By: Matt Rego
ImageWare Systems Inc. (OTCQB: IWSY) provides software-based solutions in identity management across a variety of industries, such as biometrics, secure credential, law enforcement agencies, and other public safety agencies around the world. Shares of the identity management software company are rallying 13% higher on Wednesday, August 10, 2016. Furthermore, ImageWare Systems Inc. (OTCQB: IWSY) has seen average daily volume of around 47,157 shares exchange hands over the past three months. However, nearly 68,630 shares or dollar volume of around $91,964 has already exchanged hands during the early trading session on Wednesday.
The news out today for ImageWare Systems Inc. (OTCQB: IWSY) details a corporate update and operational highlights that the company faces. Among the most important of the announcements came from ImageWare Systems Inc. (OTCQB: IWSY) detailed the company’s partnership with Fujitsu for ImageWare Systems Inc. (OTCQB: IWSY)’s GoVerifyID service. The company also licensed its GoVerifyID technology to Telos Corporation, and more. Here is the press release detailing of the corporate update:
ImageWare Systems Inc. (OTCQB: IWSY) Press Release:
SAN DIEGO, CA–(Marketwired – Aug 9, 2016) – ImageWare Systems, Inc. (ImageWare or IWS) ( OTCQB : IWSY ), a leader in mobile and cloud-based, multi-modal biometric identity management solutions, has issued financial results for the second quarter ended June 30, 2016, as well as a corporate update to highlight the company’s progress since its last quarterly update on May 10, 2016.
- Partnered with Fujitsu RunMyProcess to provide turnkey integration of ImageWare’s GoVerifyID® for solutions developed on the RunMyProcess platform used by Fortune 1000 companies in 45 nations.
- Licensed GoVerifyID to Telos Corporation for use with HPE Aruba ClearPass, which is being sold on Amazon Web Services (AWS) as well as Telos’ own private and secure Telos Ghost™ cloud.
- Commenced sales efforts with HPE Aruba Clear pass reseller network.
- Launched IWS Biometric authentication service with partner AWS and TransUnion to provide turnkey biometric service.
- GoVerifyID successfully integrated with CA Technologies security products.
- Appointed Dot Hill veteran and current Seagate Technology Executive Vice President Dana Kammersgard to board of directors.
“Biometrics is now forecasted to be a $30 billion-plus market over the next few years and we continued to make progress with our various commercial partners to be ready to address this market,” said Jim Miller, ImageWare’s chairman and CEO. “This included an expansion of our partnership with Fujitsu to provide turnkey integration of GoVerifyID onto Fujitsu’s RunMyProcess platform, enabling digital transformation for leading companies around the world. We also signed an agreement with Telos Corporation, which is the first reseller agreement signed through our partnership with Aruba. Telos will now become a reseller of GoVerifyID in conjunction with their sales and distribution of HPE Aruba ClearPass.
“To help expand our footprint in the commercial market, we recently appointed technology veteran Dana Kammersgard to the board of directors, who brings extensive industry expertise to ImageWare. We look forward to leveraging his deep industry contacts, as well as his proven ability in taking small organizations and growing them into leaders of their respective industries.”
“Subsequent to the quarter,” continued Miller, “we signed a five-year OEM agreement with a major mobile ID management provider, bringing multi-modal biometric user authentication to the identity governance and administration market. Given the growing commercial adoption for biometrics across a wide range of industries, we continue to believe we are well positioned to grow and scale our business in the out years.”
Second Quarter 2016 Financial Results
Total revenues in the second quarter of 2016 were $1.0 million compared to $1.7 million in the same year-ago quarter. The difference is primarily due to the impact of non-recurring revenue recognized in 2015 upon completion of a major identity management project for Los Angeles World Airports.
Gross margin in the second quarter of 2016 increased significantly to 72.4% compared to 52.9% in the year-ago quarter, primarily due to 2015 containing an uncharacteristically high cost of professional services revenue incurred with the project discussed above.
Net loss in the second quarter of 2016 was $2.1 million or $(0.02) per basic share, compared to $1.8 million or $(0.02) per basic share in the year-ago quarter.
On June 30, 2016, cash and cash equivalents totaled $0.3 million compared to $3.4 million on December 31, 2015. Total debt was $1.5 million compared to no debt at December 31, 2015. Subsequent to the quarter, the company borrowed an additional $0.5 million and now has approximately $3.5 million available on its existing line of credit.
ImageWare will hold a conference call today at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss its second quarter 2016 results. The company’s Chairman and CEO Jim Miller and CFO Wayne Wetherell will host the conference call, followed by a question and answer period.
Date: Tuesday, August 9, 2016
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-888-504-7960
International dial-in number: 1-719-325-2341
Conference ID: 4356802
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.
The conference call will be broadcast live and available for replay at
http://public.viavid.com/index.php?id=120606 and via ImageWare’s investor relations section at www.iwsinc.com.
A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through September 9, 2016.
Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 4356802
About ImageWare Systems, Inc.
ImageWare Systems, Inc. ( OTCQB : IWSY ) is a leading developer of mobile and cloud-based identity management solutions, providing biometric, secure credential and law enforcement technologies. Scalable for worldwide deployment, ImageWare’s biometric product line includes a multi-biometric engine that is hardware and algorithm independent, enabling the enrollment and management of unlimited population sizes. ImageWare’s identification products are used to manage and issue secure credentials, including national IDs, passports, driver’s licenses, smart cards and access control credentials. ImageWare’s digital booking products provide law enforcement with integrated mug shot, fingerprint livescan and investigative capabilities. ImageWare is headquartered in San Diego, CA, with offices in Portland, OR, Washington, D.C., and Ottawa, Ontario. For more information on ImageWare Systems, Inc., please visit www.iwsinc.com.