Intelligent Systems Corporation [NYSE American: INS;
www.intelsys.com] announced today its financial results for the
three and twelve months ended December 31, 2018.
“We are reporting good results from licensing
and professional services activity for the fourth quarter,
continuing the progress shown in the three previous quarters of the
2018 year. Even though results were very good in comparison with
the previous years’ quarter, I am going to be a 'broken record' by
emphasizing we manage to, and I think we are best measured because
of our enterprise size, on an annual basis rather than quarter to
quarter,” commented Leland Strange, CEO of Intelligent Systems.
“There may very well be quarters in 2019 where we don’t compare
favorably,” continued Strange, “but we expect our 2019 full year to
be nicely up from 2018 in both revenues and operating profit.”
“We continue to add resources to our team and
they continue to work long hours on significant long-term projects
for several customers – both licensing and processing customers. We
also continue to invest in the expansion of our processing
capabilities and hardening of our platforms for both our own use
and for our licensing customers. Recently, our solution has been
introduced and utilized in several new international geographic
areas including China,” stated Strange.
Financial Highlights for the three and
twelve months ended December 31, 2018
Total revenues of $6,054,000 and $20,100,000 in
the three and twelve month periods, respectively, represented
growth of 138 percent and 119 percent, respectively, as compared to
the same periods in 2017.Income (loss) from
operations was $2,268,000 and $6,142,000 for the three and
twelve month periods, respectively, compared to a loss from
operations of $704,000 and $1,502,000, respectively, in the
comparable prior year periods. Net income
(loss) was $2,427,000 and $6,244,000 for the three and
twelve month periods, respectively, compared to a net loss of
$650,000 in the comparable prior year quarter and net income of
$374,000 in the comparable prior year.Earnings per diluted
share was $0.27 for the quarter and $0.70 for the year
ended December 31, 2018.
Investor Conference Call
Today
The company is holding an investor conference
call today, March 13, 2019, at 11 A.M. Eastern Standard Time.
Interested investors are invited to attend the conference call by
dialing (855) 766-6518 and entering conference ID 8573248. A
transcript of the call will be posted on the company’s website at
www.intelsys.com as soon as available after the call.
The company will file its Form 10-K for the year
ended December 31, 2018 with the Securities and Exchange Commission
today, March 13, 2019. For additional information about reported
results, investors will be able to access the Form 10-K on the
company’s website at www.intelsys.com or on the SEC site,
www.sec.gov.
About Intelligent Systems
Corporation
For over thirty-five years, Intelligent Systems
Corporation [NYSE American: INS] has identified, created, operated
and grown technology companies. The company’s principal
operations are CoreCard Software, Inc. (www.corecard.com) and its
affiliate companies. CoreCard designs, develops, and markets a
comprehensive suite of software solutions to corporations,
financial institutions, retailers and processors to manage their
credit and debit cards, prepaid cards, private label cards, fleet
cards, loyalty programs, and accounts receivable and small loan
transactions. CoreCard also offers prepaid and credit card
processing services using its proprietary software solutions.
Further information is available on the company’s website at
http://www.intelsys.com or by calling the company at
770-381-2900.
In addition to historical information, this news
release may contain forward-looking statements relating to
Intelligent Systems Corporation and its subsidiary and affiliated
companies. These statements include all statements that are not
statements of historical fact regarding the intent, belief or
expectations of Intelligent Systems Corporation and its management
with respect to, among other things, results of operations, product
plans, and financial condition. The words "may," "will,"
"anticipate," "believe," "intend," "expect," "estimate," "plan,"
"strategy" and similar expressions are intended to identify
forward-looking statements. Prospective investors are
cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties and that actual results may differ materially from
those contemplated by such forward-looking statements. The company
does not undertake to update or revise any forward-looking
statements whether as a result of new developments or otherwise,
except as required by law. Among the factors that could cause
actual results to differ materially from those indicated by such
forward-looking statements are instability in the financial
markets, delays in product development, undetected software errors,
competitive pressures, changes in customers’ requirements or
financial condition, market acceptance of products and services,
the impact of new or changes in current laws, regulations or other
industry standards, risks relating to unauthorized access to
confidential information due to criminal conduct, attacks by
hackers, employee or insider malfeasance and/or human error, and
declines in general economic and financial market conditions,
particularly those that cause businesses to delay or cancel
purchase decisions.
CONSOLIDATED STATEMENTS OF
OPERATIONS(in thousands, except share and per share
amounts)
|
Three Months Ended December
31, |
Twelve Months Ended December 31, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
2017 |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(audited) |
|
(audited) |
|
Revenue |
|
|
|
|
Services |
$ 4,994 |
|
$ 2,546 |
|
$ 18,751 |
$ 9,089 |
|
Products |
|
1,060 |
|
|
− |
|
|
1,349 |
|
90 |
|
Total net revenue |
|
6,054 |
|
|
2,546 |
|
|
20,100 |
|
9,179 |
|
Cost of
revenue |
|
|
|
|
Services |
|
2,416 |
|
|
1,434 |
|
|
8,388 |
|
4,384 |
|
Products |
|
− |
|
|
− |
|
|
136 |
|
87 |
|
Total cost of revenue |
|
2,416 |
|
|
1,434 |
|
|
8,524 |
|
4,471 |
|
Expenses |
|
|
|
|
Marketing |
|
15 |
|
|
43 |
|
|
255 |
|
255 |
|
General
and administrative |
|
469 |
|
|
367 |
|
|
1,826 |
|
1,588 |
|
Research
and development |
|
886 |
|
|
1,406 |
|
|
3,353 |
|
4,367 |
|
Income (loss) from operations |
|
2,268 |
|
|
(704 |
) |
|
6,142 |
|
(1,502 |
) |
Other income (loss) |
|
(22 |
) |
|
62 |
|
|
106 |
|
1,904 |
|
Income
(loss) before Income taxes |
|
2,246 |
|
|
(642 |
) |
|
6,248 |
|
402 |
|
Income
taxes |
|
(181 |
) |
|
8 |
|
|
4 |
|
28 |
|
Net income (loss) |
$ 2,427 |
|
$ (650 |
) |
$ 6,244 |
$ 374 |
|
Earnings (loss) per share attributable to Intelligent Systems
Corporation: |
|
|
|
Basic |
$ 0.28 |
|
$ (0.07 |
) |
$ 0.71 |
$ 0.04 |
|
Diluted |
$ 0.27 |
|
$ (0.07 |
) |
$ 0.70 |
$ 0.04 |
|
Basic
weighted average common shares outstanding |
|
8,817,988 |
|
|
8,777,988 |
|
|
8,796,321 |
|
8,766,425 |
|
Diluted weighted average common shares outstanding |
|
8,984,804 |
|
|
8,777,988 |
|
|
8,948,518 |
|
8,881,814 |
|
CONSOLIDATED BALANCE
SHEETS(audited, in thousands)
As of December
31, |
2018 |
2017 |
|
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash |
$ 18,919 |
$ 14,024 |
|
Marketable securities |
349 |
438 |
|
Accounts
receivable, net |
3,731 |
1,208 |
|
Notes and
interest receivable, current portion |
581 |
16 |
|
Other current assets |
1,202 |
2,373 |
|
Total current assets |
24,782 |
18,059 |
|
Investments |
760 |
1,035 |
|
Notes and
interest receivable, net of current portion |
1,745 |
1,250 |
|
Property
and equipment, at cost less accumulated depreciation |
1,513 |
1,262 |
|
Other
long-term assets |
504 |
173 |
|
Total assets |
$ 29,304 |
$ 21,779 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ 272 |
$ 321 |
|
Deferred
revenue, current portion |
781 |
853 |
|
Accrued
payroll |
1,145 |
595 |
|
Accrued
expenses |
71 |
98 |
|
Income
tax payable |
284 |
-- |
|
Other current liabilities |
719 |
408 |
|
Total current liabilities |
3,272 |
2,275 |
|
Deferred
revenue, net of current portion |
111 |
51 |
|
Total stockholders’ equity |
25,921 |
19,453 |
|
Total liabilities and stockholders’ equity |
$ 29,304 |
$ 21,779 |
|
For further information, callMatt White, 770-564-5504or email to
matt@intelsys.com
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