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Direct Insite Announces 20.4% Growth in Recurring Revenues for the First Six Months of 2006; Operating Income Improves by 168% in the Second Quarter 2006
Market for cash flow optimization, revenue assurance and eInvoicing solutions outsourcing for Fortune 500 companies growing rapidly
Direct Insite Corp. (OTCBB:DIRI), a global provider of eInvoicing, revenue assurance and cash flow optimization solutions announced financial results for the three and six month periods ended June 30, 2006. The Company reported 20.4% growth in recurring revenues for the six months ended June 30, 2006. The Company also announced it had a 168% improvement in income from operations for the three months ended June 30, 2006, with $116,000 in income from operations compared to a loss from operations of $170,000 for the same period in 2005.
Total revenue decreased 5.3% and 4.3% to $2,196,000 and $4,211,000 for the three and six month periods ended June 30, 2006, respectively, compared to revenue of $2,318,000 and $4,398,000 for the three and six month periods ended June 30, 2005, respectively.
"We continue to see high demand for our global eInvoice Receivables and Payables services with Fortune 500 companies," said Direct Insite CEO and Chairman of the Board James A. Cannavino. "When we meet with these clients, they very quickly understand the quality and efficiency our cash flow optimization, revenue assurance and eInvoicing solutions deliver to their operation. Even so, these contracts have a longer lead time than we expected," said Mr. Cannavino.
Strong Growth in Recurring Revenues
Recurring revenues from eInvoicing services increased 8.8% and 20.4% to $1,565,000 and $3,116,000 for the three and six month periods ended June 30, 2006, compared to $1,439,000 and $2,589,000 for the three and six month periods ended June 30, 2005. Revenues from professional services decreased to $623,000 and $1,080,000 for the three and six months ended June 30, 2006 compared to revenues of $867,000 and $1,783,000 in the same periods in 2005, a decrease of 28.1% and 39.4%, respectively, due to completion of development contracts with clients. Revenues are expected to increase during the remainder of 2006, with the addition of new customers and contracts, and the addition of new services and products.
Continued Improvement in Income from Operations
The Company reported income from operations of $116,000 for the three months ended June 30, 2006, compared to a loss from operations of $170,000 for the same period in 2005. The Company had a loss from operations of $176,000 for the six months ended June 30, 2006, compared to a loss from operations of $380,000 for the same period in 2005. Net income for the three months ended June 30, 2006 was $226,000 compared to a net loss of $402,000 for the three months ended June 30, 2005. For the six months ended June 30, 2006 the Company reported a net loss of $307,000 compared to a net loss of $687,000 for the same period in 2005.
"As our operations become ever more efficient, we have steadfastly maintained an unparalleled level of service to our customers. Few companies of any size can report a 168% improvement in operating income. Still, I believe there is more for us to achieve in this area," said Mr. Cannavino.
Basic and diluted income (loss) per share attributable to common shareholders for the three and six months ended June 30, 2006 was $0.01 and ($0.13), respectively, compared to a basic and diluted loss per share of ($0.12) and ($0.22) for the three and six months ended June 30, 2005.
About Direct Insite
Direct Insite Corp. is a global leader in eInvoicing and cash flow optimization solutions that compliment both accounts payable and receivable processing. Over 75% of the Fortune 1000 and 100% of the Financial Times 100 companies use Direct Insite's service. Direct Insite solutions are used to invoice more than 7,000 corporations world wide. Direct Insite was selected by Deloitte and Touche as one of the '500 Fastest-Growing Technology Companies' in the United States and Canada. For more information, call (631) 244-1500, or visit www.directinsite.com.
The financial information stated above and in the tables below has been abstracted from Direct Insite Corp.'s Form 10-QSB for the six months ended June 30, 2006, filed with the Securities and Exchange Commission on August 17, 2006, and should be read in conjunction with the information provided therein.
|STATEMENT OF OPERATIONS||FOR THE THREE MONTHS ENDED JUNE 30, 2006||FOR THE THREE MONTHS ENDED JUNE 30, 2005||FOR THE SIX MONTHS ENDED JUNE 30, 2006||FOR THE SIX MONTHS ENDED JUNE 30, 2005|
|Revenue||$ 2,196,000||$ 2,318,000||$ 4,211,000||$ 4,398,000|
|Operating income (loss)||$ 116,000||$ (170,000)||$ (176,000)||$ (380,000)|
|Other income (expense), net||$ 114,000||$ (223,000)||$ (127,000)||$ (298,000)|
|Loss from discontinued operations||$ (4,000)||$ (9,000)||$ (4,000)||$ (9,000)|
|Net (loss) income||$ 226,000||$ (402,000)||$ (307,000)||$ (687,000)|
|Preferred Stock Dividends||$ (176,000)||$ (171,000)||$ (348,000)||$ (325,000)|
|Net income (loss) attributable to common shareholders||$ 50,000||$ (573,000)||$ (655,000)||$ (1,012,000)|
|Basic and diluted income (loss) per share||$ 0.01||$ (0.12)||$ (0.13)||$ (0.22)|
|BALANCE SHEET||JUNE 30, 2006||DECEMBER 31, 2005|
|Total Current Assets||$ 1,677,000||$ 2,417,000|
|Total Assets||$ 2,387,000||$ 3,181,000|
|Total Current Liabilities||$ 6,699,000||$ 6,842,000|
|Total Shareholders' Deficiency||$ (4,347,000)||$ (3,734,000)|
FORWARD-LOOKING STATEMENTS. All statements other than statements of historical fact included in this release, including without limitation statements regarding the company's financial position, business strategy, and the plans and objectives of the company's management for future operations, are forward-looking statements. When used in this release, words such as "anticipate", "believe", "estimate", "expect", "intend" and similar expressions, as they relate to the company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the company's management, as well as assumptions made by and information currently available to the company's management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, business and economic conditions, competitive factors and pricing pressures, capacity and supply constraints. Such statements reflect the views of the company with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the company. Readers are cautioned not to place undue reliance on these forward-looking statements. The company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.