ImageWare and Remark report modest Q3 results and biometrics market opportunities
Revenues for multi-factor authentication and biometric technology grew to $785,000 for ImageWare Systems in the third quarter of fiscal 2019, up $49,000 or 6.7 percent from the same quarter a year earlier. The company reports its net loss was significantly reduced, from $3.5 million in Q3 2018 to $2.7 million, while gross profit was $647,000 (82 percent), compared to $576,000 (78 percent).
During the quarter, ImageWare launched GoVerifyID for macOS, Fujitsu added the company’s biometric technology to its DigitalSuite, and a recent joint planning session with Fujitsu’s Latin America Sales and Marketing team in Mexico has yielded integrated account plans, sales opportunities, and campaign initiatives for 2020, according to the announcement.
“It is lamentable that most companies often have a ‘bare minimum’ approach to cybersecurity, protecting their data and customers’ information with breachable and insecure methods such as passwords and SIM-based 2FA. Consumer privacy rights have finally begun receiving the appropriate attention and respect they deserve,” observes ImageWare Systems Chairman and CEO Jim Miller.
“The California Consumer Privacy Act is just one of 15 robust data compliance laws that will come into effect in the next few months, forcing companies to better manage and secure consumers’ data. Similar to GDPR and European companies, CCPA’s hefty fines are moving data privacy conversations from the IT department into the boardroom. State legislation is the perfect storm for ImageWare’s end-to-end, multi-modal, and multi-platform biometric solutions and we are perfectly positioned to capitalize on this revolution.”
ImageWare CTO David Harding told Biometric Update last month that CCPA will make it impossible for companies to rely on passwords to protect consumer’s personal data.
Remark Holdings reported a challenging third quarter, in which revenues were $0.7 million, down from $1.8 million a year earlier, with declining revenue in various business segments and the closure of the company’s FinTech business during 2018.
Revenues for AI-based products and services declined $0.1 million, affected negatively by national celebrations and the ongoing U.S.-China trade dispute, as well as working capital constraints. Remark’s operating loss decreased from $6.4 million in Q3 2018 to $4.3 million.
The company’s biometrics business may provide a path to improved financial results, however. During the quarter, Remark announced the initial deployment of its KanKan AI Smart Campus facial recognition technology for the Hangzhou Primary School System, the company won its largest contract to date when Chine Mobile chose its AI technology to transform all 17,800 of its stores into smart retail outlets.
“This win validates our technology as it proved we can beat larger and entrenched competitors,” comments Kai-Shing Tao, chairman and CEO of Remark Holdings. “The China Mobile project also adds to our momentum implementing our leading AI technology not only throughout China, but in other parts of Asia and the United States. Additionally, we are close to finalizing the monetization of our investment in Sharecare, which will immediately eliminate our debt and provide us with the growth working capital necessary to propel our AI business forward.”
Personalization and facial recognition are taking off in the Asian retail sector, according to a recent report.
KanKan facial recognition will also be deployed in a Kindergarten Medical Robot from Tongyue at an expected 500 kindergartens in Hangzhou to check the health of 200,000 students.