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EXHIBIT 99.2
FOR IMMEDIATE RELEASE
COMMUNICATION INTELLIGENCE CORPORATION
REPORTS EARNINGS FOR THIRD QUARTER 2000
PROFITABLE FOR THE FIRST TIME IN HISTORY
REDWOOD SHORES, CA, OCTOBER 31, 2000 -- (Nasdaq: CICI) Communication
Intelligence Corporation ("CIC" or the "Company"), the leading supplier of
natural input and electronic signature solutions, today announced earnings for
the third quarter of 2000 and results for the nine month period ended September
30, 2000.
Revenues for the three months ended September 30, 2000, increased 19% to $2.35
million as compared to $1.96 million for the corresponding quarter of the prior
year. The Company reported a net profit applicable to common stockholders of
$106,000 for the three months ended September 30, 2000, as compared to a net
loss applicable to common stockholders of $430,000 for the corresponding quarter
of the prior year. The increase in revenue was primarily attributable to an
increase in licensing and royalty revenues of 84%. The increases in net profit
was further enhanced by a decrease in operating costs and expenses of 9% from
the prior quarter, which were primarily related to decreases in cost of goods
sold related to the Company's aftermarket revenues. The basic and diluted income
per share was $0.001 on approximately 84.5 million weighted average common
shares outstanding for the three months ended September 30, 2000 as compared to
a basic and diluted loss of $0.005 per share on approximately 79.6 million
weighted average common shares outstanding for the corresponding quarter of the
prior year.
Revenues for the nine months ended September 30, 2000 increased 7% to $4.97
million as compared to $4.65 million for the corresponding period of the prior
year. The net loss applicable to common stockholders for the nine months ended
September 30, 2000 increased to $1.91 million as compared to a net loss of $1.29
million for the corresponding nine months of the prior year. The increase in net
loss for the nine months ended September 30, 2000 was primarily attributable to
a 13% increase in operating costs and expenses, approximately 70% of which
involves increases in product development, sales and marketing related programs
and investor related activity. The basic and diluted loss per share was $0.023
on approximately 83.9 million weighted average common shares outstanding for the
nine months ended September 30, 2000 as compared to a basic and diluted loss of
$0.016 per share on approximately 79.4 million weighted average common shares
outstanding for the corresponding period of the prior year.
Guido DiGregorio, President and CEO stated, "I am pleased to report
profitability for the first time in the history of the company and, based on
current order activity, we believe we will achieve our objective of sustained
sales and earning growth. These results reflect our strategy, over the past two
years, of focusing our product development, sales efforts and marketing related
programs on emerging, fast growth applications where we can leverage our
electronic signature and natural input technologies."
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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 the
Company's products; (2) economic, business, market and competitive conditions in
the software industry and technological innovations which could affect the
Company's business; (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 and the availability
of sufficient financing.
Selected financial information follows. Detailed corporate and financial
information is available on CIC's website at http:www.cic.com.
THE COMPANY
Communication Intelligence Corporation (CIC) is the leading supplier of natural
input and electronic signature solutions for wireless Internet and e-Commerce
applications. The Company's core software technologies include multilingual
handwriting recognition systems, dynamic signature verification, natural
messaging, and operating system extensions that enable pen input. CIC's products
are designed to increase the ease of use, functionality, and security of
wireless electronic devices ranging from handheld companions to cellular phones.
Ericsson, Fujitsu, Hitachi, Microsoft, Mitsubishi, National Semiconductor and
Symbian among others have licensed the company's technology. CIC is
headquartered in Redwood Shores, California and has a joint venture, CICC, in
Nanjing, China. For more information, please visit our website at www.cic.com
Note: All company and product names used herein are trademarks or registered
trademarks of their respective owners.
CONTACT INFORMATION
FINANCIAL INQUIRIES: PRESS INQUIRIES:
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Marjorie Bailey Lou Podover
Phone: 650-802-7779 650-802-7708
Email: [email protected] [email protected]
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COMMUNICATION INTELLIGENCE CORPORATION
SELECTED CONSOLIDATED STATEMENT OF OPERATIONS INFORMATION
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
(unaudited) (unaudited)
09/30/00 09/30/99 09/30/00 09/30/99
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<S> <C> <C> <C> <C>
Revenues $ 2,346 $ 1,966 $ 4,973 $ 4,649
Net income (loss) applicable to common
stockholders $ 106 $ (430) $ (1,909) $ (1,294)
Basic and diluted income (loss)
per common share $ 0.001 $ (0.005) $ (0.022) $ (0.016)
Weighted average common shares
outstanding 84,538 79,586 83,970 79,410
</TABLE>
SELECTED CONSOLIDATED BALANCE SHEET INFORMATION
(IN THOUSANDS)
<TABLE>
<CAPTION>
09/30/00
(unaudited) 12/31/99
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<S> <C> <C>
Cash & cash equivalents $ 2,613 $ 2,374
Total current assets $ 4,233 $ 4,205
Deferred revenue $ 48 $ 35
Total current liabilities $ 1,062 $ 1,151
Total stockholder's equity $ 2,189 $ 2,349
</TABLE>
