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Direct Insite Announces First Quarter 2010 Results
Revenue Increases 3.8% Over First Quarter of 2009
SUNRISE, FL — (Marketwire) — 05/13/10 — Direct Insite Corp. (
Operating income was $211,000 for the three months ended March 31, 2010 compared to operating income of $248,000 in 2009, a decrease of $37,000 or 14.9%. The decrease was principally due to an increase in sales and marketing expense as the Company continues to expand its marketing efforts. Net income for the three months ended March 31, 2010 was $415,000 compared to net income of $248,000 for the three months ended March 31, 2009. During the three months ended March 31, 2010 the Company recorded a gain in the fair value of a warrant liability of $195,000 compared to a gain in fair value of $21,000 in the first quarter of 2009.
Basic and diluted income per share attributable to common shareholders for the three months ended March 31, 2010 was $0.03 compared to a basic and diluted net income per share of $0.02 for the same period in 2009.
"Our earnings remain strong and we are increasing our investment in sales and marketing to acquire new business and increase brand awareness. As the overall economy continues to improve and technology spending increases, it is important for the market place to have a clear understanding of the Company's offerings and the benefits to our customers. We continue to see strong customer interest in our payment processing services and believe that such offerings and our Payment Card Industry (PCI) security certification will provide important new business opportunities," said James A. Cannavino, Chairman and Chief Executive Officer.
About Direct Insite
Direct Insite provides best practice financial supply chain automation and workflow efficiencies for procure-to-pay and order-to-cash processing. The Company's global eInvoice Management services automate complex manual business processes such as invoice validation, order matching, consolidation, dispute handling, and e-payment processing. Direct Insite solutions are used by more than 7,000 corporations across more than 80 countries, 15 languages and 35 currencies. For more information, call 954-510-3750, or visit www.directinsite.com
The financial information stated above and in the tables below has been abstracted from Direct Insite Corp.'s Form 10-Q for the three months ended March 31, 2010, filed with the Securities and Exchange Commission on May 13, 2010, and should be read in conjunction with the information provided therein.
Summarized Financial Information
|STATEMENTS OF OPERATIONS||FOR THE THREE MONTHS ENDED MARCH 31, 2010||FOR THE THREE MONTHS ENDED MARCH 31, 2009|
|Revenue from operations||$ 2,381,000||$ 2,294,000|
|Operating income||$ 211,000||$ 248,000|
|Other income, net||$ 214,000||$15,000|
|Income before income taxes||$ 425,000||$ 263,000|
|Provision for income taxes||$ 10,000||$ 15,000|
|Net income||$ 415,000||$ 248,000|
|Preferred Stock Dividends||$ (26,000)||$ (79,000)|
|Net income attributable to common shareholders||$ 389,000||$ 169,000|
|Basic income per share attributable to common shareholders||$ 0.03||$ 0.02|
|Diluted income per share attributable to common shareholders||$ 0.03||$ 0.02|
|BALANCE SHEET||MARCH 31, 2010||DECEMBER 31, 2009|
|Total Current Assets||$ 4,238,000||$ 3,880,000|
|Total Assets||$ 6,899,000||$ 6,620,000|
|Total Current Liabilities||$ 1,748,000||$ 1,949,000|
|Total Shareholders' Equity||$ 4,051,000||$ 3,528,000|
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, and such other risk factors which may arise from time to time, including, but not limited to, the risk factors set forth in the Company's Reports on Form 10KSB filed with the Securities Exchange Commission. 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.