EX-99.1 3 dex991.htm PRESS RELEASE OF SAFLINK CORPORATION Press Release of SAFLINK Corporation

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