Direct Insite Announces First Quarter Results
SUNRISE, Fla., May 16, 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 months ended March 31, 2012. Revenue for the three months ended March 31, 2012 was $2,115,000, a 0.6% decrease from revenue of $2,128,000 for the three months ended March 31, 2011. Recurring revenue for the three-month period ended March 31, 2012 was $1,813,000, an increase of 1.7% from recurring revenue of $1,783,000 for the same period in 2011. Revenue from professional services fees decreased $43,000 (12.5%) to $302,000 for the three months ended March 31, 2012, compared to the same period in 2011. The decrease in revenue is the result of a decrease in engineering services partially offset by an increase in recurring services revenue, both resulting from the transition of new customer revenue from startup engineering services to recurring revenue streams.
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 months ended March 31, 2012 was $2,085,000, compared to $2,015,000 for the three months ended March 31, 2011. This represents a 3.5% increase in revenues on a comparable basis.
The Company incurred a net loss of $6,000 for the three months ended March 31, 2012, compared to net income of $84,000 for the same period in 2011. The net loss for the current period reflects a $113,000 (24.1%) increase in sales and marketing expense, attributable to the addition of a new Vice President of Sales as well as continuing focus on new sales and marketing initiatives, and a $144,000 (17.0%) increase in operations, research and development costs resulting primarily from increased engineering and development work related to new customers, compared to the same period in the prior year. At the same time, our general and administrative expenses for the current period decreased by $188,000 (29.1%) compared to the same period in 2011, principally due to reductions in salaries, travel and other reimbursed expenses due to the departure of our former Chief Executive Officer in May 2011.
“Our Q1 results illustrate the initial effect of the decisive changes that we implemented in the business in 2011. We deployed three new customers on our IOL Platform, increasing both our transaction processing volumes and the size of our Vendor Network. We continue to focus on profitability, being operationally efficient while increasing our sales efforts and strengthening our customer pipeline,” said Direct Insite President and Chief Executive Officer Matthew E. Oakes. He added, “We see increasing demand from customers for cloud-based tools that provide financial services automation capability. We believe we are now positioned to capture those opportunities and deploy our offerings to meet that market demand.”
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/acknowledgment, 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 March 31, 2012 Form 10-Q, filed with the Securities and Exchange Commission on May 15, 2012, and should be read in conjunction with the information provided therein.
The Company will hold an annual earnings webcast for the first quarter 2012 on Friday, May 18, 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
FOR THE THREE FOR THE THREE MONTHS ENDED MONTHS ENDED STATEMENTS OF OPERATIONS MARCH 31, 2012 MARCH 31, 2011 ------------------------ -------------- -------------- Revenue $2,115,000 $2,128,000 Operating Income $2,000 $88,000 Other expense, net $8,000 $4,000 (Loss) Income before income taxes $(6,000) $84,000 Provision for income taxes $ - $ - Net (loss) income $(6,000) $84,000 Basic and diluted (loss) income per share $ - $0.01 ============================ ===== BALANCE SHEET MARCH 31, 2012 MARCH 31, 2011 ------------- -------------- -------------- Total Current Assets $2,613,000 $2,749,000 Total Assets $4,447,000 $4,528,000 Total Current Liabilities $1,477,000 $1,611,000 Total Liabilities $1,780,000 $1,892,000 Total Stockholders' Equity $2,667,000 $2,636,000 FOR THE THREE FOR THE THREE MONTHS ENDED MONTHS ENDED (DECREASE) REVENUE, NET OF SIEMENS SCANNING MARCH 31, 2012 MARCH 31, 2011 INCREASE -------------------------------- -------------- -------------- -------- Total Revenue $2,115,000 $2,128,000 (0.6)% Siemens Scanning Revenue $(30,000) $(113,000) (73.5)% -------- --------- Revenue, net of Siemens Scanning $2,085,000 $2,015,000 3.5% ========== ==========
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.