ImageWare reports earnings increases for Q4 and full-year 2017
ImageWare earned more than $4.3 million in 2017, an increase of 14 percent from $3.8 million in 2016, as it entered the large and potentially lucrative healthcare market, the company said in its fourth quarter and full-year 2017 earnings report.
The company’s net loss for the year was $13.7 million, compared with only $10.9 million in 2016, but its fourth quarter net loss actually decreased from $2.7 million in Q4 2016 to $2.4 million in the most recent quarter.
ImageWare made just over $1.2 million in revenue in Q4 2017, up 32 percent from the fourth quarter a year earlier.
Significant recent events for the company include forming a partnership with LifeMed ID to provide GoVerifyID for healthcare enterprises, which was announced after the end of the reporting period, and an expansion of its partnership with Fujitsu, which ImageWare Chairman and CEO Jim Miller said in November will have a “significant positive impact” on its fortunes in 2018.
“Revenues in 2017 continued to reflect primarily our legacy business, however, we made great strides in the year toward transitioning the company to a recurring revenue model. We look forward to seeing meaningful revenues begin from the recurring model as early as the second quarter of 2018. Feedback we are receiving from our sales partners show they have every expectation of sales beginning to ramp in that timeframe,” said Miller, commenting on the latest earnings report.
“We saw our first sales under that model in Q1 from CDW. Fujitsu is building its sales force along with developing its customer support capability, which is essential for enterprise and consumer rollouts. Thus far, we have trained more than 150 Fujitsu employees in these functions. These milestones, when combined with other initiatives and healthcare’s higher per-user/per-month price point, give us a high level of confidence that we are on the right track toward profitability and cash flow breakeven.”
A replay of ImageWare’s investor conference call is available from the “investors” section of its website for 90 days.