ImageWare Systems, Inc., (OTCQB: IWSY) a leading developer of mobile and cloud-based identity management solutions, providing biometric, secure credential and law enforcement technologies, has issued financial results for the fourth quarter and full year ended December 31, 2015. ImageWare’s chairman and CEO Jim Miller reports; “During the fourth quarter, we continued to make progress with our go-to-market partnership strategy, As announced earlier this month, we integrated our GoVerifyID with Aruba’s ClearPass Policy Manager — a wired and wireless network access security solution used to manage over 65 million endpoint users. Not only does this partnership enable us to reach a large population on a global scale, it was also structured very differently compared to our past partnerships. In this instance, we were able to integrate the product and make ready for sale within a couple of days.”
Mr. Miller continues to say “From this point forward, we plan to execute our partnerships in the same manner in order to get our products out to the commercial market as fast as possible. We believe ImageWare offers the best all-around biometric product and according to Gartner, the world’s leading IT research company, 30% of organizations will use biometric authentication for mobile devices by this year. With the biometric space beginning to move into the mainstream, we believe that all the right pieces of the puzzle are in place for ImageWare to grow our business.”
ImageWare Systems recently partnered with Aruba, a Hewlett Packard Enterprise, to integrate ImageWare’s GoVerifyID with Aruba’s ClearPass Policy Manager — a multi-vendor, wired and wireless network access security solution for mobile and loT devices.
In addition, the Company received a notice of allowance from the United States Patent and Trademark Office that its “Multi-Modal Biometric Database Searching Methods” patent will be granted. This will represent ImageWare’s 11th U.S. patent.
The Company reported total revenues in the fourth quarter of 2015 were $0.9 million compared to $1.2 million in the fourth quarter of 2014, with the decrease primarily due to reduced software royalty revenue from our channel partners for our traditional identification card software.Gross margin in the fourth quarter of 2015 was 40.2% compared to 79.0% in the fourth quarter of 2014. The decline was due to the write-off in the quarter of capitalized project expenses as their recoverability became questionable.
Net loss in the fourth quarter of 2015 was $2.6 million or $(0.03) per basic share, compared to a net loss of $1.9 million or ($0.02) per basic share in the fourth quarter of 2014.
At December 31, 2015, cash and cash equivalents totaled $3.4 million compared to $0.2 million at December 31, 2014. The increase is a result of the company’s convertible preferred offering completed in February 2015.