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©2000 Intelligent Systems |
FOR IMMEDIATE RELEASE For further
information, call INTELLIGENT
SYSTEMS ANNOUNCES SECOND QUARTER 2002 RESULTS ***Earnings
Conference Call and Webcast at 11:00 AM Today
*** Norcross,
GA – August 7, 2002 –
Intelligent Systems Corporation [AMEX:INS;
www.intelsys.com] announced today its
financial results for the second quarter and
year-to-date periods ended June 30, 2002.
The 2002 results are not directly
comparable to the prior periods because this
year the company consolidates two information
technology subsidiaries that were not
consolidated in the second quarter and
year-to-date periods of 2001.
As previously announced, the company
acquired a controlling interest in VISaer, Inc.,
a software firm, in July 2001 and acquired a
controlling interest in CoreCard Software, Inc.
(formerly Delos Payment Systems, Inc.), a
development stage software company, in early
2002. The
company also reported significant non-recurring
investment income in the second quarter of 2001
that distorts period-to-period comparisons.
For the second quarter of 2002,
Intelligent Systems recorded revenue of
$2,213,000 compared to $1,519,000 in the second
quarter of 2001. Net loss in the second quarter of 2002 was $4,708,000 or
$1.05 per basic share as compared to net income
of $17,931,000 or $3.19 per basic share for the
same period in 2001.
For the six month period ended June 30,
2002, revenue was $4,381,000 compared to
$3,213,000 in the same period last year.
Net loss for the six month period of 2002
was $6,830,000 or $1.52 per basic share compared
to net income of $18,680,000 or $3.32 per basic
share in the year-to-date period in 2001. As
noted above, the second quarter and year-to-date
results last year were impacted positively by a
one-time investment gain of $17.8 million
related to the sale of PaySys, a former
affiliate company, to First Data Corporation.
Revenue
grew 46 and 36 percent in the three and six
month periods in 2002 compared to the same
periods in 2001 mainly due to the consolidation
of VISaer revenue in 2002 and revenue growth at
the company’s ChemFree subsidiary in the
second quarter of 2002.
The company’s reported losses from
operations of $3.5 million and $7.1 million in
the three and six month periods, respectively,
of 2002 are in line with expectations.
The increased operating loss compared to
prior periods reflects the inclusion of expenses
of VISaer and CoreCard Software in 2002, mainly
for significant software development expense at
both new subsidiaries.
J. Leland Strange, President and Chief
Executive Officer of Intelligent Systems
Corporation, said, “VISaer is developing a new
Web-native version of its maintenance repair and
overhaul (MRO) software and has accrued over
$3.2 million in deferred revenue that is
expected to grow during 2002 and be recognized
when the completed software is delivered to
customers in 2003.
Our CoreCard Software subsidiary expects
to have its first customer live on its card
transaction processing software in the fourth
quarter this year.
Meanwhile, we are consolidating their
losses and providing the main source of
funding.”
Results for the second quarter this year
include a net investment loss of $1,339,000 that
reflects primarily a write-down totaling
$1,246,000 to reduce the carrying value of the
company’s holdings in Daw Technologies’
stock which was acquired in a prior period sale
of a subsidiary.
Year-to-date 2002, the company’s
investment loss of $542,000 includes other
investment gains that offset in part the
investment reserves recorded in the period.
The year-to-date 2002 results also
include $902,000 of other income, mainly related
to the recognition of deferred gain from the
sale of a VISaer subsidiary in 2000. Conference
Call and Webcast Information
Intelligent Systems has scheduled a
conference call for today at 11 AM EDT to
discuss the results of the second quarter and
year-to-date periods.
The call-in number is 1-800-946-0722.
A live webcast will be available at the
same time by logging onto www.intelsys.com
and clicking on the webcast icon. An archived
version of the webcast will be available for 30
days. About
Intelligent Systems Corporation
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 (www.visaer.com), QS Technologies, (www.qsinc.com),
CoreCard Systems (www.corecard.com), all of
which are software companies, and ChemFree (www.chemfree.com),
an industrial products company.
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 $1.25 million
write-down of investment. b.
Includes principally gain of $17.8
million on sale of affiliate company, PaySys. c.
Includes principally recognition of
deferred gain. d.
Includes $1.7 million write-down of
investments and investment gains of $1.1
million. # # # # |
