Communication Intelligence Posts Record Revenues in First Quarter 1994
REDWOOD SHORES, Calif. — April 25, 1994 — Communication Intelligence Corp. (CIC) (NASDAQ-NMS: CICI) today announced its financial results for the first quarter of its 1994 fiscal year.
Revenues for the quarter ended March 31, 1994, were a record $1.7 million, up 46% over the $1.1 million for the corresponding quarter of the previous year, and up 155% over the fourth quarter of 1993. The increase in revenue was attributable to the company's U.S. launch of its Handwriter(R) for Windows(TM) and MacHandwriter(R) desktop pen computing peripherals.
The net loss for the quarter was $2.8 million compared to a net loss of $974,000 in the comparable quarter of the prior year. Loss per share was 14 cents on 20.0 million weighted average shares compared to a per share loss of 6 cents on 17.2 million weighted average shares for the like quarter of the previous year. The increased net loss primarily reflects higher proportional marketing costs associated with the Handwriter(R) desktop product line launch.
The company's cash and short-term investment position at March 31, 1994, was $2.4 million compared to $5.3 mir to fund its anticipated growth. Long-term debt remained very low at $326,000.
"The new Handwriter(R) product line was responsible for the dramatic ramp-up in CIC's first quarter product revenue," said James Dao, CIC president and chief executive officer. "With over 10,000 units installed, Handwriter(R) is the most successful desktop pen computing product ever produced. Industry and media reviews of the product have been very positive and user acceptance of CIC's handwriting recognition is over 99%. Because the product is consumer proven, we are broadening the marketing channel. In April, we commenced catalog sales and we expect to enter national distribution through retail stores before the end of the second quarter. We are optimistic that Handwriter(R) will continue to grow in popularity and contribute significantly to 1994 revenue."
The first quarter of fiscal 1994 contained many other significant developments, including:
— the introduction of CIC's PenDOS(R)-Lite and PenDOS(R)-Handwriter(R) Recognizer, tailored specifically for the handheld PDA and pen computer markets. These new versions of PenDOS allow CIC's OEM customers to create smaller and more cost-effective handheld PDAs and pen computers for their customers.
— the licensing of CIC's PenDOS-Handwriter Recognizer to Symbol Technologies (NYSE: SBL), a leading manufacturer of handheld data transaction computers. Symbol will bundle PenDOS-Handwriter on its new PPT4100 handheld computer which is designed for use in specific vertical markets, such as inventory control.
— the licensing of CIC's PenDOS-Lite and PenDOS-Handwriter Recognizer to Telxon Corp. (NASDAQ: TLXN) to operate on Telxon's complete line of pen-based portable computers. Telxon manufactures handheld microcomputers for health care, retail and manufacturing vertical markets.
— the licensing of CIC's Handwriter Dynamic Signature Verification(TM) (DSV) to Sign-On Systems, a software developer. Sign-On will utilize DSV in its newly announced Sign-On Verify for Microsoft's FoxPro for Windows database program, thus allowing software developers to incorporate signature verification into FoxPro applications.
— the bundling of CIC's Handwriter Recognition System on MicroSlate's Datellite 400L for both CIC's PenDOS and Microsoft Windows for Pen Computing. The Datellite 400L is a rugged field use pen tablet model designed to NATO specifications.
— the announcement that Summit Computer Co. Ltd. of Bangkok, Thailand, will distribute CIC's Handwriter for Windows product. Initially, Summit will distribute the standard English language configuration of the product. Summit will also work with CIC to develop a Thai language virtual keyboard and, subsequently, a Thai recognition system.
Since the close of the first quarter, CIC announced:
— the introduction of Handwriter for Windows Version 1.5, which includes two new CIC pen computing software products: Handwriter Recognition System 4.0, a software upgrade which boosts performance, improves recognition, and doubles processing speed; and YPad(TM), an easy-to-use on-screen version of a yellow pad of paper for electronic note-taking, filing and faxing. Handwriter for Windows Version 1.5 also includes a new high resolution pen-aware video driver which supports leading SVGA video cards.
The Company
Communication Intelligence Corp. (CIC) develops, sells and licenses natural input computer technology — products that use pen and image for input. Three key business elements account for CIC's success. First, CIC leads the world in licensing pen computer software to hardware manufacturers throughout the world, particularly its multilingual Handwriter Recognition System and Dynamic Signature Verification software, and PenDOS and PenMac(TM) pen operating environments.
CIC also sells its Handwriter line of desktop pen computing products to end users. Handwriter brings natural input technology to the desktop through powerful software, a cordless pen and an ultra-thin tablet. Third, CIC's joint venture in China is providing pen-based systems integration servnjing, China. The company's stock is publicly traded and is listed on the NASDAQ National Market System as CICI.
NOTE: Company and product names used herein are trademarks or registered trademarks of their respective companies.
COMMUNICATION INTELLIGENCE CORPORATION
Selected Consolidated Statement of Operations Information
(Dollars in thousands, except per share amounts)
Three months ended
(unaudited)
3/31/94 3/31/93
Revenue $ 1,680 $ 1,149
Net loss (2,811) (974)
Net loss per common share $ (0.14) $ (0.06)
Weighted avg. shares outstanding 20,044 17,240
Selected Consolidated Balance Sheet Information
(Dollars in thousands)
3/31/94 12/31/93
Cash & short-term investments $ 2,367 $ 5,305
Total current assets 3,948 7,055
Total assets 8,217 10,158
Accounts payable 954 729
Deferred revenue(A) 2,663 2,681
Total current liabilities(B) 6,018 5,148
Long-term obligations 326 321
Stockholders' equity 1,674 4,689
Stockholders' equity + deferred
value $ 4,337 $ 7,370
(A) Deferred revenue consists principally of advance royalty
payments from licensees.
(B) Includes deferred revenue.
CONTACT:
Beverly Scott, marketing communications, or Anne Butler, director of investor relations, of CIC, 415-802-7888