CIC Reports Fiscal 2013 Results
Redwood Shores, CA, March 31, 2014 – Communication Intelligence Corporation (“CIC”) (OTCQB: CICI), a leading supplier of electronic signature and business document work flow solutions, today reported total revenue of $1,418,000 for the year ended December 31, 2013, a decrease of $960,000, or 40%, compared to total revenue of $2,378,000 for the prior year.
“We completed a challenging 2013, in which we invested heavily in new technology,” said Philip Sassower, chairman and chief executive officer for CIC. “Our new software platform enables bi-directional on-premise and Cloud server migration. It supports both enterprise-wide and workflow-specific solutions, and can be quickly and efficiently deployed. This development effort represented a necessary and major step forward in terms of rapid enterprise integration and deployment for electronic signature, as well as the scalability needed for managing tens of millions of simple-to-complex transactions within a single enterprise. The new SignatureOne® Enterprise was released near the end of the year and supported the higher revenue run rate achieved in the last three months of the year. With our product transition now complete, the successful completion of our recently announced funding round and a strong pipeline of opportunities, we remain highly confident in CIC’s ability to resume its earlier growth trend.”
For the year ended December 31, 2013, operating expenses were $5,715,000, an increase of $283,000, or 5%, compared to operating expenses of $5,432,000 in the prior year. This increase was primarily due to higher stock option expenses and outsourced engineering services, offset by lower commissions and professional services.
For the year ended December 31, 2013, the net loss attributable to common stockholders was $8,099,000, an increase of $1,355,000, or 20%, compared to a net loss attributable to common stockholders of $6,744,000 in the prior year. This increase was primarily due to the $1,243,000 increase in loss from operations from 2012 to 2013, resulting from lower revenue and an increase in certain non-cash charges related to our funding activities, including net charges of $227,000 related to certain warrant issuances and a $67,000 loss on extinguishment of debt. This was offset by a decrease of $324,000 in charges associated with preferred stock beneficial conversion features and dividends and a gain of $108,000 on derivative liability.
Additional financial information regarding CIC’s operating results for the year ended December 31, 2013, will be available in the Company’s Annual Report on Form 10-K that will be filed with the Securities and Exchange Commission and available at www.sec.gov
CIC is a leading supplier of electronic signature products and business document workflow solutions. CIC enables companies to achieve truly paperless workflow in their electronic business processes by providing multiple signature and digital transaction management technologies across virtually all applications. CIC’s solutions are available both on-premise and in the Cloud as a service, and afford “straight-through-processing,” which can increase customer revenue by enhancing user experience and can also reduce costs through paperless and virtually error-free electronic transactions that can be completed significantly quicker than paper-based procedures. CIC is headquartered in Silicon Valley. For more information, please visit our website at http://www.cic.com. CIC’s logo is a trademark of CIC.
Forward Looking Statements
Certain statements contained in this press release, including without limitation, statements containing the words “believes”, “anticipates”, “hopes”, “intends”, “expects”, and other words of similar import, constitute “forward looking” statements within the meaning of the Private Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual events to differ materially from expectations. Such factors include the following (1) technological, engineering, quality control or other circumstances which could delay the sale or shipment of products containing the Company’s technology; (2) economic, business, market and competitive conditions in the software industry and technological innovations which could affect customer purchases of the Company’s solutions; (3) the Company’s inability to protect its trade secrets or other proprietary rights, operate without infringing upon the proprietary rights of others or prevent others from infringing on the proprietary rights of the Company; and (4) general economic and business conditions and the availability of sufficient financing.
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