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| 8-K - FORM 8-K FILING DOCUMENT - INTELLIGENT SYSTEMS CORP | document.htm |
EXHIBIT 99.1
Intelligent Systems Announces First Quarter 2012 Results
NORCROSS, Ga., May 15, 2012 (GLOBE NEWSWIRE) -- Intelligent Systems Corporation (NYSE Amex:INS) (www.intelsys.com) announced today its financial results for the three month period ended March 31, 2012.
For the three month period ended March 31, 2012, the company recorded total revenue of $4,094,000, an increase of 16 percent compared to total revenue of $3,544,000 recorded in the first quarter of 2011. The net loss was $256,000 ($0.03 per basic and diluted share) compared to a loss of $354,000 ($0.04 per basic and diluted share) in the first quarter of 2011.
In the first quarter of 2012, product revenue grew 13 percent to $3,418,000 while service revenue increased 32 percent to $676,000, as compared to the same quarter in 2011.
J. Leland Strange, President and Chief Executive Officer, stated, "Our ChemFree subsidiary reported strong profits in the first quarter of 2012, with period-to-period growth fueled by a rebound in sales of SmartWasher® bio-remediating parts washers in the domestic U.S. market as well as total consumable sales and lease revenue.
"The growth in service revenue associated with maintenance and professional services performed by our CoreCard subsidiary reflects a growing base of customers. While our licensed software business continues to be our main focus, we are making progress on a processing services initiative and continue to invest in infrastructure, software and processes to support this business."
The results reported in the first quarter of 2011 reflect the net effect of lower revenue as well as higher total expenses. The period-to-period increase in total expenses is related mainly to higher expenses for legal, audit and personnel as well as a significant increase in the number of employees at our software development and test subsidiary in India. We continue to invest in CoreCard's software development activities to provide financial transaction processing solutions for markets such as prepaid, fleet and private label cards, while putting in place the infrastructure to support future growth.
As we have frequently cautioned, results may vary from quarter-to-quarter due in part to the timing of CoreCard license revenue recognition and the number and value of professional services contracts completed in a given period. Generally, we defer all license revenue associated with contract milestone payments on new CoreCard customer implementations and professional services contracts until they are complete, which may frequently be affected by changes in customer requirements and schedules that are outside of our control.
About Intelligent Systems Corporation
For over thirty five years, Intelligent Systems Corporation (NYSE Amex:INS) has identified, created, operated and grown early stage technology companies. The company has operations and investments in the information technology and industrial products industries. The company's principal majority-owned subsidiaries are CoreCard Software, Inc. (www.corecard.com), a provider of software and services for prepaid and credit card processing, and ChemFree Corporation (www.chemfree.com), a leader in bioremediating parts washer equipment and supplies. 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, changes in the performance, financial condition or valuation of affiliate companies, the risks associated with investments in privately-held early stage companies and further declines in general economic and financial market conditions, particularly those that cause businesses to delay or cancel purchase decisions.
| Intelligent Systems Corporation | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (unaudited; in thousands, except share and per share amounts) | ||
| Three Months Ended March 31, | ||
| 2012 | 2011 | |
| Revenue | ||
| Products | $ 3,418 | $ 3,032 |
| Services | 676 | 512 |
| Total revenue | 4,094 | 3,544 |
| Cost of revenue | ||
| Products | 1,686 | 1,548 |
| Services | 537 | 278 |
| Total cost of revenue | 2,223 | 1,826 |
| Expenses | ||
| Marketing | 586 | 520 |
| General & administrative | 871 | 918 |
| Research & development | 668 | 639 |
| Operating loss | (254) | (359) |
| Other income (expense) | ||
| Interest income, net | 4 | 11 |
| Equity in income (loss) of affiliate company | (4) | 9 |
| Other income | 10 | 6 |
| Loss before income taxes | (244) | (333) |
| Income taxes | 12 | 21 |
| Net loss | $ (256) | $ (354) |
| Loss per share: Basic and Diluted | $ (0.03) | $ (0.04) |
| Basic & Diluted weighted average common shares outstanding | 8,958,028 | 8,958,028 |
| Intelligent Systems Corporation | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (in thousands, except share and per share amounts) | ||
|
March 31, 2012 |
December 31, 2011 |
|
| ASSETS | (unaudited) | (audited) |
| Current assets: | ||
| Cash | $ 3,077 | $ 3,152 |
| Marketable securities | 228 | 209 |
| Accounts receivable, net | 2,745 | 2,504 |
| Notes and interest receivable, current portion | 243 | 249 |
| Inventories, net | 885 | 824 |
| Other current assets | 285 | 284 |
| Total current assets | 7,463 | 7,222 |
| Investments | 1,283 | 1,288 |
| Notes and interest receivable, net of current portion | ---- | 240 |
| Property and equipment, at cost less accumulated depreciation | 1,167 | 1,222 |
| Patents, net | 121 | 133 |
| Total assets | $ 10,034 | $ 10,105 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||
| Current liabilities: | ||
| Accounts payable | $ 754 | $ 463 |
| Deferred revenue, current portion | 915 | 907 |
| Accrued payroll | 411 | 460 |
| Accrued expenses | 638 | 669 |
| Other current liabilities | 280 | 369 |
| Total current liabilities | 2,998 | 2,868 |
| Deferred revenue, net of current portion | 45 | 50 |
| Other long-term liabilities | 134 | 140 |
| Commitments and contingencies (Note 8) | ||
| Total Intelligent Systems Corporation stockholders' equity | 5,341 | 5,531 |
| Non-controlling interest | 1,516 | 1,516 |
| Total stockholders' equity | 6,857 | 7,047 |
| Total liabilities and stockholders' equity | $ 10,034 | $ 10,105 |
CONTACT: For further information, call
Bonnie Herron, 770-564-5504
or email to bherron@intelsys.com