Intellicheck Announces First Quarter Fiscal 2020 Financials

MELVILLE, NY – May 6, 2020 -- Intellicheck, Inc. (Nasdaq: IDN), an industry leader in identification authentication solutions, today announced its financial results for the first quarter ended March 31, 2020. Total revenue for the first quarter ended March 31, 2020 grew 144% to $3,115,000 versus $1,279,000 in the prior year comparable period. Quarter over quarter SaaS revenue for the first quarter grew 160% and totaled $2,238,000 versus $861,000 in the prior year comparable period.

Intellicheck CEO Bryan Lewis said, “We believe our strong growth in year over year SaaS revenues and our increased product adoption in key markets during the first quarter demonstrate that our model is working. Clearly, the shutdown of retailers and restaurants and the effect of furloughs has influenced consumer spending habits and transaction counts have been impacted by shelter-at-home mandates in most markets. We are watching the evolving landscape recognizing that it will impact our business in the near term.”

Looking forward, Lewis commented, “We are optimistic as we see signs of recovery in key client verticals. Retailers are beginning to open their doors, restaurants, bars and entertainment venues are coming back and, in turn, this will be a positive force for our transaction counts. We expect these positive beginnings will serve as a foundation for recovery in the back half of the year. The fact remains that fraud is not going away, and we believe that will fuel the demand for Intellicheck’s technology solutions.”

Gross profit as a percentage of revenues was 77.8% for the three months ended March 31, 2020 versus 85.0% in the prior year comparable period. The decline in gross margin was driven by sales mix that included $784,000 of hardware sales that carry lower gross margins than SaaS revenues.

Net income for the three months ended March 31, 2020 was $27,000 or $0.00 per diluted share versus a net loss of ($1,213,000) or ($0.08) 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) was $144,000 for the first quarter of 2020, marking the second sequential quarter of positive Adjusted EBITDA. This compares to a loss of ($787,000) in the prior year comparable period. A reconciliation of adjusted EBITDA to net income (loss) is provided elsewhere in this release.

Cash at March 31, 2020 totaled $3.0 million and stockholders’ equity totaled $12.1 million at the end of the period.

The financial results reported today 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 first quarter ended March 31, 2020.

Conference Call Information

The Company will hold an earnings conference call today, May 6, at 4:30 p.m. ET/1:30 p.m. PT to discuss operating results. To listen to the earnings conference call, please dial 877-407-8037. For callers outside the U.S., please dial 201-689-8037.

A replay of the conference call will be available shortly after completion of the live event. To listen to the replay, please dial 877-660-6853 and use conference identification number 13702573. For callers outside the U.S., please dial 201-612-7415 and use conference identification number 13702573. The replay will be available beginning approximately two hours after the completion of the live event and will remain available until May 20, 2020.