ImageWare reports massive biometrics earnings gains and plans new business lines
ImageWare has reported a revenue leap of 215 percent in the third quarter of 2020 to $2.47 million, up from $785,000 in the same quarter of 2019, with the gains driven by services for smart badge technology, services integration and training for the U.S. Department of Veterans’ Affairs.
Gross profit increased by 152 percent from to $1.63 million, or 66 percent, compared to $647,000, or 82 percent in Q3 2019. The lower margin is a result of one-time additional service costs related to one particular customer. Net loss declined to $626,000 or $0.02 per share from $2.665 million and $0.04 per share a year earlier.
For the first nine months of the year, ImageWare reports revenues just under $4 million, up 37 percent from just over $2.5 million for the first three quarters of last year. Net loss likewise decreased from $9.2 million in 2019 to nearly $6.8 million in Q1 to Q3 2020.
Highlights during the quarter include the launch of BioIntellic spoof detection feature, which was the first release from the company’s new development team, and the appointment of Chris Dickson as ImageWare’s new VP of Sales.
“Our talented and dedicated team members are the backbone of our accomplishments. While working remotely during the pandemic, they continue to excel and thrive. I applaud their many accomplishments and on-going contributions,” says ImageWare President, Chair and CEO Kristin A. Taylor.
“Our recently completed $11.56 million capital raise provides us with the means and the runway to continue building and growing ImageWare 2.0 to achieve meaningful success for our investors on our way to becoming cash flow positive.”
In an earnings call reported by Seeking Alpha, Taylor said the company is in negotiations to sublease its 8,000 square-foot San Diego office, with plans to find a new space that would allow it to set up a demonstration environment for public safety, federal and enterprise applications. The ImageWare team will continue to mostly work remotely, and use the new facility for board and office meetings, demonstrations and testing.
The company also touts its growing sales pipeline, which netted 56 new opportunities in law enforcement, and 79 overall, as well as new bookings, hires, and an IP monetization business unit. An upgrade of the company’s flagship GoVerifyID is also expected next week, and an integrated Identity Platform for end-to-end biometrics management is expected to be completed in Q2 2021. ImageWare also completed development of a QuickCapture mobile software product for the Chameleon 5 and 8 devices from partner Laxton.
ImageWare plans to target the enterprise market, in particular for customers in financial services, retail, manufacturing, education and healthcare.
Trust Stamp files for Irish IPO
The company would be the first direct listing to the market, and Trust Stamp has engaged Davy as its advisor.
“Trust Stamp is a global business with operating bases in a number of European markets and it made sense to list in Ireland, which has an excellent reputation as a world-leading base for technology and innovation, and a vibrant tech and growth company advisory ecosystem,” said ImageWare CEO Gareth Genner, as quoted by the Times.
In June, Genner confirmed the company was planning for a €29 million (US$34.4 million) IPO on the exchange.
Idex schedules extraordinary GM
Idex Biometrics has posted notice of an extraordinary general meeting on December 15, 2020, to approve indemnification agreements, the 2020 subscription rights incentive plan, as well as authorize the board to issue new shares and acquire its own shares.