Intelligent Systems Announces First Quarter 2018 Results

Intelligent Systems Corporation (NYSEA:INS) announced its financial results for the first quarter of 2018 ending March 31, 2018.

The company has a current focus on FinTech operations through its CoreCard software Inc and its affiliate companies. CoreCard designs, develops and markets a comprehensive suite of software solutions to corporations, financial institutions and others to manage their credit and debit cards.

The company reported income from operations of $821,000 in the first quarter of 2018 compared to a loss from operations of $541,000 in the first quarter of 2017.

As quoted in the press release:

“We are off to a very good start in the first quarter of 2018 with a profit of $893,000. Both the strategic and the tactical decisions we made with CoreCard the last few years are starting to pay-off as we steadily scale the business. We are still not large enough revenue wise to avoid some quarter-to-quarter swings, but I expect us to stay on the path of profitability,” commented J. Leland Strange, CEO of Intelligent Systems.

For the three month period ended March 31, 2018, the company recorded revenue of $4,058,000 compared to $1,699,000 in the comparable period in 2017, a 139 percent increase year over year.  The company experienced growth in all areas of its service and product offerings which consist of transaction processing services, software maintenance and support services, professional services and software license fees.

The increase in operating income was primarily driven by the 139 percent revenue increase experienced in the period.

The company reported net income of $893,000 (income of $0.10 per basic and diluted share) in the first quarter of 2018 compared to net loss of $508,000 (loss of $0.06 per basic and diluted share) in the first quarter of 2017. The increase was primarily attributable to the improved operating results.

J. Leland Strange, CEO, further commented, “Our professional services’ resources that are needed by both licensed and processed customers are actually being utilized at a greater than 100% capacity so we don’t see any further growth in that area until we can move more people from ‘training’ (which takes a good 2+ years) to revenue producing. Another way to say that is the demand for our resources is outstripping our ability to supply, but it is a good problem to have. However, the current emphasis of CoreCard is processing services rather than licensing which offers  better scalability and we expect to continue quarter to quarter growth in that area.”

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