BOHEMIA, N.Y.--(BUSINESS WIRE)--May 21, 2003--Direct Insite Corp. (NASDAQ: DIRI - News) today announced its financial results for the first quarter ended March 31, 2003.
Revenue for first quarter ended March 31, 2003 rose to $2,199,000 from $1,514,000 for the first quarter ended March 31, 2002.
For the first quarter of 2003, the Company reported a net loss of $1,070,000 compared to a net loss of $1,628,000 for the first quarter of 2002. The basic and diluted net loss per share for the first quarter of 2003 was $0.29 compared to a basic and diluted net loss per share of $0.53 for the first quarter of 2002.
Direct Insite CEO and Chairman of the Board James A. Cannavino said, "By expanding our product offerings and broadening our customer base, Direct Insite continues to generate significant overall growth. We are very pleased with our over 45% increase in revenues compared to our first quarter a year ago. These gains are reflected in advances we achieved in three key product offerings: ASP services (Application Service Provider) which increased nearly 37% to over $1.1 million from first quarter 2002 revenues of $821,000; engineering services which increased by more than 40% over the same year-ago period; and AMS (Account Management System) fees which more-than-doubled, increasing 131%, over Q1 2002 totals."
"These gains were bolstered by the rapid growth of our Electronic Invoice Presentment and Payment (EIP&P) solution. This offering enables our customers to present invoices to their largest customers, via the Internet, on an International basis with a level of information and ease of use never before available. Our customers have seen:
Direct Insite continues to expand the capabilities of its EIP&P suite of solutions so that it offers enhanced functionality, expanded archival services and additional languages. We fully expect EIP&P to be a growth engine for the Company over the next several years," Mr. Cannavino added.
"As a result, a significant increase in the percentage of our overall revenue was derived from recurring, longer-term contacts for our EIP&P solutions rather than from one-time, non-recurring developmental activities, providing us with monthly recurring per-transaction fees. This change of focus brings us closer to the achievement of our ultimate goal of profitability while having a positive impact upon shareholder value," noted Mr. Cannavino.
"For the future, the Company will continue to implement a number of steps that, it believes, will create positive cash flow. These measures include a continued broadening of Direct Insite's product line and service offerings and building upon revenue-generating opportunities presented by its engineering services. By achieving these objectives, we believe that our year-over-year growth will continue during this year and beyond," added Mr. Cannavino.
"Direct Insite is confident that additional revenue increases will be realized as a result of the continuous introduction of new EIP&P features designed to optimize the support of vertical industries such as the Services and Finance industry segments. Such improvement can vastly improve the process for services billing as well as provide workflow management of invoices through an enterprise," noted the Direct Insite Chairman.
"In addition, Direct Insite intends to capitalize upon the growing trend for outsourcing of services, within the communications sector, by optimizing the opportunities presented to the Company from its acquisition of Platinum Communications. Direct Insite management believes that the year over year revenue gains, realized during 2002 and the first quarter of 2003, will continue to grow and expand during the remainder of this fiscal year," Mr. Cannavino concluded.
Direct Insite Corp operates primarily as an Application Service Provider, generally referred to as an ASP, providing an Electronic Invoice Presentment and Payment (EIP&P) solution targeted at large enterprise customers based on a "data centric" approach that improves the delivery and management of high volumes of invoice related data while providing a customer workflow system that better manages the complexity of the presentation, analysis, dispute resolution, approval and payment process that reduces the administrative and operating expenses for both "Biller" and "Payer" alike. We also provide managed services related to our patented technology, d.b.Express(TM), a management information tool that allows users to visually data mine large volumes of transactional data via the Internet and a complete Internet Customer Care tool set integrated with our EIP&P product set. Through it's wholly owned subsidiary, Platinum Communications, Inc., the Company offers an integrated solution of order entry, workflow management, provisioning, and invoice verification for large enterprise clients, currently marketed under the trade name AMS sometimes referred to as TAMS.
Headquartered in Bohemia, NY, with offices in Dallas, TX, and Chicago, IL, Direct Insite Corp. employs a staff of 65. For more information about Direct Insite Corp. call (631) 244-1500 or visit our web site at www.directinsite.com.
The financial information stated above and in the tables below has been abstracted from the Company's Form 10-K for the three months ended March 31, 2003, filed with the Securities and Exchange Commission on May 20, 2003, and should be read in conjunction with the information provided therein.
Summarized Financial Information | ||
| STATEMENT OF OPERATIONS | FOR THE THREE MONTHS ENDED MARCH 31, 2003 | FOR THE THREE MONTHS ENDED MARCH 31, 2002 |
| UNAUDITED | UNAUDITED | |
| Revenue | $2,199,000 | $1,514,000 |
| Operating loss | $996,000 | $1,278,000 |
| Net other expense | $74,000 | $350,000 |
| Net loss before taxes | $1,070,000 | $1,628,000 |
| Preferred Stock Dividends | $63,000 | $-0- |
| Net loss attributable to common shareholders | $1,133,000 | $1,628,000 |
| Basic and diluted loss per share | $0.29 | $0.53 |
| BALANCE SHEET | AS OF MARCH 31, 2003 | AS OF MARCH 31, 2002 |
| UNAUDITED | UNAUDITED | |
| Total Current Assets | $2,243,000 | $2,789,000 |
| Total Assets | $4,240,000 | $4,891,000 |
| Total Current Liabilities | $2,904,000 | $3,007,000 |
| Total Shareholders' Equity | $130,000 | $1,212,000 |
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 report, 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.
| Contact: | |
| Direct Insite Corporation Leigh Athans, 631/244-1500 leigh.athans@directinsite.com |
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| Media: | |
| G.S. Schwartz & Co. Inc. Lon Margulies, 212/725-4500 lmargulies@schwartz.com |
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| Source: | |
| Direct Insite Corp. | |