Communication Intelligence Corporation Reports Third Quarter 1998 Financial Results.REDWOOD redwood: see sequoia; brazilwood. redwood or sequoia Coniferous evergreen timber tree (Sequoia sempervirens) of the family Taxodiaceae, found in the fog belt of west-coastal North America. SHORES, Calif.--(BUSINESS WIRE)--Oct. 30, 1998-- Communication Intelligence Corporation (CIC CIC circulating immune complexes. CIC Circulating immune complexes. See Immune complexes. ) (Nasdaq:CICI CICI Cochlear Implant Club International ) today announced its financial results for the three and nine month periods ended Sept. 30, 1998. Revenues for the three months ended Sept. 30, 1998 decreased 19% to $1.116 million as compared to $1.375 million for the corresponding quarter of the prior year. The decline in sales was due primarily to a shift in the company's sales strategy from hardware to software products, which resulted in a reduction of approximately $.256 million in tablet See digitizer tablet and tablet computer. TABLET - A query language. ["Human Factor Comparison of a Procedural and a Non-procedural Query Language", C. Welty et al, ACM Trans Database Sys 6(4):626-649 (Dec 1981)]. sales revenue during the three months ended Sept. 30, 1998. The net loss applicable to common stockholders for the three months ended Sept. 30, 1998 was $.841 million as compared to a net loss applicable to common stockholders of $2.3 million for the corresponding quarter of the prior year. This decrease in quarterly net loss applicable to common stockholders was primarily attributable to a 49% decrease in total operating costs operating costs npl → gastos mpl operacionales and expenses compared to the corresponding quarter of the prior year. The basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net loss per share was $0.02 on approximately 54.5 million weighted average common shares outstanding for the three months ended Sept. 30, 1998 as compared to a basic and diluted net loss of $0.05 per share on approximately 45.2 million weighted average common shares outstanding for the corresponding quarter of the prior year. Revenues for the nine months ended Sept. 30, 1998 decreased 7% to $3.68 million as compared to $3.97 million for the corresponding period of the prior year. The decline in sales was due primarily to a shift in the company's sales strategy from hardware to software products, which resulted in a reduction of approximately $1.117 million tablet sales revenue during the nine months ended Sept. 30, 1998. The net loss applicable to common stockholders for the nine months ended Sept. 30, 1998 was $2.72 million as compared to a net loss applicable to common stockholders of $11.99 million for the corresponding nine months of the prior year. This decrease in the nine month net loss applicable to common stockholders was primarily attributable to a 44% decrease in total operating costs and expenses compared to the corresponding nine months of the prior year, as well as the absence of the $4.4 million non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. applicable to common stockholders for the embedded Inserted into. See embedded system. yield on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. charged to income in the comparable nine month period in 1997. The basic and diluted net loss per share was $0.05 on approximately 51.3 million weighted average common shares outstanding for the nine months ended Sept. 30, 1998 as compared to a basic and diluted net loss of $0.27 per share on approximately 44.9 million weighted average common shares outstanding for the corresponding period of the prior year. Guido DiGregorio, CIC's president commented, "During this quarter we have continued to contain operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and position ourselves for revenue growth in both the U.S. and China." He added, "Substantive progress has been achieved with key customers in several target market segments giving us confidence that we should achieve our stated goal of achieving break even by the end of the fourth quarter. "New product introductions coupled with maturing relationships with major cell phone manufacturers should allow CIC to accelerate sales growth as projected and should provide the foundation which is fundamental to sustained sales and earnings growth." 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 Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors which may cause actual company results to differ materially from expectations. Such factors include the following: (1) technological, engineering, manufacturing, quality control or other circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or which could delay the sale or shipment of the company's products; (2) economic, business, market and competitive conditions in the software industry and technological innovations which could affect the company's business; and (3) the company's inability to protect its trade secrets or other proprietary rights, operate without infringing upon the proprietary rights of others and prevent others from infringing on the proprietary rights of the company. Selected financial information follows. Detailed corporate and financial information is available on CIC's website at http:www.cic.com. The Company Communication Intelligence Corporation (CIC) develops, markets, and licenses software products based on proprietary pattern recognition technologies. Founded in 1981, CIC is a leading supplier of pen computing See gesture recognition and tablet PC. technologies to hardware manufacturers. The company's core technologies include multilingual mul·ti·lin·gual adj. 1. Of, including, or expressed in several languages: a multilingual dictionary. 2. handwriting recognition Handwriting recognition is the ability of a computer to receive intelligible handwritten input. The image of the written text may be sensed "off line" from a piece of paper by optical scanning (optical character recognition). and dynamic signature verification software. CIC's products are designed to increase the ease of use, functionality, and security of electronic devices ranging from PC peripherals to smart cellular phones. The company's handwriting recognition software supports the U.S., Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , and Asia markets. CIC is
headquartered in Redwood Shores and has a joint venture, CICC CICC Custom Integrated Circuits ConferenceCICC Center for the Improvement of Child Caring (Studio City, CA) CICC China International Capital Corp. , in Nanjing Nanjing (nän`jĭng`) or Nanking (năn`kĭng`) [southern capital], city (1994 est. pop. 2,224,200), capital of Jiangsu prov., E central China, in a bend of the Chang (Yangtze) River. , China. CIC's common stock is listed on the Nasdaq Small Cap Market under the symbol CICI. For more information about CIC and its products please visit our website at http://www.cic.com. Note to Editors: All company and product names used herein are trademarks or registered trademarks of their respective owners. -0-
COMMUNICATION INTELLIGENCE CORPORATION
Selected Consolidated Statement of Operations Information
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
(unaudited) (unaudited)
09/30/98 09/30/97 09/30/98 09/30/97
--------------- ----------------
Revenues (see note 1) $1,116 $ 1,375 $ 3,682 $ 3,970
Net loss applicable to common
stockholders $ (841) $(2,346) $(2,719) $(11,989)2
Basic loss per common share $(0.02) $ (0.05) $ (0.05) $ (0.27)
Weighted average common shares
outstanding 54,544 45,200 51,298 44,876
Note 1:
Includes revenue from licensing
agreements under which the
company had no further
obligation to deliver
additional software
$ -- $ 519 $ 404 $ 902
Note 2:
Includes $4.4 million non-cash charge applicable to common
stockholders for the embedded yield on preferred stock charged to
income during the nine month period ended Sept. 30, 1997.
Selected Consolidated Balance Sheet Information
(In thousands)
09/30/98 12/31/97
(unaudited)
Cash & cash equivalents $ 1,314 $ 5,485
Total assets $ 3,502 $ 6,215
Deferred revenue $ 17 $ 440
Total current liabilities $ 1,232 $ 3,494
Total stockholder's equity $ 2,270 $ 3,989
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