Communication Intelligence Reports Second Quarter 1993 Results
REDWOOD SHORES, Calif., — July 29, 1993 — Communication Intelligence Corporation (CIC) Thursday announced its financial results for the second quarter and first half of its 1993 fiscal year.
Revenues for the quarter ended June 30, 1993 were $577,000, down from $642,000 in the comparable quarter of the prior year, due to lower license and royalty fees. Revenues for the six months ended June 30, 1993 were $1,726,000, up 25% from $1,380,000 in the comparable period of the prior year, due to higher license and royalty fees.
Second quarter product sales, which consist principally of sales of the company's MacHandwriter II product, increased 84% over first quarter product sales of $116,000.
The net loss for the second quarter was $1,969,000, or 11 cents per share, compared to a net loss of $1,533,000, or 10 cents per share, in the corresponding quarter of the prior year. The net loss for the six months ended June 30, 1993 was $2,943,000, or 17 cents per share, compared to a net loss of $3,285,000, or 21 cents per share, in the corresponding period of the prior year.
The company's cash and short-term investments at June 30, 1993 increased from $2.8 million at the end of 1992 to $11.2 million. This increase is attributable to the proceeds from the company's recently completed stock offering. Deferred revenue increased to $2.6 million from $1.6 million at the end of 1992, primarily due to the receipt of advance royalty payments from licensees. Long-term debt remained low at $277,000.
"CIC continues to make progress towards establishing its Handwriter Recognition System as an industry standard," stated James Dao, CIC president and chief executive officer. "Two major CIC licensees, IBM and NEC, recently began shipping pen-based computers incorporating our technology, and we expect additional licensees to introduce new products shortly. In addition, we intend to introduce a new line of desktop peripheral products this fall. Our cash position is at an all-time high, and we remain optimistic about our prospects for the future."
The second quarter of fiscal 1993 contained many significant developments, including:
— the completion of a secondary stock offering of 2.75 million shares which raised approximately $9.5 million for the Company.
— the listing of the Company's Common Stock on the National Market System of NASDAQ. The Company's stock had previously been listed on the NASDAQ Small Capitalization Market.
— the commercial shipment by IBM of its ThinkPad 710T pen tablet computer available with CIC's PenDOS and Handwriter Recognition System pre-loaded.
— the announcement by IBM that it is now shipping CIC's PenDOS as a shrink-wrapped, stand-alone product to end-users, OEMs, independent software vendors, and systems integrators.
— the announcement by IBM that it will bundle CIC's PenDOS extensions with its newly announced IBM PC DOS 6.1 operating system software. Purchasers will receive a coupon to allow them to upgrade to full PenDOS functionality.
— the sublicensing by IBM of Handwriter Recognition System and PenDOS to Dauphin Technology, a leading designer of next generation mobile computers. Dauphin plans to offer PenDOS with its D5000 Pentop Convertible computer and with its newly announced DTR-1, the world's smallest 486 pen computer.
— the licensing of Handwriter Recognition System for Windows to Wacom Company Ltd., of Japan, a leading digitizer and pen manufacturer. Wacom is now able to immediately offer its Japanese customers a total pen computing solution.
— the second renewal by CIC and Intel of a joint development agreement for an additional year, based on progress achieved during the past two years. The development project seeks to allow Intel-based computers to recognize mixed cursive writing input at interactive performance speeds.
Since the close of the second quarter, NEC Japan has commenced shipment of its new 98PEN tablet computer for the Japanese market. Every 98PEN computer ships with a version of CIC's Handwriter Recognition System that is tailored for use with either CIC's PenDOS pen operating environment, Microsoft's Windows for Pen Computing operating environment, or Go's PenPoint operating system. NEC Technologies has also commenced shipment of its new U.S. pen table product, the VersaPad, which offers CIC's Handwriter Recognition System software with both the PenDOS and Windows for Pen operating environment.
Communication Intelligence Corporation (CIC) develops, markets, and licenses natural input computer technology — products that use pen and image for input. Founded in 1981, CIC today is a leading supplier of pen computing products to hardware manufacturers throughout the world, particularly its multilingual Handwriter Recognition System and Handwriter Dynamic Signature Verification software and PenDOS and PenMac pen operating environments.
CIC's products allow existing and new pen applications to operate on all major hardware and operating system platforms, including: Microsoft Windows for Pen Computing, GO's PenPoint, and CIC's own PenDOS and PenMac. CIC's PenDOS and Handwriter Recognition System for PenDOS are distributed and exclusively sublicensed by IBM to pen computer manufacturers worldwide.
CIC's MacHandwriter, a desktop pen extension to the Macintosh computer, is distributed by Apple Japan, Inc. CIC is headquartered in Redwood Shores, California, and has a subsidiary in Tokyo, Japan.
Communication Intelligence Corporation
Selected Consolidated Statement of Operations Information
(Dollars in thousands, except per share amounts)
Three months ended
(unaudited)
June 30, June 30,
1993 1992
Revenue $ 577 $ 642
Net loss (1,969) (1,533)
Net loss per common share (11 cents) (10 cents)
Weighted avg shares outstanding 17,678 15,918
Six months ended
(unaudited)
June 30, June 30,
1993 1992
Revenue $ 1,726 $ 1,380
Net loss (2,943) (3,285)
Net loss per common share (17 cents) (21 cents)
Weighted avg shares outstanding 17,454 15,857
Selected Consolidated Balance Sheet Information
(Dollars in thousands)
June 30, Dec.31, June 30,
1993 1992 1992
(unaudited) (unaudited)
Cash & short-term investments $11,171 $ 2,811 $ 915
Total current assets 12,800 4,902 3,007
Total assets 15,249 7,239 5,219
Accounts payable 1,146 642 1,053
Deferred revenue(a) 2,587 1,634 1,201
Total current liabilities(b) 5,037 3,594 3,147
Long-term obligations 277 130 325
Stockholder's equity 9,935 3,515 1,747
Stockholders' equity+ deferred
revenue $12,522 $ 5,149 $ 2,948
(a) Deferred revenue consists principally of advance royalty payments from licensees (b) Includes deferred revenue
CONTACT:
Communication Intelligence Corp., Redwood Shores
Anne Butler, 415/802-7888