CIC Reports Third Quarter 2014 Results
REDWOOD SHORES, CA, November 14, 2014 – Communication Intelligence Corporation (“CIC”) (OTCQB: CICI), a leading supplier of electronic signature and other software solutions enabling secure and cost-effective management of document-based digital transactions, today reported total revenue of $285,000 for the three months ended September 30, 2014, a decrease of $85,000, or 23%, compared to total revenue of $370,000 for the same quarter in the prior year. For the nine months ended September 30, 2014, total revenue were $1,059,000, an increase of $192,000, or 22%, compared to total revenue of $867,000 for the same period in the prior year.
“Despite the decrease in revenue for the third quarter, our nine month results point to improved performance on a year-to-year basis,” said Philip Sassower, chairman and chief executive officer for CIC. “The third quarter results do not reflect the many developments at CIC that we believe will drive performance improvements over the midterm. As an example, domestically, we see a growing interest in on-premise deployments of our digital transaction management solutions for customers that must manage complex workflows in compliance-driven organizations. In addition, our strategic alliance with Cegedim Global Payments in Europe is expected to generate at least modest initial revenue by next quarter. Both of these initiatives have required a significant development investment over the past couple of years that has not yet been reflected in our revenues, but that we anticipate will generate sustainable growth for CIC in 2015 and beyond.”
For the quarter ended September 30, 2014, operating expenses were $1,235,000, a decrease of $40,000, or 3%, compared to operating expenses of $1,275,000 in the prior year. For the nine months ended September 30, 2014, operating expenses were $3,996,000, a decrease of $214,000, or 5%, compared to operating expenses of $4,210,000 for the same period in the prior year. These comparative decreases were primarily due to lower stock option expenses and headcount, partially offset by increases in professional service costs and travel expenses.
For the quarter ended September 30, 2014, the net loss attributable to common stockholders was $1,791,000, an increase of $324,000, or 22%, compared to a net loss attributable to common stockholders of $1,467,000 in the prior year. This increase was primarily due to increases in the non-cash expense related to the accretion of beneficial conversion feature on preferred share issuances and in the amount charged for preferred stock dividends issued in kind.
For the nine months ended September 30, 2014, the net loss attributable to common stockholders was $5,730,000, an increase of $585,000, or 11%, compared to a net loss attributable to common stockholders of $5,145,000 for the same period in the prior year. This increase was primarily due to increases in interest expense related to the warrant issued in
connection with the ICG credit facility, in the non-cash expense related to the accretion of beneficial conversion feature on preferred share issuances and in the amount charged for preferred stock dividends issued in kind, partially offset by the aforementioned higher revenue and lower operating expenses.
Additional financial information regarding CIC’s operating results for the quarter ended September 30, 2014 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 provider of digital transaction management (DTM) software enabling fully digital (paperless) business processes. CIC’s solutions encompass a wide array of functionality and services, including electronic signatures, biometric authentication and simple-to-complex workflow management. These solutions are available across virtually all enterprise, desktop and mobile environments as a seamlessly integrated platform for both ad-hoc and fully automated transactions. CIC’s platform can be deployed both on-premise and as a cloud-based service, with the ability to easily transition between deployment models. CIC is headquartered in Silicon Valley. For more information, please visit our website at 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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