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©2000 Intelligent Systems |
FOR IMMEDIATE RELEASE For further
information, call INTELLIGENT
SYSTEMS ANNOUNCES FIRST QUARTER 2002 RESULTS ***Earnings
Conference Call and Webcast at 11:00 AM Today
*** Norcross,
GA – May 9, 2002 –
Intelligent Systems Corporation [AMEX:INS;
www.intelsys.com] announced today its
financial results for the three month period
ended March 31, 2002. For
the first quarter of 2002, Intelligent Systems
recorded revenue of $2,168,000, an increase of
28 percent compared to $1,694,000 in the first
quarter of 2001.
Net loss in the first quarter of 2002 was
$2,122,000 or $0.47 per basic share as compared
to net income of $749,000 or $0.13 per basic
share for the same period in 2001. The
2002 results are not directly comparable to the
prior period because this year the company
consolidates two information technology
subsidiaries that were not consolidated in the
first quarter of 2001.
As previously announced, the company
acquired a controlling interest in VISaer, Inc.,
a software firm, in July 2001 and acquired
control of Delos Payment Systems, Inc., a
development stage software company, in early
2002.
Revenue
grew 28 percent in the three month period in
2002, mainly due to the contribution of VISaer
revenue in 2002.
As expected, the company’s loss from
operations increased
significantly in the first quarter of 2002
compared to last year’s first quarter.
The increased operating loss reflects the
inclusion of expenses of VISaer and Delos
Payments Systems in 2002, in particular
significant software development expense at both
new subsidiaries.
VISaer has a multi-million dollar
software contract with United Parcel Services
(UPS) for its new Web-native software product
for which VISaer is incurring significant
R&D expense, in large part funded under the
contract. At
March 31, 2002, VISaer has accrued over $3
million in deferred revenue related to this
contract that will be recognized when the
completed software is delivered in 2003. Delos, a pre-revenue company that was spun-off from PaySys
International, Inc. in April 2001, is developing
the first release of its software product. The
company recognized $1.5 million in other income
in the first quarter of 2002 compared to
$983,000 in the first quarter last year.
In 2002, this income includes $797,000 in
net investment income principally from the sale
of shares of Atherogenics and Risk Labs held by
the company as well as $751,000 in recognition
of deferred gain related to a former VISaer
affiliate.
By comparison, in the first quarter last
year, the company recognized investment income
of $845,000 mainly related to the sale of
additional shares of Risk Labs, as well as
$437,000 in interest income. At
March 31, 2002, the company had cash of $10.2
million, total assets of $24.7 million and
shareholders’ equity of $15.2 million.
The
financial results reported today for the first
quarter of 2002 have not been subject to a full
quarterly review by the company’s independent
auditor, in reliance upon the recent guidance
provided by the Securities and Exchange
Commission for auditing clients of Arthur
Andersen LLP. Conference
Call and Webcast Information
Intelligent Systems has scheduled a conference call for today at 11 AM EDT to discuss the results of the first quarter. The call-in number is 1-800-967-7188. A live webcast will be available at the same time by logging onto www.intelsys.com and clicking on the PR Newswire icon. An archived version of the webcast will be available for 30 days.
For
more than twenty-five years, Intelligent Systems
Corporation [AMEX: INS] has identified, created,
operated and grown early stage technology
companies.
The company has operations and
investments, principally in the information
technology industry.
The company’s consolidated subsidiaries
in 2002 include VISaer, QS Technologies, Delos
Payment Systems (all software companies) and
ChemFree (industrial products).
Since 1990, the company has operated the
Intelligent Systems Incubator, an award-winning
pioneer in privately sponsored incubators.
Further information is available on the
company’s website at www.intelsys.com,
or by calling the company’s headquarters at
770/381-2900. In
addition to historical information, this news
release contains forward-looking statements
relating to Intelligent Systems and its
affiliated companies. Such
forward-looking statements are not guarantees of
future performance and involve risks and
uncertainties. Actual results may differ
materially from those contemplated by such
forward-looking statements and the company does
not undertake to update or revise any
forward-looking statements whether as a result
of new developments or otherwise.
Among the factors that could cause actual
results to differ materially are changes in
financial market conditions, actions of third
parties, delays or changes of intent by third
parties, delays in product development,
competitive pressures, technical difficulties,
changes in customer requirements, market
acceptance of products and services,
availability of capital, availability of
qualified personnel, financial results and
valuation of affiliate companies, and general
economic conditions.
SUMMARY OF RESULTS
a
Includes principally net investment gains of
$797,000 and $751,000 in recognition of deferred
gain. b. Includes principally net investment gains of $845,000, $437,000 interest income and $306,000 loss in equity of affiliates accounted for by the equity method.
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