Power of PAYBOX®
Direct Insite Announces 18.2% Revenue Increase for the Quarter Ended September 30, 2007
Revenue Increases 15.9%; Net Income Grows to $1,542,000 for the Nine Months Ended September 30, 2007, Cash Flow from Continuing Operations Improves to $2,330,000
Direct Insite Corp. (OTC BB:DIRI), a global provider of financial supply chain automation across Procure-to-Pay and Order-to-Cash business processes, today announced financial results for the three and nine months ended September 30, 2007. Net income increased to $524,000 for the quarter ended September 30, 2007 from a loss of $93,000 for the quarter ended September 30, 2006. Net income increased 485.5% to $1,542,000 for the nine months ended September 30, 2007 compared to a net loss of $400,000 for the nine months ended September 30, 2006.
Revenue from our recurring Invoices on Line services showed very strong growth, increasing 18.7% to $2,035,000 for the three months ended September 30, 2007 compared to recurring revenue of $1,715,000 for the three months ended September 30, 2006. For the nine months ended September 30, 2007 recurring revenue grew 15.4% to $5,594,000 compared to recurring revenue of $4,846,000 for the same period in 2006. Total revenue for the third quarter 2007 was $2,582,000, an 18.2% increase over revenue of $2,185,000 in the third quarter of 2006. Total revenue for the nine months ended September 30, 2007 was $7,416,000, a 15.9% increase over revenue of $6,396,000 for the first nine months of 2006.
"As our customers migrate from deployment to global production of our service offerings we continue to achieve increased recurring revenues, resulting in our 4th consecutive quarter of profitability," said James A. Cannavino, Chairman and CEO of Direct Insite. "We believe that the service model approach to satisfying our customers' needs is the most cost effective and efficient solution for them," said Mr. Cannavino.
Basic income per share attributable to common shareholders for the three and nine months ended September 30, 2007 was $0.05 and $0.16, respectively, compared to a net loss per share of $0.01 and $0.23 for the three and nine months ended September 30, 2006, respectively. Fully diluted income per share attributable to common shareholders for the three and nine months ended September 30, 2007 was $0.03 and $0.11, respectively, compared to a fully diluted loss per share of $0.01 and $0.23 for the three and nine months ended September 30, 2006, respectively.
The Company also reported strong growth in cash flows from continuing operations improving to $2,330,000 for the nine months ended September 30, 2007 compared to cash flows from continuing operations of $910,000 for the same period in 2006.
About Direct Insite
Direct Insite provides best practice financial supply chain automation and workflow efficiencies for Procure-to-Pay and Order-to-Cash processing. The Company's global eInvoice Management services automate complex manual business processes such as invoice validation, order matching, consolidation, dispute handling, and e-payment processing. Direct Insite solutions are used by more than 7,000 corporations across 62 countries, 15 languages and multiple currencies. Direct Insite was selected by Deloitte and Touche as one of the '500 Fastest Growing Technology Companies' in the United States and Canada. For more information, call 954-510-3750, or visit www.directinsite.com
Summarized Financial Information
|STATEMENT OF OPERATIONS||FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2007||FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2006||FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007||FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006|
|Revenue||$ 2,582,000||$ 2,185,000||$ 7,416,000||$ 6,396,000|
|Operating income||$ 544,000||$ 16,000||$ 1,647,000||$ 240,000|
|Other expense, net||$ 20,000||$ 509,000||$ 78,000||$ 640,000|
|Income (loss) before income taxes||$ 524,000||$ (93,000)||$ 1,569,000||$ (400,000|
|Provision for income taxes||$ —||$ —||$ 27,000||$ —|
|Net income (loss)||$ 524,000||$ (93,000)||$ 1,542,000||$ (400,000)|
|Preferred Stock Dividends||$ (227,000)||$ (181,000)||$ (658,000)||$ (529,000)|
|Net income (loss) attributable to common shareholders||$ 297,000||$ (274,000)||$ 884,000||$ (929,000)|
|Basic income (loss) per share attributable to common shareholders||$ 0.05||$ (0.01)||$ 0.16||$ (0.23)|
|Fully diluted income (loss) per share attributable to common shareholders||$ 0.03||$ (0.01)||$ 0.11||$ (0.23)|
|BALANCE SHEET||SEPTEMBER 30, 2007||DECEMBER 31,2006|
|Total Current Assets||$ 3,736,000||$ 2,433,000|
|Total Assets||$ 4,439,000||$ 3,163,000|
|Total Current Liabilities||$ 5,839,000||$ 6,898,000|
|Total Shareholders' Deficiency||$ 1,565,000||$ 3,899,000|
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.
Direct Insite Corp.
Michael J. Beecher, 954-510-3750
Chief Financial Officer