March 18, 2016 -
ImageWare Systems reported its financial results for the fourth quarter and fiscal year 2015, as well as provided a full update highlighting its progress since its last quarterly update on November 16, 2015.
The company’s total revenues in Q4 2015 were $0.9 million compared to $1.2 million in Q4 2014. ImageWare attributes this decrease primarily to decreased software royalty revenue from its channel partners for the company’s traditional identification card software.
Its gross margin in Q4 2015 was 40.2% compared to 79.0% in Q4 2014, due to the write-off in the quarter of capitalized project expenses as their recoverability became questionable.
Meanwhile, its net loss in Q4 2015 was $2.6 million, compared to a net loss of $1.9 million in Q4 2014.
At December 31, 2015, ImageWare’s cash and cash equivalents totaled $3.4 million compared to $0.2 million at December 31, 2014. The company attributes this increase to its convertible preferred offering completed in February 2015.
In terms of its main highlights since its last quarterly update, ImageWare Systems partnered with Aruba, a Hewlett Packard (HP) company, to integrate its GoVerifyID product with the ClearPass Policy Manager.
“Not only does this partnership enable us to reach a large population on a global scale, it was also structured very differently compared to our past partnerships,” said Jim Miller, ImageWare’s chairman and CEO. “In this instance, we were able to integrate the product and make ready for sale within a couple of days.”
Additionally, the company received a notice of allowance in December from the United States Patent and Trademark Office that its “Multi-Modal Biometric Database Searching Methods” patent will be granted, which will mark its 11th U.S. patent.
“From this point forward, we plan to execute our partnerships in the same manner in order to get our products out to the commercial market as fast as possible,” said Miller. “We believe ImageWare offers the best all-around biometric product and according to Gartner, the world’s leading IT research company, 30% of organizations will use biometric authentication for mobile devices by this year. With the biometric space beginning to move into the mainstream, we believe that all the right pieces of the puzzle are in place for ImageWare to grow our business.”