©2000-2010 Intelligent Systems
FOR IMMEDIATE RELEASE
Conference Call and Webcast at 11:00 AM Today
GA – November 6, 2002 –
Intelligent Systems Corporation [AMEX:INS;
www.intelsys.com] announced today its
financial results for the three and nine-month
periods ended September 30, 2002.
the third quarter of 2002, Intelligent Systems
recorded revenue of $2,973,000, an increase of
32 percent compared to the third quarter of
loss in the third quarter of 2002 was $2,697,000
or $0.60 per share compared to a net loss of
$7,672,000 or $1.63 per share for the same
period in 2001.
2002 results are not comparable to the prior
year periods for a number of reasons. First, in
2002 the company consolidates the results of
CoreCard Software, Inc., a development stage
software company, for the full nine-month period
in 2002 but not for 2001. Secondly, the company
consolidates the results of VISaer, Inc. for
both the three and nine month periods of 2002
but only for the third quarter of 2001.
Furthermore, in the third quarter last
year, the company recorded $6.4 million in
non-cash, non-recurring charges related to the
acquisition of VISaer in July 2001.
Finally, in the nine-month period last
year, the company recorded non-recurring
investment income of $17.8 million on the sale
of its ownership in an affiliate company, PaySys
grew 32 and 34 percent, respectively, in the
three and nine-month periods ended September 30,
2002 compared to the same periods in 2001.
loss from operations in the three and nine month
periods of 2002 is in line with the company’s
expectations and reflects significant current
expenses for research and development at both
the CoreCard and VISaer subsidiaries for new
software products that will generate revenue in
The operating losses do not reflect the
underlying progress being made at the
company’s operating units in 2002.
In the third quarter, the VISaer
subsidiary won a contract with JetBlue airlines
for VISaer’s new web-native software product,
received increases of over $3.5 million to
existing customer contracts and expanded its
sales pipeline significantly.
VISaer is on schedule for the initial
version release of its new software in the
fourth quarter this year.
At September 30, 2002, VISaer has accrued
over $3.75 million in deferred revenue that is
expected to increase and be recognized in 2003
and 2004 when the software is delivered and
accepted under various contracts.
ChemFree subsidiary recorded record revenue
levels in both the three and nine-month periods
due to increased sales of its bioremediating
parts washer systems in both the domestic and
QS Technologies subsidiary grew revenue from new
licenses of its public health software and
expanded its prospect pipeline compared to the
prior year periods.
Software, a spin-off from PaySys International
in 2001, introduced CoreIssueÔ,
its global card issuing and real-time
transaction processing software, and began
installation of its first customer
implementation in the third quarter.
In the three and nine-month periods of
2002, the company’s results include net
investment losses of $360,000 and $902,000,
respectively, representing the net effect of
gains on sales of investments offset by charges
to reduce the carrying value of several of the
company’s minority-owned interests.
The 2002 results also include other
income of $133,000 and $1,035,000 in the three
and nine-month periods, respectively, related to
recognition of a deferred gain from a sale
transaction in a prior period.
By comparison, as mentioned earlier, the
2001 year-to-date results include a one-time
gain of $17.8 million related to the sale of the
company’s interest in PaySys International.
Call and Webcast Information
Intelligent Systems has scheduled a
conference call for today at 11 AM EST to
discuss the results of the third quarter and
The call-in number is 1-800-262-1292;
password 253240. A live webcast will be available at the same time by logging
and clicking on the webcast icon. An archived
version of the webcast will be available for 30
Intelligent Systems Corporation
more than twenty-five years, Intelligent Systems
Corporation [AMEX: INS] has identified, created,
operated and grown early stage technology
The company has operations and
investments, principally in the information
The company’s consolidated subsidiaries
in 2002 include VISaer (http://www.visaer.com/),
QS Technologies (www.qsinc.com),
CoreCard Software (http://www.corecard.com/)
(all three of which are software companies) and
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
addition to historical information, this news
release contains forward-looking statements
relating to Intelligent Systems and it
subsidiary and 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
SUMMARY OF RESULTS
Includes non-recurring expenses totaling
$6.4 million related to VISaer acquisition.
Includes investment gains of $1,474,000
offset by investment losses of $2,377,000.
Includes investment gain of $17.8 million
on PaySys sale.
Recognition of deferred gain from sale in
Reflects pro rata share of net income
(loss) of minority-owned affiliate companies
accounted for under the equity method.
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