©2000-2010 Intelligent Systems
FOR IMMEDIATE RELEASE
SYSTEMS ANNOUNCES THIRD QUARTER 2003 RESULTS
Conference Call and Webcast at 11 AM Today ***
Norcross, GA – November 7,
Intelligent Systems Corporation [AMEX:INS; www.intelsys.com] announced today its financial results
for the third quarter and year-to-date periods
ended September 30, 2003.
For the nine-month period ended September
30, 2003, Intelligent Systems recorded revenue
of $8.7 million, a 19 percent increase compared
to the same period last year.
Net loss for the nine months ended
September 30, 2003 was $3.6 million or $0.81 per
share compared to a net loss of $9.5 million or
$2.12 for the nine month period in 2002.
For the three months ended September 30, 2003, the company recorded revenue of $2.7 million, an 8 percent decline compared to revenue of $3.0 million for the same period in 2002. Net loss for the three-month period in 2003 was $2.4 million or $0.53 per share, 11 percent less than the net loss of $2.7 million or $0.60 per share recorded in the third quarter of 2002.
The increase in revenue in the
year-to-date period 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 year-to-date period
ended September 30, 2003 include net investment
income of $3.6 million.
In the first half of the year, the
company recognized investment income totaling
$4.5 million on the settlement of an escrow fund
related to the sale in April 2001 of an
affiliate company, PaySys International, Inc. to
First Data Corporation.
Offset against this income was a
first-quarter write-down aggregating $719,000
against the carrying value of the company’s
equity and debt investment in a private
technology company, a second-quarter charge of
$76,000 to reduce the carrying value of another
minority owned start-up company and a third
quarter loss of $24,000 on the sale of
reduction in the net losses reported in the
year-to-date period in 2003 compared to the same
period last year is a combination of a 19
percent increase in revenue, a 15 percent
reduction in consolidated operating expenses,
and the non-recurring investment gain on the
The loss from operations in the three
and nine month periods ended September 30, 2003
was $2.5 million and $7.7 million, respectively,
which is a reduction of 12 percent and 23
percent, respectively, compared to the same
periods last year, mainly due to a reduction in
In the first nine months of 2003, the
company continued to support investment in
product development activities at both its
CoreCard Software and VISaer subsidiaries for
new software products.
While the company is incurring
significant product development costs in 2003 at
these subsidiaries, license revenue related to
the new software products will not be recognized
until 2004 at the earliest when customer
installations are complete.
At September 30, 2003, the company had
$3.9 million in current deferred revenue
comprised of amounts recorded by its four
consolidated subsidiaries and $4.6 million in
non-current deferred revenue associated with its
Call and Webcast Information
As announced previously, Intelligent
Systems has scheduled a conference call for
today at 11 AM EST to discuss the results of the
third quarter and year-to-date period for 2003.
The call-in number is 877-226-7144
(domestic) and 706-679-3941 (international).
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 12 months.
Intelligent Systems Corporation
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
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. 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 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
impact of events such as the war against IRAQ
and the SARS epidemic, 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share amounts)
Includes $4.5 million gain on escrow
settlement offset in part by reserves/losses on
CONSOLIDATED BALANCE SHEETS
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