Intellicheck Mobilisa Announces 2013 First Quarter Financial Results

Intellicheck Mobilisa Announces 2013 First Quarter Financial Results

Conference Call Scheduled for Today, Thursday, May 9, at 1:00 pm ET/10:00 am PT

PORT TOWNSEND, Wash.--(BUSINESS WIRE)-- Intellicheck Mobilisa, Inc. (NYSE MKT: IDN), a global leader in identity solutions and wireless security systems, has released its financial results for the first quarter ended March 31, 2013.

Revenues for the quarter ended March 31, 2013 were $1,633,000 compared to $2,711,000 in the first quarter 2012 and up over 209% from $528,000 in the fourth quarter 2012. Adjusted EBITDA was ($646,000) for the first quarter of 2013 compared to $314,000 for the first quarter of 2012 and ($1,681,000) in the fourth quarter 2012. Net loss for the three months ended March 31, 2013 was ($921,000) or ($0.03) per diluted share compared to net income of $15,000 or $0.00 per diluted share for the three months ended March 31, 2012 and a net loss of ($1,955,000) or ($0.07) per diluted share in the fourth quarter 2012. The Company's backlog, which presents non-cancelable sales orders for products not yet shipped and services to be performed, was approximately $732,000 at March 31, 2013, compared to $1.6 million at March 31, 2012.

Nelson Ludlow, Ph.D., President and CEO of Intellicheck Mobilisa, stated, "As expected, and discussed in our fourth quarter financial release, first quarter's financial performance improved sequentially over the fourth quarter 2012, but was not as robust as last year's first quarter. We continue to focus our efforts on improving revenue, developing new products and technologies, streamlining our operations, and focusing more on recurring revenue streams.

We were also extremely pleased that our IDCheck FastForm helped to identify the Boston bombing suspect's purchase of mortar kits at a New Hampshire fireworks store. This was a horrible tragedy for our country, and we were glad to have played a role in providing information to government officials.

"We thank our shareholders for their continued support and we look forward to an exciting year ahead."

Q1 2013 and Recent Highlights:

• Intellicheck Mobilisa's IDCheck FastForm identifies Boston bombing suspect's purchase of mortar kits at New Hampshire fireworks store;

• Intellicheck Mobilisa featured in four media outlets for role in helping to identify Boston bombing suspect.

• Awarded Contract by Major U.S. Retail Chain to Deploy ID-Check® Verification Software.

• Submitted two new TWIC card readers for third-party testing for inclusion the Transportation Security Administration (TSA) Quality Technology List (QTL).

• Demonstrated to media outlets our upcoming iPhone application that checks ID cards for alcohol purchase at bars and restaurants.

Conference Call Information

IDN will host a conference call for members of the investment community today at 1:00 p.m. Eastern / 10:00 a.m. Pacific Time. To listen to the conference call, please dial (877) 407-8037 approximately 10 minutes before the scheduled beginning. For callers outside the U.S., please dial (201) 689-8037. A webcast of the call may be accessed at: http://www.investorcalendar.com/IC/CEPage.asp?ID=170869. For those unable to participate in the live conference, a recording will be available for 48 hours after the call. The rebroadcast can be accessed by dialing (877) 660-6853 and (201) 612-7415 for international callers. The conference replay ID is 412408. After the 48-hour window, please visit the investor relations portion of our website at www.icmobil.com for rebroadcast.

About Intellicheck Mobilisa

Intellicheck Mobilisa is a leading technology company providing wireless technology and identity systems for various applications, including mobile and handheld access control and security systems for the government, military and commercial markets. Products include the Fugitive Finder system, an advanced ID card access control product currently protecting military bases and secure federal locations; ID Check, a patented technology that instantly reads, analyzes, and verifies encoded data in magnetic stripes and barcodes on government-issued IDs, designed to improve the Customer Experience for the financial, hospitality and retail sectors; and Aegeus, a wireless security buoy system for the government, military and oil industry. For more information on Intellicheck Mobilisa, please visit www.icmobil.com.

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. Actual results may differ materially from the information presented here. 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 SEC. We do not assume any obligation to update the forward-looking information.

Adjusted EBITDA

Intellicheck Mobilisa uses Adjusted EBITDA as a non-GAAP financial performance measurement. Adjusted EBITDA is calculated by adding back to net income (loss) interest, income taxes, impairments of long-lived assets and goodwill, depreciation, amortization and stock-based compensation expense. Adjusted EBITDA is provided to investors to supplement the results of operations reported in accordance with GAAP. Management believes that Adjusted EBITDA provides an additional tool for investors to use in comparing Intellicheck Mobilisa financial results with other companies that also use Adjusted EBITDA in their communications to investors. By excluding non-cash charges such as impairments of long-lived assets and goodwill, amortization, depreciation and stock-based compensation, as well as non-operating charges for interest and income taxes, investors can evaluate the Company's operations and can compare its results on a more consistent basis to the results of other companies. In addition, adjusted EBITDA is one of the primary measures management uses to monitor and evaluate financial and operating results.

Intellicheck Mobilisa considers Adjusted EBITDA to be an important indicator of the Company's operational strength and performance of its business and a useful measure of the Company's historical operating trends. However, there are significant limitations to the use of Adjusted EBITDA since it excludes interest income and expense, impairments of long lived assets and goodwill, stock based compensation expense, all of which impact the Company's profitability, as well as depreciation and amortization related to the use of long term assets which benefit multiple periods. Intellicheck Mobilisa believes that these limitations are compensated by providing Adjusted EBITDA only with GAAP net income (loss) and clearly identifying the difference between the two measures. Consequently, Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss) presented in accordance with GAAP. Adjusted EBITDA as defined by the Company may not be comparable with similarly named measures provided by other entities. A reconciliation of Adjusted EBITDA to GAAP net income or loss is included in the enclosed schedule.

See accompanying notes to consolidated financial statements

See accompanying notes to consolidated financial statements

See accompanying notes to consolidated financial statements