EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact(s):CIC
Frank Dane
Phone: 650-802-7737
Email: fdane@cic.com
COMMUNICATION INTELLIGENCE CORPORATION
REPORTS FOURTH QUARTER AND FISCAL 2004 RESULTS
CIC Achieves Record Setting Annual Results
Redwood Shores, California, March 9, 2005 - (OTC BB: CICI) Communication
Intelligence Corporation ("CIC" or the "Company"), the leading supplier of
biometric signature verification and a leading supplier of natural input
software and electronic signature solutions announced today its financial
results for the fourth quarter and the year ended December 31, 2004.
Revenues for the three months ended December 31, 2004 increased to $556,000 as
compared to $418,000, representing a 33% increase from the corresponding quarter
of the prior year. The Company reported a net loss applicable to common stock of
$1.0 million for the fourth quarter ending December 31, 2004, as compared to a
net loss applicable to common stock of $873,000 for the corresponding quarter of
the prior year. The increase in net loss is primarily due to increased interest
and loan discount amortization expense associated with the convertible debt
financing consummated during the fourth quarter of 2004.
Revenues for the year ended December 31, 2004 of $7.3 million more than doubled
(243%) as compared to $3.0 million for the prior year. For the year ended
December 31, 2004, the Company's operating income of $2.3 million represented an
improvement of $4.5 million over the $2.2 million operating loss incurred in the
prior year. The Company earned net income of $1.6 million, or $0.02 per share on
approximately 101 million weighted average common shares outstanding for the
year ended December 31, 2004, as compared to a net loss of $2.3 million, or
$0.02 loss per share on approximately 97.4 million weighted average common
shares in 2003.
"We are pleased with our 2004 record setting year-end financial results,
representing the first profitable year in the history of the Company. Our 2004
eSignature revenue of $6.1 million more than quadrupled (407%) over our 2003
eSignature revenue of $1.5 million. In addition, we paid off a $3.0 million
debt, terminated our equity line of credit agreement and successfully completed
a $4.0 million financing," stated CIC's Chairman & CEO, Guido DiGregorio. "While
the fourth quarter revenue did not meet our expectations, we continue to believe
that the emerging economic recovery will positively impact corporate IT
expenditures funding the rollout of our many pilots and proof of concept
deployments. We expect the economic recovery, and related IT spending, will
evolve throughout 2005 rather than what we hoped and anticipated would be a
strong fourth quarter in 2004 in IT spending from our installed base. Although
we believe there is a direct correlation between economic recovery, IT
expenditures and deployment of our technology in the financial services
industry, we believe other vertical markets and applications that we've also
focused on have recognized the significant benefits and ROI potential afforded
by our solutions and many of these potential customers possess the capital to
fund deployments notwithstanding a less than robust economy. We are delighted
with our 2004 financial performance and look forward to another positive year in
2005."
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 a leading supplier of natural input
software and 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.
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 Securities
Litigation Reform Act of 1995. Such statements involve known or 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 the 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 and the availability of sufficient financing.
CIC, its logo and The Power to Sign Online are registered trademarks. All other
trademarks are properties of their respective owners.
COMMUNICATION INTELLIGENCE CORPORATION
Selected Consolidated Statements of Income (Operations) Information
(In thousands, except per share amounts)
Fourth Quarter Ended Year Ended
-------------------- ----------
(unaudited) (unaudited)
12/31/04 12/31/03 12/31/04 12/31/03
Revenue $ 556 $ 418 $ 7,284 $ 3,034
Total cost of sales 3 178 52 765
Gross profit 553 240 7,232 2,269
Total operating expenses 1,179 1,063 4,977 4,426
Operating income (loss) (626) (823) 2,255 (2,157)
Other income (expenses) (388) (50) (635) (188)
Net income (loss) $ (1,014) $ (873) $ 1,620 $(2,345)
Basic and diluted net income
(loss) per common share $ (0.01) $ (0.01) $ 0.02 $ (0.02)
Weighted average common shares
outstanding 101,387 101,102 100,909 97,436
Selected Consolidated Balance Sheets Information
(In thousands)
12/31/04 12/31/03
Cash & cash equivalents $ 4,736 $ 1,039
Total current assets 5,971 2,005
Total assets 10,819 7,215
Deferred revenue (a) 458 165
Total current liabilities (b) 1,401 4,900
Total short-term debt 44 3,758
Total long-term debt (c) 1,790 13
Stockholders' equity 7,531 2,187
NOTES:
(a) Deferred revenue consists principally of service contact revenues.
(b) Includes deferred revenue and short term debt.
(c) Net of $2,410 discount for warrants and beneficial conversion feature.