iSIGN Reports Third Quarter 2017 Results
SAN JOSE, CA, November 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 third quarter ended September 30, 2017. iSIGN’s performance continued to reflect improvement in bottom line performance, compared to the prior year, resulting from its shift in focus to partner- generated recurring revenue and the resulting reduction in expenses.
“Our business model transformation is ongoing,” said Philip Sassower, co-chairman and chief executive officer for iSIGN. “iSIGN is being managed on a cost-effective basis while we wait for transaction volume to increase more significantly. Our bottom-line performance should continue to improve as the increased activity from our partnership with Cegedim SA results in higher revenue.”
Total revenue was $230,000 for the three months ended September 30, 2017, an increase of $9,000, or 4%, compared to total revenue of $221,000 for the prior year. For the nine months ended September 30, 2017, total revenue was $655,000, a decrease of $198,000, or 23%, compared to total revenue of $853,000 for the prior year. The year-to-date decrease in revenue represents lower direct sales in advance of the expected increase in iSIGN’s recurring revenue.
For the quarter ended September 30, 2017, operating expenses were $595,000, a decrease of $196,000, or 25%, compared to operating expenses of $791,000 in the prior year. For the nine months ended September 30, 2017, operating expenses were $2,043,000, a decrease of $1,375,000, or 40%, compared to operating expenses of $3,418,000 in the prior year. These decreases primarily were due to iSIGN’s efforts to restructure its operations in favor of partner- generated recurring revenue. The third quarter’s comparative decrease was narrower due to the results of such cost-saving activities initially becoming evident around the same time last year.
For the quarter ended September 30, 2017, the net loss attributable to common stockholders was $423,000, a decrease of $26,000, or 6%, compared to a net loss attributable to common stockholders of $449,000 in the prior year. This decrease was due primarily to a $205,000 decrease in loss from operations, resulting from the above-mentioned decrease in operating expenses and a slight increase in revenue, partially offset by a decrease of $156,000 in gain on derivative liability.
For the nine months ended September 30, 2017, the net loss attributable to common stockholders was $1,224,000, a decrease of $3,061,000, or 71%, compared to a net loss attributable to common stockholders of $4,285,000 in the prior year. This decrease was due primarily to a $1,177,000 decrease in loss from operations, resulting from the above-mentioned decrease in operating expenses partially offset by the decrease in revenue, a $79,000 improvement in other income, a $239,000 improvement from a gain on the sale of an intangible asset, a $127,000 decrease in interest expense, a $211,000 decrease in amortization of debt discount, a $245,000 decrease in accretion of beneficial conversion feature and a $1,313,000 decrease in preferred stock dividend expense, partially offset by a decrease of $330,000 in gain on derivative liability.
Additional financial information regarding iSIGN’s operating results for the quarter ended September 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.
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