IDEX releases interim report

IDEX releases interim report

IDEX Biometrics, a leading provider of advanced fingerprint identification and authentication solutions for payment, reported that for the second quarter ended June 30, 2021, the company recorded revenue of $697 thousand, compared to $149 thousand for the second quarter of 2020, representing an increase of 368%. Sequentially, revenues increased 12% from first quarter 2021 revenue of $624 thousand.

Total operating expenses for the second quarter of 2021 were $8.1 million, compared to $6.3 million for the second quarter of 2020, representing an increase of 29%. Operating expenses were flat sequentially.

Net loss for the second quarter of 2021 totaled ($7.2 million), representing a loss per share of ($0.01), in contrast to ($6.4 million) for the second quarter of 2020, representing a loss per share of ($0.01), and ($7.5 million) for the first quarter of 2021, representing a loss per share of ($0.01).

The Company incurred an operating cash deficit of ($6.7 million) for the second quarter of 2021, versus ($5.7 million) for the second quarter of 2020 and ($6.9 million) for the first quarter of 2021. The Company’s cash balance totaled $19.3 million as of June 30, 2021, versus $25.9 million as of March 31, 2021.

Commercial and Market Updates

Second quarter 2021 events reflected continued progress toward large-scale smart card deployment with customers and issuers:

  • The Company received its first significant production order for its TrustedBio solution from IDEMIA, supporting the launch of IDEMIA’s second-generation F.CODE card earlier in the quarter.
  • Activities in Asia, notably China, are resulting in further expansion of the Company’s pipeline of opportunities for near-term revenue, with biometrically-enabled applications in payment cards, multi-use cards (e.g., payment cards also used for electronic ticketing), the rapidly evolving DCEP space, and access control.

The Company continues to enjoy sustained demand from its initial customer for a card-based access control solution for computer networks, addressing the vulnerabilities of password-based credentials with an easy-to-use, cost effective, and highly secure solution based on the Company’s technologies.

Commenting on recent events and performance, Vince Graziani, Chief Executive Officer, stated, “I am pleased to report the Company’s order backlog continued its promising expansion, and I am confident the long-awaited uptake in fingerprint-based card authentication is approaching.  In addition, recently announced commercial achievements and the strengthening of the Company’s leadership team are both important factors contributing to my confidence. Notably, IDEX Biometrics and Infineon Technologies AG, on July 15, jointly announced a new reference design for the highest performance smart card with fingerprint authentication. Based on Infineon’s latest secure element microprocessor, specifically optimized for integration of our TrustedBioTM solution, this reference design enables fingerprint-authenticated EMV payment card transactions that are three times faster than currently available solutions.“

Mr. Graziani continued, “Our partners recognize our innovative and highly-differentiated products address the challenges of high costs and unsatisfactory performance head on.  TrustedBio’s advantages allow for reduced component count, faster time to market, and lower card manufacturing complexity. TrustedBio integrates a large-area sensor and a powerful, yet small-footprint, ASIC into one device offering image capture, algorithmic processing, power harvesting and management, and encryption. No competitor comes close to providing the performance and economic benefits of TrustedBio.”

SuperCom reports revenue rise

SuperCom reports revenue rise

SuperCom, a global provider of secured solutions for the e-Government, IoT and Cybersecurity sectors, today reported results for the three months ended June 30, 2021.

Second Quarter 2021 Financial Highlights (Compared to the First Quarter of 2021):

  • Revenue increased to $3,093 million from $3,032 million.
  • Gross margin increased to 57.6% from 55.3%.
  • EBITDA increased to $684,000 from $652,000.
  • EBITDA margin increased to 22.1% from 21.5%.
  • Cash and cash equivalents increased to $10.9 million from $9 million.

Recent Business Highlights:

  • Won new project in California valued at up to $4 million providing support to offenders reentering the community from periods of incarceration with objective of driving a reduction in recidivism, which represents continued growth in demand for the various offerings in our IoT Tracking segment.
  • Won $3.6 million national electronic monitoring project in Finland, through a competitive national RFP process, and scoring high by offering our proprietary PureSecurity Electronic Monitoring Suite.
  • Experienced an increase in market activity in our IOT segment, resulting in more RFPs and interest in our proprietary IOT segment technology and service offerings in Europe and the USA.
  • Opened a new office in Kentucky, with new sales, sales support and tech support resources tailored to our unique offerings for the USA market. Since the beginning of the second quarter, received requests to demo and evaluate our proprietary technology from over 15 new USA potential customers.
  • Launched new HR programs to attract top talent and are actively recruiting and building world class engineering teams to build our next generation tracking and monitoring products
  • Released new generations and capabilities to our smartphone based monitoring products and solutions including support for new OS and mobile phone architectures.
  • Experienced continued high customer retention and strong relationships with existing customers across all 3 business segments.
  • Closed $5 million financing, which will also help support the Company’s growth strategy.

Management Commentary:

“In the second quarter, we achieved sequential quarterly improvements in revenue and margins in parallel to winning new projects and increasing our investment in long-term growth. We continued to see momentum in our IoT Tracking segment as correctional institutions are increasingly looking at alternative solutions to address challenges associated with overpopulated prisons.  Our remote monitoring solutions, which enable offenders to serve sentences in home confinement, are not only successful in addressing the overpopulated prisons issue, but also enable these institutions to experience substantial cost savings while also reducing recidivism among offenders,” said Ordan Trabelsi, President and CEO of SuperCom.

“At the end of the quarter, we closed $5 million in additional financing that consists of a two-year unsecured promissory note.  Our financings help provide the upfront capital required to support new project deployments, while continuing to invest in growth, taking advantage of the opportunities we see in the market. We continue to execute on our business plan to offer exceptional value to our existing customers and to potential new ones as we expand our global footprint,” concluded Ordan.

Nuance announces 3Q results

Nuance announces 3Q results

Nuance Communications, has announced financial results for its third quarter ended June 30, 2021:

The firm reported GAAP revenue of $336.6 million and GAAP earnings per diluted share of $(0.09), and non-GAAP revenue of $336.6 million and non-GAAP earnings per diluted share of $0.16.

“We are pleased to report another quarter of execution on our key strategic objectives, leading to solid Q3 results on both our top-line and bottom-line,” said Mark Benjamin, Chief Executive Officer at Nuance. “In Healthcare, our shift towards cloud-based offerings across our portfolio helped drive a healthy ARR performance. This performance led in part to our second consecutive quarter of 29% year-over-year growth in Dragon Medical and DAX Cloud revenue. In total, Healthcare revenue increased by 22% year-over-year due to cloud revenue strength. In Enterprise, our Digital Engagement and Security & Biometrics solutions saw continued adoption throughout the quarter, leading to a return to year-over-year growth in Q3. Overall, Enterprise revenue increased 5% year-over-year, driven by the adoption of these solutions. We are encouraged by the company’s overall performance year-to-date, and feel we are set up for a strong end to fiscal year 2021.”

On March 1, 2021, we completed the sale of our medical transcription and electronic healthcare record implementation businesses. Accordingly, for all periods presented, the businesses’ results of operations have been included within discontinued operations in our condensed consolidated financial statements. All commentary is provided on a continuing operations basis. A reconciliation of continuing and discontinued operations to total operations is provided in the accompanying tables.

Q3 2021 results for continuing operations included:

  • GAAP and Non-GAAP revenue of $336.6 million, compared to $298.6 million in the same period last year.
  • GAAP operating income of $4.8 million, compared to $11.9 million in the same period last year.
  • Non-GAAP operating income of $74.2 million, compared to $63.8 million in the same period last year.
  • GAAP operating margin of 1.4%, compared to 4.0% in the same period last year.
  • Non-GAAP operating margin of 22.0%, compared to 21.4% in the same period last year.
  • GAAP net loss of $26.3 million, compared to a net income of $2.3 million in the same period last year.
  • Non-GAAP net income of $50.4 million, compared to $40.5 million in the same period last year.
  • GAAP EPS of $(0.09), compared to $0.01 in the same period last year.
  • Non-GAAP EPS of $0.16, compared to $0.14 in the same period last year.
  • Operating cash flows from continuing operations was $45.8 million, compared to $14.6 million in the same period last year.

Proposed Merger with Microsoft
On April 11, 2021, Nuance entered into an Agreement and Plan of Merger with Microsoft Corporation. Subject to the terms and conditions of the Merger Agreement, Microsoft, through a wholly-owned subsidiary, has agreed to acquire all of the outstanding shares of Nuance common stock for $56.00 per share in an all-cash transaction. As a result of the Merger, Nuance will cease to be a publicly traded company. The Merger is currently intended to close by December 31, 2021. Consummation of the Merger is subject to certain conditions, including the satisfaction of certain regulatory approvals and other customary closing conditions. For additional information related to the Merger Agreement, please refer to the definitive proxy statement previously filed with the SEC and other relevant materials in connection with the transaction that we will file with the SEC and which will contain important information about Nuance and the Merger.

Please refer to the “Discussion of Non-GAAP Financial Measures,” and “GAAP to Non-GAAP Reconciliations,” included elsewhere in this release, for more information regarding the Company’s use of non-GAAP financial measures.

Aware doubles Q2 revenues year-on-year

Aware doubles Q2 revenues year-on-year

Aware, a leading supplier of biometrics software products, solutions and services, today reported financial results for the second quarter ended June 30, 2021.

Second Quarter 2021 and Recent Operational Highlights

  • Recorded more than 18 million transactions in the first half of 2021, compared to 11 million in all of 2020—which is five times the number of transactions in the first half of 2020.
  • Completed the integration of the AFIX product line, strengthening Aware’s physical and human capital assets, establishing an immediately accretive ancillary revenue stream and cementing Aware’s position as a leading provider of software and biometric middleware.
  • Partnered with IRIS ID to empower state and local agencies to take advantage of the FBI’s Next Generation Identification Iris Service, positioning Aware to accelerate the adoption of iris-based identification solutions for criminal justice applications.
  • Selected by IT security company Imprivata to enable self-enrollment for prescribers of electronic prescriptions for controlled substances (EPCS) via Knomi. This first-to-market enrollment solution expands applications of Aware’s Knomi in the healthcare market, further illustrating the positive impact of biometrics in common healthcare use cases.
  • Awarded the prestigious 2021 Global InfoSec Award from Cyber Defense Magazine for Knomi, which was named as the winner for Best Product in Passwordless Authentication due to its field proven capability to protect against cybersecurity threats by replacing theft-prone passwords with secure biometric authentication technology.

Second Quarter 2021 Financial Results
Revenue for the second quarter of 2021 was $4.3 million, compared to $4.4 million in the first quarter of 2021 and up 2.3 times from $1.9 million in the same year-ago period. The year-over-year increase in revenue was primarily the result of increased subscription-based revenue related to growing transaction volume from existing customers.

Net loss in the second quarter of 2021 totaled $1.5 million, or $(0.07) per diluted share, which compares to net loss of $1.4 million, or $(0.07) per diluted share, in the first quarter of 2021 and net loss of $3.1 million, or $(0.15) per diluted share, in the same year-ago period.

Adjusted EBITDA loss (a non-GAAP metric reconciled below) for the second quarter of 2021 was $0.9 million, compared to adjusted EBITDA loss of $3.3 million in the same year-ago period. The year-over-year period increase in adjusted EBITDA was a result of our revenue increase as we started to see the benefit of our prior investment in sales and engineering resources.

Cash and cash equivalents totaled $35.2 million as of June 30, 2021, compared to $38.6 million as of December 31, 2020.

Six Month 2021 Financial Results
Revenue for the six months ended June 30, 2021 was $8.7 million, compared to revenue of $5.4 million in the same year-ago period. The increase in revenue was primarily due to increased subscription-based revenue related to growing transaction volume from existing customers and the upfront recognition of fixed minimum transaction amounts from two new international wins.

Net loss for the six months ended June 30, 2021 was $3.0 million, or $(0.14) per diluted share, which compares to net loss of $4.2 million, or $(0.20) per diluted share, in the same year-ago period.

Adjusted EBITDA loss (a non-GAAP metric reconciled below) for the six months ended June 30, 2021 was $2.0 million, compared to adjusted EBITDA loss of $4.5 million in the same year-ago period. The increase in adjusted EBITDA for the six month period was primarily due to our revenue increase.

Management Commentary
“In the second quarter of 2021 we validated our approach to generating sustainable revenue growth by successfully integrating the AFIX product line and leveraging its existing customer base to secure new accounts that we expect to drive our topline when they become operational,” said Bob Eckel, Aware’s Chief Executive Officer. “We’ve more than doubled last year’s quarterly performance in terms of revenue, net loss and adjusted EBITDA and have taken meaningful steps to align our organization with our ongoing transformation, which we believe will enable us to continue making key internal investments while maintaining a robust balance sheet.

“With a sizeable pipeline and strategic inorganic opportunities that we are actively evaluating on the horizon, Aware is in its strongest position yet. As we continue to recognize transaction contract minimums and grow our recurring subscription-based revenues, we are simultaneously making significant progress on rolling out additional new core business offerings by year end. We expect these offerings to accelerate our entry into Biometric SaaS and open additional channels, enabling us to market a wide array of applications to end users of all sizes and capabilities.”