Intelligent Systems Reports Second Quarter 2019 Results

Mon, 05 Aug 2019 00:00:00

NORCROSS, Ga., Aug. 05, 2019 (GLOBE NEWSWIRE) -- 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 ofJune 30, 2019December 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, call
Matt White, 770-564-5504
or email to matt@intelsys.com

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Source: Intelligent Systems Corporation