ImageWare Systems Releases Second Quarter Results For 2014

Last week, cloud-based identity management solutions provider ImageWare Systems issued its financial results for Q2 2014. The corporate update covered the company’s revenues as well as operational highlights illustrating ImageWare’s progress since its last statement, published in May, regarding the company’s first quarter of the year.

Before jumping into the numbers, ImageWare highlighted two company operations. First: the $1 million contract to implement a multi-modal biometric driver license system to the state of Baja California, Mexico. The contract will see ImageWare aiding in the deployment of the system at government offices throughout the state.

“This contract represents the introduction of a new breed of turn-key ImageWare products available to governments with features that require very little customization and allow us to secure a significant payment upfront,” says Jim Miller, chairman and CEO of ImageWare. “Using this new approach in pursuing government contracts, the deal flow can proceed more quickly and profitability for ImageWare, while providing a faster ROI for our government customers. It also allows for greater scalability of our product delivery teams.”

Secondly, the company highlighted what it describes as “a three-year agreement in principle with major international retailer to provide multi-modal biometric identity management on the Fujitsu Cloud.”

“Retail remains a fertile market for our solutions,” says Miller, “and we remain active with our technology partners to build a healthy pipeline of potential customers.”

The second quarter of 2014, ending June 30, had ImageWare reporting $937,000 in total revenue, a decrease when compared to last year’s Q2 revenue of $1 million. This year the gross margin has increased from 71.1 percent in 2013 to 75.2 percent for this most recent period.

The net loss in this second quarter is moving in the right direction. ImageWare reports a net loss of $2.1 million, which is a marked improvement in comparison to Q2 2013’s $5.6 million, which, according to ImageWare, included a $4 million charge for changes in fair value of derivative liabilities.

“Our opportunities in the commercial and consumer marketplaces continue to expand, and we continue to gain traction with our IT service providers,” says Miller. “We expect a new recurring revenue stream to come on line in third quarter of 2014 from our partnerships with Fujitsu and T-Systems, and believe the steps we are taking to advance our cloud, SaaS and mobile offerings will continue to build shareholder value.”