ImageWare Systems Goes on Record With Fourth Quarter Report

IWS_logoYesterday at 5PM Eastern Time, ImageWare Systems held a conference call to discuss the company’s Q4 results for 2013. The call was hosted by ImageWare chairman and CEO Jim Miller and the company’s chief financial officer Wayne Wetherell.

The cloud-based, multimodal biometric identity solutions provider outlined the key milestones since its last corporate update last November and released the Q4 and full years financial results.

The period ending on December 31, 2013 saw an increase on the same period from 2012, with ImageWare reporting total revenue of $929,000. Total annual revenues have shown an increase as well, with 2013 growing to $5.3 million from last year’s $4.0 million. This margin is due in large to about $1.5 million netted in August from software licensing.

This said, ImageWare also reported a net loss of ($0.02) per diluted share in the fourth quarter of 2013 when compared to the same period one year prior. The company also reported a net loss for the full year of ($0.12) per diluted share, which is an improvement on 2012, which ended with ImageWare reporting ($0.14). According to the company’s related press release, net loss in 2013 included a $4.8 million loss from the change in fair value of derivative liabilities, while net loss in 2012 included a $ $4.7 million loss from the change in fair value of derivative liabilities.

Since the company’s last update ImageWare initiated a pilot with Deutsche Telekom subsidiary T-Systems, with an eye to integrate ImageWare cloud based authentication into the German company’s products. It was also recognized at Mobile World Congress 2014 by Envisioneering with an award for innovation and design. In addition, ImageWare completed delivery of its QuickCapture application as per the terms of a federally sponsored pilot program with 20 US stale and local law enforcement agencies.

“We are starting to see a shift in companies evangelizing biometrics, moving from the small biometric companies trying to prove their practical application in the commercial and consumer markets, to many large corporations understanding the real-world benefits of bringing biometrics to the mainstream public,” explains Jim Miller. “This shift has created an attractive opportunity for ImageWare and we plan to leverage our large partners’ sales and marketing power to capitalize on it.

“Our new partnership and close collaboration with T-Systems represents the outcome of a number of months of discussion and planning,” he continues. “We’re now taking the next step by integrating our technology into their products and expect this new relationship to expand our presence throughout European and worldwide markets.”

“Working closely with our technology partners, we continue to build a healthy pipeline of potential customers and are currently in discussions with several clients regarding licensing opportunities. We will continue to target large enterprise businesses and emerging applications and believe the steps we are taking to advance our cloud, SaaS and mobile offerings in the commercial and consumer marketplace will continue to build shareholder value, along with greater visibility that includes a healthy recurring revenue stream.”