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Direct Insite Announces First Quarter 2011 Results
SUNRISE, FL — (Marketwire) — 05/16/11 — Direct Insite Corp. (OTCBB: DIRI), a global SaaS provider of financial supply chain automation in support of accounts receivable and accounts payable business processes, today announced financial results for the quarter ended March 31, 2011. Revenue for the three months ended March 31, 2011 increased $286,000 (15.5%) to $2,128,000 compared to revenue of $1,842,000 for the fourth quarter 2010. Revenue for the first quarter decreased $253,000 (10.6%) compared to revenue of $2,381,000 for the first quarter 2010. Recurring revenue decreased $276,000 (12.7%) to $1,896,000 in the first quarter of 2011 compared to recurring revenue of $2,172,000 in the first quarter 2010. The decrease was principally due to contractual price decreases. Professional Services revenue was $232,000 for the first quarter of 2011, an increase of $23,000, compared to Professional Services revenue of $209,000 in the first quarter of 2010.
Operating income was $88,000 for the three months ended March 31, 2011 compared to operating income of $211,000 for the first quarter of 2010, a decrease of $123,000 or 58.3%. The decrease was principally due to the lower revenue offset by a decrease in operating expenses. Net income for the three months ended March 31, 2011 was $84,000 compared to net income of $415,000 for the three months ended March 31, 2010. During the three months ended March 31, 2010 the Company recorded a gain in the fair value of a warrant liability of $195,000.
Basic and diluted income per share attributable to common shareholders for the three months ended March 31, 2011 was $0.01 compared to a basic and diluted net income per share of $0.03 for the same period in 2010.
"We continue to be profitable and are confident that our ongoing investments in sales, marketing and advertising are accelerating our ability to acquire new clients and will lead to revenue growth through the remainder of 2011 and beyond. As the economy continues to improve we anticipate expanding our business relationships. As an indication of the economic recovery, we are encouraged by the fact that the most recent PayStream Advisors Buyers Intentions Survey indicated that 41% of the surveyed population was evaluating the usage of eInvoicing solutions. Our recently announced SAP product certification and membership in the SAP marketing and joint sales program — 'SAP PartnerEdge' — will further strengthen our product offerings and we believe will lead to additional 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 50,000 users across 110 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-Q for the three months ended March 31, 2011, filed with the Securities and Exchange Commission on May 16, 2011, and should be read in conjunction with the information provided therein.
The Company will hold an annual earnings webcast for the first quarter 2011 on Thursday, May 19, 2011 at 10:00 AM eastern time. This call is being webcast by PrecisionIR and can be accessed at www.InvestorCalendar.com. Participant dial in toll-free is (877) 407-9210.
|STATEMENTS OF OPERATIONS||FOR THE THREE MONTHS ENDED MARCH 31, 2011||FOR THE THREE MONTHS ENDED MARCH 31, 2010|
|Revenue from operations||$ 2,128,000||$ 2,381,000|
|Operating income||$ 88,000||$ 211,000|
|Other (expense) income, net||$ (4,000)||$ 214,000|
|Income before income taxes||$ 84,000||$ 214,000|
|Provision for income taxes||$ --||$ 10,000|
|Net income||$ 83,000||$ 415,000|
|Preferred Stock Dividends||$ --||$ (26,000)|
|Net income attributable to common shareholders||$ 84,000||$ 389,000|
|Diluted net income per share attributable to common shareholders||$ 0.01||$ 0.03|
|Basic net income per share attributable to common shareholders||$ 0.01||$ 0.03|
|BALANCE SHEET||MARCH 31, 2011||DECEMBER 31, 2010|
|Total Current Assets||$ 3,881,000||$ 3,941,000|
|Total Assets||$ 6,614,000||$ 6,705,000|
|Total Current Liabilities||$ 1,459,000||$ 1,651,000|
|Total Shareholders' Equity||$ 5,048,000||$ 4,950,000|
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.