Intelligent Systems Corporation [NYSE American: INS;
www.intelsys.com] announced today its financial results for the
quarter ended June 30, 2019.
“We re-affirm our previously reported
preliminary second quarter 2019 revenues of about $7.5 million
(actual $7,512,000) and preliminary income from operations of $2.5
to $2.7 million (actual $2,601,000) representing significant growth
from the same period last year. Comparisons between year-over-year
quarters and the first half of the year show significant gains that
are not likely to be replicated at the same percentage increases
going forward.”
“We still expect to see an uptick in license
revenue sometime this year and expect the professional services
component of our revenue that is associated with the increased
license revenue to drop some to a more sustainable pace,” commented
Leland Strange, CEO of Intelligent Systems.
Financial Highlights for the Second
Quarter of 2019
Total revenues of $7,512,000 in
the three month period represented growth of 64 percent compared to
the same period in 2018.
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 was
$2,601,000 for the quarter compared to income from operations of
$1,317,000 in the comparable prior year quarter.
Net income was $2,108,000 for
the quarter compared to net income of $1,058,000 in the comparable
prior year quarter.
Earnings per diluted share was
$0.23 for the quarter ended June 30, 2019.
Investor Conference Call
Today
The company is holding an investor conference
call today, August 5, 2019, at 11 A.M. Eastern Time. Interested
investors are invited to attend the conference call by dialing
(855) 766-6518 and entering conference ID 4668937. 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 June 30, 2019 with the Securities and Exchange
Commission today, August 5, 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 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.
CONSOLIDATED STATEMENTS OF
OPERATIONS(unaudited, in thousands, except share and per
share amounts)
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|
|
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
Revenue |
|
|
|
|
Services |
$ |
6,812 |
$ |
4,508 |
|
$ |
12,978 |
$ |
8,471 |
|
Products |
|
700 |
|
65 |
|
|
1,500 |
|
160 |
|
Total net revenue |
|
7,512 |
|
4,573 |
|
|
14,478 |
|
8,631 |
|
Cost of revenue |
|
|
|
|
Services |
|
2,899 |
|
2,042 |
|
|
5,433 |
|
3,649 |
|
Products |
|
− |
|
− |
|
|
− |
|
136 |
|
Total cost of revenue |
|
2,899 |
|
2,042 |
|
|
5,433 |
|
3,785 |
|
Expenses |
|
|
|
|
Marketing |
|
51 |
|
87 |
|
|
89 |
|
155 |
|
General and administrative |
|
1,100 |
|
418 |
|
|
1,694 |
|
891 |
|
Research and development |
|
861 |
|
709 |
|
|
2,059 |
|
1,662 |
|
Income from operations |
|
2,601 |
|
1,317 |
|
|
5,203 |
|
2,138 |
|
Other income |
|
125 |
|
(189 |
) |
|
253 |
|
(117 |
) |
Income before Income taxes |
|
2,726 |
|
1,128 |
|
|
5,456 |
|
2,021 |
|
Income taxes |
|
618 |
|
70 |
|
|
1,276 |
|
70 |
|
Net income |
$ |
2,108 |
$ |
1,058 |
|
$ |
4,180 |
$ |
1,951 |
|
Earnings per share attributable to Intelligent Systems
Corporation: |
|
|
|
Basic |
$ |
0.24 |
$ |
0.12 |
|
$ |
0.47 |
$ |
0.22 |
|
Diluted |
$ |
0.23 |
$ |
0.12 |
|
$ |
0.46 |
$ |
0.22 |
|
Basic weighted average common shares outstanding |
|
8,850,988 |
|
8,791,321 |
|
|
8,846,155 |
|
8,784,655 |
|
Diluted weighted average common shares outstanding |
|
9,004,664 |
|
8,936,489 |
|
|
9,015,669 |
|
8,915,758 |
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS(in
thousands)
As of |
June 30, 2019 |
December 31, 2018 |
ASSETS |
(unaudited) |
(audited) |
Current assets: |
|
|
Cash |
$ |
21,875 |
|
$ |
18,919 |
|
Marketable securities |
|
367 |
|
|
349 |
|
Accounts receivable, net |
|
4,123 |
|
|
3,731 |
|
Notes and interest receivable, current portion |
|
‒ |
|
|
581 |
|
Other current assets |
|
690 |
|
|
1,202 |
|
Total current assets |
|
27,055 |
|
|
24,782 |
|
Investments |
|
3,413 |
|
|
760 |
|
Notes and interest receivable, net of current portion |
|
1,253 |
|
|
1,745 |
|
Property and equipment, at cost less accumulated depreciation |
|
2,606 |
|
|
1,513 |
|
Other long-term assets |
|
1,585 |
|
|
504 |
|
Total assets |
$ |
35,912 |
|
$ |
29,304 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
Current liabilities: |
|
|
Accounts payable |
$ |
434 |
|
$ |
272 |
|
Deferred revenue, current portion |
|
814 |
|
|
781 |
|
Accrued payroll |
|
1,172 |
|
|
1,145 |
|
Accrued expenses |
|
105 |
|
|
71 |
|
Income tax payable |
|
1,027 |
|
|
284 |
|
Other current liabilities |
|
1,470 |
|
|
719 |
|
Total current liabilities |
|
5,022 |
|
|
3,272 |
|
Noncurrent liabilities: |
|
|
Deferred revenue, net of current portion |
|
60 |
|
|
111 |
|
Long-term lease obligation |
|
626 |
|
|
‒ |
|
Total noncurrent liabilities |
|
686 |
|
|
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 June 30, 2019 and |
|
|
December 31, 2018, respectively |
|
89 |
|
|
88 |
|
Additional paid-in capital |
|
15,188 |
|
|
15,050 |
|
Accumulated other comprehensive loss |
|
(128 |
) |
|
(92 |
) |
Accumulated income |
|
15,055 |
|
|
10,875 |
|
Total Intelligent Systems Corporation stockholders’ equity |
|
30,204 |
|
|
25,921 |
|
Total liabilities and stockholders’ equity |
$ |
35,912 |
|
$ |
29,304 |
|
|
|
|
|
|
|
|
For further information, callMatt White,
770-564-5504or email to matt@intelsys.com
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