©2000-2010 Intelligent Systems
FOR IMMEDIATE RELEASE
SYSTEMS ANNOUNCES FIRST QUARTER 2003 RESULTS
Conference Call and Webcast at 11 AM Today ***
GA – May 7, 2003 –
Intelligent Systems Corporation [AMEX:INS; www.intelsys.com] announced today the financial results
for its first quarter of 2003.
For the three months ended March 31,
2003, Intelligent Systems recorded revenue of
$3.2 million, a 45 percent increase compared to
revenue of $2.2 million for the same period in
income for the three-month period in 2003 was
$949,000 or $0.21 per share compared to a net
loss of $2.1 million or $0.47 per share for the
first quarter of 2002.
The 45 percent increase in revenue in the
first quarter of 2003 compared to last year
reflects an increase in service revenue (which
includes professional services and software
maintenance revenue) at the company’s VISaer
and QS Technologies subsidiaries as well as a
higher volume of product sales at the
company’s ChemFree subsidiary.
The results for the period ended March
31, 2003 were bolstered by investment income of
During the quarter, the company
recognized investment income of $4.2 million
realized on the settlement of an escrow fund
related to the sale in April 2001 of PaySys
International, Inc. to First Data Corporation.
In March 2003, First Data Corporation and
the former PaySys shareholders agreed to settle
all post-acquisition claims and to release the
balance of the escrow fund.
ISC received $4.2 million cash and
recognized an equal amount of investment income
on the settlement.
Offset against this income was a
write-down aggregating $719,000 against the
carrying value of the company’s equity and
debt investment in a private technology company
in which Intelligent Systems held a minority
write-down was based on the valuation and terms
of a recently completed sale of the principal
assets of the business.
overall improvement in results in the first
quarter of 2003 is the net effect of an increase
in revenue and gross margin contribution, a 15
percent reduction in consolidated operating
expenses and the non-recurring investment gain
on the escrow settlement.
The loss from operations in the three
month period ended March 31, 2003 was $2.6
million, 29 percent less than the $3.6 million
loss from operations in the first quarter of
2002 and in line with the company’s
expectations for the first quarter. The company
continues to support investment in product
development activities at both its CoreCard
Software and VISaer subsidiaries for new
products that are expected to be released in
According to J. Leland Strange, President
and Chief Executive Officer, “We are pleased
with the amount and timing of the escrow
settlement for Intelligent Systems and the other
former PaySys shareholders.
In the first quarter, our operating
subsidiaries made good progress on achieving
their product and sales plans for 2003, despite
general weakness in enterprise software sales
and uncertainty related to the recent SARS
epidemic and its potential impact on
international prospects and customers.”
Call and Webcast Information
As announced last week, Intelligent
Systems has scheduled a conference call for
today at 11 AM EDT to discuss in more detail the
results of the first quarter of 2003. The call-in number is 1-800-930-1344. 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 12 months.
Intelligent Systems Corporation
almost thirty 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
include VISaer, Inc. (www.visaer.com), QS
Technologies, Inc. (www.qsinc.com),
CoreCard Software, Inc. (www.corecard.com),
(all software companies) and ChemFree
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.
addition to historical information, this news
release may contain 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,"
"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. Tthe 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 from those
indicated by such forward-looking statements are
delays in product development, undetected
software errors, competitive pressures
(including pricing), changes in customers’
requirements or financial condition, market
acceptance of products and services, changes in
financial markets, changes in the performance,
financial condition or valuation of affiliate
companies, the risks associated with investments
in privately-held early stage companies, the war
against IRAQ and the SARS epidemic and their
impact on the worldwide commercial aviation
industry, other geopolitical or military
actions, and general economic conditions,
particularly those that cause business or
government to delay or cancel purchase
Consolidated Results of Operations
in thousands, except share amounts)
a. Includes $4.2M gain on escrow settlement and $719,000 investment write-down.
Consolidated Balance Sheet
thousands, except share amounts)
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