iSIGN Reports Fiscal 2016 Results
SAN JOSE, CA, March 31, 2017 – iSign Solutions Inc. (“iSIGN”) (OTCQB: ISGN), 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 $1,065,000 for the year ended December 31, 2016, a decrease of $555,000, or 34%, compared to total revenue of $1,620,000 for the prior year.
“During 2016, we significantly reoriented our go-to-market approach in favor of engagements with partners capable of generating recurring revenue transactions from many of their existing customers” said Philip Sassower, co-chairman and chief executive officer for iSIGN. “Because of this commitment to channel partner electronic signature solutions, we reduced our direct sales efforts and elated marketing support. These actions, in part, enabled a significant reduction in our year-over-year burn rate and contributed to the reduction in net loss attributed to common shareholders, which was lowered by a third. Likewise, our development efforts have been redoubled in support of partner integration and customized iSIGN platform solutions, together with continuing support for our important, existing customers in the financial services sector. Because of these focused efforts, we reduced our R&D expenses by 25% year-over-year. Our restructuring adjustments indicate a sharper focus on multi-year partnerships expected to yield significant recurring revenue transaction volume over time, while reducing our expense run rate.”
For the year ended December 31, 2016, operating expenses were $4,274,000, a decrease of $1,171,000, or 22%, compared to operating expenses of $5,445,000 in the prior year. This decrease primarily was due to iSIGN’s efforts to restructure its operations in favor of partnergenerated recurring revenue.
For the year ended December 31, 2016, the net loss attributable to common stockholders was $5,057,000, a decrease of $2,562,000, or 34%, compared to a net loss attributable to common stockholders of $7,619,000 in the prior year. This decrease primarily was due to a $616,000 decrease in loss from operations from 2015 to 2016, resulting from the above-mentioned decrease in operating expenses offset by the decrease in revenue, a $312,000 increase in gain on derivative liability, a $281,000 decrease in accretion of beneficial conversion feature and a $1,863,000 decrease in preferred stock dividend expense, offset by a $164,000 increase in interest expense and a $337,000 increase in amortization of debt discount.
Additional financial information regarding iSIGN’s operating results for the year ended December 31, 2016, 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.
iSIGN (formerly known as Communication Intelligence Corporation or CIC) is a leading provider of digital transaction management (DTM) software enabling fully digital (paperless) business processes. iSIGN’s solutions encompass a wide array of functionality and services, including electronic signatures, simple-to-complex workflow management and various options for biometric authentication. These solutions are available across virtually all enterprise, desktop and mobile environments as a seamlessly integrated software platform for both ad-hoc and fully automated transactions. iSIGN’s software platform can be deployed both on-premise and as a cloud-based service, with the ability to easily transition between deployment models. iSIGN is headquartered in Silicon Valley. For more information, please visit our website at www.isignnow.com. iSIGN’s logo is a trademark of iSIGN.
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.
Chief Financial Officer