EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: Frank V. Dane
Phone: 650-802-7737
Email: fdane@cic.com
COMMUNICATION INTELLIGENCE CORPORATION
REPORTS THIRD QUARTER 2003 FINANCIAL RESULTS
AND ESTABLISHMENT OF STRATEGIC RELATIONSHIP WITH INVERARAY PARTNERS
Redwood Shores, CA, October 30, 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
third quarter of 2003 and results for the nine month period ended September 30,
2003.
Revenues for the three months ended September 30, 2003, increased 78% to
$936,000 as compared to $525,000 for the corresponding quarter of the prior
year. The Company reported a net loss applicable to common stockholders of
$472,000 for the quarter ended September 30, 2003, an improvement of
approximately 57% from the net loss of $1.07 million in the corresponding
quarter of the prior year.
The increase in revenue is primarily attributable to sales to eCom Asia Pacific,
PalmSource, Prudential, Misys Healthcare, and TVA and to an increase in CIC
China revenues of approximately 30% over the corresponding quarter of the prior
year. The decrease in net loss was primarily attributable to the increase in
revenues and a decrease in expenses of $187,000 compared to the prior year. The
basic and diluted loss per share was $0.005 on approximately 100 million
weighted average common shares outstanding for the three months ended September
30, 2003, as compared to a basic and diluted loss of $0.012 per share on
approximately 91.5 million weighted average common shares outstanding for the
corresponding quarter of the prior year.
Revenues for the nine months ended September 30, 2003, decreased 6% to $2.62
million as compared to $2.79 million for the corresponding period of the prior
year. The net loss applicable to common stockholders for the nine months ended
September 30, 2003, decreased by $957,000 or 39% to $1.47 million as compared to
a net loss of $2.43 million for the corresponding nine months of the prior year.
The decrease in revenue was primarily attributable to the lack of corporate IT
spending and a continuing weak economy. The decrease in net loss for the nine
months ended September 30, 2003 was primarily attributable to actions commencing
in the third quarter of 2001 to lower costs and expenses in the face of a
weakening economy. The basic and diluted loss per share was $0.015 on
approximately 96.5 million weighted average common shares outstanding for the
nine months ended September 30, 2003, as compared to a basic and diluted loss of
$0.027 per share on approximately 91.2 million weighted average common shares
outstanding for the corresponding period of the prior year.
On a quarter to quarter basis, for the year 2003, revenues increased by
approximately $364,000 or 65% from the second quarter to the third quarter. This
increase is primarily attributable to the sales mentioned above and to an
approximate doubling of CIC China's revenue. When netted against the increase in
operating expenses of $24,000 and an increase in Cost of Sales of $110,000 this
increase in revenue resulted in an improvement in operating loss of
approximately $230,000 from the second to the third quarter of this year.
CIC's Chairman and CEO, Guido DiGregorio stated, "I am pleased to report that,
consistent with the outlook expressed in our second quarter press release,
revenues in the third quarter were up 65% over the prior quarter. Given what
appears to be a developing trend in CIC China and PalmSource related revenues,
planned eSignature deployments and our level of proposal and quotation activity
I am again encouraged and anticipate increased revenues over the next several
quarters. We have, consistent with our intention, as indicated in our second
quarter press release, increased our sales resources in anticipation of
increasing orders."
The Company also announced that it has retained Inveraray Partners to provide
investment-banking services in order to explore strategic partnerships and
acquisitions that may enhance the Company's liquidity and revenue potential. Mr.
DiGregorio stated, "The last time we sought such opportunities we did so without
the benefit of an outside advisor back in the year 2000. Those prior efforts
resulted in the acquisition of PenOp, Ltd. who at that time was our most
significant competitor. That acquisition not only solidified our market position
by eliminating competition from PenOp, Ltd. but also resulted in a significant
strengthening of our intellectual property portfolio and in revenues of
approximately $1.2 million related to the servicing of PenOp, Ltd. maintenance
contracts in effect at the time of the acquisition. We accomplished this without
the payment of cash consideration. With the expertise and experience of
Inveraray Partners we anticipate that we will be as successful in identifying
and exploiting strategic opportunities as we have been in the past."
Selected financial information follows. Detailed corporate and financial
information is available on CIC's website at http:www.cic.com.
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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, Sony Ericsson and TVA 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
About Inveraray Partners
Inveraray Partners, LLC is a specialized investment bank focused exclusively on
mergers and acquisitions for technology based companies. The Managing Directors
of the firm are all ex-operating executives that have completed over $1 billion
of transactions. The firm has developed practices in the areas of security,
software, digital media and content, communications and semiconductors. For more
information on the company, please visit their website at
http://www.invpartners.com.
CIC, its logo and The Power to Sign Online 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 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
(Dollars in thousands, except per share amounts)
Three Months Ended Nine Months Ended
(unaudited) (unaudited)
09/30/03 09/30/02 09/30/03 09/30/02
------------ ---------- --- --------- -----------
Revenues $ 936 $ 525 $ 2,616 $ 2,793
Net income (loss)
applicable to common
stockholders $ (472) $ (1,070) $ (1,472) $ (2,429)
Basic and diluted
income (loss)
per common share $(0.005) $ (0.012) $ (0.015) $ (0.027)
Weighted average common
shares outstanding 100,101 91,481 96,537 91,237
Selected Consolidated Balance Sheet Information
(Dollars in thousands)
09/30/03 12/31/02
(unaudited)
---------------- -----------------
Cash & cash equivalents $ 747 $ 711
Total current assets $ 1,841 $ 1,545
Total Assets $ 7,157 $ 7,168
Short-term debt $ 3,000 $ -
Long term debt $ - $ 3,000
Deferred revenue (1) $ 89 $ 165
Total current
liabilities (2) $ 3,971 $ 1,102
Total stockholder's equity $ 3,056 $ 2,934
NOTES:
(1) Deferred revenues consist principally of deferred maintenance contract
revenue.
(2) Includes deferred revenues of $89 and $166 for period ended September 30,
2003 and December 31, 2002, respectively.
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