ImageWare’s transition period continues as the company’s many new partnerships slowly begin to realize planned products and services, the company says. In announcing its Q1 2015 results yesterday, ImageWare posted a net loss of $2.3 million.
That’s a bigger net loss than the one from a year ago, which was $1.7 million for the 2014 first quarter. Revenues were down from $1.1 million this time last year to $1 million for the quarter. In a statement, the company said the loss “was primarily due to lower high margin software and royalty product revenues, and higher services revenue, which have inherently lower margins.”
When ImageWare posted its year-end losses for 2014, CEO Jim Miller indicated that it was undergoing “a transition period” as it moved ahead with several new partnership agreements; now, the company is reiterating that point. In a statement, Miller explained that the company’s “model is dependent upon our partners and we have formed very significant relationships with Fujitsu, TransUnion, CA Technologies, IBM, Deutsche Telekom and, more recently, with Agility and Extenua,” all of which “remain in the testing and implementation phase, and they have reiterated their commitment to ImageWare.”
Miller stressed that many of these partnerships are taking time to come to fruition, saying “it is important to note that we are dealing with large organizations that are thoughtful and methodical about the rollout of our transformational software,” and adding that some working on marketing strategies and others are still developing products that will incorporate ImageWare technology. He pointed out that Q1 saw the beginning a regular income stream from the deployment of ImageWare’s GoCloudID platform in the Baja California Driver’s Licence program, and said many more such partnerships are in the works. “As such,” he said, “we remain undeterred by the pace of the rollout and steadfast in our goal to transition ImageWare in to a commercial-based provider of biometrics-as-a-service — a transition we expect to drive significant shareholder value.”