iSIGN Reports Third Quarter 2016 Results
SAN JOSE, CA, November 14, 2016 – iSign Solutions Inc. (“iSIGN”) (OTCQB: ISGN), a leading supplier of electronic signature and other software solutions enabling secure, cost-effective and paperless management of contracts and other document-based transactions, today reported revenue of $221,000 for the three months ended September 30, 2016, a decrease of $130,000, or 37%, compared to revenue of $351,000 for the prior year. For the nine months ended September 30, 2016, total revenue was $853,000, a decrease of $311,000, or 27%, compared to total revenue of $1,164,000 for the same period in the prior year.
“Despite lower than hoped for revenue, the current quarter reflects our efforts in significantly reducing our loss from operations,” said Philip Sassower, co-chairman and chief executive officer for iSIGN. “Our resources remain focused on partner integration and recurring revenue prospects, as well as on supporting our key software development requirements and opportunities. Last month, we announced completion of an iSign® Console™ implementation with an existing client, a Top 5 US P&C insurer. Last week, facilitated by our simplified balance sheet, we closed a round of funding for an aggregate amount of $900,000 to support our reduced burn rate.”
For the quarter ended September 30, 2016, operating expenses were $791,000, a decrease of $410,000, or 34%, compared to operating expenses of $1,201,000 in the prior year. For the nine months ended September 30, 2016, operating expenses were $3,418,000, a decrease of $643,000, or 16%, compared to operating expenses of $4,061,000 for the same period in the prior year. These decreases primarily were due to our ongoing efforts to optimize our cost structure.
For the quarter ended September 30, 2016, the net loss attributable to common stockholders was $449,000, a decrease of $1,223,000, or 73%, compared to a net loss attributable to common stockholders of $1,672,000 in the prior year. This decrease primarily was due to a $280,000 decrease in loss from operations, a $155,000 increase in gain on derivative liability and an $819,000 decrease in preferred stock dividend expense, partially offset by increases in interest expense and amortization of debt discount.
For the nine months ended September 30, 2016, the net loss attributable to common stockholders was $4,285,000, a decrease of $1,460,000, or 25%, compared to a net loss attributable to common stockholders of $5,745,000 in the prior year. This decrease primarily was due to a $332,000 decrease in loss from operations, a $312,000 gain on derivative liability, a $282,000 decrease in accretion of beneficial conversion feature and a $1,022,000 decrease in preferred stock dividend expense, partially offset by increases in interest expense and amortization of debt discount.
Additional financial information regarding iSIGN’s operating results for the three months ended September 30, 2016 will be available in the Company’s Quarterly Report on Form 10-Q that will be filed with the Securities and Exchange Commission and available at www.sec.gov.
iSIGN (formerly known as Communication Intelligence Corporation or CIC) is a leading provider of digital transaction management (DTM) software enabling fully digital (paperless) business processes. iSIGN’s solutions encompass a wide array of functionality and services, including electronic signatures, simple-to-complex workflow management and various options for biometric authentication. These solutions are available across virtually all enterprise, desktop and mobile environments as a seamlessly integrated software platform for both ad-hoc and fully automated transactions. iSIGN’s software platform can be deployed both on-premise and as a cloud-based service, with the ability to easily transition between deployment models. iSIGN is headquartered in Silicon Valley. For more information, please visit our website at www.isignnow.com. iSIGN’s logo is a trademark of iSIGN.
FORWARD LOOKING STATEMENTS
Certain statements contained in this press release, including without limitation, statements containing the words “believes”, “anticipates”, “hopes”, “intends”, “expects”, and other words of similar import, constitute “forward looking” statements within the meaning of the Private Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual events to differ materially from expectations. Such factors include the following (1) technological, engineering, quality control or other circumstances which could delay the sale or shipment of products containing the company’s technology; (2) economic, business, market and competitive conditions in the software industry and technological innovations which could affect customer purchases of the company’s solutions; (3) the company’s inability to protect its trade secrets or other proprietary rights, operate without infringing upon the proprietary rights of others or prevent others from infringing on the proprietary rights of the company; and (4) general economic and business conditions.
Chief Financial Officer