EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: Frank V. Dane
Phone: 650-802-7737
Email: fdane@cic.com
COMMUNICATION INTELLIGENCE CORPORATION
REPORTS THIRD QUARTER 2004 FINANCIAL RESULTS
CIC Achieves Record Setting Results
Redwood Shores, CA, October 27, 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
third quarter of 2004 and for the nine month period ended September 30, 2004.
Total revenue of $3.7 million for the quarter ended September 30, 2004, almost
quadrupled (392%) compared to revenues of $936,000 in the corresponding quarter
of the prior year. The revenue is primarily attributable to a large national
insurance company, who chose CIC eSignature technology for a major follow-on
deployment, and revenue from Charles Schwab, IA Systems, Mysis Healthcare,
PalmSource, Prudential, TVA, and Wells Fargo.
Net income of $2.1 million for the quarter ended September 30, 2004, represents
an improvement of $2.6 million from the net loss of $472,000 in the
corresponding quarter of the prior year. The increase in net income was
primarily attributable to the increase in revenues. The basic and diluted income
per share was $0.02 on approximately 101 million weighted average common shares
outstanding for the three months ended September 30, 2004, as compared to a
basic and diluted loss of $0.01 per share on approximately 100 million weighted
average common shares outstanding for the corresponding quarter of the prior
year.
Revenues of $6.7 million for the nine months ended September 30, 2004, more than
doubled (257%) compared to $2.6 million for the corresponding period of the
prior year. The net income for the nine months ended September 30, 2004,
increased by $4.1 million to $2.6 million, as compared to a net loss of $1.5
million for the corresponding nine months of the prior year. The increase in
revenue was primarily attributable to sales to large national customers in the
insurance and banking industries. The increase in net income available to common
stock holders for the nine months ended September 30, 2004 was primarily
attributable to increased sales. The basic and diluted income per share was
$0.03 on approximately 101 million weighted average common shares outstanding
for the nine months ended September 30, 2004, as compared to a basic and diluted
loss of $0.02 per share on approximately 96.5 million weighted average common
shares outstanding for the corresponding period of the prior year.
CIC's Chairman and CEO, Guido DiGregorio stated, "I am pleased that the third
quarter results represent the highest revenue and the most profitable quarter in
the history of the company. eSignature revenue of $3.4 million was the
significant contributor to the third quarter and cumulative eSignature revenue
of $5.9 million for the nine months ended September 30, 2004 is more than triple
(354%) that of the same period last year. Based on these results and our current
sales activity, we believe the emerging economic recovery is positively
impacting the IT spending of our large base of pilot and initial enterprise
installations that we seeded over the past several years; thereby providing the
budgetary funding for full scale follow-on enterprise deployments. We further
believe these results reflect our technology leadership and product strategy
focused on proven, hardware independent, multi-platform software solutions that
embrace, and are compatible with, the various biometric and alternative
eSignature methods and technologies. Our support for, and relationships with,
key software and hardware partners enables CIC to provide the best possible
solutions to our end user customers. We are optimistic about continued sales
momentum in the fourth quarter and the potential for a record setting year."
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
eTransactions, 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 and key
integration/channel partners. 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
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)
09/30/04 09/30/03 09/30/04 09/30/03
--------- --------- --- --------- -----------
Revenues $ 3,669 $ 936 $ 6,728 $ 2,616
Net income (loss) applicable
to common stockholders $ 2,145 $ (472) $ 2,634 $ (1,472)
Basic and diluted income (loss)
per common share $ 0.02 $ (0.01) $ 0.03 $ (0.02)
Weighted average common shares
outstanding 101,368 100,101 100,751 96,537
Selected Consolidated Balance Sheet Information
(Dollars in thousands)
09/30/04 12/31/03
(unaudited)
-------------- --------------
Cash & cash equivalents $ 1,549 $ 1,039
Total current assets $ 5,714 $ 2,005
Total Assets $ 10,643 $ 7,215
Short-term debt $ 3,541 $ 3,758
Long term debt $ 10 $ 13
Deferred revenue (1) $ 507 $ 165
Total current liabilities (2) $ 4,976 $ 4,900
Total stockholder's equity $ 5,567 $ 2,187
NOTES:
(1) Deferred revenues consist principally of deferred maintenance contract
revenue.
(2) Includes deferred revenues of $507 and $165 for period ended September 30,
2004 and December 31, 2003, respectively.
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