Imagis reports record growth in revenues for first-quarter 2002

MAY 16--Imagis Technologies Inc. (Vancouver, Canada; www.imagistechnologies.com), a developer and marketer of biometric-based software, announced its fiscal first-quarter revenues at March 31, 2002, were $1,061,865, up from $353,836, a 200% increase over the same period last year, and 51% of total revenues for the fiscal year 2001. Sales of the company's software products rose 410% to $985,954 in the first quarter of this year, compared to $193,045 in 2001.

The large gain in software-sales revenues arose from the inclusion of approximately 60% of the Serco plc contract announced in January. Overall, the company incurred a net loss for the first quarter of 2002 of $1,139,502 or $0.07 per share, which is higher than the net loss incurred in the first quarter of 2001 of $647,888 or $0.05 per share.

While revenues rose 200% in the quarter, the company incurred significantly higher operating costs due to the business-development, marketing, and sales activities during the period that relate to the revenue gain.