ImageWare Systems Issues Third Quarter 2012 Corporate Update
SAN DIEGO, CA, Nov 14, 2012 (MARKETWIRE via COMTEX) --
ImageWare Systems, Inc. (OTCQB: IWSY) ("ImageWare" or "IWS"), a
leader in multimodal biometric security solutions, has issued a
corporate update to highlight the company's progress during the third
quarter ended September 30, 2012.
Key Milestones and Events
-- Introduced IWS CloudID(TM) (CloudID), a modular, service-orientated,
architecture-based software platform that allows for the rapid
development and deployment of highly secure, yet flexible identity
-- IWS's patented Biometric Engine(R) (BE) 2.0 became the first
biometric management solution certified on Fujitsu's NuVola Private
Cloud Platform. In conjunction with a three year software license
agreement, IWS will be working with Fujitsu at the Microsoft Partner
Solutions Center to create paying, proof of concept pilot projects.
-- Charles Crocker, chairman and CEO of Crocker Capital, a private
investment firm with a particular interest in companies with patented
mobile technology in the health care and financial markets, was
appointed to IWS's board of directors.
Progress Overview and Outlook
Since ImageWare's last update in August, the company has achieved
multiple milestones in product and corporate development.
In September, ImageWare introduced CloudID, its next-generation,
cloud-ready suite of identity solutions. The heart of this product
suite is the re-envisioned and re-engineered BE 2.0, which
accelerates the development and deployment of enterprise-class
biometric identity solutions for hundreds of millions of data sets.
It also provides a level of modularity, interoperability and massive
scalability, from mobile devices to large-scale databases, that was
previously unavailable in the biometrics and credentialing
Also, during the third quarter, ImageWare's patented, multimodal BE
2.0 became the first agnostic multi-biometric management solution
certified on Fujitsu's NuVola Private Cloud Platform for the
enterprise. BE 2.0 enhances critical security functions, allowing
rapid deployment of biometric solutions across the NuVola Private
Cloud Platform. Fujitsu plans to launch this platform worldwide in
the fourth quarter of 2012.
In conjunction with this certification, Fujitsu and ImageWare have
entered into a three year software license agreement to incorporate
the BE 2.0 on the NuVola Private Cloud Platform, whereby ImageWare
will be paid on a revenue sharing basis. The company will also be
working with Fujitsu at the Microsoft Partner Solutions Center to
demonstrate several paying, proof of concept pilot projects that will
showcase Fujitsu's cloud solution running IWS's CloudID products and
services. The intent is to operate CloudID on Fujitsu's public cloud
as a software as a service (SaaS) offering. ImageWare expects this
agreement will increase its revenues while providing greater
stability and forward-looking visibility.
"At the end of last year, we set a goal to establish a leadership
position in biometric-based identity management for the cloud," said
Jim Miller, chairman and CEO of ImageWare. "The release of our BE 2.0
earlier this year, followed by the CloudID product suite, has clearly
paved the way toward achieving this goal. Our proven experience in
the government sector is translating perfectly into the commercial
market, and we are gaining traction with customer adoption as
demonstrated by our Fujitsu license agreement."
"Working with a global partner and leading IT innovator like Fujitsu
and their NuVola Private Cloud allows ImageWare to quickly enter the
private cloud arena," continued Miller. "The worldwide deployment of
this platform represents a significant growth opportunity for
ImageWare and also demonstrates our multi-biometric security
During the third quarter, the company also advanced the development
of its biometric-secured mobile transaction technology, building upon
the wireless push technology and related patents it acquired from
VOCEL earlier in the year. 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. The company
plans to release the first demonstration models of this mobile
technology to key potential corporate users in early December.
In addition to product development, ImageWare has been preparing for
a major international deployment as the exclusive provider of
biometric identity management for a prime contractor installing cargo
scanning security at the Republic of Ecuador's major seaports. The
initial deployment is currently scheduled to begin in the early part
of 2013 at the Port of Guayaquil, the country's main seaport that
handles a majority of its imports and exports. ImageWare expects to
receive a fee for every port worker receiving credentials, as well as
an annual management and maintenance fee, based on a percentage of
the initial credentialing cost per worker. Depending upon the number
of enrollees, the company expects the contract value to exceed $3.0
million over its seven year term.
"The high-end biometric secure credentialing solution we are
providing for Ecuador is the same technology being deployed for the
Los Angeles World Airports, which we announced earlier this year,"
noted Miller. "In fact, we can easily replicate this platform for
virtually any port system that needs transportation worker
identification cards in order to comply with the SAFE Port Act. Not
only are our solutions easily deployable, for ImageWare they
generally represent gross margins above 70% as well as a recurring
revenue stream. Our unique patented technology has the potential to
provide us strong, steady revenue growth, along with excellent
Miller added: "Historically, our revenues have been lumpy and
difficult to predict as a result of our dependence upon larger
government projects. Although we will continue to pursue government
contracts, we believe the proactive steps we have taken to operate in
the commercial and consumer markets will begin to provide us with
monthly recurring revenue throughout 2013, driven primarily from our
Cloud, SaaS and mobile offerings."
On September 10, the company enhanced its corporate governance with
the addition of Charles Crocker to its board of directors. Crocker is
chairman and CEO of Crocker Capital, a private investment firm with a
particular interest in companies with patented mobile technology in
the health care and financial markets. Prior to Crocker Capital, he
served as chairman of the board and CEO of BEI Technologies, a
NASDAQ-listed, diversified technology company which he founded. The
appointment of Crocker follows two other important board additions:
John Cronin, managing director and Chairman of ipCG, the world's
largest intellectual property strategy consulting firm and Neal
Goldman, president and director of Goldman Capital Management and
ImageWare's largest shareholder.
"Charlie's extensive experience in leading and advising numerous
public technology companies is highly complementary to our board and
an invaluable resource to management," concluded Miller. "We have now
assembled a very knowledgeable and accomplished board that will help
guide us toward our goal of becoming the industry standard in
biometric identity management."
ImageWare will hold a conference call today at 5:00
p.m. Eastern time (2:00 p.m. Pacific time) to discuss its progress
during the third quarter ended September 30, 2012. The company's
Chairman and CEO Jim Miller and CFO Wayne Wetherell will host the
conference call, followed by a question and answer period.
Date: Wednesday, November 14, 2012
Time: 5:00 p.m. Eastern time
(2:00 p.m. Pacific time)
Dial-In Number: 1-888-846-5003
Conference ID#: 4573986
Please call the conference telephone number 5-10 minutes prior to the
start time. An operator will register your name and organization. If
you have any difficulty connecting with the conference call, please
contact Liolios Group at 1-949-574-3860.
The conference call will be broadcast live and available for replay
at http://public.viavid.com/index.php id=102413 and via ImageWare's
investor relations section at www.iwsinc.com.
A replay of the conference call will be available after 8:00 p.m.
Eastern time on the same day through December 14, 2012.
Toll-free replay number: 1-877-870-5176
International replay number:
Replay pin number: 4573986
About ImageWare Systems, Inc.
ImageWare Systems, Inc. (OTCQB: IWSY) 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. ImageWare is
headquartered in San Diego, CA, with offices in Portland, OR,
Washington, D.C., and Ottawa, Ontario. For more information on
ImageWare Systems, visit www.iwsinc.com.
Forward Looking Statements
Any statements contained in this document that are not historical
facts are forward-looking statements as defined in the U.S. Private
Securities Litigation Reform Act of 1995. Words such as "anticipate,"
"believe," "estimate," "expect," "forecast," "intend," "may," "plan,"
"project," "predict," "if", "should" and "will" and similar
expressions as they relate to ImageWare Systems, Inc. ("ImageWare")
are intended to identify such forward-looking statements. ImageWare
may from time to time update these publicly announced projections,
but it is not obligated to do so. Any projections of future results
of operations should not be construed in any manner as a guarantee
that such results will in fact occur. These projections are subject
to change and could differ materially from final reported results.
For a discussion of such risks and uncertainties, see "Risk Factors"
in ImageWare's Annual Report on Form 10-K for the fiscal year ended
December 31, 2011, its quarterly reports on Form 10-Q for the quarter
ended June 30, 2012, and its other reports filed with the Securities
and Exchange Commission under the Securities Exchange Act of 1934, as
amended. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the dates on which
they are made.
Liolios Group, Inc.
SOURCE: ImageWare Systems, Inc.
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