UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934
Date
of
Report (Date of earliest event reported): May 10, 2007
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Intelli-Check,
Inc.
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(Exact
name of registrant as specified in charter)
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Delaware
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001-15465
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11-3234779
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(State
or other jurisdiction
of
incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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246
Crossways Park West, Woodbury, NY
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11797
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code: 516-992-1900
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A2. below):
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[
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Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
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[
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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[
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
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[
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
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Item 2.02. Results
of Operations and Financial Condition
On
May
10, 2007 Intelli-Check, Inc. (the “Company”) issued a press release containing
certain financial results for its first quarter of 2007. A copy of the press
release is attached to this Current Report on Form 8-K as Exhibit 99.1.
The
information in this Report, including the exhibit, shall not be deemed to be
“filed” for the purposes of Section 18 of the Securities Exchange Act of 1934,
as amended, or otherwise subject to the liabilities of that Section. It shall
not be deemed incorporated by reference in any filing under the Securities
Act
of 1933, as amended, except as shall be expressly set forth by specific
reference in such a filing.
Item
9.01. Financial
Statements and Exhibits.
(c) Exhibits
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Exhibit
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Description
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99.1
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Press
Release dated May 10, 2007
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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INTELLI-CHECK,
INC. |
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By: |
/s/ Peter
J.
Mundy |
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Name:
Peter J. Mundy
Title: Vice President Finance &
CFO
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Dated: May 10, 2007
Exhibit
Index
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Exhibit
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Description
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99.1
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Press
Release dated May 10, 2007
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FOR
IMMEDIATE RELEASE
CONTACTS:
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Stephen
D. Axelrod, CFA
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Frank
Mandelbaum, CEO
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Alisa
D. Steinberg (Media)
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Intelli-Check,
Inc.
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Wolfe
Axelrod Weinberger Assoc. LLC
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Tel.
(516) 992-1900
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Tel.
(212) 370-4500 Fax (212) 370-4505
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steve@wolfeaxelrod.com
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alisa@wolfeaxelrod.com
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INTELLI-CHECK
ANNOUNCES FIRST QUARTER 2007 FINANCIAL RESULTS
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Revenues Increased 28% to $685,000, Loss Continues to Decline
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Current Backlog Exceeds $1 Million -
Woodbury,
NY - May 10, 2007 -- Intelli-Check, Inc. (AMEX: IDN)
today
announced financial results for the first quarter ended March 31, 2007.
Revenues
increased approximately 28% to $685,119 for the first quarter ended March 31,
2007, from the $535,847 reported for the same period in 2006. Sales bookings,
which represent shipments of products and contracted services (including
revenues that are deferred in accordance with generally accepted accounting
principles) decreased by 20.6% to $584,702 in the 2007 period, from $736,431
in
the first quarter of 2006. Revenues increased as a result of Intelli-Check's
continuing success in penetrating certain key target markets in the commercial
and government sectors, The net loss decreased significantly to $622,433, or
($0.05) per share, in the period ended March 31, 2006, from $945,042, or ($0.08)
per share, in the prior year. Basic and diluted weighted average shares
outstanding used in computing per-share amounts were 12,238,167 in the quarter
ended March 31, 2007 and 12,088,484 in the prior year period.
At
March
31, 2007, the Company's balance sheet included $3,659,705 in cash, cash
equivalents and marketable securities and short term investments and
Intelli-Check's backlog, which consists of non-cancelable sales orders of
products and services not yet shipped or performed, increased approximately
79%
to $1,099,000 from $614,000 in the prior year period.
"We
were
disappointed that we did not reach our goal for sales bookings in this period,
as several of the orders that we had expected to receive have been delayed.
However, we remain optimistic that sales and revenues will continue to increase,
since our pipeline of opportunities in both the commercial and government
sectors is substantial and expanding,” stated Mr. Frank Mandelbaum,
Intelli-Check's Chairman and CEO. “We believe that some of these larger
opportunities will convert to sales over the remainder of the year as a result
of the recent introduction of several new products that have rapidly gained
market acceptance. Our recently announced partnerships that have added a new
dimension to our document verification capability, together with the successful
outcome of tests in both the government and commercial sectors, adds to our
optimism. We were gratified that our technology and that of a partner have
been
chosen in a recent government contract awarded to EDS for the identity proofing
component needed to comply with the requirements of HSPD 12/FIPS 201. We believe
that this award may set an example for future identity management requirements
in this sector.”
“The
recent addition of Richard Outland, formerly Assistant Branch Chief of the
U.S.
Secret Service Forensic Laboratory and an acknowledged expert in document
security and forensic review, to the Intelli-Check family will enhance our
stature as the leader in electronic verification of breeder documents such
as
driver licenses. His broad range of contacts at all levels of local, state
and
federal government should prove to be of enormous value to Intelli-Check as
we
seek to expand our relationships with our partners, key integrators in the
government sector and government decision makers.”
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More -
“For
the
near term, we expect continued growth from the retail and financial sectors,
since we believe that several of our pipeline opportunities will lead to orders,
because of the dual benefits that our technology affords a user that of reducing
fraud and its proven productivity enhancement.”
In
conclusion, Mr. Mandelbaum stated, “At our projected burn rate, our cash
resource of nearly $3.7 million is more than adequate to support our projected
needs over the next 12 months. Our experienced management team enables
Intelli-Check to gain access to government, financial and retail sector decision
makers and our ability to deliver electronic verification solutions is widely
acknowledged, which is part of the reason that we believe that 2007 will prove
to be the breakout year for Intelli-Check and that our goal of attaining $8
million in booked orders for 2007 remains attainable.”
In
an
unrelated matter, at its regularly scheduled board meeting held on May 10,
2007,
the board voted to extend to June 30, 2008 all unexercised rights under its
rights offering, previously due to expire on June 30, 2007. Each
non-transferable right entitles the stockholder to purchase one share of common
stock at an exercise price of $8.50. Under terms of the original offering,
the
Company declared a dividend distribution of one non-transferable right to
purchase one share of its common stock for every 10 outstanding shares of common
stock held of record as of March 30, 2001, and continuously held until
exercised, at an exercise price of $8.50. The Company has the right to redeem
the outstanding rights upon 30-days' notice at a redemption price of $0.01
per
right, if the last sale price for its common stock exceeds $10.50 for 20
consecutive trading days, or upon change of control. Currently, the conditions
for redemption have not been met.
The
Company will host a conference call for shareholders and members of the
investment community to discuss its financial results and corporate initiatives
on Friday, May 11th at 9:00 am (EDT). Interested parties may participate in
the
call by dialing (800) 274-0873 approximately 10 minutes before the call is
scheduled to begin. International callers should dial (719) 457-2684. For anyone
who is unable to participate in the live conference, access to a recording
will
be available for 48 hours after the call. The rebroadcast can be accessed
domestically by dialing (888) 203-1112. For international callers, the dial-in
is (719) 457-0820. The passcode is 3422168.
Intelli-Check,
Inc.
Statements
of Operations
(Unaudited)
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Three
Months Ended
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3/31/07
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3/31/06
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REVENUES
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$
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685,119
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$
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535,847
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Gross
profit
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447,816
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354,997
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Loss
from operations
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(677,675
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(1,001,315
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Net
loss
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(622,433
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(945,042
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)
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Net
loss per common share - Basic and diluted
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$
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(0.05
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$
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(0.08
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Weighted
average common shares used in computing per share amounts - Basic
and
diluted
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12,238,167
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12,088,484
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More -
____________________________________
About
Intelli-Check, Inc.
Intelli-Check,
Inc. is the acknowledged leader in technology that helps assure the authenticity
of driver licenses, state issued non-driver and military identification cards
used as proof of identity. Our patented ID-CHECK technology instantly reads,
analyzes, and verifies the encoded data in magnetic stripes and barcodes on
government-issue IDs from approximately 60 jurisdictions in the U.S. and Canada
to determine if the content and format is valid. For more information, please
visit www.intellicheck.com.
Non-GAAP
Financial Measures
This
release contains disclosure of the Company's "sales bookings" and “backlog” for
certain periods, which may be deemed to be non-GAAP financial measures within
the meaning of Regulation G promulgated by the Securities and Exchange
Commission. Management of the Company believes that discussion of the Company's
sales bookings and backlog provides investors with additional information
regarding revenues it has received in respect of products and services that
have
been shipped to a customer, but which are required to be deferred for a period
of less than one year under applicable principles of GAAP. The disclosure of
sales bookings and backlog may not be comparable to similarly titled measures
reported by other companies. Sales bookings and backlog, while providing useful
information, should not be considered in isolation or as an alternative to
other
financial measures determined in accordance with GAAP.
Intelli-Check
Safe Harbor Statement
Certain
statements in this press release constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995, as amended.
When used in this press release, words such as "will," "believe," "expect,"
"anticipate," "encouraged" and similar expressions, as they relate to the
company or its management, as well as assumptions made by and information
currently available to the company's management identify forward-looking
statements. Our actual results may differ materially from the information
presented here. There is no assurance that the use of ID-CHECK technology by
our
potential customers and partners, or government efforts to enhance security
or
curtail the sale of age-restricted products to underage buyers will lead to
additional sales of ID-CHECK technology. Additional information concerning
forward looking statements is contained under the heading of risk factors listed
from time to time in the company's filings with the Securities and Exchange
Commission. We do not assume any obligation to update the forward-looking
information.
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