EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: Frank V. Dane
Phone: 650-802-7737
Email: fdane@cic.com
COMMUNICATION INTELLIGENCE CORPORATION
REPORTS FIRST QUARTER 2004 FINANCIAL RESULTS
CIC Achieves Most Profitable Quarter in Its History
Redwood Shores, CA, April 22, 2004 - (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 first quarter
ended March 31, 2004.
Total revenues of $2.43 million for the quarter ended March 31, 2004, more than
doubled compared to revenues of $1.11 million in the corresponding quarter of
the prior year increasing 119%. The increase in revenue is primarily
attributable to Wells Fargo, who chose CIC eSignature technology for use in all
of its full-service bank locations, and revenue from Charles Schwab, IA Systems,
Misys Healthcare, PalmSource, Prudential and TVA.
The net income of $1.17 million for the quarter ended March 31, 2004, represents
an increase of $1.48 million compared to the net loss of $310,000 incurred in
the corresponding quarter of the prior year. Net income on a per share basis was
$0.01 on 100.1 million weighted average shares outstanding for the quarter
ending March 31, 2004 compared to a net loss per share of $(0.01) on 92 million
weighted average shares outstanding for the quarter ending March 31, 2003. These
improvements are primarily attributable to the increase in revenue discussed
above and an approximate $200,000 improvement in Cost of Sales due to a
continuing transition out of the system integration business which has lower
margins than our software sales. Operating costs, net of commissions, declined
6% from the first quarter of 2003 as compared to the first quarter of 2004.
CIC's Chairman & CEO, Guido DiGregorio stated, "I am delighted to report that we
have achieved the most profitable quarter in the history of the Company. The
revenue improvement reflects increasing adoption of our eSignature solutions in
our target markets, including the financial services industry, and provides
further confirmation of our leadership position as recently recognized by Frost
& Sullivan with their 2003 Growth Strategy Leadership Award. Both the magnitude
of the profit and the 48% Return on Sales is significant and reflects a high
level of effective integration of human resources including product development
with our China operation resulting in significantly lower base costs. Most
impressive is our belief that the current cost structure can support
significantly higher revenue without significant increases in base costs."
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, IBM, Oracle,
PalmSource, Prudential, Siebel Systems, Siemens Medical Systems, Sony Ericsson,
Symbol 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
CIC, its logo and the Power to Sign Online are registered trademarks. 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.
COMMUNICATION INTELLIGENCE CORPORATION
Selected Consolidated Statement of Operations Information
(In thousands, except per share amounts)
Three months ended
(Unaudited)
03/31/04 03/31/03
Revenues(1) $ 2,429 $ 1,108
Net income (loss) $ 1,167 $ (310)
Basic and diluted net income (loss) per share $ 0.01 $ (0.01)
Weighted average shares outstanding 100,101 91,907
Selected Consolidated Balance Sheet Information
(In thousands)
03/31/04 12/31/03
(Unaudited)
Cash & cash equivalents $ 390 $ 1,039
Total current assets 3,270 2,005
Total assets 8,371 7,215
Deferred revenue (1) 369 165
Total current liabilities (2) 4,899 4,900
Shore-term debt 3,758 3,758
Total stockholders' equity 3,355 2,187
NOTES:
(1) Deferred revenues consist principally of advances from customers and
deferred maintenance contract revenue.
(2) Includes deferred revenues of $369
and $165 as of March 31, 2004 and December 31, 2003, respectively.