Company Posts Second Quarter Profit of $25,000
FORT LAUDERDALE, FL / ACCESSWIRE / August 11, 2016 / Direct Insite Corp. (OTCQB: DIRI), provider of the PAYBOX® unified working capital management platform, today announced financial results for the second quarter of 2016. Net income for the three months ended June 30, 2016 was $25,000, compared with net income of $110,000 for the quarter ended June 30, 2015. Net income for the six months ended June 30, 2016 was $137,000, compared with a profit of $190,000 for the year-to-date June 30, 2015. The year-over-year decline in net income for both the quarter and year-to-date were due to the previously disclosed February 2016 termination of a channel partner client.
Revenue for the three months ended June 30, 2016 was $1,663,000, a decrease of $402,000, or 19.5%, from revenue of $2,065,000 for the three months ended June 30, 2015. Recurring revenue for the second quarter was $1,307,000, a decrease of $389,000, or 22.9%, from recurring revenue of $1,696,000 for the comparable prior year period, primarily due to the previously noted client loss in February 2016, and lower usage at certain other customers.
Non-recurring revenue for the three months ended June 30, 2016 was $356,000, a decrease of $13,000, or 3.5%, from non-recurring revenue of $369,000 for the compared prior year period.
Operating costs and expenses of $1,637,000 were $317,000, or 16.2%, lower than the $1,954,000 spent in the prior year due to various cost-cutting measures and higher costs capitalized for internally developed software.
Working capital (defined as current assets less current liabilities) at June 30, 2016 was $2,752,000, an increase of $44,000, or 1.6%, from working capital of $2,708,000 at December 31, 2015.
Cash provided by operating activities for the six months ended June 30, 2016 was $452,000, compared to cash provided by operations of $928,000 for the comparable prior year period. The decrease is due to the timing of collections from our customers and the timing of payments to our vendors.
"We continue to aggressively invest in Sales and Marketing initiatives," said Direct Insite Chairman and CEO Matthew E. Oakes. "We expect that the current investment in our direct sales team, our banking partnerships and our various marketing initiatives will generate long-term financial growth."
The financial information stated above and in the tables below has been abstracted from Direct Insite Corp.'s June 30, 2016 Form 10-Q, filed with the Securities and Exchange Commission on August 11, 2016, and should be read in conjunction with the information provided therein.Summarized Financial Information – Statement of Operations
Statements of Operations for the three months ended:
Other income (expense), net
Income before provision for income taxes
Basic and diluted income per share
Basic shares outstanding
Diluted shares outstanding
Balance Sheet as of:
December 31, 2015
Total current assets
Total current liabilities
Total stockholders' equity
Cash Flow from Operating Activities:
Net cash provided by operating activities
About Direct Insite
Direct Insite® provides a powerful platform for unified working capital management that facilitates over $160 billion worth of transactions annually between more than 375,000 companies worldwide. Direct Insite's clients include IBM, Siemens, HP Enterprises, Saint Gobain, Carlson, and one of the world's largest financial institutions. The flagship component of Direct Insite's unified working capital management platform is PAYBOX® Cloud, which offers robust and secure Accounts Payable and Receivables solutions that seamlessly integrate with a company's ERP system. Paper, manual processes and customer/client invoice inaccuracies and associated resolution costs are eliminated, while improving working capital and customer satisfaction. Learn more at www.directinsite.com.
The Company will hold an earnings webcast for the three months and year ended June 30, 2016 on Friday, August 12, 2016 at 10:00 A.M. (Eastern). This call is being webcast by Issuer Direct and can be accessed at www.InvestorCalendar.com. Participant toll-free dial-in is (877) 407-9205.
FORWARD-LOOKING STATEMENTS. Statements in this press release regarding our future operations are 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. These 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. Actual results could differ materially from those contemplated by the forward-looking statements as a result of various factors, including but not limited to, our ability to successful implement our platform for new customers; our ability to retain existing customers; the effectiveness of our marketing efforts in attracting new customers; the success of our research and development efforts in continuing to create competitively attractive e-invoicing solutions; other competitive factors, general business and economic conditions; and pricing pressures. 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.
Lowell Rush, Chief Financial Officer
Direct Insite Corp.
SOURCE: Direct Insite Corp.