Direct
Insite Revenues Grew 57.2% in the Third Quarter of 2005;
Company's Recurring Revenues Increase 68.8%
CEO Calls Results a
Major Milestone; New Offering Continues to Deliver Significant Revenue Growth
Bohemia, N.Y. - November
15, 2005 - Direct
Insite Corp. (the "Company"), (OTC BB:DIRI.OB), a global provider of Electronic
Invoice Presentment and Payment ("EIP&P") solutions, today announced �revenue from continuing operations increased
57.2% and 27.5% to $2,512,000 and $6,910,000 respectively for the three and
nine months ended September 30, 2005, compared to revenue from continuing
operations of $1,598,000 and $5,421,000 for the same periods in 2004. �
Recurring revenues from EIP&P services increased 68.8% and 44.5%
to $1,695,000 and $4,284,000 for the three and nine months ended September 30,
2005, respectively, compared to $1,004,000 and $2,965,000 for the same periods
in 2004, while recurring revenues from other non-EIP&P services decreased
by $128,000 and $399,000 for the three and nine months ended September 30, 2005
compared to 2004.�
Revenues from professional services increased 76.6% to $809,000
and 28.1% to $2,593,000 for the three and nine months ended September 30, 2005,
respectively, compared to $458,000 and $2,024,000 for the same periods in
2004.�
According to CEO and Chairman of the Board James A. Cannavino, the
results for the third quarter represent a major milestone for the company. "We
have successfully achieved significant revenue growth while maintaining
vigorous cost controls."�
Direct Insite reported operating income of $75,000 for the three
month period ended September 30, 2005, compared to an operating loss of
$481,000 for the same period of 2004.�
The operating loss for the nine months ended September 30, 2005 was
reduced 66.9% to $306,000, compared to a loss of $925,000 for the nine months
ended June 30, 2004.�
Basic and diluted net loss per share from
continuing operations for the three and nine month periods ended September 30,
2005 was $0.05 and $0.25, respectively, compared to basic and diluted net loss
per share from continuing operations of $0.17 and $0.39 for the same periods in
2004.� The basic and diluted net income
per share from discontinued operations for the three and nine month
periods ended September 30, 2005 was $0.00, compared to a net income per share
from discontinued operations of $0.00 and $0.06 for the same periods in 2004.
Focused
Business Plan Yields Significant Growth
According to Cannavino, the financial
strengthening of the Company during the third quarter is the result of a successfully
executed plan to focus on the Electronic Bill Presentment and Payment service area.
"During the quarter, revenues from the Company's Invoices on Line/Accounts
Receivable (IOL/AR) solution and the recently launched Invoices on Line/Accounts
Payable (IOL/AP) offering demonstrated strong revenue growth," said Cannavino.� "What we are seeing is intense customer
demand to exploit the workflow capability of Invoices on Line - what we refer
to as IOL.� Customers recognize the
leverage IOL delivers for both invoicing customers and for accepting invoices
from their suppliers for review and payment," he added.
IOL delivers a unique set of controls and
empowerment tools for just-in-time inventory delivery and control
operations.� This invoicing solution
allows companies to apply their own unique business rules when processing
invoices, including the application of customized review/verify/approve or
dispute business rules.� IOL also serves
as a bridge between differing systems, providing, for example, smooth
interoperability between a legacy supply chain management system and a
contemporary accounting system.� "This
is a growing and high business value application of IOL," says Cannavino
Another important market differentiator of the IOL
product line is its acceptance, or "penetration rate", among large
corporations.� Today more than 3,500
corporations in key global business centers - the America's, Europe/Middle
East/Africa, and Asia Pacific - are being invoiced with Direct Insite's IOL.� In Europe, for example, IOL is invoicing the
majority of companies listed on the Financial Times 500, while in the US over
half of the Fortune 500 companies are being invoiced through IOL.� According to Cannavino, "this is an
important consideration in the "buying decision" of many customers because they
want a solution that is already well accepted in the market place, one that requires
minimal or no training for their customers or suppliers to become productive
users."
"Since the initial release of the IOL family of
service offerings, our customers have determined that there is significant
value in the ability to electronically deliver invoices to their customers for
review, approval, and payment or to use IOL to accept supplier invoices and
similarly review and approve such invoices for payment.� In addition, as customers have applied many
of the added features of IOL such as workflow, "n-way matching", and
system-to-system interoperability functions, the emerging value proposition of
our offerings have become even more clearly defined and truly compelling," Cannavino
stated.�� "Our customers have come to
the realization that their primary business processes involve two primary
boundaries and associated needs for interoperability and efficiency.� The first is between themselves and their
customers or suppliers; the second is among systems internal to their
infrastructure.� It is at these boundary
points that many manual processes are introduced with associated labor costs
and errors/inaccuracies from an audit perspective.� IOL/AR and IOL/AP eliminate the need for manual processes on a
customer-to-customer or customer-to-supplier invoicing basis."
"Our tools facilitate interoperability between,
for example, supply chain management and accounting systems internal to the
enterprise.� In many cases, customers
have had to implement manual processes and ad hoc business rules to bridge
between internal systems.� The tools and
services we provide facilitate this interoperability between either
contemporary systems or legacy systems and implement well defined business
rules that remove labor costs and rigorously enforce audit rules.� This is perceived by our customers as having
significant business value.� The market
place has validated our value proposition, and this positioning will be the
basis for the company's forward looking plans."
About
Direct Insite Corp.
Headquartered in Bohemia, New York, Direct
Insite Corp. is an industry leader in electronic invoice presentment and
payment solutions.� Over half of the
Fortune 500 and the Futsi 50 use Direct Insite solutions throughout their
operations in North and South America, Europe, the Middle East, Africa, Asia
and the Pacific.� The Company's
solutions are used to invoice more than 3,500 corporations world wide.� For more information about Direct Insite
Corp. call (631) 244-1500 or visit www.directinsite.com.
The
financial information stated above and in the tables below has been abstracted
from the Company's Form 10-QSB for the three and nine months ended September 30,
2005, to be filed with the Securities and Exchange Commission, and should be
read in conjunction with the information provided therein.
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| STATEMENT OF OPERATIONS | FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 | FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2004 | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004 |
| Revenue from continuing operations | $ 2,512,000 | $ 1,598,000 | $ 6,910,000 | $ 5,421,000 |
| Operating income (loss) | $ 75,000 | $ (481,000) | $ (306,000) | $ (925,000) |
| Other expense, net | $ 148,000 | $ 77,000 | $ 348,000 | $ 256,000 |
| Loss before income taxes | $ (73,000) | $ (558,000) | $ (654,000) | $ (1,181,000) |
| Provision for income taxes | $ 1,000 | $ 1,000 | $ 2,000 | $ 5,000 |
| (Loss) income from discontinued operations | $ (2,000) | $ (2,000) | $ (10,000) | $ 260,000 |
| Net loss | $ (76,000) | $ (561,000) | $ (666,000) | $ (926,000) |
| Preferred Stock Dividends | $ (164,000) | $ (161,000) | $ (489,000) | $ (459,000) |
| Net loss attributable to common shareholders | $ (240,000) | $ (722,000) | $ (1,155,000) | $ (1,385,000) |
| Basic and diluted (loss) income per share: | ||||
| From continuing operations | $ (0.05) | $ (0.17) | $ (0.25) | $ (0.39) |
| From discontinued operations | $ -- | $ -- | $ -- | $ 0.06 |
| Total loss per share | $ (0.05) | $ (0.17) | $ (0.25) | $ (0.33) |
| BALANCE SHEET | September 30, 2005 | December 31, 2004 |
| Total Current Assets | $1,873,000 | $2,439,000 |
| Total Assets | $2,656,000 | $3,301,000 |
| Total Current Liabilities | $5,531,000 | $4,991,000 |
| Total Shareholders' Deficiency | $(2,969,000) | $(2,537,000) |
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.