iSIGN Reports Second Quarter 2017 Results
SAN JOSE, CA, August 14, 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 results for its second quarter ended June 30, 2017. Of note, is the continued dramatic improvement in bottom line performance, compared to the prior year, resulting from the shift in focus to partner-generated recurring revenue and the resulting reduction in expenses.
“Our year-to-date results reflect our business model transformation,” said Philip Sassower, cochairman and chief executive officer for iSIGN. “We continue to seek and implement opportunities for managing our business on a cost-effective basis. We expect to see a further improvement in bottom-line performance as transaction volume from our partnership with Cegedim SA increases more substantially than it did in the first six months of the year.”
Total revenue was $215,000 for the three months ended June 30, 2017, a decrease of $141,000, or 40%, compared to total revenue of $356,000 for the prior year. For the six months ended June 30, 2017, total revenue was $425,000, a decrease of $208,000, or 33%, compared to total revenue of $633,000 for the prior year.
For the quarter ended June 30, 2017, operating expenses were $668,000, a decrease of $541,000, or 45%, compared to operating expenses of $1,209,000 in the prior year. For the six months ended June 30, 2017, operating expenses were $1,447,000, a decrease of $1,181,000, or 45%, compared to operating expenses of $2,628,000 in the prior year. These decreases primarily were due to iSIGN’s efforts to restructure its operations in favor of partner-generated recurring revenue.
For the quarter ended June 30, 2017, the net loss attributable to common stockholders was $185,000, a decrease of $1,223,000, or 87%, compared to a net loss attributable to common stockholders of $1,408,000 in the prior year. This decrease was due primarily to a $400,000 decrease in loss from operations, resulting from the above-mentioned decrease in operating expenses offset by the decrease in revenue, a $329,000 improvement in other income, a $459,000 decrease in preferred stock dividend expense, a $47,000 decrease in interest expense and an $137,000 decrease in amortization of debt discount, offset by a decrease of $149,000 in gain on derivative liability.
For the six months ended June 30, 2017, the net loss attributable to common stockholders was $800,000, a decrease of $3,037,000, or 79%, compared to a net loss attributable to common stockholders of $3,837,000 in the prior year. This decrease was due primarily to a $973,000 decrease in loss from operations, resulting from the above-mentioned decrease in operating expenses offset by the decrease in revenue, a $325,000 improvement in other income, a $1,313,000 decrease in preferred stock dividend expense, a $245,000 decrease in accretion of beneficial conversion feature, a $137,000 decrease in interest expense and a $218,000 decrease in amortization of debt discount, offset by a decrease of $174,000 in gain on derivative liability.
Additional financial information regarding iSIGN’s operating results for the quarter ended June 30, 2017, will be available in the Company’s Annual Report on Form 10-Q 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