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Direct Insite Announces Second Quarter Results Revenue of $4,383,000 for the First Six Months of 2012
SUNRISE, Fla., Aug. 14, 2012 /PRNewswire/ — Direct Insite Corp. (OTC BB: DIRI.OB), a leading provider of cloud-based e-invoicing solutions for accounts payable, accounts receivable, and payments automation, today announced financial results for the three and six months ended June 30, 2012. Revenue for the three months ended June 30, 2012 was $2,267,000, an 11.9% increase from revenue of $2,026,000 for the three months ended June 30, 2011. Revenue for the six month period ended June 30, 2012 was $4,383,000, a 5.5% increase from revenue of $4,153,000 for the same period in 2011. Recurring revenue for the three-month period ended June 30, 2012 was $1,836,000, an increase of 2.3% from recurring revenue of $1,795,000 for the same period in 2011. For the six months ended June 30, 2012 recurring revenue was $3,650,000 compared to recurring revenue of $3,578,000 for the six months ended June 30, 2011, an increase of 2.0%. Revenue from professional services fees increased $200,000 (86.6%) to $431,000 and $158,000 (27.4%) to $733,000 for the three and six months ended June 30, 2012, compared to the same periods in 2011. The increase in revenue is primarily the result of both recurring transaction services revenue and professional services revenue from new customers contracted at the end of 2011.
As part of a new contractual arrangement with Siemens Global Shared Services North America, the Company no longer collects pass-through third-party scanning fees, starting in 2012. Excluding third-party pass-through scanning revenues, total revenue for the three and six months ended June 30, 2012 was $2,267,000 and $4,353,000, compared to $1,901,000 and $3,915,000 for the three and six months ended June 30, 2011, representing 19.3% and 11.2% increases in revenues on a comparable basis, respectively.
The Company had net income for the three months ended June 30, 2012 of $142,000, compared to a net loss of $1,022,000 for the three months ended June 30, 2011. Net income for the six months ended June 30, 2012 was $135,000, compared to a net loss of $939,000 for the same period in 2011. The increase in income is primarily due to severance expenses of $620,000 recorded in 2011, the non-recurrence of proxy solicitation costs incurred in 2011 and the increase in revenues for 2012 compared to 2011, offset by increases in sales and marketing and operations, research and development costs as the Company continued to focus on sales and marketing initiatives and support increased engineering and development work related to new customers.
Working capital was $1,554,000 at June 30, 2012 compared to working capital of $1,138,000 as of December 31, 2011, an increase of $416,000 (36.6%). Although cash decreased by $156,000 during the six months ended June 30, 2102 to $531,000 on hand as of June 30, 2012, collections on accounts receivable since that date have increased the Company's current cash balance to over $800,000.
"Our Q2 financial results demonstrate the initial positive impact of our investment and increased focus on direct sales and marketing. We expect to build on this momentum with the growth of recurring revenue from the ramp-up of existing customers and the signing of new customer contracts," said Direct Insite President and Chief Executive Officer Matthew E. Oakes. "Our focus for the balance of the year will be on signing new customers and boarding them into our rapidly growing Global Supplier Network, increasing profitability while managing costs and strengthening our cash position."
About Direct Insite
Direct Insite delivers on-demand AP and AR solutions that are deployed fast, 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 a 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 June 30, 2012 Form 10-Q, filed with the Securities and Exchange Commission on August 13, 2012, and should be read in conjunction with the information provided therein.
The Company will hold an annual earnings webcast for the second quarter 2012 on Wednesday, August 15, 2012 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.
Summarized Financial Information
|STATEMENTS OF OPERATIONS||FOR THE THREE MONTHS ENDED JUNE 30, 2012||FOR THE THREE MONTHS ENDED JUNE 30, 2011||FOR THE SIX MONTHS ENDED JUNE 30, 2012||FOR THE SIX MONTHS ENDED JUNE 30, 2011|
|Revenue||$ 2,267,000||$ 2,026,000||$ 4,383,000||$ 4,153,000|
|Operating income (loss)||$ 140,000||$ (822,000)||$ 141,000||$ (735,000)|
|Other (income) expense, net||$ (2,000)||$ 200,000||$ 6,000||$ 204,000|
|Income (Loss) before income taxes||$ 142,000||$ (1,022,000)||$ 135,000||$ (939,000)|
|Provision for income taxes||$ -||$ -||$ -||$ -|
|Net income (loss)||$ 142,000||$ (1,022,000)||$ 135,000||$ (939,000)|
|Basic and diluted income (loss) per share||$ 0.01||$ (0.09)||$ 0.01||$ (0.08)|
|BALANCE SHEET||JUNE 30, 2012||DECEMBER 31, 2011|
|Total Current Assets||$ 2,850,000||$ 2,749,000|
|Total Assets||$ 4,695,000||$ 4,528,000|
|Total Current Liabilities||$ 1,296,000||$ 1,611,000|
|Total Liabilities||$ 1,569,000||$ 1,892,000|
|Total Stockholders' Equity||$ 3,126,000||$ 2,636,000|
|REVENUE, NET OF SIEMENS SCANNING||FOR THE THREE MONTHS ENDED JUNE 30, 2012||FOR THE THREE MONTHS ENDED JUNE 30, 2011|| (DECREASE) |
|Total Revenue||$ 2,267,000||$ 2,026,000||11.9 %|
|Siemens Scanning Revenue||$ -||$ (125,000)||(100.0) %|
|Revenue, net of Siemens Scanning||$ 2,267,000||$ 1,901,000||19.3 %|
|REVENUE, NET OF SIEMENS SCANNING||FOR THE SIX MONTHS ENDED JUNE 30, 2012||FOR THE SIX MONTHS ENDED JUNE 30, 2011||(DECREASE) |
|Total Revenue||$ 4,383,000||$ 4,153,000||5.5 %|
|Siemens Scanning Revenue||$ (30,000)||$ (238,000)||(87.4) %|
|Revenue, net of Siemens Scanning||$ 4,353,000||$ 3,915,000||11.2 %|
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.