Intelligent Systems records $2.4M net loss
Source: Bizjournals.com (Original Article)
Intelligent Systems Corp. ended 2007 in the red, as it did not have certain non-recurring income that it had in 2006.
Norcross, Ga.-based Intelligent Systems (AMEX: INS) posted a net loss of $2.4 million on $19 million in revenue, compared with net income of $4.5 million on $14.5 million in revenue in 2006. Loss per share was 54 cents, compared with earnings of 98 cents a share in 2006.
The financial results for 2006 had significant non-recurring income due to two transactions. In 2006, the company sold the business of its QS Technologies subsidiary for a net gain of $4.9 million. It also sold its interest in privately held Horizon Software International Inc. for an investment gain of $2.6 million.
The revenue growth in 2007 is due mostly to record sales volume of ChemFree’s SmartWasher parts washer system in domestic and international markets.
"The growth in revenue and earnings by ChemFree in 2007 is encouraging and indicative of a strong product offering in an expanding market, although it is too early to tell if the business will achieve the same record growth in 2008," said J. Leland Strange, president and CEO of Intelligent Systems. "Our CoreCard and VISaer subsidiaries have made more progress than is evident in the reported results because under [generally accepted accounting principles] accounting we do not recognize software revenue until long-term contracts are fully complete. Recently, we have seen increased activity from potential customers interested in CoreCard’s software application for processing prepaid cards such as gift cards and payroll cards."
Intelligent Systems is the parent of software firms VISaer Inc. and Citibank Platinum CoreCard Software Inc. and industrial products company ChemFree Corp.