Intelli-Check
Third Quarter 2005 Update
Intelli-Check reported third quarter revenue and earnings for the period ending September 30, 2004. For the quarter, revenue increased by nearly 85% to $430,000, while the losses declined by 57% to $(765,000) from $(1.8) million, or $(0.07) per share versus $(0.17) for the same quarter in 2004. The lower losses were attributable to both the higher revenue and the decrease in operating expenses. Operating expenses for the third quarter of 2004 were significantly higher due to the Tricom patent litigation.
For the nine month period, revenue of $1.7 million was almost 18% higher than the $791,000 reported for the same period in 2004, while the loss per share was $(0.25) as compared to $(0.57).
On the third quarter conference call, management pointed out that recent operating improvements and expected continuation of growth were directly related to its increasing customer base, diversification of revenue sources, and refined strategic focus. The strategic focus refinements include continuing expansion of commercial business through more value added productivity and data collection and analysis features, as well as a greater emphasis on establishing recurring revenue streams from existing customers through licensing and subscription models.
Recent contracts and partnership arrangements, such as with Anteon, Certegy, and Verifone, as well as with several undisclosed but very large companies in both the retail and financial services sector, along with increasing Homeland Security initiatives from the government sector, support significant growth in the foreseeable future.
We continue to expect a per share loss of about $(0.32) on $2.4 million in net revenue for the current fiscal year and growth to $7.5 million in revenue and $0.02 in per share earnings for 2006. We reiterate our Buy recommendation.