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Sep 30, 2020
CoreCard Q3 2020 Earnings Report
Intelligent Systems reported an increase in revenue and a decrease in net income for Q3 2020.
Key Takeaways
Intelligent Systems reported an 8% increase in revenue compared to the prior-year period. The company's third-quarter results were slightly better than expected, with license revenue contributing to the increase. However, net income and earnings per diluted share decreased compared to the prior year quarter.
Total revenue increased by 8% to $10.3 million compared to the same period in 2019.
Income from operations was $3.481 million, compared to $4.2 million in the prior year quarter.
Net income decreased to $2.795 million, compared to $3.092 million in the prior year quarter.
Earnings per diluted share decreased to $0.31, compared to $0.34 in the prior year quarter.
Forward Guidance
The company anticipates incremental revenue opportunities and growth for fiscal 2021 and beyond due to infrastructure investments. License revenues are expected in both the first and second half of the next fiscal year, with the second half being much larger than the first six months.
Positive Outlook
- Momentum built in the third quarter reaffirms optimism for growth in 2021.
- Expect to receive license revenues in both the first and the second half of the next fiscal year.
- Second half license revenue will be much larger than what we report in the first 6 months.
- Unique position, strong management team, and solid financial position will enable continued growth in fiscal 2021.
- Investments in infrastructure needed to ensure CoreCard exceeds current and future customer needs.
Challenges Ahead
- Anticipate no additional license revenue for the remainder of 2020.
- Investments will place near-term pressure on margins.
- Difficult to project quarter by quarter license revenues.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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