Communication Intelligence Corp. Reports Financial Results for Second Quarter 1992
REDWOOD SHORES, Calif. — August 13, 1992 — Communication Intelligence Corp. (NASDAQ:CICI) reported Thursday that revenues for the second quarter of 1992 increased 328 percent to $642,000 — up from $150,000 for the like quarter a year ago.
This increase is due primarily to sales in Japan of MacHandwriter, CIC's pen-based user interface for the Apple Macintosh computer; royalties earned from product shipments by CIC's licensees; and revenues from development contracts.
The net loss for the second quarter was $1.5 million (10 cents per share) compared to a net loss of $611,000 (5 cents per share) for the second quarter of 1991.
The increased loss is attributable to the build up in staff and marketing programs corresponding to the accelerated pace of licensing activities and product support for MacHandwriter. Importantly, the company's losses have declined the last two consecutive quarters.
From an operational point of view, it was an eventful, and successful quarter with progress made in licensing agreements, new product releases, and extensions of existing contracts. Highlights include:
— The completion of a worldwide license agreement with NEC Corp. of Japan. NEC is the third largest personal computer supplier in the world with over 50 percent of the PC market in Japan. It is expected that NEC will introduce their first pen-based products in Japan by the end of 1992;
— The announcement of the initial license agreement for Dynamic Signature Verification as a stand-alone product. This agreement is with the respected California software developer, Hampton-Royce;
— The announcement of the Japanese version of PenDOS — the result of a development agreement between CIC and Justsystem Corp., one of the largest software developers in Japan.
PenDOS, which can transform thousands of existing mouse-aware DOS applications into pen-aware applications without modification, also allows developers to create totally new pencentric applications — applications designed around the concept of using a pen. Shipments of this Japanese version of PenDOS are expected to begin the third quarter of this year;
— The announcement of two of CIC's most important development contract extensions: the U.S. Department of Commerce's Advanced Technology Program grant, and CIC's joint development agreement with Intel Corp.
Not only do these contracts provide significant revenue to CIC, but their successful completion is expected to allow for the commercial release of CIC's cursive character recognition software in 1993.
The company anticipates continued positive developments over the balance of 1992, including the completion of additional license agreements now in negotiation, and the introduction of a major product upgrade to the Japanese MacHandwriter product.
CIC is a leading, worldwide supplier of pen computing products, including: multilingual (English, German, French, Italian, Spanish and Japanese) Handwriter Recognition Systems and Handwriter Dynamic Signature Verification, with interfaces for Microsoft Windows for Pen Computing, GO's PenPoint, and CIC's own PenDOS and MacHandwriter pen operating environments.
CIC's MacHandwriter, a desktop pen extension to the Macintosh computer, is distributed by Apple Japan Inc. CIC is headquartered in Redwood Shores, and has a subsidiary in Tokyo.
Communication Intelligence Corp.
Selected Consolidated Statement of Operations Information
(unaudited)
(Dollars in thousands except per share amounts)
Three months ended Six months ended
June 30, June 30,
1992 1991 1992 1991
Revenues $ 642 $ 150 $ 1,380 $ 308
Net Loss (1,533) $ (611) (3,285) $ (956)
Net Loss per Common Share (10 cents) (5 cents) (21 cents)(8 cents)
Selected Consolidated Balance Sheet Information
(Dollars in thousands)
(unaudited)
June 30, 1992 June 30, 1991
Cash $ 915 $ 945
Current Assets 3,007 1,488
Total Assets 5,219 2,793
Deferred Revenue (a) 1,201 325
Current Liabilities 3,147 1,287
Shareholders' Equity 1,747 1,470
(a) Represents advanced royalty payments from licensees. Included in current liabilities.
Note To Editors: Company and product names used herein are trademarks or registered trademarks of their respective companies.
CONTACT:
Communication Intelligence Corp., Redwood Shores
Maurice Boucher, 800/567-5888