Communication Intelligence Corporation Reports Third Quarter 2010 Financial Results
REDWOOD SHORES, Calif., Nov. 12, 2010 /PRNewswire-FirstCall/ -- Communication Intelligence Corporation ("CIC" or "the Company") (OTC Bulletin Board: CICI), the leading supplier of electronic signature solutions for business process automation in the financial industry and the recognized leader in biometric signature verification announced today its financial results for the three and nine-month periods ended September 30, 2010.
"While CIC's business remains impacted by the lingering effect of the economic crises and uncertainty beginning in late 2008, a strong awareness and realization has emerged that electronic signature technology affords solutions to the challenges facing our target financial industry market while simultaneously creating the demand to get the solutions in less time and at lower cost. In particular, the "Pay-as-you-Go" purchase preference that has developed is expected to accelerate the adoption of eSignature solutions as the upfront costs are greatly reduced," stated CIC's President, Guido DiGregorio.
"We have, with our SignatureOne® Ceremony® Server product line, positioned our technology for both on-premise deployments and for on-premise hosted or Software-as-a-Service ("SaaS") deployments including cloud services and mobile device support. Hosted and SaaS deployments are expected to afford us the benefit of ongoing recurring revenue as the forecasted IT spending recovery gets underway. In this regard, we recently announced an agreement with CSC, the leading information technology product and services provider, whereby our electronic signature technology will be incorporated into Celeriti™, CSC's new end-to-end suite of modern enterprise banking solutions and multiple banking and insurance platforms including CSC's SaaS based offerings. We believe this is a milestone event relative to our focus on achieving sustained sales growth via recurring revenue through targeted solutions providers such as CSC."
Total revenues for the three months ended September 30, 2010 were $164,000, a decrease of 81% compared to the prior year period of $877,000. The operating loss for the three months ended September 30, 2010, before interest expense, amortization of loan discount and deferred financing cost and change in derivative liability, was $1,046,000 compared to $365,000 in the prior year, an increase of 187%. The increase in the loss from operations is due to the decrease in revenues from the comparable prior year period. The Company's net loss applicable to common stockholders for the three-month period ended September 30, 2010 was $1,237,000 compared to a net loss of $2,575,000 for the corresponding prior year period. Non-operating expense for the three months ended September 30, 2010 was $191,000, a decrease of $2,019,000, compared to $2,210,000 for the corresponding prior year period. This decrease is primarily attributable to non-cash changes related to the derivative liability. The basic and diluted loss per share was $0.01 on approximately 191 million weighted average common shares outstanding for the three months ending September 30, 2010 and $0.02 on approximately 131 million shares outstanding for the comparable prior year period.
Total revenue of $583,000 for the nine months ended September 30, 2010 decreased $944,000 or 62%, compared to revenues of $1,527,000 in the corresponding prior year period. The operating loss for the nine months ended September 30, 2010, before interest expense and amortization of the loan discount and deferred financing cost, was $3,098,000, compared to $1,947,000 in the prior year corresponding period. The increase in operating loss is due to both the decrease in revenues and increase in operating expenses over the nine-month period.
The Company's net loss applicable to common stockholders for the nine months ended September 30, 2010 and 2009 was $4,549,000 and $6,678,000, respectively. The decrease in the net loss is due primarily to the factors stated above for the three month period ended September 30, 2010 and a $829,000 charge to expense of the remaining unamortized non-cash loan amortization and deferred financing cost associated with the cancellation of the Company's June 2008 notes and warrants, in exchange for new debt and associated warrants issued in May of 2009. The basic and diluted loss per share was $0.02 on approximately 191 million weighted average common shares outstanding for the nine months ending September 30, 2010 and $0.05 on approximately 131 million shares outstanding for the comparable prior year period.
Selected financial information follows. Detailed corporate and financial information is available on CIC's website at www.cic.com.
Communication Intelligence Corporation's (CIC) products enable companies to achieve truly paperless work flow in their eBusiness processes by providing multiple signature technologies across virtually all applications in SaaS (Software as a Service) and fully deployed on-premise delivery models. CIC based solutions afford Straight through Processing (STP) which delivers increased revenue generation by enhancing the customer experience and significant expense reduction through paperless and virtually error free electronic transactions.
Industry leaders such as AGLA, Allstate, American Family, Charles Schwab, JP Morgan Chase, Nationwide (UK), Prudential, Snap-on Credit, Travelers, Wachovia, Wells Fargo and WFG (World Financial Group) chose CIC's products to meet their needs. CIC has deployments with over 400 channel partners and enterprises worldwide representing millions of end users, with over 500 million electronic signatures captured, eliminating the need for over a billion paper documents. CIC is headquartered in Redwood Shores, California and has a joint venture, CICC, in Nanjing, China. For more information, please visit our website at www.cic.com.
Forward Looking Statement
Certain statements contained in this press release, including without limitation, statements containing the words "believes", "anticipates", "hopes", "intends", "expects", and other words of similar import, constitute "forward looking" statements within the meaning of the Private Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors which may cause actual events to differ materially from expectations. Such factors include the following (1) technological, engineering, quality control or other circumstances which could delay the sale or shipment of products containing the Company's technology; (2) economic, business, market and competitive conditions in the software industry and technological innovations which could affect the Company's business; (3) the Company's inability to protect its trade secrets or other proprietary rights, operate without infringing upon the proprietary rights of others or prevent others from infringing on the proprietary rights of the Company; and (4) general economic and business conditions and the availability of sufficient financing.
CIC's logo, SignatureOne, Ceremony and the Power to Sign Online are registered trademarks of CIC. All other trademarks and registered trademarks are the property of their respective holders.
COMMUNICATION INTELLIGENCE CORPORATION
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(1) Net of unamortized fair value assigned to warrants of $2,222 at December 31, 2009.
(2) Deferred revenues consist principally of advances from customers and deferred maintenance contract revenue recognizable within one year.
(3) Includes deferred revenues of $497 and $458 as of September 30, 2010 and December 31, 2009, respectively.
Frank V. Dane
SOURCE Communication Intelligence Corporation