Power of PAYBOX®
Direct Insite Reports 2011 Year End Revenue of $8,565,000
SUNRISE, Fla., March 30, 2012 /PRNewswire/ — Direct Insite Corp. (OTC BB: DIRI.OB), a global provider of financial supply chain automation across procure-to-pay and order-to-cash business processes, today announced financial results for the year ended December 31, 2011. Total revenue for the year ended December 31, 2011 was $8,565,000, a decrease of $487,000 or 5.4% from revenue of $9,052,000 in 2010. Recurring revenue for the year 2011 was $7,656,000, a 6.2% decrease from recurring revenue of $8,158,000 in 2010. The decrease in recurring revenue was primarily the result of price adjustments on existing contracts. Engineering services revenue increased $15,000 or 1.7% to $909,000 for the year ended 2011 compared to $894,000 for the year ended 2010. The increase was principally the result of an increase in revenue from customers due to the completion of projects in 2011.
Net loss for the year ended December 31, 2011 was $2,657,000 compared to net income of $1,033,000 for the year ended December 31, 2010, a decrease of $3,690,000. The net loss for the year 2011 includes nonrecurring charges of $620,000 for severance pay to the former Chief Executive Officer and $181,000 of legal fees reimbursed to S.A.V.E. Partners III, LLC and Metropolitan Venture Partners Corp., both stockholders of the Company, for costs they incurred related to the Company's annual meeting proxy solicitations. In addition, the Company recorded a nonrecurring reserve for income tax in the amount of $1,840,000 for the year ended December 31, 2011.
Basic and diluted net loss per share attributable to common shareholders for the year ended December 31, 2011 was $0.22 and $0.22, respectively, compared to basic and diluted net income per share of $0.09 and $0.08, respectively, for the year ended December 31, 2010.
"In fiscal 2011, Direct Insite took bold, decisive steps to position the company for strong, sustainable results in the evolving financial supply chain market. Our renewed focus on sales and marketing resulted in the company signing a record number of new customer contracts in 2011. We also have significantly strengthened our sales pipeline, and accelerated our product strategy in target markets," said Direct Insite President and Chief Executive Officer Matthew E. Oakes. "The steps taken in 2011 will help the Company improve execution, increase effectiveness and capitalize on emerging opportunities to deliver superior value to our customers and a better return for stockholders."
About Direct Insite
Direct Insite delivers on-demand AP and AR solutions that are deployed rapidly, with minimal cost and operational impact, and provide significant benefits across the financial supply chain. Since it was founded in 1987, Direct Insite has built an impressive track record in automating some of the most demanding financial environments. Today, more than 100,000 corporations use our solutions across 100 countries (representing more than 35 currencies and 17 languages). Direct Insite's Invoices On-Line (IOL) suite simplifies AP and AR processes such as: electronic invoice distribution/submission, purchase order submission/distribution/acknowledgement, invoice processing/validation, line-item matching, approval routing, invoice consolidation, dispute management, payment portal/processing, and reporting and analysis. For more information on Direct Insite, 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, 2011, filed with the Securities and Exchange Commission on March 30, 2012, and should be read in conjunction with the information provided therein.
The Company will hold an annual earnings webcast for the year 2011 on Tuesday, April 3, 2012 at 12:00 PM 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.
Summarized Financial Information
|STATEMENT OF OPERATIONS||FOR THE YEAR ENDED DECEMBER 31, 2011||FOR THE YEAR ENDED DECEMBER 31, 2010|
|Revenue||$ 8,565,000||$ 9,052,000|
|Operating (Loss) Income||$ (696,000)||$ 853,000|
|Other Income (Expense), Net||$ 76,000||$ (221,000)|
|(Loss) Income Before Income Taxes||$ (772,000)||$ 1,074,000|
|Provision for Income Taxes||$ 1,885,000||$ –|
|Net (Loss) Income||$ (2,657,000)||$ 1,033,000|
|Preferred Stock Dividends||$ –||$ –|
|Net (Loss) Income Attributable to Common Stockholders||$ (2,657,000)||$ 991,000|
|Basic (Loss) Income per Share Attributable to Common Stockholders||$ (0.22)||$ 0.09|
|Diluted (Loss) Income per Share Attributable to Common Stockholders||$ (0.22)||$ 0.08|
|BALANCE SHEET||DECEMBER 31, 2011||DECEMBER 31,2010|
|Total Current Assets||$2,749,000||$3,941,000|
|Total Current Liabilities||$1,611,000||$1,651,000|
|Total Stockholders' Equity||$2,636,000||$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. 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.
Sandra Wallace, Acting Chief Financial Officer
Direct Insite Corp.
SOURCE Direct Insite Corp.