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 REDWOOD SHORES, Calif., Oct. 21 /PRNewswire/ -- Communication Intelligence Corporation (CIC) (NASDAQ-NMS: CICI) today announced its financial results for the third quarter and first nine months of its 1993 fiscal year.
 Revenues for the quarter ended Sept. 30, 1993 were $211,000, down from $1,263,000 in the comparable quarter of the prior year which had included approximately $1 million in a licensing fee from one of the company's major licensees. Revenues for the nine months ended Sept. 30, 1993 were $1,937,000, down from $2,643,000 in the comparable period of the prior year which included the aforementioned licensing fee.
 The net loss for the third quarter was $2,178,000, or $0.11 per share, compared to a net loss of $931,000, or $0.06 per share, in the corresponding quarter of the prior year. The net loss for the nine months ended Sept. 30, 1993, was $5,121,000, or $0.28 per share, compared to a net loss of $4,216,000, or $0.27 per share, in the corresponding period of the prior year.
 The company's cash and short-term investments at Sept. 30, 1993, were $8.3 million, up significantly from $2.8 million at the end of 1992. This increase is attributable to the proceeds from the company's stock offering completed during the second quarter of 1993. 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 $254,000.
 "Our 1993 year-to-date revenues are primarily a reflection of our licensing activities," stated James Dao, CIC president and CEO. "In addition to these licensing activities, CIC has two new distinct business thrusts: product sales in the U.S. and Europe and a joint venture in China. Significant progress has been made in both areas since the close of the third quarter.
 "Last week CIC announced Handwriter for Windows, its first consumer product for the U.S. Windows market," continued Dao. "Handwriter for Windows brings the power of pen computing to desktop Windows users at the breakthrough price of $199, and will allow us to serve the estimated 150 million existing and new desktop personal computer users. Similar Handwriter products will soon be available for the Macintosh and other platforms. An aggressive advertising, telemarketing and direct mail campaign will commence in early November. To further expand sales of the new product, we are in discussions with major national distributors to augment our direct sales to major accounts. Initial response to the product from customers and the news media has been very encouraging."
 CIC will demonstrate Handwriter for Windows at the American Electronic Association's Monterey Classic financial conference on Oct. 26-27, 1993, and at the Fall COMDEX trade show held in Las Vegas from Nov. 15-19, 1993 (Las Vegas Convention Center, Room LS105). For more information about Handwriter for Windows, contact 800-888-9242.
 "On September 30th in China, CIC formed a major joint venture, with a 79-percent CIC equity position, with the Jiangsu Provincial Government to perform system integration services and to sell pen-based computer systems to Chinese business and government users," concluded Dao. "China, with its rapidly expanding economy and urgent need for computerization, represents a major opportunity for CIC. Jiangsu province is intellectually elite and accounts for more than 18 percent of the Gross Domestic Product of China."
 The third quarter of fiscal 1993 contained many significant developments, including:
 -- the commencement of shipments by NEC of the VersaPad tablet computer in the U.S. and the 98PEN tablet computer in Japan. CIC's Handwriter Recognition System is pre-installed on both the VersaPad and 98PEN for CIC's PenDOS and Microsoft's Windows for Pen Computing operating environments, and is pre-installed on the 98PEN for Go's PenPoint operating system.
 -- the announcement that CalComp Inc., a Lockheed company, will produce a key component of CIC's newly introduced line of desktop pen computing peripherals. CalComp's new ultra-thin digitizer tablet and state-of-the-art pen, manufactured to CIC's specifications, incorporate recent advances in digitizer technology which allow the manufacture of an ultra-thin product a lower cost than traditional digitizer tablets. CalComp and CIC will work cooperatively to market and distribute the new desktop pen products.
 -- the licensing of CIC's Handwriter Recognition System for Windows for Pen Computing to Fujitsu Personal Systems, Inc., a leading provider of mobile computing products. Fujitsu's 325Point pen tablet computer now ships with CIC's Handwriter Recognition System for both CIC's PenDOS and Windows for Pen.
 -- the second consecutive win by CIC's Handwriter pen technology in PenExpo's "Best of Show" awards. CIC's Handwriter Recognition System won "Best Handwriting Recognizer" over seven other competing recognizers in the category, and CIC's Handwriter Dynamic Signature Verification swept a field of five as "Best Pen Utility."
 Note: CIC is well recognized for its pen computing technologies, PenDOS(TM) pen operating environment, Handwriter(R) Recognition System and Dynamic Signature Verification(TM) software, in the United States and throughout the world. The company's Handwriter Recognition System software, which is available in numerous languages and compatible with various operating systems, is the two-time winner of Boston University and Pen Magazine's award for "Best Recognizer." CIC's PenDOS and Handwriter Recognition System for PenDOS are distributed and exclusively sublicensed by IBM to pen computer manufacturers worldwide. CIC's MacHandwriter(R), a desktop pen extension to the Macintosh computer, is distributed by Apple Japan, Inc. and others. CIC is headquartered in Redwood Shores, and has subsidiaries in Tokyo, Japan and Nanjing, China.
 Selected Consolidated Statement of Operations Information
 (Dollars in thousands, except per share amounts)
 Three months ended Nine months ended
 (unaudited) (unaudited)
 9/30/93 9/30/92 9/30/93 9/30/92
 Revenue $ 211 $ 1,263 $ 1,937 $2,643
 Net loss (2,178) (931) (5,121) (4,216)
 Net loss
 per common share $ (0.11) $ (0.06) $(0.28) $ (0.27)
 Weighted avg.
 shares outstanding 20,007 15,975 18,304 15,896
 Selected Consolidated Balance Sheet Information
 (Dollars in thousands)
 9/30/93 12/31/92 9/30/92
 (unaudited) (unaudited)
 Cash & short-
 term investments $ 8,298 $2,811 $1,517
 Total current
 assets 10,290 4,902 3,111
 Total assets 12,937 7,239 5,344
 Accounts payable 690 642 1,238
 Deferred revenue(A) 2,619 1,634 1,255
 Total current
 liabilities(B) 4,868 3,594 3,658
 obligations 254 130 156
 equity 7,815 3,515 1,530
 equity + deferred
 revenue $10,434 $5,149 $2,785
 (A) Deferred revenue consists principally of advance royalty payments from licensees.
 (B) Includes deferred revenue.
 -0- 10/21/93
 /CONTACT: Anne Butler of Communication Intelligence Corporation, 415-802-7888/

CO: Communication Intelligence Corp. ST: California IN: CPR SU: ERN

KG-TM -- SJ007 -- 4993 10/21/93 08:59 EDT
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Publication:PR Newswire
Date:Oct 21, 1993

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