Intelligent Systems Announces First Quarter Results; Stock Repurchase Program Reinstated
/FROM PR NEWSWIRE ATLANTA 404-231-1814/ [STK] INS [IN] CPR MLM STW [SU] ERN TO BUSINESS AND TECHNOLOGY EDITORS:
Intelligent Systems Announces First Quarter Results;
Stock Repurchase Program Reinstated
NORCROSS, Ga., May 8 /PRNewswire/ -- Intelligent Systems Corporation (AMEX:INS); (www.intelsys.com) announced today its financial results for the three month period ended March 31, 2001.
For the three month period ended March 31, 2001, the company recorded net income of $749,000 or $0.13 per basic and diluted share on revenue of $1,694,000 compared to net income of $8,384,000 or $1.48 per basic share ($1.46 per diluted share) on revenue of $2,007,000 for the first quarter of 2000. The results for the first quarter last year include a non-recurring gain of $8.6 million on the partial sale of the company's holdings in Risk Laboratories, a former affiliate company. In the first quarter of 2001, the company recognized investment income totaling $845,000, principally related to the sale of part of its remaining interest in Risk.
The revenue decline in the first quarter of 2001 compared to the same period last year is due to the fact that the company sold a small healthcare operation in November 2000. After adjusting for this sale, revenue for the company's continuing operations increased in the first quarter of 2001 compared to the same period last year and compared to the immediately preceding quarter ended December 30, 2000 as well.
On April 30, 2001, the company announced the sale of its interest in PaySys International, Inc. which resulted in aggregate cash proceeds of $22.1 million from the stock sale and loan repayments. The company will record a significant gain on the transaction in its results for the second fiscal quarter ended June 30, 2001. At May 7, 2001, the company had cash of approximately $3.73 per common share outstanding and no bank or long-term debt.
The company intends to use part of the sale proceeds for its previously announced stock repurchase program, which had been suspended during the negotiation of the PaySys transaction and pending the announcement of the first quarter results. Under the stock repurchase program, the board of directors previously authorized the buy back of up to one million of the company's common shares.
Intelligent Systems consolidates the revenue and costs of operations of partner companies in which it owns 50 percent or more of the equity but does not consolidate revenue or costs of operations for companies in which it owns less than a majority of the equity and does not control. In addition, Intelligent Systems records each quarter its pro rata share of the income or loss of those affiliate companies that are accounted for under the equity method. In the quarter ended March 31, 2001, the company recorded $306,000 net loss in the equity of affiliates compared to net loss of $195,000 in the comparable period last year. The timing and amounts of such income or loss varies from period to period and are not controlled by the company.
About Intelligent Systems Corporation
For more than twenty-five years, Intelligent Systems Corporation has identified, created, operated and grown early stage technology companies. The company uses a combination of business know-how, flexible support, a network of contacts and resources and equity capital to create sustainable companies. 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, actions of third parties, 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 March 31 2001 2000
Revenue $1,694,000 $2,007,000
Loss From Operations (234,000) (309,000)
Other Income 983,000(a) 8,696,000(b)
Minority Interest 0 3,000
Net Income $749,000 $8,384,000
Average Shares Outstanding - Basic 5,623,784 5,653,822
Average Shares Outstanding - Diluted 5,627,450 5,735,720
Basic Share Income $0.13 $1.48
Diluted Share Income $0.13 $1.46
(a) Includes net investment gains of $845,000 and $306,000 loss in equity
of affiliates.
(b) Includes net investment gains of $8.8 million and $195,000 loss in
equity of affiliates.
For further information, call
Bonnie Herron, 770/564-5504
or email to bherron@intelsys.com
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tbutton.prnewswire.com SOURCE Intelligent Systems Corporation
-0- 05/08/2001 /CONTACT: Bonnie Herron of Intelligent Systems, 770-564-5504, or bherron@intelsys.com /
/Web site: intelsys.com / |
