Imageware Systems, Inc. (OTCMKTS:IWSY) Up on News

On Friday Imageware Systems, Inc. (OTCMKTS:IWSY) was lifted by a heavy swell in volume. The ticker sailed over the two-dollar mark with ease, climbing over $2.45 intra-day before cooling off to a 15% green close at $2.20 per share. The only discernable trigger for the move were a couple press releases that hit the wire on Thursday and Friday.

The company first reported an ‘alliance’ with TransUnion, a huge information management corporation. The project should ‘integrate’ a TransUnion solution with IWSY‘s biometric authentication GoVerifyID product. Another PR on Friday informed that Imageware is going to demo its GoVerifyID software within the broader framework of the Fujitsu Retail Solution Market Place. The product aims to add an extra layer of security to transaction processing.

Even though the TransUnion news appears to be bigger, the stock barely reacted on the day it was published. Volume and price action swelled up on the day of the Fujitsu PR. It’s likely the combination of the two that got the stock moving. The company’s due quarterly was delayed by 15 days after IWSY filed a NT 10-Q, which means investors should be able to have a look at it next week.

IWSY‘s last reported financials have been around for quite a while:

  • $1.4 million in cash
  • $2.6 million in current liabilities
  • $937 thousand in Q2 revenues
  • $2 million in net loss

Shareholders are still hoping for some big contracts to materialize and start bringing bigger revenue streams into the company’s coffers. The next quarterly will make for interesting reading once it’s out. Until then, it remains to be seen whether IWSY has what it takes to pull off another big green day. Investors should keep in mind that intra-day the price ran far higher and cooled off significantly by the closing bell.

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