ImageWare publishes Q1 financials, says increased revenue came from ID software licensing

Biometric solutions provider ImageWare Systems has published its financial results for the first quarter of 2014.

According to the company, total revenues in the first quarter increased to $1.1 million, up from $0.9 million in the same quarter last year. ImageWare says this is primarily due to higher sales of identification software license revenue.

The company’s gross margin increased by 410 basis points to 76.4%, up slightly from 72.3% last year. Net loss in Q1 was $1.7 million, compared to $2.8 million last year.

“Our strategy to target large IT service providers and provide security for their cloud customers and applications is gaining traction, as demonstrated by our most recent partnership with IBM,” Jim Miller, chairman and CEO of ImageWare said. “IBM marks our third secured agreement with a major cloud partner, and we expect more to come. These large, established partners offer the support, brand name and worldwide cloud platform needed to seamlessly distribute our products. While IBM’s BlueMix is in the early stages, we’ve already received referrals from their customers — several of which we are in active discussions.”

Reported previously in BiometricUpdate.com, ImageWare Systems recently announced a new partnership with IBM to bring the company’s multi-modal biometrics user authentication and cloud-based identity management platform to the IBM Cloud.

“We see our relationships with IBM, Fujitsu, T-Systems and others representing just the tip of the iceberg in terms of our opportunities in the commercial and consumer marketplaces,” Miller said. “All of these partnerships are progressing well, and although they have not yet produced revenue, there is every indication that the steps we have been taking are building shareholder value and will ultimately provide a steady stream of recurring revenue.”

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financial results  |  imageware systems