Washington, D.C. 20549

Form 8-K


Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): February 11, 2020  

Intelligent Systems Corporation
(Exact Name of Registrant as Specified in Charter)

Georgia 001-09330 581964787
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification Number)


4355 Shackleford Road, Norcross, Georgia 30093
(Address of Principal Executive Offices) (Zip Code)

(770) 381-2900
(Registrant's telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

  [   ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  [   ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  [   ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  [   ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [   ]


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]


Securities registered pursuant to Section 12(b) of the Act:


Title of each class Trading Symbol Name of each exchange on which registered
Common Stock, $0.01 par value for the class INS NYSE American



Item 2.02. Results of Operations and Financial Condition.

On February 11, 2020, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1. Press release dated February 11, 2020


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

  Intelligent Systems Corporation
Date: February 11, 2020 By:  /s/ Matthew A. White        
    Matthew A. White


Intelligent Systems Reports Fourth Quarter & Fiscal Year 2019 Results

NORCROSS, Ga., Feb. 11, 2020 (GLOBE NEWSWIRE) -- Intelligent Systems Corporation [NYSE American: INS], the leading provider of innovative credit technology solutions and processing services to the financial technology and services market, announced today its financial results for the quarter and year ended December 31, 2019.

“Our top-line growth was again better than anticipated as our unique offering resonated well with top-tier global companies seeking to partner with a flexible and nimble credit technology provider,” said Leland Strange, CEO of Intelligent Systems. “We achieved revenues of $10.3 million for the fourth quarter of 2019 and $34.3 million for the fiscal year of 2019, representing growth of 70% and 71%, respectively, over the prior year periods. I am pleased with the strong performance the team has achieved and more importantly the strong financial position Intelligent Systems is in as we head into fiscal year 2020. Our strong cash position is expected to continue to grow even though we continue to invest in the business to drive growth and deliver sustainable shareholder value.”

Mr. Strange continued, “As we look to fiscal year 2020, we do not anticipate the level of growth we have seen in 2019, in which we helped launch major new projects for high visibility customers. We will focus on solidifying our infrastructure and continuing to provide the best support possible, doing whatever it takes, and use this year as a building period pursuing the steps needed to ensure CoreCard exceeds current customer expectations as they grow their card portfolios. In order to achieve long-term sustainable growth, it is imperative we take the needed time this year to build a strong and stable foundation for the business. We expect our processing services business to continue to grow and set the stage for even more growth in 2021.”

Financial Highlights for the three and twelve months ended December 31, 2019

Total revenues of $10,303,000 and $34,303,000 for the three and twelve-month periods, respectively. Growth represented 70%, and 71% for the three and twelve-month periods, respectively, as compared to the same periods in 2018.

In the following table, revenue is disaggregated by type of revenue for the three months and twelve months ended December 31, 2019 and 2018:

    Three Months Ended   Twelve Months Ended
  December 31,   December 31,
(in thousands)   2019   2018   2019    2018     
License   $ 2,000   $ 1,060   $ 5,725   $ 1,349    
Professional services     5,998     2,992     19,203     11,041    
Processing and maintenance     1,879     1,632     7,650     6,394    
Third party     426     370     1,725     1,316    
Total   $ 10,303   $ 6,054   $ 34,303   $ 20,100    

Income from operations was $3,979,000 for the fourth quarter compared to income from operations of $2,268,000 in the comparable prior year quarter. Full year 2019 income from operations was $13,382,000 compared to $6,142,000 in the comparable prior year.

Net income was $3,697,000 for the fourth quarter compared to net income of $2,427,000 in the comparable prior year quarter. Full year 2019 net income was $10,969,000 compared to $6,244,000 in the comparable prior year.

Earnings per diluted share was $0.41 for the quarter ended December 31, 2019. Full year 2019 earnings per diluted share was $1.22 compared to $0.70 in the comparable prior year.

Investor Conference Call Today

The company is holding an investor conference call today, February 11, 2020, 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 2061606. As part of the conference call Intelligent Systems will be conducting a question and answer session where participants are invited to email their questions to fax@intelsys.com prior to the call. 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 period ended December 31, 2019 with the Securities and Exchange Commission in early March. 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 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.

Intelligent Systems Corporation
(in thousands, except share and per share amounts)
  Three Months Ended
December 31,
Twelve Months Ended
December 31,
    2019     2018     2019     2018
Services $ 8,303   $ 4,994   $ 28,578   $ 18,751
Products   2,000     1,060     5,725     1,349
Total net revenue   10,303     6,054     34,303     20,100
Cost of revenue                      
Services   3,314     2,416     11,759     8,388
Products               136
Total cost of revenue   3,314     2,416     11,759     8,524
Marketing   27     15     151     255
General and administrative   1,101     469     3,495     1,826
Research and development   1,882     886     5,516     3,353
Income from operations   3,979     2,268     13,382     6,142
Other income (loss)   (115 )   (22 )   133     106
Income before Income taxes   3,864     2,246     13,515     6,248
Income taxes   167     (181 )   2,546     4
Net income $ 3,697   $ 2,427   $ 10,969   $ 6,244
Earnings per share attributable to Intelligent Systems Corporation:                      
Basic $ 0.41   $ 0.28   $ 1.24   $ 0.71
Diluted $ 0.41   $ 0.27   $ 1.22   $ 0.70
Basic weighted average common shares outstanding   8,913,655     8,817,988     8,873,071     8,796,321
Diluted weighted average common shares outstanding   9,014,032     8,984,804     8,967,901     8,948,518

Intelligent Systems Corporation
(in thousands, except share and per share amounts)
As of December 31, 2019
    December 31, 2018
ASSETS (unaudited)     (audited)
Current assets:                
Cash $ 26,415       $ 18,919  
Marketable securities           349  
Accounts receivable, net   8,759         3,731  
Notes and interest receivable, current portion           581  
Other current assets   905         1,202  
Total current assets   36,079         24,782  
Investments   3,081         760  
Notes and interest receivable, net of current portion   1,795         1,745  
Property and equipment, at cost less accumulated depreciation   2,177         1,513  
Other long-term assets   1,108         504  
Total assets $ 44,240       $ 29,304  
Current liabilities:    
Accounts payable $ 403       $ 272  
Deferred revenue, current portion   689         781  
Accrued payroll   2,503         1,145  
Accrued expenses   153         71  
Income tax payable   1,100         284  
Other current liabilities   1,345         719  
Total current liabilities   6,193         3,272  
Noncurrent liabilities:    
Deferred revenue, net of current portion   23         111  
Long-term lease obligation   460          
Deferred tax liability   275          
Total noncurrent liabilities   758         111  
Intelligent Systems Corporation stockholders’ equity:    
Common stock, $0.01 par value, 20,000,000 shares authorized, 8,924,988 and 8,817,988 issued and outstanding at December 31, 2019 and December 31, 2018, respectively   89         88  
Additional paid-in capital   15,450         15,050  
Accumulated other comprehensive loss   (94 )       (92 )
Accumulated income   21,844         10,875  
Total Intelligent Systems Corporation stockholders’ equity   37,289         25,921  
Total liabilities and stockholders’ equity $ 44,240       $ 29,304  

For further information, call
Matt White, 770-564-5504 or
email to matt@intelsys.com