INSI Quarterly report:
sec.yahoo.com
(Still holding my stock purchased at $2.25 a few weeks ago. Trading near its 52 week high. Solid company, and according to the information systems consultants I've spoken with, huge demand for their product... will fly someday IMO. Rumors of a possible Xerox buyout as well)
Exerpt(s) from form 10Q:
------INSCI develops, sells, installs and supports electronic document repository software with integrated Internet, imaging, workflow, print-on-demand, electronic
distribution and archive (COLD) software for the enterprise level (high volume production) market. INSCI's software products enable customers to improve their
services through electronic access to documents (e.g. invoices, statements, reports, etc.); provide financial savings through elimination of paper and microfiche; and
provide the foundation for the digital document "back office" for electronic commerce applications. Sales to end users generally include software, systems integration
and consulting services, installation, and training. Post-installation maintenance and customer support is available under the terms of a separate contract at an
additional charge. INSCI sells its products through a combination of a direct sales force and indirectly through VAR's, distributors and sales alliances with companies
including Unisys Corporation, Xerox Corporation and Moore Corporation. Revenue is net of discounts and allowances given to third party VARs and distributors.
------The December 31, 1998 quarter represented the highest quarterly revenue in the Company's history.
------Net income for the quarter ended December 31, 1998 was $386,000 compared to a net income of $9,000 for the quarter ended December 31, 1997. The increase
in net income reflects revenue growth of 33% and gross margin growth of 43%, compared to expense growth of 21%.
------Total revenue for the nine months ended December 31, 1998 was $9,234,000 and increased by 42% compared to revenue of $6,488,000 for
the nine months ended December 31, 1997.
------Gross margin for the nine months ended December 31, 1998 was $5,856,000 and increased by 77% compared to gross margin of $3,308,000 for the same period
last year. Gross margin as a percent of revenues was 63% for the current period compared to 51% for the same period last year. The increase in gross margin is
primarily the result of increased revenue for the current period.
-------Net loss for the nine months ended December 31, 1998 was $278,000 compared to a net loss of $1,928,000 for the nine months ended December 31, 1997. The
decrease in loss in the current period reflects revenues that grew by 42% compared to expense increases of 15%.
-------The Company believes that it is materially ready to process year 2000 requirements and that the
remaining minor changes scheduled to be completed over the next four months will be successfully implemented as part of the Company's normal maintenance
update of internal systems. The majority of the costs associated with implementing the Company's year 2000 compliance program have already been recognized...
-------The Company's product development program has been directed toward creating a suite of complementary products to meet customer and marketplace
requirements for a more complete electronic document management solution. This development program includes enhancement of existing Unix based products
combined with development of new NT based products. During fiscal 1998, the Company announced the addition of six new products to its offerings; WebCOINS,
an Internet product; COINSflow, a workflow product; Advanced COINSCAN, an imaging product; Advanced COINSERV, a document archive and retrieval
product; and Setup Expert, an application set up interface. The Company also released a major new product in October, 1997, COINSERV for Windows NT, an
electronic document repository with Internet access and integrated imaging and workflow. This software product can archive and retrieve high volumes of documents
operating on the NT platform. |
