MORRISVILLE, NC — (Marketwired) — 08/06/13 — (OTCBB: ISDR), a market leader and innovator of and , today reported its operating results for the second quarter ended June 30, 2013. The Company will host an investor conference call at 4:30 p.m. EDT today, to discuss operating results and relevant topics of interest.
Revenue increased 56% to $1.7 million as compared to $1.1 million in the second quarter of 2012
Gross profit increased 73% to $1.2 million as compared to $698,998 in the second quarter of 2012
Gross margins increased to 70%, compared to 63% in the second quarter of 2012
Operating profit increased 931% to $613,136, compared to the second quarter of 2012
Non-GAAP net income increased 93% to 478,838, or $0.23 per share, as compared to the second quarter of 2012
The Company-s cash balance increased 20% to $1.5 million at June 30, 2013 as compared to December 31, 2012
Brian R. Balbirnie, Chief Executive Officer of Issuer Direct Corporation, commented, “Our Second Quarter performance once again surpassed expectations in almost every category. The margins and revenue contributions of the stock transfer and disclosure reporting business segments led the way in our continuation to outperform estimates.” Mr. Balbirnie continued, “There are strong indications that the growth and initial successes of our market stream and core technology licensing business will continue to increase. As we further commercialize our intellectual property we should continue to see exponential growth.”
Wes Pollard, Chief Financial Officer, stated, “The overall 56% increase in revenue is primarily due to growth in compliance and reporting revenue, which generated 77% gross margins in the second quarter of 2013, and an improvement in transfer agent revenues, which generated 80% gross margins during that same period. Our software licensing increased 81% to $96,000, offering a 98% gross margin. As customers continue to adopt our market streams at an accelerated rate, we expect our shareholder communication segment to have increasing importance in the future.”
Mr. Balbirnie further stated, “During the quarter we leveraged our critical mass, generating increased revenue, bigger profits, and larger overall margins, illustrating again the earnings power of this highly efficient, recurring revenue, cloud-based model. We took advantage of this model by delivering incremental top line revenue, augmenting our profitability by upholding high margins. We are at point, where we are really showing the scalability of our infrastructure, where additional gross margin goes almost entirely to the bottom line. We are dedicated to launching new, innovative solutions to increase average revenue per customer and ensure sustained growth. Our industry best 24-hour turnaround times for XBRL and sales infrastructure have been key differentiators that help us continue to gain market share. As the only single-source provider of cloud based disclosure management solutions, we are focused not only on growing organically, but also continuing to evaluate potential acquisitions of complementary businesses that fit our long term business strategy.”
For the quarter ended June 30, 2013, Issuer Direct reported revenue of $1.7 million, compared with $1.1 million in the quarter ended June 30, 2012, an increase of 56%. Gross profit for the quarter ended June 30, 2013 increased to $1.2 million, compared to $698,998 in the quarter ended June 30, 2012. Overall gross profit margins increased to 70% of revenue during the second quarter of 2013, compared with 63% in the year-earlier quarter.
For the quarter ended June 30, 2013, the Company reported net income of $364,681 or $0.18 per diluted share, compared to net income of $35,949 or $0.02 per diluted share, in the quarter ended June 30, 2012.
The Company generated non-GAAP net income for the second quarter ended June 30, 2013 of $478,838, or $0.23 per share, compared with non-GAAP net income of $248,796, or $0.12 per share, in the second quarter ended June 30, 2012.
Adjustments from GAAP to non-GAAP primarily involved the amortization of intangible assets related to acquired companies and stock-based compensation expense recognized related to awards of stock options or common stock in exchange for services. (see detail in table at end of this release).
Certain non-GAAP financial measures are included in this press release. In the calculation of these measures, the Company generally excludes certain items such as amortization and impairment of acquired intangibles, non-cash stock-based compensation charges, and unusual, non-recurring gains and charges. The Company believes that excluding such items provides investors and management with a representation of the Company-s core operating performance and with information useful in assessing its prospects for the future and underlying trends in the Company-s operating expenditures and continuing operations. Management uses such non-GAAP measures to evaluate financial results and manage operations. The release and the attachments to this release provide a reconciliation of each of the non-GAAP measures referred to in this release to the most directly comparable GAAP measure. The non-GAAP financial measures are not meant to be considered a substitute for the corresponding
GAAP financial measures.
To participate in the conference call, please dial 1-877-317-6789 (international callers dial 1-412-317-6789) approximately five minutes prior to 4:30 p.m. Eastern Time (EDT). A replay of the conference call will be available one hour after completion of the call until, Monday, August 19, 2013, at 9:00 a.m. EDT. To access the replay, dial 1-877-344-7529 (international callers dial 1-412-317-0088) and enter the conference I.D. # 10032139.
Issuer Direct Corporation (“IDC”) is a market leader and innovator of disclosure management solutions and cloud-based compliance technologies. With a focus on corporate issuers, the Company alleviates the complexity of maintaining compliance with its integrated portfolio of products and services that enhance companies- ability to efficiently produce and distribute their financial and business communications both online and in print.
Learn more about Issuer Direct today:
Forward-Looking Statements. This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company-s actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company-s forward-looking statements, please see the Company-s Annual Report on Form 10-Q for the quarter ended June 30, 2013, including but not limited to the discussion under “Risk Factors” therein, which the Company has filed with the SEC and which may be viewed at .
Contact:
For Further Information
Issuer Direct Corporation
Brian R. Balbirnie
919-481-4000
Brett Maas
Hayden IR
(646) 536-7330
James Carbonara
Hayden IR
(646)-755-7412