and file/folder encryption using the strong encryption features of the TPM chip.
Joint collaboration between NEC Personal Products, Ltd and IWS to integrate ImageWares authentication security technology into NECs fingerprint sensor embedded computer product lines with will integrate additional security to the NECs laptop product line.
The expansion of installation platforms for IWS Biometric engine to include Sun Solaris 10 and Red Hat Linux 4. The support for Solaris and Linux provides ImageWares customers a choice of server platforms across our biometric engine, secure credential and law enforcement product lines.
Selection by an undisclosed US Federal governmental agency, of the Companys Biometric Engine, for a multi-phase Federal government security project. The initial phase of this project valued at approximately $500,000, will leverage the IWS Biometric Engine as an enrollment, management and authentication platform using multiple biometric identifiers including face, LiveScan fingerprints, iris, writers palm, voice and signature.
Selection by the Ogden City Utah Police Department of IWS facial recognition and digital composite sketching technology as part of its large-scale suspect identification initiative.
By incorporating ImageWares biometric facial recognition and digital composite sketching technology, the Ogden City Police Department is able to further streamline current law enforcement identification procedures by enabling officers to conduct facial recognition searches against its existing records management system, as well as composites created with ImageWares digital composite sketching technology.
The extension of ImageWares identification suite of products with the launch of two entry-level ID software applications IWS EPI ID and IWS EPI Xpress. IWS EPI ID software is an easy-to-use photo identification solution designed for organizations looking to create simple, professional looking photo ID badges. IWS EPI Xpress is a quick and simple photo badging solution that enables organizations to instantly print photo IDs for employees, visitors, events and more. These product offering integrate IWS experience in secure credentials to develop two affordable and easy-to-use solutions that enable organizations of all sizes the ability to create and manage basic-to-complex photo identifications.
This excerpt taken from the IW 8-K filed Aug 15, 2005.
SAN DIEGO, August 11, 2005 ImageWare Systems, Inc. (AMEX: IW), a world leading developer and provider of identity management solutions, today reported financial results for the second quarter ended June 30, 2005.
For the quarter ended June 30, 2005, revenues totaled $2.0 million, down 20% from $2.5 million reported for the comparable quarter of 2004. The net loss for the quarter improved to $1.9 million, or $0.16 per share, compared with a net loss of $4.9 million, or $0.42 per share for the same period last year.
Revenues in the quarter were down $0.7 million from the prior year in the Companys law enforcement and professional photography segments. Revenues in the Companys identification segment increased by $0.2 million from the prior year.
The loss from operations totaled $1.9 million in the quarter as compared to $1.0 million in the second quarter of 2004. The increase is due to lower revenues in the quarter combined with lower gross margins due to our product mix. The 2005 quarter contains a higher percentage of sales from hardware and consumables (which have higher costs than software only solutions) than the comparable 2004 period which contained an uncharacteristically high percentage of software. Project revenues can vary significantly from project to project in terms of software, hardware and consumable content which can cause gross margins to vary accordingly.
The decrease in the net loss is due to a $3.9 million reduction in interest expense.
Over the past quarter, we have continued to submit proposals on new opportunities, large and small and have received favorable feedback on proposals that were already outstanding - indicating either that we were still in the running or had made the short list, stated Jim Miller,
ImageWares chairman and CEO. We have continued to take measures to solidify our working relationships with partners such as HP, Oracle, Harris, NEC, and Unisys. Converting these proposals and relationships into revenue has been a long and arduous process, testing our patience as well as our resources. However, we are more confident now than ever that we will begin to see the fruit of our labors in the second half of this year.
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Miller added that in recent months we saw the continued validation of ImageWares products and capabilities with the following achievements:
The certification for interoperability with the Mexican National Public Security Systems (SNSP) Automated Fingerprint Identification System (AFIS) which means that Mexican Federal, State and Municipal institutions can now select ImageWare as the primary source for capture of either Livescan or 10 print criminal or civil fingerprints for background checks and criminal registry as is currently required under Mexican law, or other services required of the Mexican SNSP AFIS.
Deployment of a customized multi-biometric identification solution for the Mexico government to leverage multiple biometrics for identification purposes. This system leverages the Companys IWS Biometric Engine and investigative platforms, which incorporates facial, fingerprint, signature and DNA biometric capabilities a first to integrate four biometrics into a single integrated platform. Its powerful and flexible identity management functionality allows for comprehensive searching capabilities including personal demographic information.
Selection by the San Bernardino County Sheriffs Department CAL-ID Bureau to expand its existing IWS Law Enforcement solution by integrating a central NIST-compliant identification repository, enabling the sharing of all photo images and data from San Bernardino and Riverside counties. This allows for the flow of images and data into one repository for more streamlined access as well as rapid and reliable identification of both suspects and known criminals. ImageWares technology will enable law enforcement organizations in both San Bernardino and Riverside counties to match images and data from the county and state databases to fingerprints taken in the field. Californias CAL-ID program seeks to provide biometric identification services and technologies to all 58 counties in California.
Selected to provide the IWS Law Enforcement solution to Fresno County Sheriffs Department, Fresno Police Department and other Fresno County law enforcement organizations, which have joined resources in a regional partnership. ImageWares IWS
Law Enforcement solution will be integrated with an Automated Fingerprint Identification System (AFIS) for the Fresno County Sheriffs Department, enabling a more streamlined law enforcement identification process.
Our IWS Biometric Engine was named 2004 Product of the Year by BiometriTech magazine.
This excerpt taken from the IW 8-K filed Jul 26, 2005.
SAN DIEGO, July 25, 2005 ImageWare® Systems, Inc. (AMEX: IW), a world leading developer and provider of identity management solutions, today announced that it has entered into an agreement to sell shares of common stock and warrants to purchase common stock in a private placement. The company expects to net (after fees and expenses) approximately $2.8 million from the private placement which involved the sale of units consisting of one share of common stock and a warrant to purchase 0.38 shares of common stock. Each unit was priced at $2.58. The warrants will have a five-year term and an exercise price of $3.45 per share. A select group of prominent, independent institutional investors, most of whom are adding to existing positions in ImageWares stock, led this financing.
These funds will provide ImageWare additional balance sheet strength to aggressively pursue our target markets, said Jim Miller, ImageWares chairman and CEO. We are especially pleased to be able to secure this funding largely from existing shareholders of ImageWare that know our company well and appreciate the companys positioning in the markets we serve.
As a result of the transaction, ImageWare will issue approximately 1,203,489 new shares of common stock and warrants to purchase up to approximately 491,625 shares of common stock. The company expects to use the net proceeds of the private placement for working capital. The company is obligated to file a registration statement in connection with the resale of all 1,695,114 shares of common stock.
This excerpt taken from the IW 8-K filed May 18, 2005.
SAN DIEGO, May 16, 2005 ImageWare Systems, Inc. (AMEX: IW), a world leading developer and provider of identity management solutions, today reported financial results for the first quarter ended March 31, 2005.
For the quarter ended March 31, 2005 total revenues were $2.8 million, an increase of approximately 22% from $2.3 million reported for the first quarter of 2004. The increase from the prior year is due to increases in revenues of $1.0 million from ImageWares (IWS) identification segment due primarily to sales of the core technology, the IWS Biometric Engine. The net loss for the quarter decreased to $0.9 million, or $0.10 per share, compared with a net loss of $2.3 million, or $0.21 per share for the same period last year. The decrease in the net loss is due to a $1.3 million reduction in interest expenses.
The loss from operations totaled $1.2 million in the quarter as compared to $1.0 million in the first quarter of 2004. The increase is due to planned escalation in selling expenses for additional headcount and stepped up selling activities and lower gross margins in the quarter compared to last year due to product mix.
It is becoming ever more apparent that the domestic and world markets for ID management solutions are beginning to move toward wholesale adoption of biometric technologies, said Jim Miller, chairman and CEO of ImageWare System, Inc. We feel that over the next 12 to 36 months the rate of adoption will be unprecedented. Our recently introduced Biometric Engine places ImageWare in a unique position of offering the market a platform which will enable users to incorporate biometrics into their ID management solutions with the greatest flexibility in terms of the number of biometrics supported and scalability.
Mr. Miller added, We have taken much of the risk out of the decisions related to the adoption of biometrics in that we offer a platform which is agnostic with regard to the choice of biometrics and related technology and we enable the user to change from one biometric technology to another or add additional biometrics without having to move to a new system or lose the functionality of the data they have already built.
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Miller also noted that in recent months ImageWare has improved its competitive position in the identity management market with the following developments:
The launch of IWS Desktop Security, a comprehensive authentication management infrastructure software tool specifically designed to provide enterprise networks with advanced authentication mechanisms. IWS Desktop Security will be integrated into our biometric, secure credential and law enforcement offerings and will provide organizations with a comprehensive security solution that is customizable while securing the identity of the entire system. IWS Desktop Security represents a key component in our strategy to empower government and private sector organizations with infrastructure tools that have the ability to combine identification and verification capabilities with additional layers of authentication and authorization.
An agreement with NEC Personal Products, Ltd. to cooperatively co-develop integrated Trusted Platform Module (TPM) security solutions for the Japanese Enterprise market. Both companies will work collaboratively to integrate our authentication security technology into NECs TPM and fingerprint sensor embedded computer product lines. The companies will also undertake joint marketing initiatives in order to develop new business opportunities together through new and existing business relationships, distributors and systems integrators in Japan.
The attainment of additional FBI certifications of the Companys IWS Law Enforcement identity management solution, which includes the IWS Biometric Engine, providing integrated fingerprint and palmprint biometric management for civil and law enforcement use. These additional certifications were obtained using Identix and Cross Match livescan devices. We recently announced our initial FBI certification using Smiths Heimanns Livescan device. Attaining this certification represents compliance with FBIs Integrated Automated Fingerprint Identification System (IAFIS) Image Quality Specifications (IQS) and allows ImageWare to be the first company to integrate and certify livescan devices from all three livescan vendors.
This excerpt taken from the IW 8-K filed Mar 9, 2005.
SAN DIEGO, March 4, 2005 ImageWare® Systems, Inc. (AMEX: IW), a global leader in identity management solutions, today announced that it has entered into a three-year agreement with Argus Solutions Ltd (ASX: ASV) for the exclusive distribution of ImageWares biometric engine, law enforcement and secure credential solutions in the Asia-Pacific region, excluding Japan and Korea. Under the terms of this agreement, Argus will purchase a minimum of US$1.4 million in ImageWare products over the next 12 quarters, as well as integrate the IWS® Biometric Engine from ImageWare into its product offerings. Argus is a biometrics and identity management company based in Sydney, Australia.
As part of the strategic partnership, Argus has acquired ImageWares wholly-owned Singapore subsidiary, Digital Imaging Asia Pacific Pte. Ltd. (DIAP), for cash of US$1.3 million. In addition, Argus and ImageWare will purchase US$250,000 of the other companys common stock at a price equal to 8 percent above the closing price of that common stock on March 1, 2005. As part of the arrangement, ImageWares Chairman and CEO, Jim Miller, will join Argus Board of Directors.
Argus is well-versed in biometrics and a natural fit for ImageWare. This distribution agreement with Argus and their acquisition of our Singapore office represents a strategic approach to ensure the continued growth and expanded offering of ImageWares identity management solutions in the Asia-Pacific region, said Miller. We are very pleased to have Argus as our partner and look forward to accelerating growth within the Asia-Pacific identity management market. ImageWare is committed to leveraging strategic partnerships that provide added-value to our product offerings and further penetrate worldwide markets.
Argus focuses on identity management using its proprietary iris recognition software and state of the art facial recognition technology. The company sells solutions to its clients such as the military, government departments and blue chip companies seeking absolute assurance of identity in its access control functions, and to vertical market clients such as hospitals where controlling the dispensing of controlled substances via careful identity management is critical.