- Email: [email protected]
ImageWare Systems secures US$1.5 million in funding
BUSINESS WATCH
company news • ImageWare Systems has signed a three-year, royaltybased, licensing agreement with Honeywell Security. This agreement allows Honeywell to integrate biometric enrollment and identity proofing, as well as card management and issuance of biometrically-enabled secure credentials into its physical access control product suite. This will enable Honeywell to offer complete, end-to-end access control solutions for initiatives, such as Homeland Security Presidential Directive 12 (HSPD12) and the Transportation Worker Identification Credential (TWIC). ImageWare’s IWS Biometric Engine, IWS EPI Builder and IWS EPI Card Management System will be integrated into several Honeywell physical access control product families including Pro-Watch, SmartPlus, WIN-PAK, Vindicator and LobbyWorks. • Sequiam Corporation, a provider of consumer lifestyle biometric technologies and services, has reported its financial results for the fourth quarter and year ended 31 December 2006. Total revenue for the fourth quarter increased to US$1,171,000 in 2006 from $104,700 in 2005. The fourth quarter net loss applicable to common stock decreased by 36% to US$1,203,000 in 2006 from $1,889,000 in 2005. For the full year total revenue increased by 171% to US$1,699,000 from the US$626,000 reported for 2005. Net losses applicable to common stock for the year increased 21% to US$6,559,000 in 2006 from the US$5,431,000 reported for 2005. • Experian has announced an alliance with VoiceVerified to jointly market and sell authentication solutions that combine data-based and voice biometric authentication technologies to verify an individual’s identity. The companies say that multifactor authentication will result in reduced fraud and associated operational losses.
6
financial results
Bioscrypt reports best ever revenue in 2006 Bioscrypt, a provider of enterprise access control technology based on biometrics, has announced record results for the fourth quarter and year ended 31 December 2006. The supplier’s fourth quarter revenue of US$5.0 million was a 9% rise on the US$4.5 million reported during the same period in the previous year. Overall gross margins were 47%, a 3% increase over 44% in the same period a year ago. According to Robert Williams, president and CEO, Bioscrypt: “Recent events, including our announced intent to purchase A4 Vision, demonstrate that Bioscrypt continues to advance on its strategy of providing technologies supporting strong multi-factor authentication for both physical and logical access. 2006 was a year of transition, where Bioscrypt enhanced its product offerings to support the demands of the EU directives and US government markets, all of which we look to benefit from in 2007.” The company recorded a fourth quarter net loss of US$1.0 million or $0.02 per share versus a net loss of US$1.1 million in 2005. For the quarter, product sales represented 94% of total sales or US$4.7 million on 14,150 units sold. Bioscrypt’s revenue for the year ended 31 December 2006 was US$17.6 million, an increase of 12% from the US$15.7 million reported during the same period of the previous year. Net losses for the year were US$5.6 million or US$0.09 per share compared with US$5.4 million in 2005. Bruce MacInnis, CFO of Bioscrypt, said: “With an operating loss for the period of approximately US$500,000, following a difficult third quarter, we will continue our efforts to streamline the organization and further improve our bottom line results.” Contact: Bruce MacInnis, CFO, Bioscrypt, Tel: +1 905 940 7752, Email: [email protected]
capital
ImageWare Systems secures US$1.5 million in funding ImageWare Systems has raised proceeds of approximately US$1.5 million, which it will use to retire outstanding debt and for general working capital purposes. The capital was raised through a private placement of 1,500 shares of Series D convertible preferred stock
and warrants to purchase 59,210 shares of common stock to accredited investors, including existing ImageWare shareholders. The preferred stock is initially convertible into approximately 789,000 shares of common stock. The warrants have a term of five years and are initially exercisable at US$2.33 per share beginning on 9 September 2007. “We are pleased to receive this support by some of our existing shareholders, which demonstrates a vote of confidence in ImageWare,” said Jim Miller, chairman and CEO. “The retirement of our debt strengthens our balance sheet and is a positive event for the company.” Contact: Wayne Wetherell at ImageWare Systems, Tel: +1 858 673 8600
financial results
Strong fourth quarter for Cogent Systems Cogent Systems has announced mixed financial results for the fourth quarter and full-year ended 31 December 2006. Fourth quarter 2006 revenues were US$42.3 million, an 81% sequential increase over revenues of US$23.4 million in the preceding third quarter, but an 8.5% decrease compared to revenue of US$46.2 million in fourth quarter of 2005. Net income for the fourth quarter of 2006 was US$13.7 million, compared with US$20.7 million in the same period a year ago. “Fourth quarter revenues increased by 81% sequentially and we more than doubled profits compared to the prior quarter,” commented Ming Hsieh, president and CEO of Cogent. “Over the last year, we have added a number of new core customers and have won many new contract awards which we believe will significantly diversify our revenue stream and provide more consistent results in the coming year. We expect to return to growth in 2007 and continue to deliver high margins and profits.” According to Hsieh: “Currently we are pursuing more than 20 significant projects in more than 15 countries around the world for border control, law enforcement, the civil market and the commercial sector.” For the full-year ended 31 December 2006, revenues decreased to US$101.7 million from US$159.9 million in 2005. Net income in 2006 was US$29.7 million compared to a net income of US$65.3 million in 2005. Contact: Paul Kim at Cogent Systems, Tel: +1 626 799 8090
Biometric Technology Today • March 2007
company news • ImageWare Systems has signed a three-year, royaltybased, licensing agreement with Honeywell Security. This agreement allows Honeywell to integrate biometric enrollment and identity proofing, as well as card management and issuance of biometrically-enabled secure credentials into its physical access control product suite. This will enable Honeywell to offer complete, end-to-end access control solutions for initiatives, such as Homeland Security Presidential Directive 12 (HSPD12) and the Transportation Worker Identification Credential (TWIC). ImageWare’s IWS Biometric Engine, IWS EPI Builder and IWS EPI Card Management System will be integrated into several Honeywell physical access control product families including Pro-Watch, SmartPlus, WIN-PAK, Vindicator and LobbyWorks. • Sequiam Corporation, a provider of consumer lifestyle biometric technologies and services, has reported its financial results for the fourth quarter and year ended 31 December 2006. Total revenue for the fourth quarter increased to US$1,171,000 in 2006 from $104,700 in 2005. The fourth quarter net loss applicable to common stock decreased by 36% to US$1,203,000 in 2006 from $1,889,000 in 2005. For the full year total revenue increased by 171% to US$1,699,000 from the US$626,000 reported for 2005. Net losses applicable to common stock for the year increased 21% to US$6,559,000 in 2006 from the US$5,431,000 reported for 2005. • Experian has announced an alliance with VoiceVerified to jointly market and sell authentication solutions that combine data-based and voice biometric authentication technologies to verify an individual’s identity. The companies say that multifactor authentication will result in reduced fraud and associated operational losses.
6
financial results
Bioscrypt reports best ever revenue in 2006 Bioscrypt, a provider of enterprise access control technology based on biometrics, has announced record results for the fourth quarter and year ended 31 December 2006. The supplier’s fourth quarter revenue of US$5.0 million was a 9% rise on the US$4.5 million reported during the same period in the previous year. Overall gross margins were 47%, a 3% increase over 44% in the same period a year ago. According to Robert Williams, president and CEO, Bioscrypt: “Recent events, including our announced intent to purchase A4 Vision, demonstrate that Bioscrypt continues to advance on its strategy of providing technologies supporting strong multi-factor authentication for both physical and logical access. 2006 was a year of transition, where Bioscrypt enhanced its product offerings to support the demands of the EU directives and US government markets, all of which we look to benefit from in 2007.” The company recorded a fourth quarter net loss of US$1.0 million or $0.02 per share versus a net loss of US$1.1 million in 2005. For the quarter, product sales represented 94% of total sales or US$4.7 million on 14,150 units sold. Bioscrypt’s revenue for the year ended 31 December 2006 was US$17.6 million, an increase of 12% from the US$15.7 million reported during the same period of the previous year. Net losses for the year were US$5.6 million or US$0.09 per share compared with US$5.4 million in 2005. Bruce MacInnis, CFO of Bioscrypt, said: “With an operating loss for the period of approximately US$500,000, following a difficult third quarter, we will continue our efforts to streamline the organization and further improve our bottom line results.” Contact: Bruce MacInnis, CFO, Bioscrypt, Tel: +1 905 940 7752, Email: [email protected]
capital
ImageWare Systems secures US$1.5 million in funding ImageWare Systems has raised proceeds of approximately US$1.5 million, which it will use to retire outstanding debt and for general working capital purposes. The capital was raised through a private placement of 1,500 shares of Series D convertible preferred stock
and warrants to purchase 59,210 shares of common stock to accredited investors, including existing ImageWare shareholders. The preferred stock is initially convertible into approximately 789,000 shares of common stock. The warrants have a term of five years and are initially exercisable at US$2.33 per share beginning on 9 September 2007. “We are pleased to receive this support by some of our existing shareholders, which demonstrates a vote of confidence in ImageWare,” said Jim Miller, chairman and CEO. “The retirement of our debt strengthens our balance sheet and is a positive event for the company.” Contact: Wayne Wetherell at ImageWare Systems, Tel: +1 858 673 8600
financial results
Strong fourth quarter for Cogent Systems Cogent Systems has announced mixed financial results for the fourth quarter and full-year ended 31 December 2006. Fourth quarter 2006 revenues were US$42.3 million, an 81% sequential increase over revenues of US$23.4 million in the preceding third quarter, but an 8.5% decrease compared to revenue of US$46.2 million in fourth quarter of 2005. Net income for the fourth quarter of 2006 was US$13.7 million, compared with US$20.7 million in the same period a year ago. “Fourth quarter revenues increased by 81% sequentially and we more than doubled profits compared to the prior quarter,” commented Ming Hsieh, president and CEO of Cogent. “Over the last year, we have added a number of new core customers and have won many new contract awards which we believe will significantly diversify our revenue stream and provide more consistent results in the coming year. We expect to return to growth in 2007 and continue to deliver high margins and profits.” According to Hsieh: “Currently we are pursuing more than 20 significant projects in more than 15 countries around the world for border control, law enforcement, the civil market and the commercial sector.” For the full-year ended 31 December 2006, revenues decreased to US$101.7 million from US$159.9 million in 2005. Net income in 2006 was US$29.7 million compared to a net income of US$65.3 million in 2005. Contact: Paul Kim at Cogent Systems, Tel: +1 626 799 8090
Biometric Technology Today • March 2007