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): August 14, 2003

SAFLINK CORPORATION

(Exact name of registrant as specified in its charter)

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

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 August 14, 2003, regarding information about the Company’s financial results for the quarter ended June 30, 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 August 14, 2003, the Company issued a press release announcing the Company’s financial results for the quarter ended June 30, 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
August 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, August 14, 2003, regarding information about the Company’s financial results for the quarter ended June 30, 2003

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EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

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

SAFLINK^® CORP. REPORTS SECOND QUARTER 2003 FINANCIAL RESULTS

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

Revenue for the second quarter of 2003 was $167,000 compared to $597,000 in the first quarter of 2003 and $364,000 in the second quarter of 2002. The Company reported a net loss attributable to common stockholders of $3.4 million, or $0.13 per share, in the second quarter of 2003 compared to a net loss attributable to common stockholders of $2.0 million, or $0.09 per share, in the first quarter of 2003, and a net loss attributable to common stockholders of $1.6 million, or $0.12 per share, in the second quarter of 2002.

For the six months ended June 30, 2003, revenue was $764,000 compared to $560,000 in the first six months of 2002. The Company reported a net loss attributable to common stockholders of $5.4 million, or $0.22 per share compared to a net loss attributable to common stockholders of $8.0 million, or $0.68 per share, in the first six months of 2002.

“The second quarter was marked by our investment in our sales and distribution infrastructure that we believe will help to significantly improve our sales results in the coming quarters. During the second quarter we hired and trained a new direct sales team; signed up and trained the second largest Citrix distributor in the U.S.; became compliant with a key U.S. Food and Drug Administration regulation to allow us to pursue sales opportunities in the pharmaceutical industry and reached an agreement with a major PC manufacturer to provide our products to its customers. Building this infrastructure required a significant amount of effort and focus by management and our employees, but we believe it was a prudent investment in our future.” said Glenn Argenbright, SAFLINK’s President and Chief Executive Officer.

Argenbright continued, “We were able to make this investment while maintaining a healthy cash balance on our balance sheet of over $12 million. In addition to the increased traction we’re seeing in the healthcare vertical, we are optimistic about the sales initiatives we are engaged in at several leading pharmaceutical companies, as we continue to stay focused on the opportunities with the Department of Defense’s Common Access Card (CAC) program and the Transportation Security Administration’s TWIC initiative. We are also very pleased with our participation on the teams that recently won contract awards from the Office of the Secretary of Defense (OSD) and the Defense Information Systems Agency (DISA). We view these contract awards as encouraging signs that the Federal government is continuing its support for the adoption of biometric technologies.”

The Company will hold an earnings conference call 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).

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,” “SAFsolution,” and “The Power of Biometric Authentication” are registered trademarks 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 June 30,						Six months ended June 30,
	2003			2002			2003			2002
Revenue:
Product	$	87		$	121		$	357		$	257
Service		80			243			407			303
Total revenue		167			364			764			560
Cost of revenue:
Product		36			168			91			279
Service		79			96			163			123
Total cost of revenue		115			264			254			402
Gross profit		52			100			510			158
Operating expenses:
Product development		705			406			1,186			808
Sales and marketing		1,482			369			2,485			728
General and administrative		1,251			942			2,247			1,903
Total operating expenses		3,438			1,717			5,918			3,439
Operating loss		(3,386	)		(1,617	)		(5,408	)		(3,281	)
Interest expense		(5	)		—			(5	)		(38	)
Other income, net		21			(4	)		31			4
Net loss		(3,370	)		(1,621	)		(5,382	)		(3,315	)
Preferred stock dividend		—			—			—			4,731
Net loss attributable to common stockholders	$	(3,370	)	$	(1,621	)	$	(5,382	)	$	(8,046	)
Basic and diluted loss per common share:
Net loss	$	(0.13	)	$	(0.12	)	$	(0.22	)	$	(0.28	)
Preferred stock dividend		—			—			—			(0.40	)
Net loss attributable to common stockholders	$	(0.13	)	$	(0.12	)	$	(0.22	)	$	(0.68	)
Weighted average number of common shares outstanding		26,074			13,036			23,986			11,836

SAFLINK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

ASSETS	June 30, 2003			December 31, 2002
Current assets:
Cash and cash equivalents	$	12,179		$	7,447
Accounts receivable, net		240			143
Inventory		132			39
Other current assets		574			790
Total current assets		13,125			8,419
Furniture and equipment, net		563			199
	$	13,688		$	8,618
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	448		$	758
Accrued expenses		449			467
Deferred revenue		47			130
Total current liabilities		944			1,355
Stockholders’ equity:
Preferred stock		—			—
Common stock		267			196
Additional paid-in capital		103,108			92,316
Accumulated deficit		(90,631	)		(85,249	)
Total stockholders’ equity		12,744			7,263
	$	13,688		$	8,618