Intellicheck Announces Third Quarter Financial Results
MELVILLE, N.Y.--(BUSINESS WIRE)--Nov 14, 2018--Intellicheck, Inc. (NYSE American: IDN), an industry leader in identification authentication solutions, today announced its financial results for the third quarter ended September 30, 2018.
Revenue for the third quarter ended September 30, 2018 increased 8% to $1,039,581 versus $966,690 in the prior year comparable period. SaaS revenue in the third quarter grew 25% and totaled $651,000 versus $521,000 in the quarter ending September 30, 2017. Gross profit as a percentage of revenues was 89.1% for the three months ended September 30, 2018 and 2017.
Intellicheck CEO Bryan Lewis said, “I am excited to announce that we have signed an agreement with a top five bank to deploy our Retail ID product solutions at the bank’s branches and with their retail clients. We have already started the development work for this major financial institution and we have a planned rollout starting by the end of Q2, 2019.”
Lewis continued, “As is evidenced by this top five bank, we believe there is a growing realization across our key markets of the importance of identification authentication as the single most important step in combating fraud, keeping age-restricted products like alcohol, e-cigarettes and marijuana out of the hands of young people, and increasing police officer effectiveness and safety. Our products are proven, cost-effective solutions that demonstrate their value in addressing these pressing industry problems and I remain confident that the market is coming our way.”
The net loss for the three months ended September 30, 2018 was ($1,131,219) or ($0.07) per diluted share versus ($1,074,845) or ($0.08) per diluted share in the comparable prior year period. Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation expense and certain non-recurring charges) was a loss of ($1,048,466) for the third quarter of 2018 versus a loss of ($888,444) in the prior year comparable period. A reconciliation of adjusted EBITDA to net loss is provided elsewhere in this release.
Cash at September 30, 2018 totaled $5.4 million and stockholders’ equity totaled $13.6 million at the end of period.
The financial results reported today do not take into account any adjustments that may be required in connection with the completion of the Company’s review process and should be considered preliminary until Intellicheck files its Form 10-Q for the fiscal period ended September 30, 2018.
Conference Call Information:
The Company will hold an earnings conference call today, November 14, at 4:30 p.m. ET/1:30 p.m. PT to discuss operating results. To listen to the earnings conference call, please dial 877-407-8037. For callers outside the U.S., please dial 201-689-8037.
A replay of the conference call will be available shortly after completion of the live event. To listen to the replay, please dial 877-660-6853 and use conference identification number 13684538. For callers outside the U.S., please dial 201-612-7415 and use conference identification number 13684538. The replay will be available beginning approximately two hours after the completion of the live event and will remain available until November 28, 2018.
We use Adjusted EBITDA as a non-GAAP financial performance measurement. Adjusted EBITDA is calculated by adding back to net loss, interest and other income, income taxes, impairments of long-lived assets and goodwill, depreciation, amortization and stock-based compensation expense. Adjusted EBITDA is provided to investors to supplement the results of operations reported in accordance with GAAP. Management believes that Adjusted EBITDA provides an additional tool for investors to use in comparing our financial results with other companies that also use Adjusted EBITDA in their communications to investors. By excluding non-cash charges such as impairments of long-lived assets and goodwill, amortization, depreciation and stock-based compensation, as well as non-operating charges for interest and income taxes, investors can evaluate our operations and can compare the results on a more consistent basis to the results of other companies. In addition, Adjusted EBITDA is one of the primary measures management uses to monitor and evaluate financial and operating results.
We consider Adjusted EBITDA to be an important indicator of our operational strength and performance of our business and a useful measure of our historical operating trends. However, there are significant limitations to the use of Adjusted EBITDA since it excludes interest and other income and expense, impairments of long-lived assets and goodwill, stock-based compensation expense, all of which impact our profitability, as well as depreciation and amortization related to the use of long-term assets which benefit multiple periods. We believe that these limitations are compensated by providing Adjusted EBITDA only with GAAP net loss and clearly identifying the difference between the two measures. Consequently, Adjusted EBITDA should not be considered in isolation or as a substitute for net loss presented in accordance with GAAP. Adjusted EBITDA as defined by us may not be comparable with similarly named measures provided by other entities.
A reconciliation of GAAP net loss to Non-GAAP Adjusted EBITDA follows:
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