Revenue for the quarter ended June 30, 2006 was $12.9 million compared to $12.0 million for the quarter ended June 30, 2005, and $11.1 million for the previous quarter ended March 31, 2006.

Gross margin for the three months ended June 30, 2006 was 55 percent compared to 73 percent for the quarter ended June 30, 2005, which included one-time revenues related to the sale of certain patent rights. Gross margin for the previous quarter ended March 31, 2006 was 59 percent. Contributing to the lower gross margin in the last quarter was a higher mix of hardware sales.

Total operating expenses for the three months ended June 30, 2006 were $14.4 million compared to $14.7 million for the quarter ended June 30, 2005 and $15.6 million for the previous quarter ended March 31, 2006. Sales and marketing, research and development and general and administrative expenses, excluding additional stock based compensation, for the three months ended June 30, 2006 were $13.6 million compared to $14.0 million for the previous quarter ended March 31, 2006.

Cash used in operations for the three months ending June 30, 2006 was $1.2 million compared to $7.8 million for the quarter ended June 30, 2005 and $6.0 million for the previous quarter ended March 31, 2006. Contributing to the lower use of cash in operations in the quarter was the timing of payments from a large customer.

Net loss for the quarter ended June 30, 2006 was $5.3 million, or $0.12 per basic and diluted share, compared to $5.6 million, or $0.13 per basic and diluted share, for the three months ended June 30, 2005. Net loss for the previous quarter ended March 31, 2006, was $8.3 million, or $0.18 per basic and diluted share.

Jason Hart, CEO of ActivIdentity, said, "We have made progress this quarter in reducing our operating expenses, which have come down from $16.1 million in Q1 this fiscal year to $14.4 million in Q3. We will continue to focus on this area of our operations."

"While revenue for the quarter was within guidance, we must continue to grow our top line. We are gaining momentum with our public sector digital identification solutions in governments worldwide. In US government sales, we move into what has historically been a seasonally strong quarter, and maintain a moderately positive outlook as departments and agencies look to comply with HSPD-12's October deadline, and complete their IT projects by their year-end."

"Demand for our enterprise employee identification solutions continues to strengthen as organizations move to converge their physical and logical identification."Download the document now 38.7 kb (Adobe Acrobat Document)