Intelligent Systems Announces Third Quarter Results
PR Newswire, N/A
/FROM PR NEWSWIRE 800-682-9599/ [STK] INS [IN] CPR [SU] ERN TO BUSINESS AND TECHNOLOGY EDITORS:
Intelligent Systems Announces Third Quarter Results
NORCROSS, Ga., Oct. 27 /PRNewswire/ -- Intelligent Systems Corporation (AMEX:INS)( www.intelsys.com ) announced today its financial results for the three and nine month periods ended September 30, 2000.
For the three month period ended September 30, 2000, the company recorded net income of $145,000 or $0.03 per share on revenue of $1,630,000 compared to a net loss of $(873,000) or $(0.17) per share on revenue of $1,816,000 for the third quarter of 1999. The results for the third quarter of 2000 include investment gains of $826,000 related to the sale of previously restricted shares that had been acquired in an earlier merger of one of the company's ventures with a publicly traded company.
For the nine month period ended September 30, 2000, the company recorded net income of $8,397,000 or $1.50 per basic share compared to a net loss of $(677,000) or $(0.13) per share for the same period in 1999. Revenue from consolidated subsidiaries was $5,624,000 in the first nine months this year compared to $6,589,000 in the same period last year.
The record earnings for the nine month period are due in large part to a transaction in the first quarter of 2000. The company sold a significant portion of its holdings in Risk Laboratories, LLC in a private transaction that netted $8.7 million in cash for the company and a gain of $8.6 million on the transaction. The company continues to own approximately 7 percent of Risk Laboratories, an Atlanta based risk management software and e-commerce company. The decline in revenue during the first nine months of 2000 compared to the same period in 1999 reflects the sale of a European subsidiary in the first quarter of 1999 and lower revenue recorded by the company's healthcare services subsidiary.
J. Leland Strange, president of Intelligent Systems, stated, "In the first nine months of 2000, the return on our early investment in Risk allowed us to pay a special cash dividend to shareholders, to initiate a stock repurchase program, and to meet our goal of supporting one early stage private technology company each month with new and follow-on equity capital that we believe will create future value for the company."
Intelligent Systems consolidates the revenue and costs of operations of those partner companies in which it owns 50 percent or more of the equity but does not consolidate revenue or costs of operations for the companies in which it owns less than a majority of the equity. Presently, the company consolidates financial results of three of the 26 partner companies in which it owns an equity stake. In addition, under the equity method of accounting, Intelligent Systems records each quarter its pro rata share of the income or loss of those companies in which it owns 20 to 49 percent of the equity. The timing and amounts of these items will vary from quarter to quarter and are not controlled by Intelligent Systems. Most of the company's income is earned on an irregular basis when it sells an ownership interest in a partner company for more than its original investment cost.
About Intelligent Systems Corporation
For more than twenty-five years, Intelligent Systems Corporation has identified, created and grown early stage technology companies. The company uses a combination of business know-how, flexible support and equity capital to create sustainable companies that yield investor returns. Since 1990, the company has operated the Intelligent Systems Incubator, an award-winning pioneer in privately funded incubators. Further information is available on the company's website at www.intelsys.com, or by calling the company's headquarters at 770-381-2900.
In addition to historical information, this news release contains forward-looking statements relating to Intelligent Systems and its 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. Among the factors that could cause actual results to differ materially are changes in financial market conditions, 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 partner companies, and general economic conditions.
SUMMARY OF RESULTS
Three Months Ended Sept. 30 2000 1999
Revenue $1,630,000 $1,816,000
Loss From Operations (275,000) (58,000)
Other Income (Expense) 636,000(a) (813,000)(b)
Income Tax Provision 213,000 ---
Minority Interest 3,000 2,000
Net Income (Loss) $ 145,000 $ (873,000)
Average Shares Outstanding - Basic 5,582,259 5,104,467
Average Shares Outstanding - Diluted 5,608,529 5,104,467
Basic Share Income (Loss) $0.03 $(0.17)
Diluted Share Income (Loss) $0.03 $(0.17)
Nine Months Ended Sept. 30 2000 1999
Revenue $5,624,000 $6,589,000
Loss From Operations (534,000) (664,000)
Other Income (Expense) 9,152,000(c) (6,000)(d)
Income Tax Provision 213,000 ---
Minority Interest 8,000 7,000
Net Income (Loss) $8,397,000 $(677,000)
Average Shares Outstanding - Basic 5,608,898 5,104,467
Average Shares Outstanding - Diluted 5,618,895 5,104,467
Basic Share Income (Loss) $1.50 $(0.13)
Diluted Share Income (Loss) $1.49 $(0.13)
(a) Includes gains totaling $826,000 on investments and $247,000 loss
in equity of affiliates.
(b) Includes $556,000 loss in equity of affiliates and $259,000 investment
loss.
(c) Includes gains totaling $9,675,000 on investments and $692,000 loss
in equity of affiliates.
(d) Includes net gains totaling $916,000 on investments and $859,000 loss
in equity of affiliates.
For further information, call
Bonnie Herron, 770/564-5504 |
