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Direct Insite Announces Record Revenue of $2,880,000 and Net Income of $684,000 for the Second Quarter 2009

BOHEMIA, NY — (Marketwire) — 08/14/09 — Direct Insite Corp. (OTCBB: 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 six months ended June 30, 2009. Revenue for the three months ended June 30, 2009 was a record $2,880,000, a 22.8% increase over revenue of $2,346,000 for the three months ended June 30, 2008. Revenue for the six month period ended June 30, 2009 was $5,174,000, an increase of 20.3% over revenue of $4,301,000 for the same period in 2008. Recurring revenue was $2,253,000 for the three months ended June 30, 2009 compared to recurring revenue of $1,823,000 for the three months ended June 30, 2008. For the six months ended June 30, 2009 recurring revenue was $4,485,000 compared to recurring revenue of $3,652,000 for the same period in 2008, an increase of 22.8%. The increase in recurring revenue is attributed to additional customers, growth in services to continuing customers, and the increasing rate of paper invoices converting to electronic invoices. Revenue from Professional Services increased $104,000 (19.9%) to $627,000 and $40,000 (6.2%) to $689,000 for the three and six months ended June 30, 2009, respectively, compared to the same periods in 2008.

Operating income for the three and six months ended June 30, 2009 was $786,000 and $1,034,000, respectively, compared to operating income of $390,000 and $447,000 for the three and six months ended June 30, 2008, respectively. Net income was $684,000 for the quarter ended June 30, 2009 compared to net income of $391,000 for the quarter ended June 30, 2008. Net income for the six months ended June 30, 2009 was $932,000, compared to net income of $3,303,000 for the six months ended June 30, 2008. Net income for the six months ended June 30, 2008 included a benefit from income taxes of $2,867,000.

Cash flows from operations continued to be strong at $1,558,000 for the six months ended June 30, 2009 compared to cash from operations of $1,033,000 for the six months ended June 30, 2008. The continuing positive cash flow enabled the Company to redeem the Series B Preferred Stock of $974,000 in July 2009.

"We achieved record revenue in the second quarter and continue to deliver strong cash flows and profits," said James A. Cannavino, Chairman and CEO of Direct Insite. "Our record revenue re-enforces the fact that our customers are well served and deriving significant value from our solutions. As a result, we are well positioned to win new business and further grow revenues among our existing customer base," said Mr. Cannavino.

Basic income per share attributable to common shareholders for the three and six months ended June 30, 2009 was $0.06 and $0.07, respectively, compared to a basic income per share of $0.03 and $0.40 for the three and six months ended June 30, 2008, respectively. The income per share for the six months ended June 30, 2008 includes the benefit from income taxes. Diluted income per share attributable to common shareholders for the three and six months ended June 30, 2009 was $0.05 and $0.07, respectively, compared to a diluted income per share of $0.02 and $0.28 for the three and six months ended June 30, 2008, respectively.

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 20,000 users across 65 countries, 17 languages and multiple currencies. For more information, call 954-510-3750, 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-Q for the six months ended June 30, 2009, filed with the Securities and Exchange Commission on August 14, 2009, and should be read in conjunction with the information provided therein.

Summarized Financial Information

STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2009 FOR THE THREE MONTHS ENDED JUNE 30, 2008FOR THE SIX MONTHS ENDED JUNE 30, 2009FOR THE SIX MONTHS ENDED JUNE 30, 2008
Revenue $ 2,880,000 $ 2,346,000 $ 5,174,000 $ 4,301,000
Operating income $ 786,000$ 390,000 $ 1,034,000 $ 447,000
Other income (expense), net$ (85,000)$ 1,000$ (70,000) $ (11,000)
Income before income taxes$ 701,000$ 391,000$ 964,000 $ 436,000
Benefit from (provision for) income taxes $ (17,000) $ -$ (32,000) $ 2,867,000
Net income $ 684,000$ 391,000$ 932,000 $ 3,303,000
Preferred Stock Dividends $ (79,000)$ (202,000)$ (158,000) $ (375,000)
Net income attributable to common shareholders $ 605,000$ 189,000$ 774,000 $ 2,928,000
Basic net income per share attributable to common shareholders$ 0.06$ 0.03$ 0.07 $ 0.40
Diluted net income per share attributable to common shareholders $ 0.05$ 0.02$ 0.07 $ 0.28
BALANCE SHEET JUNE 30, 2009DECEMBER 31, 2008
Total Current Assets $ 4,200,000$ 3,093,000
Total Assets $ 7,816,000$ 6,880,000
Total Current Liabilities $ 1,990,000$ 2,179,000
Total Shareholders' Equity $ 5,635,000$ 4,420,000

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.

Corporate Contact:
Michael J. Beecher
Chief Financial Officer
Direct Insite Corp.
954.510.3750

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