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ImageWare Systems Reports 2006 Second Quarter Results
Company increases sales, narrows losses
SAN DIEGO, CA, August 15, 2006 - ImageWare® Systems, Inc. (AMEX: IW),
a world leading developer and provider of identity management solutions, today reported financial results for the second quarter ended June 30, 2006.
For the quarter ended June 30, 2006, total revenues were $2.9 million, an increase of 45% from $2.0 million reported for the second quarter of 2005. The revenue growth reflects increased shipments of the company’s IWS™ Biometric Engine®, IWS™ Desktop security and IWS™ Law Enforcement products.
Gross profit improved to $2.0 million or 69% of sales in the quarter from $1.1 million or 58% of sales in the second quarter of 2005. The company’s loss from operations narrowed to $1.2 million in the quarter compared to $1.9 million in the second quarter of 2005. Loss per share improved to $0.10 per share in the second quarter compared to $0.16 per share in 2005.
“We have spent much of the past 12 months getting in front of prime integrators and end-users worldwide, demonstrating the strength of our revolutionary software-based and open-architected technology approach,” stated Jim Miller, ImageWare’s chairman and CEO. “These efforts are now beginning to bear fruit as we are being sought out for our expertise in biometric identity management, complimenting a multitude of global opportunities such as TSA (Transportation Security Administration) Registered Traveler program, TSA Transportation Worker Identification Credential (TWIC), electronic Passports and Visas (ePassports and eVisas) and Personal Identity Verification (PIV) systems. We continued to innovate, execute and gain momentum as partners and users alike recognize the value of our identity management product offerings.”
ImageWare has seen continued validation of its products and capabilities through the following achievements:
- The release of IWS™ Disaster Management solution suite which incorporates the company’s Biometric Engine and Identity Management technologies for the secure credentialing of first responders and volunteers, biographical and biometric identification of displaced victims, as well as the ability to conduct comprehensive biometric and text-based searches to help identify missing and deceased victims.
- Selection of the company’s IWS™ Biometric Engine Border Management solution by the Citizenship and Immigration Canada for biometrics field trials. The IWS™ Biometric Engine Border Management solution includes facial and fingerprint biometric capabilities for identification and verification purposes at designated ports in Canada, including U.S./Canada border stations in British Columbia, Vancouver International Airport, a refugee processing center in Etobicoke, Ontario, and Canadian immigration offices in Seattle and Hong Kong.
- Selection of the company’s IWS Law Enforcement Web-enabled investigative solution by the Kansas Bureau of Investigation to provide statewide Web-based investigative capabilities as part of the state’s new AFIS (Automated Fingerprint Identification System).
- The release of a complete PIV solution in compliance with the National Institute of Standards and Technology (NIST) Federal Information Processing 201 (PIV-I and II) requirements of the Homeland Security Presidential Directive 12. The solution is in response to the strict requirements set forth by the Federal government and contains enhancements of the IWS™ Biometric Engine and secure credentialing products including the integration of card management and card printing modules which provide end-to-end support for PIV-I and PIV-II business processes and technical requirements.
Conference call information
A conference call on ImageWare’s second-quarter earnings will be conducted today at 8 a.m. Pacific Time (11 a.m. ET) and available to all interested parties by dialing 877-407-9210 in the U.S. or 201-689-8049, if outside of the U.S. The call will also be available through a live audio Web broadcast at www.iwsinc.com/investors.cfm and http://www.vcall.com/IC/CEPage.asp?ID=107947. A replay of the call will be available from the investor relations page of ImageWare’s Web site at www.iwsinc.com or at www.vcall.com, until August 15, 2007. The call will also be available for replay via the phone until August 16, 2006 by calling 877-660-6853 in the U.S. or 201-612-7415, if outside of the U.S. To access the call, all parties will need the following replay pass codes: Account #286 and Conference ID #211396.
About ImageWare Systems, Inc.
ImageWare Systems, Inc. (AMEX:IW), is a leading developer and provider of identity management solutions, providing biometric, secure credential, law enforcement and digital imaging technologies. Scalable for worldwide deployment, the Company's biometric product line includes a multi-biometric engine that is hardware and algorithm independent, enabling the enrollment and management of unlimited population sizes. ImageWare's identification products are used to manage and issue secure credentials including national IDs, passports, driver licenses, smart cards and access control credentials. ImageWare's digital booking products provide law enforcement with integrated mug shot, fingerprint Livescan and investigative capabilities. The Company also provides comprehensive digital workflow solutions for the professional photography industry. ImageWare is headquartered in San Diego, with offices in Washington DC and Canada. For more information visit www.iwsinc.com.
Safe Harbor Statement
This news release may contain forward-looking statements made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. While these statements are meant to convey to the public the company's progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. While management believes such representation to be true and accurate based on the information available to the company, actual results may differ materially from those described. The company's operations and business prospects are always subject to risks and uncertainties. Important facts that may cause actual results to differ are set forth in the company’s periodic filings with the U.S. Securities and Exchange Commission.
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