SECURITIES AND EXCHANGE COMMISSION
Washington D.C.
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
April 28, 2003
Date of Report (Date of earliest event reported)
COMMUNICATION INTELLIGENCE CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
0-19301 94-2790442
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(Commission file number) (IRS employer identification number)
275 Shoreline Drive, Suite 500,
Redwood Shores, CA 94065
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(Address of principal executive offices)
(650) 802-7888
(Registrant's telephone number, including area code)
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
Communication Intelligence Corporation (the "Company") incorporates herein by
reference the matters set forth in the Company's press release dated April 28,
2003 (the "Press Release"), Filed as Exhibit 99.1 hereto. The Press Release
announces the Company's financial results for the quarter ended March 31, 2003.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) EXHIBITS. The following document is being filed by the Company as an
Exhibit to this report. EXHIBITS 99.1 Press release of the Company dated
April 28, 2003.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized. Dated: May 7, 2003
COMMUNICATION INTELLIGENCE CORPORATION
(Registrant)
By: /s/ Frank Dane
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Frank Dane
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Subject Matter Page No.
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99.1 Press release of the Company dated February 19, 2003 5
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EXHIBIT 99.1
COMMUNICATION INTELLIGENCE CORPORATION
QUARTERLY FINANCIAL RESULTS RELEASED
---------------
FOR IMMEDIATE RELEASE
Contact: Frank V. Dane
Phone: 650-802-7737
Email: fdane@cic.com
COMMUNICATION INTELLIGENCE CORPORATION
REPORTS FIRST QUARTER 2003 FINANCIAL RESULTS
Redwood Shores, CA, April 28, 2003- (OTC BB: CICI) Communication Intelligence
Corporation ("CIC" or the "Company"), the leader in biometric signature
verification & natural input solutions, announced today its financial results
for the first quarter ended March 31, 2003.
Total revenues of $1.11 million for the quarter ended March 31, 2003, decreased
slightly when compared to revenues of $1.16 million in the corresponding quarter
of the prior year and increased by $632,000 or 132% from $478,000 in the quarter
ended December 31, 2002, the immediately preceding quarter. This increase
reflects increasing revenue across all revenue categories but is primarily
attributable, approximately 80%, to corporate related eSignature sales including
orders from AGLA, GE, Prudential and a substantial order from a leading
financial institution.
The net loss of $310,000 for the quarter ended March 31, 2003, represents an
improvement of $378,000 compared to the net loss incurred in the corresponding
quarter of the prior year and an improvement of $823,000 compared to the net
loss incurred in the immediately preceding quarter ending December 31, 2002. Net
loss on a per share basis remained constant at $0.01 across all three quarters
on a weighted average of 91 million shares outstanding for the quarters ending
March 31, 2002 and December 31, 2002 and 92 million for the quarter ending March
31, 2003.
The $378,000 improvement in net loss from the quarter ended March 31, 2003 as
compared to March 31, 2002 is primarily attributable to a $204,000 decrease in
operating expenses and a $160,000 increase in Gross Profit. The decrease in
operating expenses reflects actions taken to lower costs in the face of
continuing market adversity and the uncertainty of corporate spending. The
increase in Gross Profit reflects a reduction in Cost of Sales due to the
elimination of direct mail campaigns, associated with Internet aftermarket
sales, which have been replaced by email marketing campaigns undertaken with our
channel partners. The $823,000 improvement in net loss from the quarter ended
March 31, 2003 as compared to the quarter ended December 31, 2002, is primarily
attributable to a $230,000 reduction in operating expenses and the increase in
revenue.
CIC's Chairman & CEO, Guido DiGregorio stated, "The financial results for the
first quarter together with our current sales activity appear to confirm recent
surveys, including studies from UAB Warburg and Celent Communications,
indicating IT spending will increase this year despite the current
geopolitical/economic uncertainties. We are cautiously optimistic about revenue
potential for the near term. However, we believe our current cash position,
together with the expected levels of revenue, provide sufficient funds for at
least the next twelve months of planned operations allowing CIC to capitalize on
our leadership position as the market recovers."
Selected financial information follows. Detailed corporate and financial
information is available on CIC's website at www.cic.com
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About CIC
Communication Intelligence Corporation is the leading supplier of electronic
signature, biometric security and natural input solutions focused on emerging,
high potential applications including paperless workflow, smart wireless devices
and e-Commerce enabling the world with "The Power to Sign Online(R)". CIC's
products are designed to increase the ease of use, functionality, and security
of electronic devices and e-business processes. CIC sells directly to OEMs and
Enterprises and has products available through major retail outlets such as,
CompUSA, Staples, OfficeMax, key integration partners or direct via our website.
Industry leaders such as Charles Schwab, Fujitsu, Handspring, Hitachi, IBM,
Oracle, Palm Inc., Prudential, Siebel Systems and Sony Ericsson have licensed
the company's technology. CIC is headquartered in Redwood Shores, California and
has a joint venture, CICC, in Nanjing, China. For more information, please visit
website http://www.cic.com
CIC and its logo are registered trademarks, and The Power to Sign Online is a
trademark of Communication Intelligence Corporation. All other trademarks and
registered trademarks are the property of their respective holders.
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 the Company's business; (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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COMMUNICATION INTELLIGENCE CORPORATION
Selected Consolidated Statement of Operations Information
(In thousands, except per share amounts)
Three months ended
(Unaudited)
03/31/03 03/31/02
Revenues(1) $ 1,108 $ 1,157
Net loss $ (310) $ (688)
Basic and diluted net loss per share $ (0.01) $ (0.01)
Weighted average shares outstanding 91,907 90,946
Selected Consolidated Balance Sheet Information
(In thousands)
03/31/03 12/31/02
(Unaudited)
Cash & cash equivalents $ 936 $ 711
Total current assets 2,118 1,545
Total assets 7,615 7,168
Deferred revenue (1) 67 165
Total current liabilities (2) 1,744 1,102
Long-term debt 3,000 3,000
Total stockholders' equity 2,739 2,934
NOTES:
(1) Deferred revenues consist principally of advances from customers and
deferred maintenance contract revenue.
(2) Includes deferred revenues of $67 and $165 for the period ended March 31,
2003 and December 31, 2002, respectively.
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