FOR IMMEDIATE RELEASE
Contact: Francis V. Dane
Phone: 650-802-7737
Email: fdane@cic.com
COMMUNICATION INTELLIGENCE CORPORATION
REPORTS SECOND QUARTER 2003 FINANCIAL RESULTS
Redwood Shores, CA, August 8, 2003- (OTC BB: CICI) Communication Intelligence
Corporation ("CIC" or the "Company"), the leader in biometric signature
verification & natural input software and a leading supplier of electronic
signature solutions announced today its financial results for the three and
six-month periods ended June 30, 2003.
Revenues for the three months ended June 30, 2003 decreased 48% to $572,000 as
compared to $1.1 million for the corresponding quarter of the prior year, while
the Company's net loss applicable to common stockholders remained relatively
flat at $690,000 compared to a net loss of $671,000 for the corresponding
quarter of the prior year.
The decrease in revenue is attributable to a decrease in domestic revenue, both
OEM and Enterprise related, and China revenue as well. The decrease in revenue
on the domestic front is attributable to the general decrease in IT spending
during the current year as compared to the prior year and the more favorable OEM
product development environment of a year ago. The decrease in China revenue
relative to last year reflects the impact of SARS on second quarter China sales.
The increase in net loss for the second quarter of 2003 was primarily
attributable to the decrease in sales. Total operating costs and expenses
decreased 29% compared to the corresponding quarter in the prior year. The
decrease in total operating costs and expenses is attributable to actions taken
beginning in 2001 and continuing through the first quarter of this year to
reduce operating expenses on a Company-wide basis in the face of the continuing
market adversity and uncertainty of corporate IT spending. The basic and diluted
loss per share was $0.01 on approximately 97.5 million weighted average common
shares outstanding for the three months ended June 30, 2003 as compared to a
basic and diluted loss of $0.01 per share on approximately 91.3 million weighted
average common shares outstanding for the corresponding quarter of the prior
year.
Revenues for the six months ended June 30, 2003 decreased 26% to $1.7 million as
compared to $2.3 million for the corresponding period of the prior year. The net
loss applicable to common stockholders for the six months ended June 30, 2003
decreased to $1.0 million as compared to a net loss of $1.36 million for the
corresponding six months of the prior year. The decrease in net loss for the six
months ended June 30, 2003 is primarily attributable to the decrease in total
operating costs and expenses from actions taken as mentioned above. The basic
and diluted loss per share was $0.01 on approximately 94.7 million weighted
average common shares outstanding for the six months ended June 30, 2003 as
compared to a basic and diluted loss of $0.01 per share on approximately 91.1
million weighted average common shares outstanding for the corresponding period
of the prior year.
CIC's Chairman & CEO, Guido DiGregorio stated, "Given that CIC China's revenue
in July alone exceeded its total second quarter revenue and considering planned
eSignature deployments, both domestically and in China, increasing royalties
derived from the PalmSource agreement, together with the increasing level of
proposal and quotation activity we are anticipating increased revenue for the
last half of 2003. Based on that order anticipation we are increasing sales
resources both here and in China."
Selected financial information follows. Detailed corporate and financial
information is available on CIC's website at www.cic.com.
About CIC
Communication Intelligence Corporation ("CIC") is the leading supplier of
biometric signature verification and natural input software and a leading
supplier of electronic signature solutions focused on emerging, high potential
applications including paperless workflow, handheld computers, smartphones and
eCommerce, 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 eBusiness processes. CIC sells directly to OEMs and
Enterprises and has products available through major retail outlets such as,
CompUSA, Staples, OfficeMax, and key integration/channel partners or direct via
our website. Industry leaders such as Charles Schwab, Fujitsu, Handspring, 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
our website at http://www.cic.com.
CIC and its logo are registered trademarks of Communications Intelligence
Corporation. All other trademarks and registered trademarks are the property of
their respective holders.
Forward Looking Statement
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; (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. These forward-looking
statements speak only as of the date hereof and the Company disclaims any intent
or obligation to update these forward-looking statements.
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COMMUNICATION INTELLIGENCE CORPORATION
Selected Consolidated Statement of Operations Information
(Dollars in thousands, except per share amounts)
' Three Months Ended Six Months Ended
(unaudited) (unaudited)
06/30/03 06/30/02 06/30/03 06/30/02
---------- ---------- ---------- ---------
Revenues $ 572 $ 1,111 $ 1,680 $ 2,268
Net loss applicable
to common stockholders $ (690) $ (671) $ (1,000) $ (1,359)
Basic and diluted loss
per common share $ (0.01) $ (0.01) $ (0.01) $ (0.01)
Weighted average common
shares outstanding 97,514 91,278 94,726 91,113
Selected Consolidated Balance Sheet Information
(Dollars in thousands)
06/30/03 12/31/02
(unaudited)
--------------- --------------
Cash & cash equivalents $ 1,424 $ 711
Total current assets $ 2,223 $ 1,545
Total assets $ 7,641 $ 7,168
Short-term debt $ 3,000 $ -
Deferred revenue (1) $ 79 $ 165
Total current liabilities (2) $ 3,985 $ 1,102
Long-term debt $ - $ 3,000
Total stockholder's equity $ 3,528 $ 2,934
NOTES:
(1) Deferred revenues consist principally of deferred maintenance contract
revenue.
(2) Includes deferred revenues of $79 and $165 for period ended June 30, 2003
and December 31, 2002, respectively.
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