PORT TOWNSEND, Wash.--(EON: Enhanced Online News)--Intellicheck Mobilisa, Inc. (NYSE MKT:IDN), a global leader in identity solutions and wireless security systems, has released its financial results for the third quarter ended September 30, 2013.
“We believe our new emphasis on mobile applications will continue to be beneficial for the company and its shareholders, as there is increasing demand for mobile applications. Overall, I believe we are headed in the right direction, and I am optimistic about our future as a company.”
Less than a year since Nelson Ludlow, Ph.D. returned as President & CEO, the management team reports third quarter revenue of $2,579,000 and a profitable quarter. Third quarter revenue is a 388% increase over the $528,000 revenue reported in the fourth quarter of 2012, when Dr. Ludlow returned to the company.
Financial Highlights for the Third Quarter 2013:
- Revenue for the quarter ended September 30, 2013 increased 21.7% to $2,579,000 compared to $2,120,000 in the year-ago third quarter, and up $858,000 or 50% from the second quarter 2013.
- Adjusted EBITDA for the third quarter was $287,000 compared to loss of ($102,000) in the third quarter 2012.
- Net income for the quarter was $16,000, or $0.00 per fully diluted share, compared to a net loss of ($381,000) or ($0.01) per share loss in the year-ago third quarter, or net loss of ($647,000) or ($0.02) per share loss last quarter.
- Renewed $2,000,000 line of credit with Silicon Valley Bank.
Business Highlights for the Third Quarter 2013:
- Launched first major iPhone application, barZapp™, for alcohol servers to verify age. barZapp 2.0 for iPhone was released subsequently, and Android version released in the Google Store.
- TSA approved IDN’s two mobile TWIC card readers; first such devices to be approved by the Department of Homeland Security. Two facilities purchased these new readers.
- U.S. Army issued an Authority To Operate (ATO) approval for company’s new military base ID card scanning system.
- Fugitive Finder product received government FIPS-201 certification. U.S. Army Fort Polk, Louisiana purchased these new readers.
- Installed mobile readers for ID cards at a major U.S. national security facility.
- Launched test of new State Aware Software ID-checking product, which guides data collection based on individual state laws, at a major national retailer.
Dr. Ludlow commented, “I am very pleased with the progress we are making in rebuilding the company. This progress is due to several factors, including our new and expanded product line; a more profitable and predictable business model, namely SaaS (Software as a Service); and improved service support for our customers. These factors resulted in an expanded client base and growth in both the commercial and government sectors. Last quarter, we received certification from TSA for our new TWIC card readers; this has resulted in two locations already purchasing our products, and dozens more asking for quotes and product demonstrations. We had good initial launches with our barZapp app in the Apple Store and last week in the Google Store, which demonstrates our company’s strength in developing smartphone apps.”
Dr. Ludlow continued, “We believe our new emphasis on mobile applications will continue to be beneficial for the company and its shareholders, as there is increasing demand for mobile applications. Overall, I believe we are headed in the right direction, and I am optimistic about our future as a company.”
Conference Call Information
The Company will hold an earnings conference call today, November 5, 2013 at 2:15 pm ET/11:15 am PT to discuss operating results. To listen to the conference call, please dial (877) 407-8037. For callers outside the U.S., please dial (201) 689-8037. For those unable to participate in the live conference, a recording will be available for 48 hours after the call. The rebroadcast can be accessed by dialing (877) 660-6853 and (201) 612-7415 for international callers. The conference replay ID is 422812.
The conference call will also be simultaneously webcast, and can be accessed at: http://www.investorcalendar.com/IC/CEPage.asp?ID=171815. The webcast will be available for 14 days following the conference call.
About Intellicheck Mobilisa
Intellicheck Mobilisa is a leading technology company providing wireless technology and identity systems for various applications, including mobile and handheld access control and security systems for the government, military and commercial markets. Products include the Fugitive Finder system, an advanced ID card access control product currently protecting military bases and secure federal locations; ID Check, a patented technology that instantly reads, analyzes, and verifies encoded data in magnetic stripes and barcodes on government-issued IDs, designed to improve the Customer Experience for the financial, hospitality and retail sectors; barZapp™, an ID-checking mobile app that allows a user’s smartphone to check an ID card. For more information on Intellicheck Mobilisa, please visit www.icmobil.com.
Safe Harbor Statement
Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. When used in this press release, words such as “will,” “believe,” “expect,” “anticipate,” “encouraged,” and similar expressions, as they relate to the company or its management, as well as assumptions made by and information currently available to the company’s management identify forward-looking statements. Actual results may differ materially from the information presented here. Additional information concerning forward-looking statements is contained under the heading of risk factors listed from time to time in the company’s filings with the SEC. We do not assume any obligation to update the forward-looking information.
Intellicheck Mobilisa uses Adjusted EBITDA as a non-GAAP financial performance measurement. Adjusted EBITDA is calculated by adding back to net income (loss) interest, income taxes, impairments of long-lived assets and goodwill, depreciation, amortization and stock-based compensation expense. Adjusted EBITDA is provided to investors to supplement the results of operations reported in accordance with GAAP. Management believes that Adjusted EBITDA provides an additional tool for investors to use in comparing Intellicheck Mobilisa financial results with other companies that also use Adjusted EBITDA in their communications to investors. By excluding non-cash charges such as impairments of long-lived assets and goodwill, amortization, depreciation and stock-based compensation, as well as non-operating charges for interest and income taxes, investors can evaluate the Company's operations and can compare its results on a more consistent basis to the results of other companies. In addition, adjusted EBITDA is one of the primary measures management uses to monitor and evaluate financial and operating results.
Intellicheck Mobilisa considers Adjusted EBITDA to be an important indicator of the Company's operational strength and performance of its business and a useful measure of the Company's historical operating trends. However, there are significant limitations to the use of Adjusted EBITDA since it excludes interest income and expense, impairments of long lived assets and goodwill, stock based compensation expense, all of which impact the Company's profitability, as well as depreciation and amortization related to the use of long term assets which benefit multiple periods. Intellicheck Mobilisa believes that these limitations are compensated by providing Adjusted EBITDA only with GAAP net income (loss) and clearly identifying the difference between the two measures. Consequently, Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss) presented in accordance with GAAP. Adjusted EBITDA as defined by the Company may not be comparable with similarly named measures provided by other entities. A reconciliation of Adjusted EBITDA to GAAP net income or loss is included in the enclosed schedule.
CONSOLIDATED BALANCE SHEETS
|September 30,||December 31,|
|Cash and cash equivalents||$||643,417||$||1,685,879|
|Accounts receivable, net of allowance of $1,613 and $1,613|
|as of September 30, 2013 and December 31, 2012, respectively||1,582,360||869,747|
|Other current assets||101,451||105,881|
|Total current assets||2,381,503||2,999,066|
|PROPERTY AND EQUIPMENT, net||400,559||449,438|
|INTANGIBLE ASSETS, net||3,951,160||4,631,577|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Deferred revenue, current portion||1,136,925||1,450,923|
|Total current liabilities||2,776,546||2,255,026|
|Deferred revenue, long-term portion||213,636||341,948|
|Common stock - $.001 par value; 40,000,000 shares authorized;|
|27,897,467 and 27,724,267 shares issued and outstanding, respectively||27,897||27,724|
|Additional paid-in capital||100,980,276||100,882,019|
|Total stockholders’ equity||15,953,058||17,678,435|
|Total liabilities and stockholders’ equity||$||19,113,889||$||20,460,748|
CONSOLIDATED STATEMENTS OF OPERATIONS
|Three Months Ended September 30,||Nine Months Ended September 30,|
|COST OF REVENUES||(797,488||)||(556,265||)||(2,295,871||)||(2,519,753||)|
|General and administrative||1,035,941||1,051,901||3,074,299||3,080,224|
|Research and development||472,711||526,325||1,592,056||1,748,597|
|Total operating expenses||1,765,652||1,948,434||5,460,263||6,060,387|
|Income (Loss) from operations||15,723||(381,296||)||(1,823,895||)||(305,299||)|
|OTHER INCOME (EXPENSE)|
|Net Income (Loss)||$||15,796||$||(381,296||)||$||(1,823,807||)||$||(305,299||)|
|PER SHARE INFORMATION|
|Net Income (Loss) per common share -|
Weighted average common shares used
|in computing per share amounts -|
INTELLICHECK MOBILISA, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
|BALANCE, January 1, 2013||27,724,267||$||27,724||$||100,882,019||$||(83,231,308||)||$||17,678,435|
|Stock option compensation||-||-||15,358||-||15,358|
|Stock option exercises||153,200||153||70,319||-||70,472|
|Issuance of common stock||20,000||20||12,580||-||12,600|
|BALANCE, September 30, 2013||27,897,467||$||27,897||$||100,980,276||$||(85,055,115||)||$||15,953,058|
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended September
|CASH FLOWS FROM OPERATING ACTIVITIES:|
|Net Income (Loss)||$||(1,823,807||)||$||(305,299||)|
|Adjustments to reconcile net income (loss) to net cash|
|(used in) provided by operating activities:|
|Depreciation and amortization||802,402||824,589|
|Noncash stock-based compensation expense||27,958||47,262|
|Changes in assets and liabilities:|
|(Increase) Decrease in accounts receivable||(712,613||)||1,175,746|
|Decrease (Increase) in inventory||283,284||(105,973||)|
|Decrease (Increase) in other current assets||4,430||(7,599||)|
Increase (Decrease) in accounts payable, accrued
|(Decrease) in deferred revenue||(442,310||)||(338,249||)|
|(Decrease) in deferred rent||(14,690||)||(5,608||)|
|Net cash (used in) provided by operating activities||(1,039,828||)||1,283,934|
|CASH FLOWS FROM INVESTING ACTIVITIES:|
|Purchases of property and equipment||(73,106||)||(71,024||)|
|Net cash used in investing activities||(73,106||)||(71,024||)|
|CASH FLOWS FROM FINANCING ACTIVITIES:|
|Net proceeds from issuance of common stock from exercise|
|Net cash provided by financing activities||70,472||130,448|
|(Decrease) increase in cash and cash equivalents||(1,042,462||)||1,343,358|
|CASH AND CASH EQUIVALENTS, beginning of period||1,685,879||1,394,148|
|CASH AND CASH EQUIVALENTS, end of period||$||643,417||$||2,737,506|
|SUPPLEMENTAL CASH FLOW INFORMATION|
|Cash paid during the period for:|