Intellicheck announced its financial results for the second quarter ended June 30, 2017.
Intellicheck, an industry leader in delivering real-time threat identification and identification authentication that provides the antivirus to the epidemic of counterfeit IDs, announced its financial results for the second quarter ended June 30, 2017.
Revenue for the second quarter ended June 30, 2017 increased 1% to $951,000 compared to $940,000 for the quarter ended June 30, 2016. SaaS revenue increased approximately 117% to $300,000 for the second quarter, compared to $138,000 for prior year comparable period. The Company’s booked orders for the second quarter increased 5.4% to approximately $895,000 compared to $849,000 during the prior year comparable quarter. Gross profit as a percentage of revenues was 78.5% for the three months ended June 30, 2017 compared to 79.6% for the three months ended June 30, 2016. The slight decrease in gross profit was due to revenue mix that included equipment sales related to a customer that concluded a paid SaaS pilot and went live in all their retail stores late in the second quarter.
Operating expenses, which consist of selling, general and administrative, and research and development expenses, decreased by approximately 27% or $681,000 to $1,847,000 for the three months ended June 30, 2017 from $2,528,000 in the comparable prior year period. The net loss for the three months ended June 30, 2017 improved 38% to $1,099,000 or $0.10 per diluted share compared to a net loss of $1,775,000 or $0.19 per diluted share for the comparable prior year period.
Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation expense and certain non-recurring charges) for the quarter ended June 30, 2017 improved 30% to a loss of $902,000 compared to an Adjusted EBITDA loss of $1,293,000 for 2 the second quarter of 2016. A reconciliation of net loss to adjusted EBITDA is provided elsewhere in this release.
“This quarter has been defined by important achievements reflected in the demonstrated traction of Age ID and the exceptional growth in adoption of Retail ID. This quarter also marked the first implementation of our Retail ID Online product that addresses the rapidly growing ECommerce channel. Our Age ID and Retail ID paid product pilots with major brands have exceeded expectations with ROI’s yielding quick payback times as we realize continued progress in converting from paid pilots to contracts. We expect further advances as we increase pilots across key markets with organizations ranging from credit card companies and nationally recognized retail organizations to major concessionaires that will allow us to build on key market momentum and further growth of SaaS recurring revenue,” said Intellicheck CEO Dr. William Roof.
“We believe that our successes have expanded our position across key verticals and market recognition of our leadership based on our demonstrated core competencies and our worldclass products. We are moving quickly to capitalize on this momentum as is evident in the early third quarter capital raise undertaken with Oppenheimer & Co. Inc. and Northland Capital. We intend to use the proceeds from this raise to significantly increase our sales force and onboard additional product engineers to expedite implementations, develop incremental features and benefits that will present up-sell opportunities, and further commercialize our biometric focused patent. We believe that there is significant growth opportunity as we remain focused on leveraging these successes with high gross margin products and innovation to drive continued strong demand and new market opportunities,” Dr. Roof concluded.
The financial results reported do not take into account any adjustments that may be required in connection with the completion of the Company’s review process and should be considered preliminary until Intellicheck files its Form 10-Q for the fiscal quarter ended June 30, 2017.