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Direct Insite Announces Operating Income of $1,628,000 for the Nine Months Ended September 30, 2009
SUNRISE, FL — (Marketwire) — 11/16/09 — 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 nine months ended September 30, 2009. Revenue for the nine months ended September 30, 2009 was $7,648,000, a 12.3% increase over revenue of $6,810,000 for the nine months ended September 30, 2008. Revenue for the three month period ended September 30, 2009 was $2,474,000, a decrease of 1.4% compared to revenue of $2,509,000 for the same period in 2008. Recurring revenue was $2,238,000 for the three months ended September 30, 2009, an 11.0% increase, compared to recurring revenue of $2,016,000 for the three months ended September 30, 2008. For the nine months ended September 30, 2009 recurring revenue was $6,723,000 compared to recurring revenue of $5,668,000 for the same period in 2008, an increase of 18.6%. 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 decreased $257,000 (52.1%) to $236,000 and $217,000 (19.0%) to $925,000 for the three and nine months ended September 30, 2009, respectively, compared to the same periods in 2008. The decrease is attributed to completing projects in the second quarter.
Operating income for the three and nine months ended September 30, 2009 was $594,000 and $1,628,000, respectively, compared to operating income of $431,000 and $878,000 for the three and nine months ended September 30, 2008, respectively. Net income was $465,000 for the quarter ended September 30, 2009 compared to net income of $418,000 for the quarter ended September 30, 2008. Net income for the nine months ended September 30, 2009 was $1,397,000, compared to net income of $3,721,000 for the nine months ended September 30, 2008. Net income for the nine months ended September 30, 2008 included a benefit from income taxes of $2,867,000.
Cash flows from operations continued to be strong at $2,595,000 for the nine months ended September 30, 2009 compared to cash from operations of $1,495,000 for the nine months ended September 30, 2008. The continuing positive cash flow enabled the Company to redeem the Series B Preferred Stock of $974,000 in July 2009.
"During this period of a significant economic slowdown we have been able to continue to grow revenues through the addition of customers and expanding services to our existing customers, and equally important, we have significantly improved profitability through operating efficiencies," said James A. Cannavino, Chairman and CEO of Direct Insite. Mr. Cannavino added, "With the efficiency improvements we are aggressively reducing the 'cost of entry' to new customers and extending additional value to our existing customers."
Basic income per share attributable to common shareholders for the three and nine months ended September 30, 2009 was $0.04 and $0.11, respectively, compared to a basic income per share of $0.03 and $0.43 for the three and nine months ended September 30, 2008, respectively. The income per share for the nine months ended September 30, 2008 includes the benefit from income taxes. Diluted income per share attributable to common shareholders for the three and nine months ended September 30, 2009 was $0.04 and $0.11, respectively, compared to a diluted income per share of $0.03 and $0.31 for the three and nine months ended September 30, 2008, respectively.
About Direct Insite
Direct Insite provides best practice financial supply chain automation and workflow efficiencies for procure-to-pay and order-to-cash processing. The Company's global eInvoice Management services automate complex manual business processes such as invoice validation, order matching, consolidation, dispute handling, and e-payment processing. Direct Insite solutions are used by more than 20,000 users across 65 countries, 17 languages and multiple currencies. For more information, call 954-510-3750, or visit www.directinsite.com
The financial information stated above and in the tables below has been abstracted from Direct Insite Corp.'s Form 10-Q for the nine months ended September 30, 2009, filed with the Securities and Exchange Commission on November 16, 2009, and should be read in conjunction with the information provided therein.
|STATEMENTS OF OPERATIONS||FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009||FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2008||FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009||FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008|
|Revenue||$ 2,474,000||$ 2,509,000||$ 7,648,000||$ 6,810,000|
|Operating income||$ 594,000||$ 431,000||$ 1,628,000||$ 878,000|
|Other income (expense), net||$ (106,000)||$ 1,000||$ (176,000)||$ (10,000)|
|Income before income taxes||$ 488,000||$ 432,000||$ 1,452,000||$ 868,000|
|Provision for (benefit from) income taxes||$ 23,000||$ 14,000||$ 55,000||$ (2,853,000)|
|Net income||$ 465,000||$ 418,000||$ 1,397,000||$ 3,721,000|
|Preferred Stock Dividends||$ (50,000)||$ (161,000)||$ (208,000)||$ (536,000)|
|Net income attributable to common shareholders||$ 415,000||$ 257,000||$ 1,189,000||$ 3,185,000|
|Basic net income per share attributable to common shareholders||$ 0.04||$ 0.03||$ 0.11||$ 0.43|
|Diluted net income per share attributable to common shareholders||$ 0.04||$ 0.03||$ 0.11||$ 0.31|
|BALANCE SHEET||SEPTEMBER 30, 2009||DECEMBER 31, 2008|
|Total Current Assets||$ 4,024,000||$ 3,093,000|
|Total Assets||$ 7,642,000||$ 6,880,000|
|Total Current Liabilities||$ 2,241,000||$ 2,179,000|
|Total Shareholders' Equity||$ 3,216,000||$ 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.
Michael J. Beecher
Chief Financial Officer
Direct Insite Corp.