CIC Reports Second Quarter 2013 Results
Redwood Shores, CA, August 14, 2013 – Communication Intelligence Corporation (“CIC” or the “Company”) (OTCQB: CICI), a leading supplier of electronic signature solutions and the recognized leader in biometric signature verification, today reported total revenue of $263,000 for the three months ended June 30, 2013, a decrease of $262,000 or 50%, compared to total revenue of $525,000 for the same quarter in the prior year. For the six months ended June 30, 2013, total revenues were $498,000, a decrease of $693,000, or 58%, compared to total revenue of $1,191,000 for the same period in the prior year.
“Revenue for the first half of 2013 was below our expectations,” stated Philip Sassower, CIC’s Chairman and Chief Executive Officer. “Our team has been diligently working on an improved product offering that was developed with the input of our largest customers. We expect to complete development shortly and for the Company to resume the positive growth trends delivered over the past two years. We remain confident in the Company’s future prospects.”
For the quarter ended June 30, 2013, operating expenses were $1,441,000, an increase of $122,000, or 9%, compared to operating expenses of $1,319,000 in the prior year. For the six months ended June 30, 2013, operating expenses were $2,937,000, an increase of $179,000, or 6%, compared to operating expenses of $2,758,000 for the same period in the prior year. These comparative increases were primarily due to an increase in the Company’s investment in engineering resources and higher stock option compensation expenses.
For the quarter ended June 30, 2013, the net loss attributable to common stockholders was $1,850,000, an increase of $755,000, or 69%, compared to a net loss attributable to common stockholders of $1,095,000 in the prior year. For the six months ended June 30, 2013, the net loss attributable to common stockholders was $3,525,000, an increase of $862,000, or 32%, compared to a net loss attributable to common stockholders of $2,663,000 for the same period in the prior year. These comparative increases were primarily due to increases in loss from operations from the aforementioned lower revenues and greater operating expenses, as well as increases in non-cash expenses related to our Preferred Stock and lower gains on derivative liability.
Additional financial information regarding CIC’s operating results for the quarter ended June 30, 2013, will be available in the Company’s Quarterly Report on Form 10-Q 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 the recognized leader in biometric signature verification. CIC enables companies to achieve truly paperless workflow in their electronic business processes by providing multiple signature technologies across virtually all applications. CIC’s solutions are available both in SaaS and on-premise delivery models 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 Redwood Shores, California. For more information, please visit our website at http://www.cic.com. CIC’s logo is a registered 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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