COMMUNICATION INTELLIGENCE CORPORATION FOURTH QUARTER AND FISCAL 1999 RESULTS BUSINESS EDITORS
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REDWOOD SHORES, Calif.----Feb. 29, 2000--
Communication Intelligence Corporation ("CIC" or the "Company")
(Nasdaq:CICI.O), the leading supplier of natural input and electronic
signature solutions, today announced its financial results for the
fourth quarter and the year ended December 31, 1999.
Revenue for the fourth quarter increased 107% to $1.8 million
from $0.9 million in the comparable quarter of the prior year. For the
1999 fiscal year, CIC posted revenue of $6.5 million, a 42% increase
over revenue of $4.5 million for the 1998 fiscal year.
The net loss for the fourth quarter ended December 31, 1999 fell
to $0.4 million, or $0.01 on 80.2 million weighted average common
shares as compared to a net loss for the quarter ended December 31,
1998 of $0.9 million, or $0.01 on 70.9 million weighted average common
shares. For fiscal year 1999, the net loss decreased to $1.7 million,
or $0.02 per share on 79.6 million weighted average common shares, as
compared to a net loss of $3.6 million, or $0.06 per share on 56.2
million weighted average common shares, in the 1998 fiscal year.
These results together with the enhanced cash position, at
December 31, 1999, reflect the Company's strategic direction focusing
on natural input and electronic signature solutions for wireless
Internet devices, aftermarket software sales and enterprise
applications such as e-Commerce, document automation and corporate
security. Based on the company's current cash position and projections
the Company believes it is now self-funding.
CIC's president and CEO, Guido DiGregorio stated, "As we enter
the new millennium, we believe that CIC is well positioned to
participate in emerging, rapid growth markets. We have the right
products and the right strategic partners. In addition, becoming
self-funding provides the stability needed to capitalize on our
positioning as we move towards accelerated sales and profitability."
The Company's OEM revenues in 1999, new sales versus the
recognition of past years' deferred revenue, more than doubled over
1998 (approximately $2,641,000 versus $1,300,000). This growth was
driven primarily by license revenue from Ericsson and Microsoft,
$1,500,000 and $400,000 respectively.
Consumer sales of the Company's software sold primarily via CIC's
website (www.cic.com), for the 1999 year, increased 402% to $1.7
million from $0.3 million as compared to the 1998 year. This growth
reflects the rapid and effective porting of Jot(R) and QuickNotes(TM)
to the Palm operating system (which runs on all Palm models) and new
products introduced for the Palm operating system including
InkSnap(TM), WordComplete(TM), RecoEcho(TM) and Sign-On(TM), the first
biometric signature verification security utility for Palm organizers.
Enterprise sales efforts in 1999 focused on leveraging our
electronic signature solutions in fast growth, large potential
applications such as e-Commerce, document automation and corporate
security. This involved direct business development activity in
signature dependent vertical markets including financial services,
insurance, health care, and real estate in an effort to secure
agreements for initial installations which have the potential for
significant rollout and follow-up sales. The Company believes
meaningful sales will result in the year 2000 and beyond based on the
substantive progress made with target accounts, the present status of
agreements, ongoing negotiations and sales activity with strategic
partners.
Communication Intelligence Computer Corporation (CICC), a 90%
owned Chinese joint venture, achieved sales of $1.6 million in 1999.
Breakthrough orders from Wacom, the largest digitizer tablet
manufacturer in the world, and from Legend, the largest computer
manufacturer in the PRC in January of 2000, confirm the success and
acceptance of the Chinese versions of our core input technologies. The
Company believes that CIC has significant growth potential in the year
2000 and beyond due to the emerging market in China for wireless
Internet devices, the acceptance of our products by leading OEMs, the
legitimacy and stability provided by joint venture status and the
growth potential of the China market, now enhanced by World Trade
Organization membership.
Selected financial information follows. Detail corporate and
financial information is available on CIC's website at www.cic.com.
About CIC
Communication Intelligence Corporation (CIC) is a leading
supplier of natural input and electronic signature solutions for
wireless Internet and e-Commerce applications. The Company's core
software technologies include multilingual handwriting recognition
systems, dynamic 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. Key licensees of the Company's technologies include
Ericsson, Fujitsu, Hitachi, Microsoft, Mitsubishi, National
Semiconductor, and Symbian. CIC is headquartered in Redwood Shores,
California and has a joint venture, CICC, in Nanjing, China. For more
information please visit our website at 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.
Note to Editors: CIC, and its logo and Jot are registered
trademarks and QuickNotes, InkSnap, WordComplete, RecoEcho and Sign-On
are trademarks of Communication Intelligence Corporation. All other
trademarks and registered trademarks are the property of their
respective holders.
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COMMUNICATION INTELLIGENCE CORPORATION
Selected Consolidated Statement of Operations Information
(In thousands, except per share amounts)
Fourth Quarter Ended Year Ended
(unaudited)
12/31/99 12/31/98 12/31/99 12/31/98
-------- -------- -------- --------
Revenue(1) $ 1,869 $ 899 $ 6,518 $ 4,581
Total cost of sales 1,019 577 3,317 1,973
Gross profit 850 322 3,201 2,608
Total operating
expenses 1,253 1,209 4,923 5,893
Operating profit
(loss) (403) (887) (1,722) (3,285)
Other (income)
expenses (43) 14 (18) (307)
Net loss(2) $ (446) $ (873) $ (1,740) $ (3,592)
Basic and diluted
net loss per
common share $ (0.01) $ (0.01) $ (0.02) $ (0.06)
Weighted average
common shares
outstanding 80,254 70,876 79,625 56,233
Selected Consolidated Balance Sheet Information
(In thousands)
12/31/99 12/31/98
-------- --------
Cash & cash equivalents $2,374 $ 795
Total current assets 4,205 2,368
Total assets 4,963 3,354
Deferred revenue(3) 35 651
Total current liabilities(4) 1,276 2,022
Total long-term debt 1,338 --
Stockholders' equity 2,349 1,332
NOTES:
(1) For the fourth quarter ended 12/31/98, revenues included $192
from discontinued retail hardware products. For the year ended
12/31/99 and 12/31/98, respectively, revenues included $78 and
$748 from discontinued retail hardware products. In addition,
revenues include recognition of past years deferred revenues of
$404 for the year ended December 31, 1998.
(2) Net loss for 1998 includes $435 of cumulative dividends related
to the Company's Series A and Series B Convertible Preferred
Stock.
(3) Deferred revenue consists principally of non-recurring
engineering payments from licensees.
(4) Includes deferred revenue. |
