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Direct Insite Announces Revenue of $4,894,000 and Net Income of $823,000 for the First Six Months of 2010 — Redeems All Remaining Preferred Stock
SUNRISE, FL — (Marketwire) — 08/12/10 — 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, 2010. Revenue for the three months ended June 30, 2010 was $2,513,000, a 12.7% decrease from revenue of $2,880,000 for the three months ended June 30, 2009. Revenue for the six month period ended June 30, 2010 was $4,894,000, a decrease of 5.4% from revenue of $5,174,000 for the same period in 2009. Recurring revenue was $2,204,000 for the three months ended June 30, 2010 compared to recurring revenue of $2,253,000 for the three months ended June 30, 2009. For the six months ended June 30, 2010 recurring revenue was $4,377,000 compared to recurring revenue of $4,485,000 for the same period in 2009, a decrease of 2.4%. Revenue from Professional Services decreased $318,000 (50.7%) to $309,000 and $172,000 (25.0%) to $517,000 for the three and six months ended June 30, 2010, respectively, compared to the same periods in 2009. The decrease in Professional Services revenue is primarily due to completing certain significant projects for our customers in 2009.
Operating income for the three and six months ended June 30, 2010 was $398,000 and $609,000, respectively, compared to operating income of $786,000 and $1,034,000 for the three and six months ended June 30, 2009, respectively. The decrease is principally due to the lower Professional Services revenue. Net income was $408,000 for the quarter ended June 30, 2010 compared to net income of $684,000 for the quarter ended June 30, 2009. Net income for the six months ended June 30, 2010 was $823,000, compared to net income of $932,000 for the six months ended June 30, 2009. Net income for the six months ended June 30, 2009 included a gain from the revaluation of a warrant liability.
Cash flows from operations continued to be strong at $801,000 for the six months ended June 30, 2010 compared to cash from operations of $1,558,000 for the six months ended June 30, 2009. The Company redeemed all of the remaining preferred stock totaling $1,100,000 during the second quarter of 2010 eliminating future preferred dividends on these stocks which will have a positive impact on earnings available to common shareholders.
During the first half of 2010 Direct Insite significantly increased its marketing and channel development activities including participation at six key Accounts Payable Automation trade shows such as those sponsored by the National Association of Purchasing and Payables (NAPP), and Institute of Management and Administration (IOMA) AP Automation Conference which were attended by several thousand accounts payable professionals. Additionally, Direct Insite co-sponsored two electronic payments reports published by PayStream Advisors and the Aberdeen Group which have been distributed to several thousand electronic payment professionals. In an effort to further increase sales activity, Direct Insite continued to focus on channel sales development by signing several new channel partnerships that will assist in new business sales.
"We achieved a major milestone in the second quarter by redeeming the remaining preferred stock while continuing to generate positive earnings and strong cash flow," said James A. Cannavino, Chairman and CEO. "This will strengthen our financial position going forward and provide the resources to invest in growing our business. We are taking a number of key market and channel development actions to increase new business development. This includes activities with two important ePayment market research groups — Aberdeen Group and PayStream Advisors, increased tradeshow attendance, and signing new channel partnerships," said Mr. Cannavino.
Basic income per share attributable to common shareholders for the three and six months ended June 30, 2010 was $0.03 and $0.07, respectively, compared to a basic income per share of $0.06 and $0.07 for the three and six months ended June 30, 2009, respectively. Diluted income per share attributable to common shareholders for the three and six months ended June 30, 2010 was $0.03 and $0.07, respectively, compared to a diluted income per share of $0.05 and $0.07 for the three and six months ended June 30, 2009, respectively.
About Direct Insite
Direct Insite provides best practice financial supply chain automation and workflow efficiencies for procure-to-pay and order-to-cash processing. The Company's global eInvoice Management services automate complex manual business processes such as invoice validation, order matching, consolidation, dispute handling, and e-payment processing. Direct Insite solutions are used by more than 50,000 users across 100 countries, 35 languages and multiple currencies. For more information, call 954-510-3750, or visit www.directinsite.com
The financial information stated above and in the tables below has been abstracted from Direct Insite Corp.'s June 30, 2010 Form 10-Q, filed with the Securities and Exchange Commission on August 12, 2010, and should be read in conjunction with the information provided therein.
Summarized Financial Information
|STATEMENTS OF OPERATIONS||FOR THE THREE MONTHS ENDED JUNE 30, 2010||FOR THE THREE MONTHS ENDED JUNE 30, 2009||FOR THE SIX MONTHS ENDED JUNE 30, 2010||FOR THE SIX MONTHS ENDED JUNE 30, 2009|
|Revenue||$ 2,513,000||$ 2,880,000||$ 4,894,000||$ 5,174,000|
|Operating income||$ 398,000||$ 786,000||$ 609,000||$ 1,034,000|
|Other (expense) income, net||$ 20,000||$ (85,000)||$ 234,000||$ (70,000)|
|Income before income taxes||$ 418,000||$ 701,000||$ 843,000||$ 964,000|
|Provision for income taxes||$ 10,000||$ 17,000||$ 20,000||$ 32,000|
|Net income||$ 408,000||$ 684,000||$ 823,000||$ 932,000|
|Preferred Stock Dividends||$ (16,000)||$ (79,000)||$ (42,000)||$ (158,000)|
|Net income attributable to common shareholders||$ 392,000||$ 605,000||$ 781,000||$ 774,000|
|Basic income per share attributable to common shareholders||$ 0.03||$ 0.06||$ 0.07||$ 0.07|
|Diluted income per share attributable to common shareholders||$ 0.03||$ 0.05||$ 0.07||$ 0.07|
|BALANCE SHEET||JUNE 30, 2010||DECEMBER 31, 2009|
|Total Current Assets||$ 3,721,000||$ 3,880,000|
|Total Assets||$ 6,358,000||$ 6,620,000|
|Total Current Liabilities||$ 1,818,000||$ 1,949,000|
|Total Shareholders' Equity||$ 4,478,000||$ 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. 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.