ImageWare Systems issues financial results for Q2
ImageWare Systems reported its financial results for the second quarter ended June 30, 2014, in addition to providing a corporate update to highlight the company’s progress since its last update in May.
ImageWare earned revenues of $937,000 for Q2 2014, which is just slightly less than the same quarter last year when it earned $1.0 million.
The company’s gross margin in the Q2 2014 increased by 410 basis points to 75.2%, as compared to 71.1% in Q2 2013. ImageWare attributes the increase mostly to a higher percentage of software license revenues as a part of product revenue.
Meanwhile, the company’s net loss in the Q2 2014 was $2.1 million, compared to a net loss of $5.6 million in the Q2 2013, which included a $4.0 million charge for changes in the fair value of derivative liabilities.
As of June 30, 2014, ImageWare’s cash and cash equivalents totaled $1.4 million compared to $2.4 million at December 31, 2013. The company also reported that it had no debt and keeps a $3.5 million line of credit that remains fully available.
“Retail remains a fertile market for our solutions, and we remain active with our technology partners to build a healthy pipeline of potential customers,” said ImageWare chairman and CEO Jim Miller. “In fact, we recently reached a three-year agreement in principle with a major international retailer to provide our cloud-based, multi-modal biometric identity management product suite, CloudID.”
“Our opportunities in the commercial and consumer marketplaces continue to expand, and we continue to gain traction with our IT service providers. We expect a new recurring revenue stream to come on line in third quarter of 2014 from our partnerships with Fujitsu and T-Systems, and believe the steps we are taking to advance our cloud, SaaS and mobile offerings will continue to build shareholder value.”
ImageWare provides cloud and mobile technology to offer multi-factor authentication, including voice, fingerprint, and facial recognition, for smartphone and mobile devices.
About a month ago, ImageWare Systems signed a deal valued at more than $1 million with Funciones Ocupacionales Insha, to provide software that will facilitate a multi-modal biometric driver license system for the state of Baja California, Mexico.