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Mar 31, 2020
CoreCard Q1 2020 Earnings Report
Intelligent Systems reported first quarter results, showing revenue increase but a decrease in net income due to investment losses.
Key Takeaways
Intelligent Systems reported a 13.3% increase in revenue compared to the prior year period, driven by professional services and processing and maintenance revenues. However, net income decreased due to investment losses related to impairment charges on investments resulting from the economic downturn caused by the COVID-19 pandemic.
Total revenues increased by 13.3% to $7.893 million compared to $6.966 million in the same period last year.
Income from operations was $2.379 million, compared to $2.605 million in the prior year quarter.
Net income was $1.047 million, down from $2.072 million in the comparable prior year quarter, impacted by investment losses.
Earnings per diluted share was $0.12, compared to $0.23 in the prior year quarter, including a $0.11 negative impact from impairment charges.
CoreCard
CoreCard
Forward Guidance
The company expects processing services to grow for the year, but the trajectory will depend on economic activity returning to normal. License revenue in 2020 is uncertain due to customers putting marketing plans on hold and the general economic slowdown.