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Direct Insite Reports 2010 Year End Results
Net Income of $1,033,000 on Revenue of $9,052,000
SUNRISE, FL — (Marketwire) — 03/28/11 — Direct Insite Corp. (OTCBB: DIRI), a global Software as a Service ("SaaS") provider of financial supply chain automation across procure-to-pay, order-to-cash, today announced financial results for the year ended December 31, 2010. Net income was $1,033,000 for the year ended December 31, 2010, compared to net income of $1,659,000 in 2009, a decrease of 37.7%.
Total revenue for the year ending December 31, 2010 was $9,052,000 a decrease of $957,000 or 9.6% compared to revenue of $10,009,000 in 2009. Recurring revenue for the year 2010 was $8,158,000, an 8.8% decrease from recurring revenue of $8,946,000 in 2009. The decrease in recurring revenue was due to several factors. Revenue from Hewlett Packard ("HP") decreased primarily from combining two services into one, thereby improving the efficiency of the service, and from contracted price decreases. Recurring revenue from Siemens declined due to a planned reduction in outsourced scanning services as we continue to migrate Siemens from paper to electronic invoicing. Professional services revenue decreased $169,000 (15.9%) to $894,000 for the year ended December 31, 2010 compared to $1,063,000 for the year ended December 31, 2009. This decrease is principally due to completing an engineering project for one customer in 2009. Basic and diluted income per share attributable to common shareholders for the year ended December 31, 2010 was $0.09 and $0.08, respectively, compared to basic and diluted net income per share of $0.13 for the year ended December 31, 2009.
Net cash from operating activities continued to be strong at $1,485,000 for the year ended December 31, 2010. In 2009 cash from operating activities was $3,293,000. The lower amount in 2010 was principally due to the lower level of revenue. Also in 2010 we redeemed the balance of all the preferred stock totaling $1,100,000. This will increase the amount of earnings attributable to common shareholders through the elimination of preferred stock dividends.
"We continued to improve our financial position in 2010 through positive earnings and operating cash flow and bringing the company to a debt-free position," said Chairman and CEO James A. Cannavino. "With our major debt payments behind us and the economy recovering, we have made significant investments in sales and marketing, positioning us to take advantage of our customers' anticipated increased spending. We have also strengthened our marketing activities through signing a number of channel and reseller agreements, and obtaining certifications for our product line. Our pipeline at the end of 2010 is at a historically high level and we expect to capitalize on this position in 2011, projecting solid growth for the year."
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 Form 10-K for the year ended December 31, 2010, filed with the Securities and Exchange Commission on March 28, 2011, and should be read in conjunction with the information provided therein.
The Company will hold an annual earnings webcast for the year 2010 on Monday, March 28, 2011 at 2:00 PM eastern time. You may log on to the webcast at the following link:
http://iq-vcall.incommsolutions.com Participant dial in (toll free) 877-407-9210
Summarized Financial Information
|STATEMENTS OF OPERATIONS||FOR THE YEAR ENDED DECEMBER 31, 2010||FOR THE YEAR ENDED DECEMBER 31, 2009|
|Revenue||$ 9,052,000||$ 10,009,000|
|Operating income||$ 853,000||$ 1,821,000|
|Other expenses, net||$ (221,000)||$ 100,000|
|Income before income taxes||$ 1,074,000||$ 1,721,000|
|Provision for (benefit from) income taxes||$ 41,000||$ 62,000|
|Net income||$ 1,033,000||$ 1,659,000|
|Preferred Stock Dividends||$ (42,000)||$ (243,000)|
|Net income attributable to common shareholders||$ 991,000||$ 1,416,000|
|Diluted net income per share attributable to common shareholders||$ 0.08||$ 0.13|
|Basic net income per share attributable to common shareholders||$ 0.09||$ 0.13|
|BALANCE SHEET||DECEMBER 31, 2010||DECEMBER 31, 2009|
|Total Current Assets||$ 3,941,000||$ 3,880,000|
|Total Assets||$ 6,705,000||$ 6,620,000|
|Total Current Liabilities||$ 1,651,000||$ 1,949,000|
|Total Shareholders' Equity||$ 4,950,000||$ 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.