NORCROSS, Ga., Aug. 12, 2016 (GLOBE NEWSWIRE) -- Intelligent Systems Corporation (NYSE MKT:INS) announced today its financial results for the three and six month periods ended June 30, 2016.
Revenue was $1,550,000 and $3,196,000 in the three and six month periods of 2016, respectively, representing growth of 28 percent and 40 percent, respectively, as compared to the same periods in 2015. The growth is attributable to an increase in the number of accounts covered by certain software licenses, an increase in our processing services customer base and an upswing in our professional services.
For the three month period ended June 30, 2016, the company recorded net loss attributable to Intelligent Systems of $217,000 ($0.02 per basic and diluted share) compared to net loss attributable to Intelligent Systems of $793,000 ($0.09 per basic and diluted share) in the second quarter of 2015. The strong revenue growth for the quarter coupled with a substantial decrease in operating expenses, due in part to higher one-time G&A expenditures in the prior year, resulted in a significantly lower loss from continuing operations for the second quarter of 2016 as compared to the same period last year.
For the year-to-date period ended June 30, 2016, the company recorded net loss attributable to Intelligent Systems Corporation of $1,155,000 ($0.13 per basic and diluted share), compared to net income attributable to Intelligent Systems of $17,504,000 ($1.97 per basic share and $1.95 per diluted share) in the six month period in 2015. The dramatic change between periods reflects the gain of $18,726,000 on the sale of the company’s former ChemFree subsidiary in the year-to-date period in 2015. As previously announced, the company sold its ChemFree subsidiary on March 31, 2015 and consequently has classified the ChemFree business as discontinued operations for all periods presented.
“We continue to see gains in all three components of our FinTech focused businesses – licensing, processing, and professional services. The gains are coming both from our innovative prepaid solutions and our rich credit software offerings,” commented J. Leland Strange, CEO of Intelligent Systems. “We are fairly comfortable that the second half of 2016 will be significantly stronger than the first half as we recognize revenue from work done throughout the year. While the expenses of being a public company will impact operating results and may result in an overall loss, I believe the CoreCard operations have turned the corner and will be profitable for the year.”
Investor Conference Call Today
The company is holding an investor conference call today, August 12, 2016, at 11 AM Eastern time. Interested investors are invited to attend the conference call by dialing (855) 766-6518 and entering conference ID code 56384370. 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, 2016 with the Securities and Exchange Commission today, August 12, 2016. 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 MKT:INS) has identified, created, operated and grown technology companies. The company’s principal continuing operations include 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 is a unique partner for FinTech innovators by providing them a comprehensive platform for their payment and processing solutions. CoreCard also offers prepaid and credit card processing services using its proprietary software solutions. 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, 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, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenue | ||||||||||||||||
| Products | $ | 149 | $ | 139 | $ | 378 | $ | 275 | ||||||||
| Services | 1,401 | 1,069 | 2,818 | 2,002 | ||||||||||||
| Total net revenue | 1,550 | 1,208 | 3,196 | 2,277 | ||||||||||||
| Cost of revenue | ||||||||||||||||
| Products | 58 | 52 | 122 | 112 | ||||||||||||
| Services | 719 | 626 | 1,367 | 1,170 | ||||||||||||
| Total cost of revenue | 777 | 678 | 1,489 | 1,282 | ||||||||||||
| Expenses | ||||||||||||||||
| Marketing | 99 | 52 | 195 | 123 | ||||||||||||
| General and administrative | 383 | 725 | 939 | 1,093 | ||||||||||||
| Research and development | 611 | 718 | 1,256 | 1,412 | ||||||||||||
| Loss from operations | (320 | ) | (965 | ) | (683 | ) | (1,633 | ) | ||||||||
| Other income (loss) | 21 | 27 | (642 | )1 | 29 | |||||||||||
| Loss from continuing operations before income taxes | (299 | ) | (938 | ) | (1,325 | ) | (1,604 | ) | ||||||||
| Income taxes | (2 | ) | -- | (3 | ) | 3 | ||||||||||
| Loss from continuing operations | (297 | ) | (938 | ) | (1,322 | ) | (1,607 | ) | ||||||||
| Gain (loss) on sale of discontinued operations, net of taxes | -- | (20 | ) | -- | 18,726 | 2 | ||||||||||
| Loss from discontinued operations, net of taxes | -- | -- | -- | (3 | ) | |||||||||||
| Net income (loss) | (297 | ) | (958 | ) | (1,322 | ) | 17,116 | |||||||||
| Net loss attributable to noncontrolling interest | 80 | 165 | 167 | 388 | ||||||||||||
| Net income (loss) attributable to Intelligent Systems Corporation | $ | (217 | ) | $ | (793 | ) | $ | (1,155 | ) | $ | 17,504 | |||||
| Earnings (loss) per share attributable to Intelligent Systems Corporation: | ||||||||||||||||
| Basic earnings (loss) per share | $ | (0.02 | ) | $ | (0.09 | ) | $ | (0.13 | ) | $ | 1.97 | |||||
| Diluted earnings (loss) per share | $ | (0.02 | ) | $ | (0.09 | ) | $ | (0.13 | ) | $ | 1.95 | |||||
| Basic weighted average common shares outstanding | 8,731,299 | 8,806,875 | 8,731,299 | 8,882,452 | ||||||||||||
| Diluted weighted average common shares outstanding | 8,731,299 | 8,806,875 | 8,731,299 | 8,977,839 | ||||||||||||
- Includes write-down of $750,000 on carrying value of investment in early stage technology company.
- Reflects sale of ChemFree subsidiary on March 31, 2015.
| CONSOLIDATED BALANCE SHEETS | |||||||
| (in thousands) | |||||||
| As of | June 30, 2016 | December 31, 2015 | |||||
| ASSETS | (unaudited) | (audited) | |||||
| Current assets: | |||||||
| Cash | $ | 16,843 | $ | 18,059 | |||
| Marketable securities | 418 | 396 | |||||
| Accounts receivable, net | 532 | 962 | |||||
| Other current assets | 1,201 | 2,846 | |||||
| Restricted cash | 2,200 | 2,200 | |||||
| Total current assets | 21,194 | 24,463 | |||||
| Investments | 245 | 1,015 | |||||
| Property and equipment, at cost less accumulated depreciation | 650 | 636 | |||||
| Other long-term assets | 118 | 59 | |||||
| Total assets | $ | 22,207 | $ | 26,173 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 122 | $ | 78 | |||
| Deferred revenue, current portion | 2,157 | 1,830 | |||||
| Accrued payroll | 648 | 495 | |||||
| Accrued expenses | 28 | 25 | |||||
| Other current liabilities | 279 | 243 | |||||
| Liabilities from discontinued operations | -- | 120 | |||||
| Total current liabilities | 3,234 | 2,791 | |||||
| Deferred revenue, net of current portion | 131 | 195 | |||||
| Other long-term liabilities | 18 | 18 | |||||
| Total Intelligent Systems Corporation stockholders’ equity | 21,870 | 26,048 | |||||
| Noncontrolling interest | (3,046 | ) | (2,879 | ) | |||
| Total stockholders’ equity | 18,824 | 23,169 | |||||
| Total liabilities and stockholders’ equity | $ | 22,207 | $ | 26,173 | |||