Communication Intelligence Corporation Reports Third Quarter 2009 Financial Results
CIC Achieves 3rd Quarter Cash Flow Positive Operations & Projects Cash Flow Positive Operations for the 4th Quarter
Press Release
Source: Communication Intelligence Corporation
On 9:00 am EDT, Wednesday October 28, 2009
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REDWOOD SHORES, Calif., Oct. 28 /PRNewswire-FirstCall/ -- Communication Intelligence Corporation ("CIC" or "the Company") (OTC Bulletin Board: CICI - News), a leading supplier of electronic signature solutions for business process automation in the financial industry* and the recognized leader** in biometric signature verification announced today its financial results for the three and nine-month periods ended September 30, 2009.
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{"s" : "cici.ob","k" : "c10,l10,p20,t10","o" : "","j" : ""} Total revenues for the three months ended September 30, 2009 were $877,000, an increase of 22% compared to the prior year period of $721,000 and more than double the revenue of $404,000 in the second quarter 2009. Orders received during the three month period ended September 30, 2009 were $1.7 million, an increase of 31% over orders received of $1.3 million for the third quarter 2008. Revenues were primarily attributable to Wells Fargo, Prudential and Snap-on Credit.
The operating loss for the three months ended September 30, 2009, before interest expense and amortization of the loan discount, and deferred financing cost, was $365,000 compared to $487,000 in the prior year period, a decrease of 25%. The decrease in the loss from operations is due to the increased revenues for the three months ended September 30, 2009 as compared to the prior year period. The Company's net loss applicable to common stockholders for the three month period ended September 30, 2009 was $2,575,000 compared to a net loss of $776,000 for the corresponding prior year period. Non-operating expense for the three months ended September 30, 2009 was $2,210,000, an increase of $1,921,000, compared to $289,000 for the corresponding prior year period. This increase is primarily attributable to non-cash loan amortization and deferred financing cost associated with the Company's warrants issued in May 2009, and a $1,529,000 loss related to the derivative liability due to an increase in the market price of the Company's common shares from June 30, 2009 through September 30, 2009. The basic and diluted loss per share was $0.02 on approximately 131 million weighted average common shares outstanding for the three months ending September 30, 2009 and $0.01 on approximately 129 million shares outstanding for the comparable prior year period.
Total revenues for the nine months ended September 30, 2009 were $1,527,000 compared to revenues of $1,558,000 in the corresponding prior year period. The operating loss for the nine months ended September 30, 2009, before interest expense and amortization of the loan discount and deferred financing cost, was $1,947,000, compared to $1,880,000 in the prior year corresponding period. The increase in operating loss is due to both the decrease in revenues and increase in operating expenses over the nine month period.
The Company's net loss applicable to common stockholders for the nine months ended September 30, 2009 and 2008 was $6,678,000 and $3,090,000, respectively. The increase in the net loss is due primarily to the factors stated above for the three month period ended September 30, 2009 and a $829,000 charge to expense of the remaining unamortized non-cash loan amortization and deferred financing cost associated with the cancellation of the Company's June 2008 notes and warrants, in exchange for the new debt and associated warrants issued in May 2009 and a $2,505,000 loss related to the derivative liability due to an increase in the market price of the Company's common shares from January 1, 2009 to September 30, 2009. The basic and diluted loss per share was $0.05 on approximately 131 million weighted average common shares outstanding for the nine months ending September 30, 2009 and $0.02 on approximately 129 million shares outstanding for the comparable prior year period.
"We are, of course, delighted with the significant order related to a top-three US bank deployment but more importantly this win reflects, we believe, the continuing evidence of CIC's leadership as the 'vendor of choice' for financial industry applications," stated CIC's Chairman & CEO, Guido DiGregorio. "This order together with three recent successive wins with top tier insurance companies: Travelers, Allstate and American Family provides, we believe, clear evidence that in both insurance and banking applications, when leading financial industry firms engage in a thorough competitive analysis, including product differentiation, legal/compliance competence, overall support, on-time delivery and proven installed base reliability, CIC has emerged as the preferred supplier.
"CIC has, as a strategy, focused for years on developing a 'lean & agile' team with exceptional core competence capable of establishing long standing strategic partner relationships that allow CIC to rapidly access the product development and/or deployment capabilities required to address virtually any business requirement. We believe this strategy, relative to organizational, product and expense structure, further differentiates CIC by positioning the Company to deliver and support high quality successful on-time deployments at the lowest total cost of ownership. Also, of major significance, is that this strategy enables sustained cash flow positive operation on the lowest levels of revenue as evidenced by this quarter's achievement and the projected achievement of cash flow positive operations for the fourth quarter and the six month period ending December 31, 2009.
"Our third quarter orders, together with current sales related activity, support my second quarter observation that Financial Industry IT spending is freeing up for electronic signature deployments that are increasingly being viewed as mission critical. Along with projecting fourth quarter cash flow positive operations, we anticipate that 2009 revenues will exceed 2008 with the potential for continued and sustained cash flow positive operations."
