Communication Intelligence Corporation Reports First Quarter 2008 Financial Results - May 14, 2008
REDWOOD SHORES, Calif., - Communication Intelligence Corporation (OTC Bulletin Board: CICI - News; "CIC" or the "Company"), a 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 first quarter ended March 31, 2008.
The total revenue for the three months ended March 31, 2008 increased 29% to $430,000, compared to $334,000 for the corresponding quarter of the prior year period. First quarter revenue reflects a 36% increase in eSignature and a 17% increase in natural input revenues compared to the prior year period. Revenue for the six months ended March 31, 2008 increased 49% to $1,230,000, compared to $826,000 for the corresponding prior year period. The increase in revenue is primarily due to the relative size of eSignature orders in the first quarter and an increase in the royalty price for its natural input/Jot product. Revenue for the quarter was primarily attributable to Access Systems of Americas, Inc. (formerly PalmSource, Inc.), AEGON/World Financial Group, AMDOX, Charles Schwab & Co., Misys Healthcare Systems, Prudential Financial Inc., Snap-on Credit LLC, Sony Ericsson Corp., Tennessee Valley Authority, and Wells Fargo Bank NA.
The net loss for the quarter ended March 31, 2008 was $850,000 compared with a net loss of $807,000 in the corresponding prior year period. Cost of sales increased approximately 245%, to $200,000 for the three months ended March 31, 2008, primarily driven by third party hardware costs. Operating expenses increased by approximately 2%, to $880,000 compared to the prior year period, primarily attributable to an increase in marketing expense. Net loss on a per share basis was $0.01 on 129.1 million weighted average shares outstanding for the quarter ending March 31, 2008 compared to a net loss per share of $0.01 on 107.6 million weighted average shares outstanding for the quarter ending March 31, 2007.
The Company did not achieve the revenues anticipated for the fourth quarter and although it is still pursuing some of those orders, the missed opportunities did result in a cash flow discontinuity impacting the Company's planned cash position. The Company is pursuing financing aimed at strengthening its financial viability with existing and potential customers and optimizing the objective of leveraging CIC's leadership position into sustained sales growth.
"We are experiencing expanding demand and usage of our electronic signature technology in our target financial services industry. Two recent orders received from top ten US banks are for the Company's eSignature technologies in new applications and lines of business that expand the use of CIC's technology beyond the initial deployments with these firms. In addition, we recently received orders for additional licenses from one of our key channel partners, a top ten supplier of software solutions and platforms to the financial services industry," stated CIC Chairman & CEO, Guido DiGregorio. "It is apparent that US banks and lenders are challenged with the need to increase revenue while improving the effectiveness and efficiency of their processes in the face of increased regulatory and compliance demands exacerbated by the recent sub prime and credit crises. Electronic signature solutions enhance the customer experience and significantly reduce the time required for account openings and other applications thereby creating more available time for up/cross selling while delivering significant reductions in the life cycle cost of managing mission critical documents and providing immediate access to electronic content, thereby significantly reducing back office costs. We are pursuing appropriate financing to strengthen our cash position to allow us to fully participate in the continuing uptick in the eSignature sales activity we are experiencing."
Selected financial information follows. Detailed corporate and financial information is available on CIC's website at http://www.cic.com
About CIC
Communication Intelligence Corporation ("CIC") is a leading supplier of electronic signature solutions for business process automation in the Financial Industry and the recognized leader in biometric signature verification. CIC's products enable companies to achieve truly paperless work flow in their eBusiness processes by enabling them with "The Power to Sign OnlineŽ" with multiple signature technologies across virtually all applications in SaaS and fully deployed delivery models.
Industry leaders such as AIG, Charles Schwab, Prudential, Nationwide (UK), Snap-on Credit and Wells Fargo chose CIC's products to meet their needs. CIC has deployments with over 400 channel partners and enterprises worldwide representing tens of thousand of users, with over 500 million electronic signatures captured, eliminating the need for over a billion pieces of paper. CIC sells directly to enterprises and through system integrators, channel partners and OEMs. CIC is headquartered in Redwood Shores, California and has a joint venture, CICC, in Nanjing, China. For more information, please visit our website at http://www.cic.com
CIC, its logo and the Power to Sign Online are registered trademarks. All other trademarks and registered trademarks are the property of their respective holders.
Forward Looking Statements
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.
Contact: Frank V. Dane
Phone: 650-802-7737
Email: fdane@cic.com
COMMUNICATION INTELLIGENCE CORPORATION Selected Consolidated Statements of Operations Information (In thousands, except per share amounts)
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