ImageWare corporate update highlights growth potential from partnerships
ImageWare Systems reported revenues of $1.1 million for Q3 2017 on Thursday, the same as in Q2 but a 28 percent year-over-year increase, driven by higher license revenues.
A net loss of $2.4 million, or $0.03 per share, was unchanged from Q3 2016, but the company’s gross margin improved by 6 percent.
The company also updated its corporate progress in a conference call.
ImageWare Chairman and CEO Jim Miller said in the call the $11 million raised with the completion of a registered direct offering would be used to balance company finances and support sales and marketing growth.
“We believe our ability to close this financing on relatively favorable terms is a reflection of the strong progress we’ve made to commercialize our leading identity management solutions, and we plan to capitalize on our operational momentum to expand our partnership agreements for our mobile and cloud-based products,” Miller said. “We remain focused on expanding our business into non-government sectors, while continuing our mission to integrate our patented biometric engine and GoVerifyID products into the cloud and mobile markets, principally via our GoVerifyID products. We believe that our successful partnership expansions during the third quarter, and early in the fourth, some of which must remain confidential for the moment, have us well positioned for the future.”
As previously reported, GoVerifyID Enterprise Suite was designated “Ready for IBM Security Intelligence” in October, and ImageWare demonstrated the Suite for IBM Access Manager at the Money20/20 conference. The company has engaged IBM customers in discussions and tests, Miller said.
Following an expansion of ImageWare’s existing partnership agreement with Fujitsu, GoVerifyID has been integrated into Fujitsu’s Secure DirectClick as a private-label product. Miller believes the agreement is the first of its kind in the industry. He also said an integration with Fujitsu’s Help Desk application will be rolled out in the new year, eventually reaching millions of the product’s users.
Miller also revealed that ImageWare is a partner in Fujitsu’s federated ID product, which it announced in Q3. Fujitsu is scheduled to deliver a proof-of-concept of to a yet-unnamed customer this month, and Miller says the product will have a “significant positive impact” on ImageWare in 2018.
ImageWare’s ongoing partnerships with Hewlett-Packard and SAP were highlighted as well during the call.
The company also appointed Robert Clutterbuck and Charles Frischer to its board of directors during the quarter.
In other company news, the Canadian Intellectual Property Office awarded ImageWare patents 2870254 and 2600388 for its IWS Biometric Engine. This is patent 22 for the company and conveys intellectual property rights to the creation of a multi-modal, agnostic biometric authentication system to ImageWare in Canada.
ImageWare’s IWS Biometric Engine is a multi-modal, device and algorithm independent, biometric software platform that is highly scalable and enables government, commercial enterprises, and consumers to biometrically search and match populations for identity authentication through an array of enrolled biometric types, including: finger, face, iris, palm, signature, DNA, voice, 3D face, and retina.
“ImageWare’s history and passion for innovation in the biometric field continues and we are gratified by the issuance of such a foundational patent in the country of Canada on our groundbreaking IWS Biometric Engine,” commented Miller. “Now, more than ever, it is critical to protect our data and our identities by using biometric authentication that verifies our identity as legitimate and that is precisely what our patented products supply.”