-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, E3qlSWK59NBzNSEEHTVE/s7375CCbMy94YYExxKA0486YswV75K20nGGBFCj4yp6 0ZTJfAUX4IjietwEZdhlXQ== 0000727634-04-000006.txt : 20040423 0000727634-04-000006.hdr.sgml : 20040423 20040423135818 ACCESSION NUMBER: 0000727634-04-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040331 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040423 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMMUNICATION INTELLIGENCE CORP CENTRAL INDEX KEY: 0000727634 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [3577] IRS NUMBER: 942790442 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19301 FILM NUMBER: 04750449 BUSINESS ADDRESS: STREET 1: 275 SHORELINE DR 6TH FL STREET 2: STE 520 CITY: REDWOOD SHORES STATE: CA ZIP: 94065 BUSINESS PHONE: 6508027888 MAIL ADDRESS: STREET 1: 275 SHORELINE DR STREET 2: STE 520 CITY: REDWOOD SHORES STATE: CA ZIP: 94065 8-K 1 fr8kpr0104.txt FIRST QUARTER ENDED MARCH 31, 2004 SECURITIES AND EXCHANGE COMMISSION Washington D.C. FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 April 22, 2004 Date of Report (Date of earliest event reported) COMMUNICATION INTELLIGENCE CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation) 0-19301 94-2790442 - --------------------------------------- ------------------------------------ (Commission file number) (IRS employer identification number) 275 Shoreline Drive, Suite 500, Redwood Shores, CA 94065 -------------------------------------------------------- (Address of principal executive offices) (650) 802-7888 ---------------- (Registrant's telephone number, including area code) ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. Communication Intelligence Corporation (the "Company") incorporates herein by reference the matters set forth in the Company's press release dated April 22, 2004 (the "Press Release"), Filed as Exhibit 99.1 hereto. The Press Release announces the Company's first quarter 2004 financial results. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) EXHIBITS. The following document is being filed by the Company as an Exhibit to this report. EXHIBITS 99.1 Press release of the Company dated April 22, 2004. -2- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: April 22, 2004 COMMUNICATION INTELLIGENCE CORPORATION (Registrant) By: /s/ Frank Dane ------------------------------- Frank Dane Chief Financial Officer -3- EXHIBIT INDEX Exhibit No. Subject Matter Page No. - ---------- -------------- ------- 99.1 Press release of the Company dated April 22, 2004 1 -4- EX-99 2 fr8kfs0104.txt FINANCIAL STATEMENTS EXHIBIT 99.1 FOR IMMEDIATE RELEASE Contact: Frank V. Dane Phone: 650-802-7737 Email: fdane@cic.com COMMUNICATION INTELLIGENCE CORPORATION REPORTS FIRST QUARTER 2004 FINANCIAL RESULTS CIC Achieves Most Profitable Quarter in Its History Redwood Shores, CA, April 22, 2004 - (OTC BB: CICI) Communication Intelligence Corporation ("CIC" or the "Company"), the leader in biometric signature verification & natural input software and a leading supplier of electronic signature solutions, announced today its financial results for the first quarter ended March 31, 2004. Total revenues of $2.43 million for the quarter ended March 31, 2004, more than doubled compared to revenues of $1.11 million in the corresponding quarter of the prior year increasing 119%. The increase in revenue is primarily attributable to Wells Fargo, who chose CIC eSignature technology for use in all of its full-service bank locations, and revenue from Charles Schwab, IA Systems, Misys Healthcare, PalmSource, Prudential and TVA. The net income of $1.17 million for the quarter ended March 31, 2004, represents an increase of $1.48 million compared to the net loss of $310,000 incurred in the corresponding quarter of the prior year. Net income on a per share basis was $0.01 on 100.1 million weighted average shares outstanding for the quarter ending March 31, 2004 compared to a net loss per share of $(0.01) on 92 million weighted average shares outstanding for the quarter ending March 31, 2003. These improvements are primarily attributable to the increase in revenue discussed above and an approximate $200,000 improvement in Cost of Sales due to a continuing transition out of the system integration business which has lower margins than our software sales. Operating costs, net of commissions, declined 6% from the first quarter of 2003 as compared to the first quarter of 2004. CIC's Chairman & CEO, Guido DiGregorio stated, "I am delighted to report that we have achieved the most profitable quarter in the history of the Company. The revenue improvement reflects increasing adoption of our eSignature solutions in our target markets, including the financial services industry, and provides further confirmation of our leadership position as recently recognized by Frost & Sullivan with their 2003 Growth Strategy Leadership Award. Both the magnitude of the profit and the 48% Return on Sales is significant and reflects a high level of effective integration of human resources including product development with our China operation resulting in significantly lower base costs. Most impressive is our belief that the current cost structure can support significantly higher revenue without significant increases in base costs." Selected financial information follows. Detailed corporate and financial information is available on CIC's website at www.cic.com About CIC Communication Intelligence Corporation ("CIC") is the leading supplier of biometric signature verification and natural input software and a leading supplier of electronic signature solutions focused on emerging, high potential applications including paperless workflow, handheld computers, smartphones and eCommerce, enabling the world with "The Power to Sign Online(R)". CIC's products are designed to increase the ease of use, functionality, and security of electronic devices and eBusiness processes. CIC sells directly to OEMs and Enterprises and has products available through major retail outlets such as, CompUSA, Staples, OfficeMax, and key integration/channel partners or direct via our website. Industry leaders such as Charles Schwab, Fujitsu, IBM, Oracle, PalmSource, Prudential, Siebel Systems, Siemens Medical Systems, Sony Ericsson, Symbol and TVA have licensed the company's technology. CIC is headquartered in Redwood Shores, California and has a joint venture, CICC, in Nanjing, China. For more information, please visit our website at http://www.cic.com CIC, its logo and the Power to Sign Online are registered trademarks. All other trademarks and registered trademarks are the property of their respective holders. Forward Looking Statements Certain statements contained in this press release, including without limitation, statements containing the words "believes", "anticipates", "hopes", "intends", "expects", and other words of similar import, constitute "forward looking" statements within the meaning of the Private Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors which may cause actual events to differ materially from expectations. Such factors include the following (1) technological, engineering, quality control or other circumstances which could delay the sale or shipment of products containing the Company's technology; (2) economic, business, market and competitive conditions in the software industry and technological innovations which could affect the Company's business; (3) the Company's inability to protect its trade secrets or other proprietary rights, operate without infringing upon the proprietary rights of others or prevent others from infringing on the proprietary rights of the Company; and (4) general economic and business conditions and the availability of sufficient financing. COMMUNICATION INTELLIGENCE CORPORATION Selected Consolidated Statement of Operations Information (In thousands, except per share amounts) Three months ended (Unaudited) 03/31/04 03/31/03 Revenues(1) $ 2,429 $ 1,108 Net income (loss) $ 1,167 $ (310) Basic and diluted net income (loss) per share $ 0.01 $ (0.01) Weighted average shares outstanding 100,101 91,907 Selected Consolidated Balance Sheet Information (In thousands) 03/31/04 12/31/03 (Unaudited) Cash & cash equivalents $ 390 $ 1,039 Total current assets 3,270 2,005 Total assets 8,371 7,215 Deferred revenue (1) 369 165 Total current liabilities (2) 4,899 4,900 Shore-term debt 3,758 3,758 Total stockholders' equity 3,355 2,187 NOTES: (1) Deferred revenues consist principally of advances from customers and deferred maintenance contract revenue. (2) Includes deferred revenues of $369 and $165 as of March 31, 2004 and December 31, 2003, respectively. -----END PRIVACY-ENHANCED MESSAGE-----