CIC Reports Third Quarter 2013 Results
Redwood Shores, CA, November 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 $370,000 for the three months ended September 30, 2013, a decrease of $146,000 or 28%, compared to total revenue of $516,000 for the same quarter in the prior year. For the nine months ended September 30, 2013, total revenues were $867,000, a decrease of $841,000, or 49%, compared to total revenue of $1,708,000 for the same period in the prior year.
“Our third quarter revenue showed a slight improvement over the first and second quarters of 2013,” said Philip Sassower, chairman and chief executive officer for CIC. “While revenue for the first nine months of the year was below our expectations, during the quarter, our development team released the beta version of a powerful, feature-rich new product that will be formally announced in the near future. We remain confident that the Company will resume its earlier positive growth trend.”
For the quarter ended September 30, 2013, operating expenses were $1,275,000, a decrease of $17,000, or 1%, compared to operating expenses of $1,292,000 in the prior year. For the nine months ended September 30, 2013, operating expenses were $4,210,000, an increase of $160,000, or 4%, compared to operating expenses of $4,050,000 for the same period in the prior year. The latter comparative increase was primarily due to an increase in the Company’s investment in engineering resources and higher stock option compensation expenses.
For the quarter ended September 30, 2013, the net loss attributable to common stockholders was $1,430,000, an increase of $258,000, or 22%, compared to a net loss attributable to common stockholders of $1,172,000 in the prior year. For the nine months ended September 30, 2013, the net loss attributable to common stockholders was $4,954,000, an increase of $1,119,000, or 29%, compared to a net loss attributable to common stockholders of $3,835,000 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 to higher preferred stock dividend charges, as well as, in the nine-month period, to an increase in operating expenses offset by lower accretion of beneficial conversion feature.
Additional financial information regarding CIC’s operating results for the quarter ended September 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 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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