8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): May 14, 2003

SAFLINK CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	0-20270	95-4346070
(State or other jurisdiction of	(Commission File Number)	(I.R.S. Employer Identification No.)
incorporation or organization)

777 108th Avenue NE, Suite 2100

Bellevue, Washington 98004

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (425) 278-1100

Item 7.    Financial Statements and Exhibits.

(c)  Exhibits.

Exhibit No.	Description
99.1	Press release of SAFLINK Corporation, dated May 14, 2003, regarding information about the Company’s financial results for the quarter ended March 31, 2003

Item 12.    Results of Operations and Financial Condition.

The information furnished under this Item 12 and the exhibit attached hereto shall not be deemed to be filed for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

On May 14, 2003, the Company issued a press release announcing the Company’s financial results for the quarter ended March 31, 2003. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

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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.

	SAFLINK Corporation
May 14, 2003	By:	/s/    GLENN ARGENBRIGHT
		Glenn Argenbright President and Chief Executive Officer

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release of SAFLINK Corporation, dated May 14, 2003, regarding information about the Company’s results of operations for the quarter ended March 31, 2003

EX-99.1

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

SAFLINK COMPANY CONTACT:	SAFLINK PRESS CONTACT:
SAFLINK Corporation	Sterling Communications
Thomas Doggett, Marketing & Comm. Mgr.	Kate Andrejack
(800) 762-9595	(253)-853-5030
tdoggett@saflink.com	kandrejack@sterlingpr.com

SAFLINK^® REPORTS FIRST QUARTER FINANCIAL RESULTS

Revenue for the quarter up 205% over prior year quarter

BELLEVUE, WA – (May 14, 2003) – SAFLINK^® Corporation (NASDAQ: SFLK), a leading developer, marketer, and integrator of biometric security solutions, today reported its financial results for the first quarter of 2003.

Revenue for the first quarter of 2003 was $597,000, compared to $196,000 in the first quarter of 2002, an increase of 205%. The Company reported a net loss attributable to common stockholders of $2.0 million, or $0.09 per share, in the first quarter of 2003 compared to a net loss attributable to common stockholders of $6.4 million, or $0.61 per share, in the first quarter of 2002.

“I am very pleased with the progress we made on the operational and financial fronts during the first quarter. We added several members to our sales team who have extensive experience in biometric software sales, expanded our relationships with key industry partners such as Microsoft and Citrix, and solidified our balance sheet by raising $9.7 million through warrant exercises,” said Glenn Argenbright, SAFLINK’s President and Chief Executive Officer.

Argenbright added, “We also made real progress with several large government opportunities, such as the Department of Defense’s Common Access Card (CAC) program and the Transportation Security Administration’s (TSA) Transportation Worker Identification Credential (TWIC) initiative. Our work on these projects and our proven ability to deliver scalable solutions has led to burgeoning relationships with other contractors pursuing these and other enterprise opportunities in the government and commercial sectors. And thanks in great part to the hard work of our dedicated employees, our common stock was relisted on the NASDAQ SmallCap Market and began trading there in late April.”

The Company will hold a conference call to discuss financial results today at 5:00 PM EDT. The Company may provide forward-looking information on this call. To listen to the conference, please call 1-800-992-7413 (international callers dial +1-801-303-7424). A recording of the call will be available on the Investors page of the Company’s web site for ten days after the call.

About SAFLINK

SAFLINK Corporation brings “The Power of Biometric Authentication^™” to workstations and enterprise networks through biometrics. The Company provides cost-effective multi-biometric software solutions to verify individual identity, protect valuable information, and replace text-based passwords. These solutions are designed to safeguard and simplify access to electronic systems and online services. Further information is available through the Company’s web site at www.saflink.com.

NOTE: “SAFLINK” is a registered trademark of SAFLINK Corporation. “The Power of Biometric Authentication” is a trademark of SAFLINK Corporation.

This release contains information about management’s view of the company’s future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with the company’s financial condition, its ability to complete new sales contracts entered into this quarter, its ability to convert any backlog or potential sales opportunities into definitive agreements and revenue-producing relationships, its ability to sell its products, its ability to compete with competitors and the growth of the biometrics market as well as other factors that are discussed in the company’s 424(b)(3) Prospectus filed with the SEC August 16, 2002 as amended and supplemented, and in its Annual Report on Form 10-K, as well as other documents periodically filed with the Securities and Exchange Commission.

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SAFLINK CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

	Three months ended March 31,
	2003			2002
Revenue:
Product	$	270		$	136
Service		327			60
Total revenue		597			196
Cost of revenue:
Product		55			111
Service		84			27
Total cost of revenue		139			138
Gross profit		458			58
Operating expenses:
Product development		481			402
Sales and marketing		1,003			359
General and administrative		996			961
Total operating expenses		2,480			1,722
Operating loss		(2,022	)		(1,664	)
Interest expense		—			(38	)
Other income, net		10			8
Net loss		(2,012	)		(1,694	)
Preferred stock dividend		—			4,731
Net loss attributable to common stockholders	$	(2,012	)	$	(6,425	)
Basic and diluted loss per common share:
Net loss	$	(0.09	)	$	(0.16	)
Preferred stock dividend		—			(0.45	)
Net loss attributable to common stockholders	$	(0.09	)	$	(0.61	)
Weighted average number of common shares outstanding		21,874			10,557

SAFLINK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

	March 31, 2003			December 31, 2002
ASSETS
Current assets:
Cash and cash equivalents	$	14,144		$	7,447
Accounts receivable, net		459			143
Other current assets		739			829
Total current assets		15,342			8,419
Furniture and equipment, net		306			199
	$	15,648		$	8,618
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	333		$	758
Accrued expenses		358			467
Deferred revenue		54			130
Total current liabilities		745			1,355
Stockholders’ equity:
Preferred stock		—			—
Common stock		256			196
Common stock subscribed		121			—
Additional paid-in capital		101,787			92,316
Accumulated deficit		(87,261	)		(85,249	)
Total stockholders’ equity		14,903			7,263
	$	15,648		$	8,618