Intelligent Systems Reports Preliminary Second Quarter 2019 Results
July 23 2019 - 7:30AM
Intelligent Systems Corporation [NYSE American: INS;
www.intelsys.com] announced today its preliminary financial results
for the quarter ended June 30, 2019.
Leland Strange, President and CEO stated “As we
did last quarter, we want to, where practical, let our shareholders
know as soon as we know how the company performed in the previous
quarter. We are pleased to report preliminary second quarter 2019
revenues of approximately $7.5 million and preliminary income from
operations of $2.5 to $2.7 million. Both numbers are significantly
higher than the same period a year ago. Those numbers do indicate a
slight percentage operating margin erosion from first quarter 2019
as a result of an increase in legal and advisory expenses as well
as some employee bonuses that recognize the extraordinary effort of
some of our employees in our push to get ready for a large license
deployment.”
“My standard earnings boiler plate is applicable
as I reiterate that license revenue and/or other revenue sources
are likely to vary considerably from quarter to quarter. We
want to provide our shareholders insight on the revenue streams but
don’t be surprised when any one of the revenue sources spike, show
a decrease, or do not show growth in a specific quarter as we focus
on annual results with no attempt to align for quarterly
comparisons. We will comment further when we present final numbers
and hold our earnings conference call. We continue to believe
2019 will be a very good year for the company,” stated Strange.
Financial Highlights for the Second
Quarter of 2019
Total revenues are expected to
be $7,512,000 for the quarter compared to revenue of $4,573,000 in
the second quarter of 2018, an increase of 64 percent.
In the following table, revenue is disaggregated
by type of revenue for the three months ended June 30, 2019 and
2018:
|
Three months ended June 30, (in
thousands) |
|
2019 |
|
|
2018 |
|
|
|
License |
$ |
700 |
|
$ |
65 |
|
|
|
Professional services |
|
4,663 |
|
|
2,763 |
|
|
|
Processing and maintenance |
|
1,724 |
|
|
1,460 |
|
|
|
Third party |
|
425 |
|
|
285 |
|
|
|
Total |
$ |
7,512 |
|
$ |
4,573 |
|
|
Income from operations is
expected to be between $2,500,000 and $2,700,000 for the quarter
compared to income from operations of $1,317,000 in the second
quarter of 2018. Cash is expected be similar to the first quarter
of 2019 as cash generated from operations was utilized during the
second quarter of 2019 for capital expenditures of approximately
$1.4 million and a $1 million investment in a current portfolio
company (there are no other transactions between INS and the
portfolio company).
The company will file its Form 10-Q for the
quarter ended June 30, 2019 with the Securities and Exchange
Commission in August 2019 and will announce the specific date for
the filing and an investor conference call at a later date. 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 provides prepaid and credit card processing
services using its proprietary software solutions that it also
licenses to others. CoreCard has designed and developed a
comprehensive suite of software solutions that corporations,
financial institutions, retailers and processors use to manage
credit and debit cards, prepaid cards, private label cards, fleet
cards, loyalty programs, and accounts receivable and small loan
transactions. CoreCard's flexible and proven processing
platform is being utilized 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.
For further information, callMatt White, 770-564-5504or email to
matt@intelsys.com
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