In The Boardroom With...
Mr. Jim Miller
Chairman and CEO
ImageWare Systems, Inc.
Updated September 12, 2014
IWS wins best product in Mobile Money, Payments, Banking & Commerce, at the CTIA show!
ImageWare Systems, Inc. (OTCQB: IWSY ) (IWS), a leader in mobile and cloud-based, multi-modal biometric identity management solutions, has received the CTIA-The Wireless Association® Emerging Technology (E-Tech) Award for its GoMobile Interactive™ (GMI) product, taking first place in the Mobile Money, Payments, Banking & Commerce category.
The award was announced at the CTIA ‘Super Mobility Week’ trade show, where more than 50 industry experts, analysts and media examined and scored the nearly 300 entries across CTIA’s three programs to determine the finalists and winners.
GoMobile Interactive is a cloud-based, multi-modal biometric mobile identity management solution that enables unparalleled identity verification for existing and new mobile banking, mobile wallet and other mobile applications that require a next-generation method to automate and verify the identity of the customer.
GMI ensures fraud protection to at-risk legacy services and verifies user transactions securely and quickly by replacing unsecure, vulnerable usernames, passwords and pin-codes with voice, facial, palm, finger and iris recognition, among others. It also brings U.S. government-hardened and tested high-end security to an increasingly mobile world.
“Worldwide mobile payments are expected to become a $400 billion market by 2015,” noted Jim Miller, chairman and CEO of ImageWare. “By offering the industry’s first biometrically enabled mobile identity management platform, ImageWare is able to spearhead a growing security concern for banking, retail and other financial service enterprises across the globe. We are honored to be recognized among the top of these innovative companies at the CTIA, which validates for both current and prospective customers that GMI is best-in-class for meeting their identity management needs.
Updated August 28, 2014
ImageWare Systems, Inc. (OTCQB: IWSY) (ImageWare), a leader in mobile and cloud-based, multi-modal biometric identity management solutions, has signed a three-year agreement with a major international retailer to provide its cloud-based, multi-modal biometric identity management product suite running on the Fujitsu Trusted S5 Cloud platform.
Under the agreement, ImageWare's IWS CloudID® product suite will use face, finger, iris and voice authentication; and run on top of the Fujitsu Trusted Cloud S5 platform, a fully configured, on-demand IT infrastructure, over the internet. The initial implementation will begin in the retailer's Mexico City locations in September, led by ImageWare's local subsidiary, ImageWare Systems de Mexico.
The biometric products will be licensed on a service-fee model, generating revenue from an initial license fee per person and a recurring monthly license fee thereafter. The company expects to begin generating revenues in the third quarter of 2014.
"Organizations face heavy burdens related to the creation and maintenance of digital identities, data accuracy and lack of integration across credentialing, human resources, and physical and logical access control," said Jim Miller, ImageWare's Chairman and CEO. "The IWS CloudID product -- which runs on top of the Fujitsu Trusted Cloud S5 platform and is delivered via Fujitsu's global network of secure data centers -- offers a cloud-based approach to all of these identity management concerns on a pay-as-you-go basis. We believe this agreement validates the steps we have taken to advance our cloud, SaaS and mobile offerings in the commercial and consumer marketplace."
ImageWare's agreement is in conjunction with its Fujitsu partnership to market its cloud-based, multi-modal biometric identity management offering delivered on the Fujitsu Global Cloud Platform (FGCP). The FGCP is one of the world's largest cloud platforms and features ImageWare's patented CloudID product suite, which is anchored by its Biometric Engine® 2.0.
"We are happy to partner with ImageWare on the implementation of IWS CloudID in Mexico City to help this international retailer enhance its loss prevention and employee credentialing," said Dave Berry, executive vice president, Infrastructure Services at Fujitsu America, Inc. "This implementation leverages the world-class cloud capabilities of Fujitsu to deliver the unique features of ImageWare's CloudID solution. Together, Fujitsu and ImageWare help customers securely identify and authenticate mission-critical operations, data and transaction information, and streamline retailer operations to deliver an enhanced shopping experience for customers."
Fujitsu, the Fujitsu logo, PRIMERGY and "shaping tomorrow with you" are trademarks or registered trademarks of Fujitsu Limited in the United States and other countries. All other trademarks and product names are the property of their respective owners. Information provided in this press release is accurate at time of publication and is subject to change without advance notice.
Updated August 11, 2014
ImageWare Systems, Inc. (OTCQB: IWSY) (ImageWare), a leader in mobile and cloud-based, multi-modal biometric identity management solutions, has issued financial results for the second quarter ended June 30, 2014, as well as provided a corporate update to highlight the company's progress since its last update on May 12, 2014.
- Awarded $1.0 million contract to implement multi-modal biometric driver license system for state of Baja California, Mexico
- Reached a three-year agreement in principle with major international retailer to provide multi-modal biometric identity management on the Fujitsu Cloud
Second Quarter 2014 Financial Results
Total revenues in the second quarter of 2014 were $937,000, compared to $1.0 million in the same year-ago quarter.
Gross margin in the second quarter of 2014 increased by 410 basis points to 75.2%, compared to 71.1% the year-ago quarter. The increase was primarily due to a higher percentage of software license revenues as a component of product revenue.
Net loss in the second quarter of 2014 was $2.1 million or ($0.02) per basic share, compared to a net loss of $5.6 million or ($0.07) per basic share in the year-ago quarter. The $5.6 million loss in the second quarter of 2013 included a $4.0 million charge for changes in the fair value of derivative liabilities.
At June 30, 2014, cash and cash equivalents totaled $1.4 million compared to $2.4 million at December 31, 2013. The company had no debt and maintains a $3.5 million line of credit that remains fully available.
"The second quarter was highlighted by the signing of a $1.0 million contract to implement a multi-modal biometric driver license system for state of Baja California, Mexico," said Jim Miller, chairman and CEO of ImageWare. "This contract represents the introduction of a new breed of turn-key ImageWare products available to governments with features that require very little customization and allow us to secure a significant payment upfront. Using this new approach in pursuing government contracts, the deal flow can proceed more quickly and profitability for ImageWare, while providing a faster ROI for our government customers. It also allows for greater scalability of our product delivery teams.
"Retail remains a fertile market for our solutions, and we remain active with our technology partners to build a healthy pipeline of potential customers. In fact, we recently reached a three-year agreement in principle with a major international retailer to provide our cloud-based, multi-modal biometric identity management product suite, CloudID.
Our opportunities in the commercial and consumer marketplaces continue to expand, and we continue to gain traction with our IT service providers. We expect a new recurring revenue stream to come on line in third quarter of 2014 from our partnerships with Fujitsu and T-Systems, and believe the steps we are taking to advance our cloud, SaaS and mobile offerings will continue to build shareholder value.
Updated June 27, 2014
ImageWare Systems, Inc. (OTCQB: IWSY ), a leader in mobile and cloud-based, multi-modal biometric identity management solutions, was selected to implement a multi-modal biometric driver license system for the State of Baja California, Mexico.
The contract was awarded by the Funciones Ocupacionales Insha, S.A. de C.V., the prime contractor on the project. For ImageWare, the contract is valued at more than $1.0 million and its software will help generate more than one million licenses over the next three years. ImageWare will receive one time license fees for its software upon delivery and ongoing payments for its professional services and maintenance as delivered.
ImageWare will help to deploy the system at governmental offices in the largest cities in the state, including Tijuana, Mexicali, Tecate and Rosarito, as well as implement mobile stations through the state. The project will begin in the third quarter of 2014.
"As security needs become more complex and demanding, our customers increasingly appreciate the unique power and flexibility of our patented cloud-based, multi-modal biometric solutions," said Jim Miller, ImageWare's chairman and CEO. "Our proven track record of providing state-of-the-art biometric solutions for government agencies was a key factor in winning this award."
The multi-modal biometric driver license system will be based on ImageWare's CloudID™ modular software platform that supports the rapid development and deployment of highly secure, yet flexible identity management solutions for the creation of credentials, including IDs, passports, driver's licenses, smart cards and access control credentials. IWS CloudID is designed to deliver a "future proof" identity management solution, allowing unlimited population sizes and stations, as well as adding additional biometric modalities and incorporating new biometric devices.
The company's IWS QuickApps™ will provide the user interfaces to register applicants, validate identities and print and encode cards. Both IWS CloudID and IWS QuickApps are driven by ImageWare's patented, multi-modal Biometric Engine® 2.0, and the system can be integrated with the government's existing biometric identification and verifications processes. Security for the system will be managed by ImageWare's Desktop Security System, with the use of multifactor authentication, data encryption and a secured log of all actions by the user. For the complete Press Release, please click here.
Updated May 12, 2014
ImageWare Systems, Inc. (OTCQB: IWSY (ImageWare), a
leader in mobile and cloud-based, multi-modal biometric identity management solutions, has issued financial results for the first quarter ended March 31, 2014, as well as provided a corporate update to highlight the company's progress since its last update on March 17, 2014.
- Partnered with IBM to provide Imageware's cloud-based, multi-modal
biometric identity management and user authentication platform on the IBM
Cloud Platform, BlueMix.
- Signed agreement to provide ImageWare's GoMobile Interactive product via
Fujitsu's Global Cloud Platform with Maxie Mobile for their mobile wallet
offering, initially targeted towards the gaming industry.
- T-Systems and ImageWare have secured the first customer under the new
partnership. The first customer is Deutsche Bahn, the German national rail
company. ImageWare expects this implementation to commence and begin
producing revenues in the third quarter of 2014.
First Quarter 2014 Financial Results
Total revenues in the first quarter of 2014 increased to $1.1 million from
$0.9 million in the first quarter of 2013, primarily due to higher sales of
identification software license revenue.
Gross margin in the first quarter of 2014 increased by 410 basis points to
76.4% compared to 72.3% in the first quarter of 2013. The increase was
primarily due to the increased software license revenues.
Net loss in the first quarter of 2014 was $1.7 million or ($0.02) per basic
share, compared to a net loss of $2.8 million or ($0.04) per basic share in
the first quarter of 2013.
At March 31, 2014, cash and cash equivalents totaled $2.2 million compared
to $2.4 million at December 31, 2013. The company continues to carry
virtually no debt and its $3.5 million line of credit that remains untapped.
"Our strategy to target large IT service providers and provide security for
their cloud customers and applications is gaining traction, as demonstrated
by our most recent partnership with IBM," said Jim Miller, chairman and CEO
of ImageWare. "IBM marks our third secured agreement with a major cloud
partner, and we expect more to come. These large, established partners offer
the support, brand name and worldwide cloud platform needed to seamlessly
distribute our products. While IBM's BlueMix is in the early stages, we've
already received referrals from their customers - several of which we are in
"At the beginning of April, Fujitsu announced the kick-off and worldwide
expansion of our partnership model with a dedicated sales team covering the
Americas. Since then, Fujitsu has set up proof of concept pilots with three
of their major customers, with more expected in the near future.
"By working closely with our technology partners, we continue to build a
healthy active pipeline of potential customers. One includes a new
partnership with Maxie Mobile, where we will provide our GoMobile
Interactive product via Fujitsu's Global Cloud Platform for Maxie's mobile
wallet offering, which is initially targeted towards the gaming industry.
"Our partnership with T-Systems continues to progress quickly. In fact,
T-Systems has recently secured an agreement with Deutsche Bahn, the German
national railroad, who will become the first customer receiving our joint
product offering. We expect more to follow and anticipate this agreement
will begin producing revenues in the third quarter of 2014.
"We see our relationships with IBM, Fujitsu, T-Systems and others
representing just the tip of the iceberg in terms of our opportunities in
the commercial and consumer marketplaces. All of these partnerships are
progressing well, and although they have not yet produced revenue, there is
every indication that the steps we have been taking are building shareholder
value and will ultimately provide a steady stream of recurring revenue."
For the complete Press Release, please click here
Updated April 28, 2014
ImageWare Systems, Inc. (OTCQB: IWSY) ("ImageWare" or "IWS"), a leader in mobile and cloud-based, multi-modal biometric identity management solutions, has formed a partnership with IBM that brings the power of IWS' patented, multi-modal biometrics user authentication and cloud-based identity management platform to the IBM Cloud Platform, code name: BlueMix.
IBM BlueMix customers can now leverage ImageWare's Identity-as-a-Service (IDaaS), a cloud-based, multi-modal biometric identity management and user authentication platform, to easily provide user authentication solutions that meet their specific business needs. IBM clients can rapidly deploy IWS solutions when building applications in IBM BlueMix, which may include out-of-band authentication, mobile biometrics, mobile payment, desktop security, patient engagement, and more.
ImageWare Systems fundamentally changes the way businesses build biometric authentication by bringing it into the realm of mobile technology and the cloud. A key component is IWS' GoCloudID™, a patented cloud-based biometric IDaaS platform that manages access to biometric enrollment and verification. The IWS system, in addition to being algorithm and hardware agnostic, enables plug-n-play and can be deployed globally as an enterprise end-to-end or modular solution. GoCloudID also includes a software development kit (SDK), which enables rapid integration into existing company programs and applications. With the SDK, GoCloudID can be implemented in a matter of hours rather than days or weeks.
"Worldwide mobile device payments are expected to reach $400 billion by 2015, with more and more mobile devices being designed with biometric features," said Jim Miller, CEO of ImageWare Systems. "It is critical we work with leading technology companies, like IBM, to effectively and comprehensively address identity and access management security challenges facing businesses and consumers in the new big-data, smart mobile world. For more than a decade, we have been working in a variety of large and demanding environments. With IBM, we have a partner who delivers world-class cloud services for public, on-premise and private infrastructure platforms."
To learn more about leveraging IWS GoCloudID with IBM BlueMix, please go to:https://marketplace.ibmcloud.com/apps/583
Updated April 10, 2014
GCR Introduces AirportIQ Secure Credentials - a Biometric Security Solution Using ImageWare's Software
GCR Introduces Biometric Security Solution
GCR Inc. has release AirportIQ Secure Credentials, a biometric security and continuous credentialing solution for the aviation and airport industry.
The solution provides a comprehensive and trusted biometrically-enabled security credential. Features include the continuous validation of background; verification of the identity of aviation workers; binding of biometric and biographic information to the individual; and improving the existing security badge enrollment processes.
This new system manages the entry and maintenance of identity information, both biographical and biometric; prints badges; interfaces with access control systems; maintains historical information, and provides easy deployment to off-site authorized signers. This new system provides a high level of identity assurance within the user database and enables strong authentication for access to physical resources (doors, buildings, and other restricted areas).
AirportIQ Secure Credentials combines core biometric and credentialing functionality provided by ImageWare Systems (OTCQB: IWSY), with business automation and other components built by GCR Inc. For more information: www.iwsinc.com
Updated April 1, 2014
Fujitsu, a leading information and communication technology company, and ImageWare Systems (IWSY) (IWS), a leader in Identity as a Service (IDaaS) cloud-based with multimodal biometric identity management solutions, today announced the global availability of pay-as-you-go, plug-n-play multimodal biometric cloud identity and authentication services. This new offering provides enhanced enterprise-level data security and enables rapid integration into existing or new corporate programs and applications. The new biometric-as-a-Service (BaaS) solution leverages the Fujitsu Cloud Infrastructure-as-a-Service (IaaS) Trusted Public S5 platform, as well as its Software-as-a-Service (SaaS) enablement tool, SystemWalker® Catalog Manager.
"We are seeing a growing need within the mobility, retail, healthcare, financial services and banking industries to securely identify and authenticate mission-critical operations, data and transaction information, while also addressing IT demands for utilizing easily-deployed, scalable, cloud-based solutions," said David Berry, executive vice president, Infrastructure Services at Fujitsu America, Inc. "Multimodal biometric cloud identity and authentication services are ideal for these companies, and our continued work with ImageWare (IWSY) uniquely positions Fujitsu to address both the needs of these types of companies and their customers by delivering compelling biometric solutions that can be quickly deployed in the cloud and provide immediate data integrity and security."
As a key component to this new cloud-based offering, Fujitsu is leveraging IWS's GoCloudID™, a premier patented cloud-based, biometric identity management platform. Providing a full biometric identity management application suite, GoCloudID reliably manages access to biometric enrollment and verification to ensure first-rate data integrity and protection. In addition to being algorithm and hardware agnostic, the system enables plug-and-play and can be deployed globally as an end-to-end or modular solution in a matter of hours rather than days or weeks. GoCloudID includes a software development kit for rapid integration into existing company programs and applications. Operating with a pay-as-you-go model, GoCloudID makes it cost effective to incorporate biometric identity verification into new and existing enterprise and service provider applications.
The new offering also addresses security on mobile devices through IWS's GoMobile Interactive™ (GMI), a biometric-enabled mobile platform that provides reliable, simple and fast multifactor identity management. GMI delivers app-level identity verification, fraud and theft prevention of mobile transactionsand active monitoring for unauthorized access/use.
"With more and more mobile devices being designed with biometric features and worldwide mobile device payments expected to reach $400 billion by 2015, it is critical we workwith leading technology companies like Fujitsu, to effectively and holistically address legacy identity and access management security challenges facing businesses and consumers in a big-data, smart mobile world," said Jim Miller, CEO of ImageWareSystems (IWSY).
"We have a track record for more than a decade working in a variety of large and demanding environments. In Fujitsu, we have a partner who delivers world-class cloud services for public, on-premise and private infrastructure platforms."
Updated March 17, 2014
ImageWare Systems, Inc. (OTCQB: IWSY) (ImageWare), a leader in mobile and cloud-based, multi-modal biometric identity management solutions, has issued financial results for the fourth quarter and full year ended December 31, 2013, as well as provided a corporate update to highlight the company's progress since its last update on November 14, 2013.
Key Milestones and Events
- Initiated a pilot with T-Systems, a wholly owned subsidiary of one of the world's leading integrated telecommunications companies, Deutsche Telekom AG. The partnership will start with a pilot in T-Systems' labs in Germany to integrate ImageWare's patented, multi-modal biometric, cloud-based identity management and credential technology into T-Systems' products.
- Completed delivery of ImageWare's QuickCapture application in connection with a U.S. federally sponsored pilot program for iris recognition with 20 state and local law enforcement agencies.
- Recognized as 2014 Innovation and Design Award Winner for its Biometric Engine 2.0® by industry research firm Envisioneering at the Mobile World Congress in Barcelona, Spain.
- Settled patent litigation with WCC Services US (WCC) and Creative Information Technology (CITI) that resulted in WCC and CITI obtaining royalty bearing licenses from IWSY for the patents at issue. These patents cover IWSY's multi-modal biometric platform and fusion of biometric modalities.
Fourth Quarter and Full Year 2013 Financial Results
Total revenues in the fourth quarter of 2013 increased to $929,000 from $926,000 in the fourth quarter of 2012. Total revenues for the full year of 2013 increased 135% to $5.3 million from $4.0 million in 2012, with the increase primarily due to approximately $1.5 million received in August for software licenses in connection with a $2.2 million contract with the U.S. Department of Veteran Affairs.
Gross margin in the fourth quarter of 2013 increased 160 basis points to 72.4% compared to 70.8% in the fourth quarter of 2012, with the increase primarily due to reduced costs from the relocation of certain technical support functions from the company's Canadian office to its San Diego office. Gross margin for the full year of 2013 increased to 79.4% from 69.6% in 2012, with the increase primarily due to higher software license revenues and, to a lesser extent, savings from the aforementioned relocation of technical support functions.
Net loss in the fourth quarter of 2013 was $1.8 million, or ($0.02) per diluted share, compared to net income of $62,000, or $0.00 per diluted share, in the fourth quarter of 2012. Net income in the fourth quarter of 2012 included a $1.8 million gain from the change in fair value of derivative liabilities. Net loss in the full year of 2013 was $9.9 million, or ($0.12) per diluted share, compared to a net loss of $10.2 million, or ($0.14) per diluted share, in 2012. Net loss in 2013 included a $4.8 million loss from the change in fair value of derivative liabilities, while net loss in 2012 included a $ $4.7 million loss from the change in fair value of derivative liabilities.
At December 31, 2013, cash and cash equivalents totaled $2.4 million compared to $4.2 million at December 31, 2012. The company continues to carry virtually no debt and, subsequent to the end of the quarter, increased their line of credit from $2.5 million to $3.5 million.
"2013 was a pivotal year for ImageWare, as we formed partnerships with two of the world's largest IT services providers, Fujitsu and T-Systems," said Jim Miller, chairman and CEO of ImageWare. "We are starting to see a shift in companies evangelizing biometrics, moving from the small biometric companies trying to prove their practical application in the commercial and consumer markets, to many large corporations understanding the real-world benefits of bringing biometrics to the mainstream public. This shift has created an attractive opportunity for ImageWare and we plan to leverage our large partners' sales and marketing power to capitalize on it.
"Our new partnership and close collaboration with T-Systems represents the outcome of a number of months of discussion and planning. We're now taking the next step by integrating our technology into their products and expect this new relationship to expand our presence throughout European and worldwide markets.
"These and other proactive steps we've taken to position ImageWare as a leader in multi-modal biometric security are beginning to attract broader attention. We recently attended the Mobile World Congress in Barcelona where the reception we received was incredible, particularly for our patented PillPhone®, which is the first and only FDA-approved biometric-enabled enterprise mobile application."
Miller concluded: "Working closely with our technology partners, we continue to build a healthy pipeline of potential customers and are currently in discussions with several clients regarding licensing opportunities. We will continue to target large enterprise businesses and emerging applications and believe the steps we are taking to advance our cloud, SaaS and mobile offerings in the commercial and consumer marketplace will continue to build shareholder value, along with greater visibility that includes a healthy recurring revenue stream."
Updated March 4, 2014
ImageWare Systems, Inc. (OTCQB: IWSY), a leader in mobile and cloud-based, multi-modal biometric identity management solutions, has begun a testing phase with T-Systems, a wholly owned subsidiary of Deutsche Telekom, starting with a pilot in T-Systems' labs in Germany to integrate ImageWare Systems' patented, multi-modal biometric, cloud-based identity management and credential technology into T-Systems' products.
ImageWare showcased its next-generation cloud identity management and authentication service, GoMobile Interactive™ (GMI®), and more, at the Mobile World Congress 2014 on February 23-27, 2014.
During the last several months, ImageWare Systems and T-Systems have discussed and negotiated common business ideas between the two companies. As a result of the assessment, T-Systems has started a pilot to integrate its products with ImageWare's GoMobile Interactive patented, biometrically secured user authentication solution for mobile devices; its Biometric Engine® (BE), a patented, real-time, high performance, cloud-enabled multi-modal biometric database; and GoCloudID®, a cloud-based SaaS ID management platform.
One major focus is to create solutions for cloud products and data storage for business customers, especially in the context of the worldwide discussion about safety and security for data, identity authentication and personal and transaction verification.
There has been a growing importance to create data storage and cloud-based regional solutions for business and private customers worldwide. In 2013, the United States alone saw more than 12 million identity fraud victims at a dollar cost of $24 billion, with the average financial loss per identity theft totaling $4,930. Goode Intelligence predicts that by the end of 2015, there will be 619 million people using biometrics on their mobile device.
"With T-Systems as a partner, ImageWare Systems will be able to enter the European market in the near future and offer next-generation identity management cloud storage solutions," said Jim Miller, chairman and CEO of ImageWare Systems. "This partnership not only expands our presence in this important region, but in other worldwide markets as well."
As Silicon India recently reported, the number of active cell phones will reach 7.3 billion by 2014. In other words, there will be more cell phones in-use than there are people on the planet right now.
Jim Miller, concluded: "Gartner's estimate of 30% enterprise adoption for biometrics as the authentication standard by 2016 presents a huge opportunity for ImageWare in the projected $400 billion marketplace estimated for mobile payments by 2015."
Updated December 16, 2013
Fujitsu and ImageWare Continue to Deliver Market Leading Cloud-Based Biometric Identity Management Solutions and Services
As the biometric market landscape evolves, Fujitsu and ImageWare Systems (IWSY) continue to deliver leading cloud-based biometric identity management solutions and services that address the needs of companies in the financial services, retail, healthcare and manufacturing sectors. This cloud based biometric platform is designed to provide these industries with an agnostic approach relative to various modalities such as voice, facial, iris, and fingerprinting applications.
In the past, biometric-enabled solutions entailed complex development processes, where projects typically took one year or longer to implement, and companies were required to make major upfront investments in hardware and software. Today, Fujitsu is collaborating with ImageWare Systems, a developer of identity-based, credential management solutions driven by biometric technology, to enable support for more than 50 biometric devices while instantaneously responding to different types of modalities.
Along with ImageWare, Fujitsu is transforming the market with its cloud-based identity platform, or "biometrics as a service," through quick deployment that lowers costs and permits customers to choose and blend modalities to develop the best use case for their particular organization and requirements, permitting rapid integration with existing business intelligence and systems.
"We continue to collaborate with ImageWare because we see a growing need among our customers to securely identify and authenticate data that is important for enterprise businesses, while also addressing IT demands leveraging easily-deployed, scalable, cloud-based solutions," said David Berry, executive vice president, Infrastructure Services at Fujitsu. "We are in a unique position to work with established and emerging markets to define and diversify how biometric solutions and services are utilized --- whether it's preventing fraud at financial institutions or using voice recognition via mobile devices to investigate criminal activity."
ImageWare Systems supports a dozen different biometric models via its patented biometric engine. The company delivers its biometric technology through the Fujitsu interactive cloud-based service and provides authentication using the latest range of smart mobile devices, a key area of growth for the technology market.
"ImageWare Systems was founded more than a decade ago focusing on developing innovative, patented-protected technology to allow private and public organizations to deploy configurable and modular multi-modal biometric based identity and authentication management solutions," said Jim Miller, chairman and CEO of ImageWare Systems. "By partnering with Fujitsu, we are focused on helping global enterprises and service providers succeed in providing value to their business and customers with the next generation of cloud-based Identification management, poised to save businesses multi billions of dollars on a yearly basis, especially as we see transactions shift to mobile devices which are expected to exceed the world population in 2014." For more information, please click here.
Updated November 14, 2013
ImageWare Systems, Inc. (OTCQB: IWSY) (ImageWare), a leader in mobile and cloud-based, multi-modal biometric identity management solutions, reported financial results for the third quarter ended September 30, 2013.
Third Quarter 2013 Operational Highlights
- Awarded $2.2 million contract to expand biometric identity management services for the U.S. Department of Veteran Affairs.
- Awarded a U.S. federally sponsored pilot program for iris recognition with 20 state and local law enforcement agencies.
- Selected to provide complete identity management and booking system for the city of Fredericton, New Brunswick.
- Introduced GoMobile Interactive™, the industry's first biometric mobile identity management platform for the iPhone and Android operating systems.
Third Quarter 2013 Financial Results
Total revenues in the third quarter of 2013 increased 167% to $2.5 million from $938,000 in the third quarter of 2012. The increase was primarily due to approximately $1.5 million received in August for software licenses in connection with a $2.2 million contract with the U.S. Department of Veteran Affairs.
Gross margin in the third quarter of 2013 increased significantly to 88.0%, compared to 72.7% in the third quarter of 2012. The increase was primarily due to the increased software license revenues.
Net income in the third quarter of 2013 also improved significantly to $326,000 or $0.00 per diluted share, compared to a net loss of $2.7 million or $(0.04) per diluted share in the third quarter of 2012.
At September 30, 2013, cash and cash equivalents totaled $3.5 million, compared to $1.0 million at June 30, 2013 and $4.2 million at December 31, 2012. The company continues to carry no debt and currently maintains a $2.5 million unsecured line of credit.
"Our strong third quarter results were primarily due to the $2.2 million contract we secured with our largest customer, the U.S. Department of Veteran Affairs," said Jim Miller, chairman and CEO of ImageWare. "This key contract drove our first cash flow positive quarter in nearly five years.
"The biometric identity solutions we are providing the VA, which are in strict compliance with U.S. government standards, serve as a working model for facilitating more rapid commercial sector adoption. In fact, we recently announced a contract award from our second commercial customer, Global Payout, which further endorses the turnkey use of our solutions in our target markets. Along with our technology partner, Fujitsu, we continue to explore many significant opportunities and look forward to a worldwide expansion model. As such, we are currently in discussions with several potential clients regarding licensing opportunities and will continue to target large enterprise businesses and emerging applications.
"Due to external factors not related to our portion of the contract, we're now anticipating the completion date of our LAX deployment to be shifted from the fourth quarter to early 2014. More than ever, we are confident the steps we are taking to advance and position our cloud, SaaS and mobile offerings in the commercial and consumer marketplace will provide increasing shareholder value, with better visibility and a strengthening recurring revenue stream."
Updated October 25, 2013
Global Payout, Inc. (GOHE) has signed an agreement with ImageWare Systems, Inc. (IWSY) ("IWS"), the leader in cloud based multi-modal biometric identity management solutions, whereby ImageWare will provide its patented GoCloudID™ Software as a Service (SaaS) platform, which will enable a fully-validated, feature-rich, security solution that will run on top of the Fujitsu Cloud IaaS Trusted Public S5 platform. Global Payout and ImageWare will enable secure access services for users of Global Payout's Consolidated Payment Gateway. The MoneyTrac Consolidated Payment Gateway (CPG) provides clients with both off-the-shelf and customized payment options through a worldwide payment solutions platform tied to banks, card associations and payment processors. Working through processors and banking relationships, the CPG provides a custom, one-stop solution for access and payments to international and domestic bank accounts, debit cards and other payment systems in more than 120 countries through desktop and mobile devices.
Multi-modal biometrics are being adopted by industries requiring limited access to restricted areas – such as in the transportation, utility, and governmental markets. The financial services and banking industry has begun adopting the technology for use in the banking, payment processing, and eCommerce sectors. By including ImageWare Systems GoCloudID with ID document capture, and biometric authentication, Global Payout is delivering the next generation method to automate and verify the "know your customer"(KYC) process.
In 2012 the United States saw more than 12 million identity fraud victims at a dollar cost of $21 billion. In fact, an identity is stolen every three seconds. "Worldwide mobile payments are expected to become a $400 billion market by 2015," said, Jim Miller, CEO of ImageWare Sytems. "We are pleased to work with Fujitsu to offer Global Payout clients worldwide, with the additional level of, and the IT security industry's most reliable form of identity theft protection for accessing their gateway accounts through desktop and mobile devices."
"Our MoneyTrac Consolidated Payment Gateway platform enables our multinational business clients to efficiently make payouts to their employees, contractors, and affiliates through a single management console," says Bill Rochfort, president and executive vice president of sales and marketing, Global Payout. "Working with ImageWare Systems, our gateway solution can now offer a second level of access authentication to each individual's electronic wallet account, reinforcing the accurate identification of the end-user."
ImageWare's services will be delivered for a onetime enrollment fee per new customer and a monthly subscription fee basis that will vary per customer). Services are to be delivered via Fujitsu's global data center networks, with the Fujitsu platform providing full configured, on-demand IT infrastructure for the ImageWare CloudID SaaS.
"We are pleased to be able to provide authentication and verification over the Fujitsu Cloud IaaS Trusted Public S5 platform from ImageWare Systems to Global Payout customers around the world," said David Berry, executive vice president, infrastructure services, Fujitsu America. "Our cloud platform addresses the needs of the enterprise, service providers and consumers by enabling the deployment of a secure, agile and reliable could-based identity management solution."
Updated September 2013
ImageWare Systems, Inc. (OTCQB: IWSY) (ImageWare), a leader in mobile and cloud-based, multi-modal biometric identity management solutions, has received an order from the city of Fredericton, New Brunswick, Canada for a complete identity management and booking system, which includes mug photo, signature and fingerprint capture.
ImageWare's LE Web thin client will allow officers and administrative employees' access to record details and the full suite of investigative tools from various locations.
"Our basic identity management and booking system products continue to experience strong demand," said Jim Miller, chairman and CEO of ImageWare. "One of the unique features is that it will be provided in both French and English, which demonstrates the portability of our turnkey solutions in both international and domestic markets. We are proud to play a role in enhancing security for the city of Fredericton and look forward to similar agreements in the future."
The City of Fredericton will also be utilizing ImageWare's EPI Designer for LE reporting software. This allows users to create unique reports, agency-defined lineups, wristbands and employee/inmate badges for an unlimited number of full-color, dual-sided report and card designs, complete with barcoding or encoded magnetic strips.
The system will be connected to the city's record management system and will allow for submission of criminal fingerprints to the Royal Canadian Mounted Police as well as fingerprint processing for civilian applications.
Under the terms of the agreement, ImageWare will receive approximately $125,000 in revenue.
Updated September 2013
ImageWare Systems, Inc. (OTCQB: IWSY) (ImageWare), a leader in mobile and cloud-based, multi-modal biometric identity management solutions, has been awarded a contract for software and services in support of a paid pilot from an undisclosed United States federal agency to implement iris recognition throughout 20 state and local law enforcement agencies.
Acting as a subcontractor to Iris ID, ImageWare will supply its QuickCapture™ application to public safety agencies participating in the one-year iris recognition pilot. ImageWare's QuickCapture will be used to manage multiple types of Electronic Biometric Transmission Specification (EBTS) transactions, including enrollment, identity verification and investigative searches. During the course of the pilot, ImageWare's solution will be implemented in over 20 agencies to evaluate the use of iris recognition, primarily in correction facilities.
"Although much of our attention has turned towards the mobile and cloud markets, significant opportunities still exist within our installed base of government and law enforcement clients," said Jim Miller, chairman and CEO of ImageWare. "The solutions we are providing, which are in compliance with U.S. government standards, serve as a working model for commercial sector standards and adoption."
Under the terms of the agreement, ImageWare will complete the delivery of its QuickCapture application in the fourth quarter of 2013.
Updated August 2013
ImageWare Systems, Inc. (OTCQB: IWSY) (ImageWare), a leader in cloud-based, multi-modal biometric identity management solutions, has been awarded a $2.2 million contract by the U.S. Department of Veteran Affairs (VA) to expand its personal identity verification (PIV) credentialing capabilities.
Under the terms of the agreement, ImageWare will deliver software licenses during the third quarter of 2013, whereby the company will receive approximately $1.5 million in revenue. Additionally, ImageWare will receive service revenue valued at approximately $650,000 that will be recognized proportionally over the next year.
ImageWare's biometric identity management solution was first installed with the VA in 2007. The solution provides large-scale, agency-wide biometric identity and credential management capabilities, such as biometrically enabled PIV credentials that are in compliance with U.S. government standards. As part of the system expansion, the VA will also be adopting ImageWare's patented, hardware and algorithm independent Biometric Engine® 2.0, enabling the enrollment and management of unlimited population sizes.
"The U.S. Government has confirmed multi-modal biometric identity management as the only way to move forward as it offers a greater level of security and reliability," said Jim Miller, chairman and CEO of ImageWare. "ImageWare's proven track record of government experience executing best-of-breed patented, fully compliant biometric solutions will drive the standards for commercial adoption. We are honored to continue working with the VA and expand our services in support of their mission. As we look forward, I am confident we will introduce similar solutions to our global enterprise customers and solution provider partners."
Updated July 2013
ImageWare Systems, Inc. (OTCQB: IWSY), a leader in cloud-based, multi-modal biometric identity management solutions, has introduced its mobile biometric identity management platform, GoMobile Interactive™ (GMI).
Based upon acquired patented messaging platform technology combined with ImageWare's patented Biometric Engine®, GMI allows global business, service and content providers to offer users biometric security for their products, services and content on the Android or iPhone operating systems. GMI includes a standalone application that can be used as a turnkey solution, as well as a software development kit, enabling integration with existing mobile applications for Android and iPhone.
"According to The Gartner Group, worldwide mobile payments will become a $400 billion market by 2015 and 67% of users cite they have 'no trust that their bank details would be secure' with mobile payments," said Jim Miller, chairman and CEO of ImageWare Systems. "GoMobile Interactive is designed to alleviate this risk in a simple, seamless manner by combining unique messaging capabilities with our proven biometric technology to provide unprecedented security for mobile smartphones."
"However, according to the Federal Reserve," continued Miller, "almost 40% of Americans have already used smart mobile devices for banking and purchases. This mission-critical data being accessed via mobile devices has created the need for multi-modal biometrics to become as ubiquitous as the smartphones used to access the data. Until now, storing, securing and accessing data has been a major challenge."
Targeted verticals for the product include mobile banking and value transfer, retail, healthcare and entertainment services. By supporting multi-modal biometrics on a mobile device, ImageWare is able to offer an out-of-band security solution that is far superior to traditional password or PIN protection, which are now failing and costing businesses billions of dollars.
In addition, the GoMobile Interactive service supports dynamic information gathering, allowing clients to learn about their users through the use of interactive surveys that can be optionally secured using biometrics.
Updated May 2013
ImageWare Systems, Inc. (OTCQB: IWSY) a leader in cloud identity management, and valued partner Emida, a leader in the global prepayment and value transfer market, entered into an agreement whereby ImageWare Systems will provide Emida its patented CloudID™ software-as-a-service (SaaS) platform, which will enable a fully-validated, feature-rich security solution that will run on top of Fujitsu's Global Cloud Platform (FGCP). Smartphone users, service providers and merchants will have unprecedented identity and value exchange protection for financial transactions.
"According to the Digital Journal, identity is stolen every three seconds in the United States and businesses alone lost $21 billion in 2012," said Jim Miller, chairman and CEO of ImageWare Systems. "Password protection can no longer protect us from identity theft, which is a major issue in mobile security. We are extremely pleased to partner with Emida Technologies and Fujitsu to offer one of, if not the first, services to deliver smartphone user identity, value transfer and purchase protection for service providers, merchants and consumers."
"Emida endeavors to consistently bring to market new and better value transfer products and services that benefit our customers around the world," said Shane Belovsky, CEO of Emida. "We work with best-in-class partners like ImageWare who soundly develop thought-leading patented technologies. We are confident that ImageWare's security management products, coupled with Emida's trusted innovations, will help to revolutionize the prepaid landscape."
Updated April 2013
SecurityStockWatch.com: Thank you again for joining us today. Congratulations on the recent announcement regarding Fujitsu. Care to elaborate?
Jim Miller: Fujitsu and Imageware see the intersection of three fast moving trends, Mobile, Cloud and Biometrics, creating both a need and an opportunity . As more products, goods, services and data are stored in the Cloud and increasingly accessed through mobile devices security is a paramount concern. We live in a world where Identity theft happens every 3 seconds so security is no longer an "option" it is a necessity. Fujitsu and ImageWare have come together to provide a solution to these needs.
Our new CloudID(tm) product suite provides our clients with a full, end to end or modular identity management product suite for mobile or desktop. These products are provisioned via a web portal ,anchored by the patented IWS Biometric Engine(R) and distributed on a very cost effective basis via the secure, world class global reach of the Fujitsu Global Cloud Platform to provide the first of its kind Cloud ID Software as a Service and Platform as a Service offering.
ImageWare Systems recently announced that, "In March 2013, ImageWare entered into a contract with Fujitsu under which ImageWare will deploy a cloud-based, multi-modal biometric identity management offering that will be delivered on the Fujitsu Global Cloud Platform (FGCP). ImageWare's CloudID™ product suite, anchored by its patented, multi-modal Biometric Engine® (BE) 2.0, will be offered on the FGCP, which is expected to be one of the world's largest cloud platforms.
As part of the agreement, ImageWare's products will be licensed on a service or transactional basis. The solution is expected to be introduced in North America in the second quarter of 2013, with plans to collaborate on a global expansion model in the near future, and will target large enterprise businesses and emerging applications. The agreement, which is in addition to ImageWare's previously announced three-year software license agreement with Fujitsu's NuVola Private Cloud Platform, is expected to significantly increase revenues while providing greater stability and forward-looking visibility.
"Our goal to establish a leadership position in biometric-based identity management for the cloud is becoming a reality," said Jim Miller, chairman and CEO of ImageWare. "By working with a leading IT innovator such as Fujitsu, ImageWare is able to quickly and efficiently enter the cloud-based arena and gain access to a broader base of clients in the commercial market. The launch of ImageWare's products on the FGCP is a significant step for us and we look forward to a potential worldwide deployment in the near future. Further, by licensing our products on a service or transactional basis, we expect to see a significant improvement in our revenue model and eliminate our historically lumpy sales that have been difficult to predict."
ImageWare also continued to advance the development of its biometric-secured mobile transaction technology, building upon the wireless push technology and related patents it acquired from VOCEL in the second quarter of 2012. In December 2012, the company released the first demonstration models of this mobile technology to key potential corporate users and is currently in licensing discussions with several clients.
Integrating wireless push technology with ImageWare's biometric solutions provides the missing security link facing a growing number of enterprises and government agencies using mobile platforms to transact business or interact with their users. The solution is applicable for healthcare, law enforcement, banking and retail, or any organization requiring highly-reliable and flexible identity verification of their mobile users.
Miller concluded: "Our strategy to diversify ImageWare's revenue stream and decrease our dependency upon larger government projects is beginning to gain traction. Although we will continue to pursue government contracts, our SaaS, mobile and cloud offerings in the commercial and consumer markets will provide us with a more stable, recurring revenue stream and a clearer picture of ImageWare's long-term opportunity."
For the complete interview with Jim Miller, ImageWare Systems, Chairman and CEO:www.securitystockwatch.com/Interviews/in_Boardroom_IMW.html
For more information:
IWS CloudID™: http://iwsinc.com/products/next-generation-iws-cloudid-product-suite/
ImageWare Systems Solutions: http://www.iwsinc.com/markets/overview
ImageWare Systems Products: http://www.iwsinc.com/products/overview2
For ImageWare Systems Investors: http://www.iwsinc.com/about-iws/investors/overview1
For more information: www.iwsinc.com (OTCQB: IWSY)
SSW: It's a pleasure to chat with you again today, Jim. It's been several years since our first interview with you and congratulations on the progress you have achieved with ImageWare, Systems, Inc. (IWS)!
Before we drill down into the most recent important events at IWS, let's discuss IWS solutions. One will read on www.IWSinc.com that ImageWare, "….is a leading developer of identity management solutions, providing biometric, secure credential and law enforcement technologies. Scalable for worldwide deployment, ImageWare'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's licenses, smart cards and access control credentials. ImageWare's digital booking products provide law enforcement with integrated mug shot, fingerprint livescan and investigative capabilities." Please give us an overview of the solutions IWS brings to market.
Jim Miller: ImageWare® Systems, Inc., ("IWSY") has spent the last decade delivering patented, highly innovative, advanced identity management solutions emphasizing biometrics, public safety, secure credentialing and controlled access. Our company is currently in the midst of a significant transformation as we leverage our proven expertise of successfully implementing device and algorithm-independent, multi-biometric and card management solutions to introduce our next generation product offerings. IWS started with a clean slate and re-engineered our technology to create highly modularized, Enterprise Class, multi-biometric identity management and advanced credentialing platform software optimized for biometric matching performance and configuration flexibility. Our next generation biometric identity management and advanced credentialing platform includes 1) A set of configurable, server-based software modules designed to add or enhance biometric identity management and credential issuance capabilities to existing applications or support the development of these capabilities in new end-to-end applications, 2) A set of configurable business service layer software modules designed to enable existing or new applications to leverage the capabilities of the biometric identity management and advanced credentialing platform, and 3) A set of configurable client-based applications that provide out-of-the-box biometric enrollment, identification and verification, as well as card printing and encoding capabilities designed to enable rapid development and deployment of biometric identity management and advanced credentialing platform.
SSW:We understand you recently introduced version 2.0 of your flagship Biometric Engine and that this represents an evolutionary leap in physical security identification at airports, seaports and other critical points-of-access. Care to elaborate?
Jim Miller: The Biometric Engine® or BE 2.0 is the first release and the anchor component of our next generation biometric identity management and advanced credentialing platform. The BE 2.0-based server platform will enable rapid development and deployment of highly-configurable, cost effective, "Future Proof" modular, physical and logical security identification solutions. This game-changing approach means that IWS clients who need to secure critical access points such as borders, airports, seaports and electronic commerce transactions can obtain physical and logical security through an identification solution designed to continuously adapt to evolving market requirements, technology advancements, and specific customer needs.
BE 2.0 addresses the requirements for the highest level of multi-modal and multi-factor authentication. We have designed solutions that are in compliance with international standards, "Future Proof" (or agnostic to rapidly changing hardware and algorithms) while at the same time able to support legacy systems.
SSW: What are your target markets and what is your perspective on the market drivers and value proposition for ImageWare solutions in these challenging economic times?
Jim Miller: The Biometric Identity market is being increasingly driven by the desire of public sector and commercial entities to provide efficient, cost effective, trusted and reliable identification infrastructures. We believe the most significant market opportunities to help build these infrastructures with our next generation product line are in the following target markets:
- Airport/Seaport MultiBiometic Screening and Credentialing
- Large Scale Civil ID - (i.e. MultiBiometic Screening and Credentialing for borders and eIDs)
- E&M Commerce (i.e. Digital ID Transactions)
Our proven market vision and legacy expertise of innovating patented software-based, multi-biometric and advanced card-based identity solutions, with all its challenges and struggles, has advanced our understanding of biometric-based identity, uniquely qualifying us to define and deliver the software foundation for next generation biometric identification infrastructures.
The future will be dictated by mobile applications and operating in the "Cloud." Mobile applications, Cloud and SaaS initiatives will, in many instances, require authentication of the end-user. Smart card standard data models have focused on multi-modal biometrics and this standardization helps drive the market.
While we agree that the anonymous user experience is a positive aspect of the Internet, there are transactions (i.e. e-medical records, legal contracts, financial transactions, national intelligence, collaboration in the areas of academic research as well as pharmaceutical, aerospace and defense industries) that require the authentication of parties involved. The Federal NSTIC or National Strategy for Trusted Identity in Cyberspace which addresses the need for a trusted identity ecosystem is actively engaging in efforts to promote and secure the economic vitality of cyber commerce.
ICAO and NIST standards have been developed that recognize biometrically enabled authentication to be among the strongest levels of assurance for identity validation.
SSW: Congratulations on the recent win with Los Angeles World Airports. Without divulging any proprietary or confidential information, of course, can you share with us more about the solutions IWS delivered here?
Jim Miller: Los Angeles World Airport is the flagship deployment for our next generation biometric identity management and advanced credentialing platform. When this solution is fully implemented-which we expect by Q4 2012-it will not only deliver a state of the art biometric-based airport credentialing solution, but will also ensure that the Los Angeles World Airports can adapt this credentialing solution to meet developing needs and evolving technology capabilities, thus "Future Proofing" their investment for the long term. Our BE 2.0 platform allows our clients to treat biometrics as a "plug-and-play" model while safeguarding the underlying data. Our recent selection in Ecuador to provide biometric credentials for the country's seaports is a replication of this implementation in the Spanish language.
SSW: Your Case Studies ( www.iwsinc.com/support/case-studies ) speak volumes about the leadership position IWS has achieved in your space. Are there any other "wins" or success stories you'd like to discuss?
Jim Miller: Our work with the US Veterans Administration, one of the largest providers of health care services in the world, is particularly instructive.
HSPD-12 requires federal agencies to provide biometrically enabled credentials to all employees and contractors to secure both the physical and logical access to federal facilities and computer systems. IWS continues to support one of the largest HSPD-12 deployments to date at the Department of Veterans Affairs. Our software is deployed throughout 245 VA medical centers nationwide and the solution suite was recently extended to the 80 mobile detachments used to serve rural VA facilities.
IWS client and server-side components for biometric verification are a key factor in authenticating VA staff and contractors for secure login to VA computers.
IWS customer support provides ongoing maintenance and upgrades to products deployed within the VA infrastructure.
SSW: IWS truly has an impressive list of best-of-breed strategic partners including HP, IBM, Oracle, and Unisys, just to name a few. Can you give us some color about the nature of these strategic relationships?
Jim Miller: IWS's strategic relationships are critical to our marketplace success. We work closely with our partners to ensure that we fully understand market requirements and continue to deliver industry-leading solutions. We are currently in discussions with a number of new partners aligned with our next generation goals and expect some strategically significant announcements over the next few months. As our partners recognize the power of a patented platform specifically optimized for biometrics which allows for the "agnostic" use of hardware and algorithms, you will see an increase in the number of strategic partner arrangements we have.
SSW: How about a quick patent update? We see that IWS has recently been awarded four patents in the U.S., Canada, China and Australia. Please tell us more.
Jim Miller: The IWS patent portfolio which now consists of 9 US patents and four in foreign countries is indicative of our invention, innovation and leadership in the field of multi-modal biometrics and analysis using a seamlessly integrated software platform that is agnostic to choice of biometric modality and hardware. We also hold the US patent on multi-modal biometric fusion. We are always pleased when patent offices around the world recognize that innovation with the award of a patent. Recently, we have added four new patents in the field of mobile communications which will allow us to accelerate our entry into the commercial sector and provide industry-leading solutions to better secure mobile-based transactions particularly in the health care and financial transaction markets. We are already seeing traction in those areas and are excited at this rapidly developing market for our products.
SSW: Let's turn to some recent, significant, and positive financial developments. We understand IWS recently completed a $10.0 million equity financing which enabled IWS to eliminate all long-term debt and existing Series C and D Preferred Stock. Do you have the working capital you need now to execute your business plan?
Jim Miller: We do, and it's full speed ahead as we move into the marketing and sales phase of our next generation biometric identity management and advanced credentialing platform. We are excited about the future and we think ImageWare's current and future customers are going to like what they see coming their way!
SSW: Thank you very much for your time, Jim.