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©2000 Intelligent Systems |
FOR IMMEDIATE RELEASE For further
information, call INTELLIGENT SYSTEMS ANNOUNCES FIRST QUARTER 2005 RESULTS ***Earnings Conference Call at 11 AM Today *** Norcross,
GA – May 12, 2005 –
Intelligent Systems Corporation [AMEX:INS;
www.intelsys.com] announced today the
financial results for its first fiscal quarter
of 2005.
For
the quarter ended March 31, 2005, the company
recorded consolidated revenue of $3.6 million
compared to $4.6 million in the same quarter of
2004. Net
loss for the three-month period in 2005 was
$219,000 or $0.05 per basic and diluted share,
compared to a net loss of $820,000 or $0.18 per
basic and diluted share recorded in the first
quarter of 2004.
Services
revenue from sales of professional services and
software maintenance contracts increased by nine
percent ($131,000) in the first quarter of 2005
compared to the same period in 2004, reflecting
a growing base of customers at the company’s
three software subsidiaries.
First quarter 2005 revenue from product
sales, which includes both software license
revenue and industrial products sales, was
approximately even with the fourth quarter of
2004 but $1.2 million lower than for the first
quarter of 2004, mainly because last year’s
first quarter results included revenue of $1.3
million related to completion of an early stage
subsidiary’s first significant software
contract. As
the company has explained previously, the timing
of revenue recognition of software sales,
particularly for initial installations of new
products, is often uneven and dependent on a
number of internal and external factors.
Product sales at the company’s other
subsidiaries were slightly higher in the first
quarter of 2005, as compared to 2004.
The company reduced consolidated
operating expenses by fourteen percent in the
first quarter of 2005, as compared to 2004.
The
results for the three-month period ended March
31, 2005 include $1.0 million in investment
income representing a third cash distribution
from minority-owned ISC Guernsey, an entity that
realized a significant gain from the sale of
stock in a U.K. based company in a prior period.
As reported previously, in the second
half of 2004, the company recognized an
additional $2.7 million investment income on
cash distributions related to the ISC Guernsey
transaction.
At
March 31, 2005, the company’s balance sheet
includes $5.7million in current net deferred
revenue comprised of amounts recorded by its
four consolidated subsidiaries, net of
associated costs, that is expected to be
recognized as revenue within the next twelve
months. Conference
Call Information
As
announced previously, Intelligent Systems has
scheduled a conference call for today at 11 AM
EDT to discuss the results of the first quarter
for 2005. The
call-in number is (877) 226-7144.
A transcript of the conference call will
be available by the end of the day and will be
archived on the company’s website at www.intelsys.com
for 12 months.
About
Intelligent Systems Corporation
For
over 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, Inc. (www.visaer.com), QS Technologies,
Inc. (www.qsinc.com),
CoreCard Software, Inc. (www.corecard.com),
(all software companies) and ChemFree
Corporation (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 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," "will," "anticipate," "believe," "intend," "expect," "estimate," "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 rising gas prices or health epidemics that could impact the aviation industry and the company’s other worldwide market opportunities, other geopolitical or military actions, and general economic conditions, particularly those that cause business or government to delay or cancel purchase decisions. CONSOLIDATED
STATEMENTS OF OPERATIONS
CONSOLIDATED
BALANCE SHEETS
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