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©2000-2010 Intelligent Systems |
FOR IMMEDIATE RELEASE For further
information, call INTELLIGENT
SYSTEMS ANNOUNCES YEAR-END 2002 RESULTS ***Earnings
Conference Call and Webcast at 4 PM Today *** Norcross,
GA – March 5, 2003 –
Intelligent Systems Corporation [AMEX:INS;
www.intelsys.com] announced today its
financial results for the three and twelve month
periods ended December 31, 2002. For
the twelve-month period ended December 31, 2002,
Intelligent Systems recorded revenue of $10.7
million, a 23 percent increase compared to
revenue of $8.7 million for the same period in
2001. Net loss for the twelve month period in
2002 was $12.3 million or $2.73 per share
compared to net income of $9.1 million or $1.78
per share for the comparable period in 2001.
For
the fourth quarter ended December 31, 2002,
revenue was $3.4 million compared to revenue of
$3.2 million in the same period in 2001.
Net loss for the fourth quarter of 2002
was $2.7 million or $0.61 per share compared to
net loss of $1.9 million or $0.42 per share in
the same quarter of 2001. The
2002 results are not comparable to the prior
year periods for a number of reasons.
In 2002, the company’s results included
the consolidation of two software subsidiaries
that were not consolidated for all of the same
periods in 2001.
CoreCard Software was consolidated for
the full twelve-month period in 2002 but not for
2001 and VISaer was consolidated for all of 2002
but not for the first half of 2001.
Also, in 2001 the company’s earnings
were impacted significantly by non-recurring
investment income of $17.8 million on the sale
of its ownership in an affiliate company, PaySys
International.
Furthermore, in 2001 the company recorded
non-cash, non-recurring expenses totaling $6.4
million related to the VISaer acquisition.
The
loss from operations in the three and twelve
month periods ended December 31, 2002 is in line
with the company’s expectations as discussed
in previous shareholder communications and
reflects significant current expenses for
software development incurred by both the
CoreCard Software and VISaer subsidiaries for
new products that the company anticipates will
generate revenue in future periods. According
to J. Leland Strange, President and Chief
Executive Officer, “The reported operating
losses, which have decreased each quarter in
2002 and are expected to decline further in
2003, do not reflect the underlying progress
achieved by our operating units in 2002.
Both VISaer and CoreCard Software
released initial versions of new software
products while QS Technologies and ChemFree each
experienced over 20 percent growth in revenue
compared to 2001.” In the twelve-month period of 2002, the
company’s results included investment losses
of $934,000, representing the net effect of $1.5
million in gains on sales of investments offset
by $2.4 million in charges to reduce the
carrying value of several of the company’s
minority-owned interests.
By comparison, the 2001 results included
investment income of $19.9 million, consisting
mainly of $17.8 million related to the sale of
the company’s interest in PaySys
International. Conference
Call and Webcast Information
As announced last week, Intelligent
Systems has scheduled a conference call for
today at 4 PM EST to discuss in more detail the
results of the fourth quarter and annual periods
and the company’s current plans and financial
condition. The call-in number is 1-800-500-0177, password 41932.
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
almost thirty 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
include VISaer (www.visaer.com),
QS Technologies (www.qsinc.com),
CoreCard Software (www.corecard.com),
(all
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 at 770/381-2900. In
addition to historical information, this news
release contains forward-looking statements
relating to Intelligent Systems 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 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. 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 actions of
third parties, delays or changes of intent by
third parties (including customers and strategic
partners), delays in product development,
competitive pressures, unforeseen technical
difficulties, changes in customers’
requirements or financial condition, market
acceptance of products and services,
availability of capital, availability of
qualified personnel, financial results and
valuation of affiliate companies, the risks
associated with investments in privately-held
early stage companies, and general economic
conditions.
SUMMARY
OF RESULT
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| Three
Months Ended December 31, |
2002 |
2001 |
|
Revenue |
$3,387,000 |
$3,249,000 |
|
Loss
From Operations |
(2,446,000) |
(1,248,000) |
|
Interest
Income |
22,000 |
126,000 |
|
Investment
Loss, net |
(32,000) |
(46,000) |
|
Equity
in Affiliatesa |
(132,000) |
(1,615,000) |
|
Other
Income (Expense), net |
(135,000) |
674,000e |
|
Income
Tax Provision (Benefit) |
7,000 |
(214,000) |
|
Net
Income (Loss) |
$(2,730,000) |
$(1,895,000) |
|
Average
Shares Outstanding – Basic |
4,493,640 |
4,495,530 |
|
Average
Shares Outstanding – Diluted |
4,493,640 |
4,495,530 |
|
Basic
and Diluted Share Loss |
$(0.61) |
$(0.42)
|
|
|
Twelve
Months Ended December 31, |
|
|
|
2002 |
2001 |
|
Revenue |
$10,741,000 |
$8,718,000 |
|
Loss
From Operations |
(12,460,000) |
(10,420,000)b |
|
Interest
Income |
129,000 |
1,017,000 |
|
Investment
Income (Loss), net |
(934,000)c |
19,902,000d |
|
Equity
in Affiliatesa |
(235,000) |
(2,173,000) |
|
Other
Income, net |
900,000e |
960,000e |
|
Income
Tax Provision (Benefit) |
(343,000) |
173,000 |
|
Net
Income (Loss) |
$(12,257,000) |
$9,113,000 |
|
Average
Shares Outstanding – Basic |
4,495,058 |
5,108,413 |
|
Average
Shares Outstanding – Diluted |
4,495,058 |
5,145,691 |
|
Basic
Share Income (Loss) |
$(2.73) |
$1.78 |
|
Diluted
Share Income (Loss) |
$(2.73) |
$1.77 |
a.
Reflects pro rata share of net income
(loss) of minority-owned affiliate companies
accounted for under the equity method.
b.
Includes non-recurring expenses totaling
$6.4 million related to VISaer acquisition.
c.
Includes investment gains of $1.5 million
offset by losses/write-downs of $2.4 million.
d.
Includes investment gain of $17.8 million
on PaySys sale.
e.
Comprised primarily of recognition of
deferred gain from sale in prior period.
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