EXHIBIT 99.1
Communication Intelligence Corporation Reports
Second Quarter 2001 Financial Results
REDWOOD SHORES, Calif., July 26 /PRNewswire/ -- Communication Intelligence
Corporation (Nasdaq: CICI) ("CIC" or the "Company"), bringing you "The Power to
Sign Online(TM)," announced today its financial results for the three and six
month periods ended June 30, 2001.
Revenues for the three months ended June 30, 2001 increased 52% to $1.9
million as compared to $1.25 million for the corresponding quarter of the prior
year. The net loss applicable to common stockholders for the three months ended
June 30, 2001 decreased to $693,000 compared to a net loss of $1.1 million for
the corresponding quarter of the prior year. The increase in revenue was
primarily attributable to an increase in Enterprise and OEM revenue. The
Enterprise revenue includes a breakthrough order from Prudential Insurance
Company of America, for CIC's biometric electronic signature software to be used
by their field sales organization when completing policy applications for
prospective customers, enabling Prudential for an eventual nationwide rollout.
The decrease in net loss for the second quarter of 2001 was primarily
attributable to the increase in revenue mentioned above, partially offset by a
6% increase in total operating costs and expenses. The increase in total
operating costs and expenses was primarily attributable to an increase in
product development and non-cash amortization expense of intangibles from CIC's
acquisition of PenOp in October 2000, offset by a decrease in cost of goods sold
related to the Company's Online revenue and China sales. The basic and diluted
loss per share was $0.01 on approximately 90.5 million weighted average common
shares outstanding for the three months ended June 30, 2001 as compared to a
basic and diluted loss of $0.01 per share on approximately 84.4 million weighted
average common shares outstanding for the corresponding quarter of the prior
year.
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Revenues for the six months ended June 30, 2001 increased 34% to $3.52
million as compared to $2.63 million for the corresponding period of the prior
year. The net loss applicable to common stockholders for the six months ended
June 30, 2001 decreased to $1.4 million as compared to a net loss of $2.0
million for the corresponding six months of the prior year. The decrease in net
loss for the six months ended June 30, 2001 was primarily attributable to the
increase in revenue, partially offset by a 5% increase in total operating costs
and expenses. The increase in total operating costs and expenses was primarily
attributable to increases in product development and non-cash amortization
expenses of intangibles from CIC's acquisition of PenOp, offset by a decrease in
cost of goods sold related to all the Company's revenue segments. The basic and
diluted loss per share was $0.02 on approximately 90.4 million weighted average
common shares outstanding for the six months ended June 30, 2001 as compared to
a basic and diluted loss of $0.02 per share on approximately 83.7 million
weighted average common shares outstanding for the corresponding period of the
prior year.
Guido DiGregorio, president and CEO stated, "I am pleased to report that
despite the negative economic climate, CIC continues to increase revenues. I am
delighted that Prudential, one of the largest insurance companies in the United
States, chose our technology to enhance effectiveness and productivity. When
complete, the installation will be one of the largest eSignature installations
in the world. We are well positioned with the right products, the right partners
and the right focus to achieve sustained earnings growth and to increase
shareholder value." He further commented, "Based upon first half order activity,
we are forecasting increasing revenue and a return to profitability in the
second half of the year, subject to there being no further deterioration in our
market negatively impacting corporate spending."
Selected financial information follows. Detailed corporate and financial
information is available on CIC's website at http://www.cic.com.
About CIC
Communication Intelligence Corporation (CIC) is the leading supplier of
natural input and electronic signature solutions for wireless Internet and
e-Commerce applications enabling the world with "The Power to Sign Online(TM)."
The Company's core software technologies include multilingual handwriting
recognition systems, biometric signature verification, natural messaging, and
operating system extensions that enable pen input. CIC's products are designed
to increase the ease of use, functionality, and security of wireless electronic
devices ranging from handheld companions to cellular phones. Ericsson, Fujitsu,
Hitachi, Microsoft, Mitsubishi, National Semiconductor and IBM among others 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 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.
NOTE: CIC and its logo are registered trademarks of Communications
Intelligence Corporation. All other trademarks and registered trademarks are the
property of their respective holders.
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CONTACT: Marjorie L. Bailey of Communication Intelligence Corporation,
+1-650-802-7779, or mbailey@cic.com.
COMMUNICATION INTELLIGENCE CORPORATION
Selected Consolidated Statement of Operations Information
(Dollars in thousands, except per share amounts)
Three Months Ended Six Months Ended
(unaudited) (unaudited)
06/30/01 06/30/00 06/30/01 06/30/00
Revenues (A) $1,903 $1,250 $3,521 $2,627
Net loss applicable to
common stockholders $(693) $(1,127) $(1,434) $(2,015)
Basic and diluted loss
per common share $(0.01) $(0.01) $(0.02) $(0.02)
Weighted average common
shares outstanding 90,542 84,370 90,384 83,684
Selected Consolidated Balance Sheet Information
(Dollars in thousands)
06/30/01 12/31/00
(unaudited)
Cash & cash equivalents $3,618 $2,349
Total current assets $5,502 $4,550
Total assets $11,994 $11,302
Deferred revenue (B) $130 $61
Total current liabilities (C) $1,174 $1,441
Total stockholder's equity $7,691 $8,307
NOTES:
(A) Revenues include nonrecurring maintenance revenues from M10
(formerly PenOp) of $352,000, net for the six-month period ended June
30, 2001.
(B) Deferred revenues consist principally of deferred maintenance contract
revenue.
(C) Includes deferred revenues of $130 and $61 for period ended June
30, 2001 and December 31, 2000, respectively.
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/CONTACT: Marjorie L. Bailey of Communication Intelligence Corporation,
+1-650-802-7779, or mbailey@cic.com/