Intelligent Systems Corporation [NYSE American: INS;
www.intelsys.com] announced today its financial results for the
quarter ended March 31, 2019.
“We re-affirm our previously reported
preliminary first quarter 2019 revenues of about $7 million (actual
$6,966,000) and preliminary income from operations of $2.5 to $2.7
million (actual $2,605,000) representing significant growth from
the same period last year and a good increase from the fourth
quarter of 2018. This is significantly higher than the first
quarter of 2018 for both revenue and operating profit affirming the
progress we made during the last year.”
“The quarter was a good start to what we believe will be a very
good year for the company as we continue toward our path of
becoming a world class processor. In addition to our ongoing and
growing repeating revenues, we will probably see a nice uptick in
license revenue at some point in the year,” commented Leland
Strange, CEO of Intelligent Systems.
Financial Highlights for the First
Quarter of 2019
Total revenues of $6,966,000 in
the three month period represented growth of 72 percent compared to
the same period in 2018. In the following table, revenue is
disaggregated by type of revenue for the three months ended March
31, 2019 and
2018:
Three months ended March 31, (in
thousands) |
|
2019 |
|
2018 |
License |
$ |
800 |
$ |
95 |
Professional services |
|
3,964 |
|
2,109 |
Processing and maintenance |
|
1,811 |
|
1,624 |
Third party |
|
391 |
|
230 |
Total |
$ |
6,966 |
$ |
4,058 |
|
|
|
|
|
Income from operations was
$2,605,000 for the quarter compared to income from operations of
$821,000 in the comparable prior year quarter.
Net income was $2,072,000 for
the quarter compared to net income of $893,000 in the comparable
prior year quarter.
Earnings per diluted share was
$0.23 for the quarter ended March 31, 2019.
Investor Conference Call
Today
The company is holding an investor conference
call today, May 3, 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 3097508. 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-Q for the
period ended March 31, 2019 with the Securities and Exchange
Commission today, May 3, 2019. For additional information about
reported results, investors will be able to access the Form 10-Q 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.
CoreCard's flexible and proven processing platform has recently
been deployed in many countries in addition to the United States
including Australia, Canada, China, the United Arab Emirates,
France, Italy, Mexico, New Zealand, Singapore, South Africa and the
United Kingdom. Further information is available on the company’s
website at 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(unaudited, in thousands, except share and per
share amounts)
|
Three Months Ended March 31, |
|
|
2019 |
|
2018 |
Revenue |
|
|
Services |
$6,166 |
$3,963 |
Products |
|
800 |
|
95 |
Total net revenue |
|
6,966 |
|
4,058 |
Cost of
revenue |
|
|
Services |
|
2,534 |
|
1,607 |
Products |
|
‒ |
|
136 |
Total cost of revenue |
|
2,534 |
|
1,743 |
Expenses |
|
|
Marketing |
|
38 |
|
68 |
General and
administrative |
|
594 |
|
473 |
Research and development |
|
1,195 |
|
953 |
Income from operations |
|
2,605 |
|
821 |
Other income |
|
126 |
|
72 |
Income
before income taxes |
|
2,731 |
|
893 |
Income taxes |
|
659 |
|
‒ |
Net income |
$2,072 |
$893 |
Earnings per
share attributable to Intelligent Systems Corporation: |
|
|
Basic |
$0.23 |
$ 0.10 |
Diluted |
$0.23 |
$ 0.10 |
Basic
weighted average common shares outstanding |
|
8,841,321 |
|
8,777,988 |
Diluted weighted average common shares outstanding |
|
8,990,438 |
|
8,912,130 |
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS(in
thousands)
As of |
March 31, 2019 |
December 31, 2018 |
ASSETS |
(unaudited) |
(audited) |
Current
assets: |
|
|
Cash |
$22,071 |
|
$18,919 |
|
Marketable
securities |
|
379 |
|
|
349 |
|
Accounts
receivable, net |
|
3,689 |
|
|
3,731 |
|
Notes and
interest receivable, current portion |
|
‒ |
|
|
581 |
|
Other current assets |
|
1,092 |
|
|
1,202 |
|
Total current assets |
|
27,231 |
|
|
24,782 |
|
Investments |
|
760 |
|
|
760 |
|
Notes and
interest receivable, net of current portion |
|
2,861 |
|
|
1,745 |
|
Property and
equipment, at cost less accumulated depreciation |
|
1,445 |
|
|
1,513 |
|
Other long-term assets |
|
1,637 |
|
|
504 |
|
Total assets |
$33,934 |
|
$29,304 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
Current
liabilities: |
|
|
Accounts
payable |
$272 |
|
$272 |
|
Deferred
revenue, current portion |
|
905 |
|
|
781 |
|
Accrued
payroll |
|
1,285 |
|
|
1,145 |
|
Accrued
expenses |
|
127 |
|
|
71 |
|
Income tax
payable |
|
943 |
|
|
284 |
|
Other current liabilities |
|
1,582 |
|
|
719 |
|
Total current liabilities |
|
5,114 |
|
|
3,272 |
|
Noncurrent
liabilities: |
|
|
Deferred
revenue, net of current portion |
|
74 |
|
|
111 |
|
Long-term lease obligation |
|
670 |
|
|
‒ |
|
Total noncurrent liabilities |
|
744 |
|
|
111 |
|
Intelligent
Systems Corporation stockholders’ equity: |
|
|
Common
stock, $0.01 par value, 20,000,000 shares authorized,
8,850,988 |
|
|
and
8,817,988 issued and outstanding at March 31, 2019 and |
|
|
December 31,
2018, respectively |
|
89 |
|
|
88 |
|
Additional
paid-in capital |
|
15,133 |
|
|
15,050 |
|
Accumulated
other comprehensive loss |
|
(93) |
|
|
(92) |
|
Accumulated income |
|
12,947 |
|
|
10,875 |
|
Total Intelligent Systems Corporation stockholders’ equity |
|
28,076 |
|
|
25,921 |
|
Total liabilities and stockholders’ equity |
$33,934 |
|
$29,304 |
|
|
|
|
|
|
For further information, callMatt White,
770-564-5504or email to matt@intelsys.com
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