Communication Intelligence Corporation Reports Second Quarter 2010 Financial Results

REDWOOD SHORES, Calif., Aug. 16 /PRNewswire-FirstCall/ -- Communication Intelligence Corporation ("CIC") (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 six-month periods ended June 30, 2010.    

Total revenues for the three months ended June 30, 2010 were $213,000 compared to revenues of $404,000 in the corresponding prior year period. Revenues were primarily attributable to Allstate Insurance, Allscripts/Misys Healthcare, Nationwide Building Society, Naval Facilities Engineering, Prudential Financial Inc., Snap-on Credit, Vantis Life and Wells Fargo Bank NA.

Total revenues for the six months ended June 30, 2010 were $419,000 compared to revenues of $650,000 in the corresponding prior year period. Revenues were primarily attributable to Allscripts/Misys Healthcare, Nationwide Building Society, Naval Facilities Engineering, Prudential Financial Inc., Snap-on Credit, St. Vincent Hospital, Vantis Life and Wells Fargo Bank NA.

The Company believes the second quarter and first half 2010 revenue reflects primarily the lingering effect of the unprecedented, negative impact on 2009 financial services industry IT spending brought about by the meltdown in the financial markets.  The financial sector suffered losses that will exceed $3 trillion.  As a result, IT spending by the financial industry, our primary focus, suffered the worst decline in history.  According to industry analysts such as TowerGroup, Celent and Gartner, however, IT financial industry spending is forecasted to recover in the last half of 2010, returning to levels of spending before the financial meltdown and higher in 2011-2012.

The operating loss for the three months ended June 30, 2010 was $1.1 million compared to an operating loss of $660,000 in the prior year period.  The increase in operating loss is due primarily to a decrease in revenues and an increase in operating expenses in research and development and general and administrative expenses.  The operating loss reflects the loss before interest expense, amortization of the loan discount and deferred financing cost and the gain (loss) on derivative liabilities.  

The Company's net loss applicable to common stockholders for the three month period ended June 30, 2010 was $1.6 million compared to a net loss applicable to common stockholders of $2.9 million in the prior year period. The decrease in net loss applicable to common stockholders was due to a gain from the change in the value of the derivative liabilities and other non cash expenses. The Company's net loss applicable to common stockholders for the six months ended June 30, 2010 and 2009 was $3.3 million and $4.2 million, respectively.  The decrease in net loss applicable to common stockholders for the six months of the current year was due to the factors described above.

"After the unprecedented hit in IT spending the lingering effects of which impacted our first half revenue, we have been experiencing an uptick in proposal activity consistent with forecasts by industry analysts and expect recovery of IT spending and increasing sales in the last half of the year," stated Guido DiGregorio, CIC's President & COO.  "We have made solid progress on several fronts including new partner agreements such as with CSC, which extends our technology into multiple platforms including banking and insurance, expanding our opportunities into CSC's SaaS based solutions and CIC sponsored research by independent industry analyst Aberdeen confirming and verifying that our electronic signature technology is a key factor in enabling cost effective sales growth which is a major challenge for financial enterprises in the face of a constricted economy following the 2009 recession. Our recently completed financing and recapitalization together with the solid progress we have achieved, we believe, positions us well to participate as the electronic signature market enters the high growth phase."

Selected financial information follows.  Detailed corporate and financial information is available on CIC's website at www.cic.com.

About CIC

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; (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.  These forward-looking statements speak only as of the date hereof and the Company disclaims any intent or obligation to update these forward-looking statements.

CIC and The Power to Sign on Line are registered trademarks of Communications Intelligence Corporation.  All other trademarks and registered trademarks are the property of their respective holders.

SOURCE Communication Intelligence Corporation