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Washington, D.C. 20549





Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  November 4, 2021


Intelligent Systems Corporation

(Exact name of registrant as specified in its charter)


Georgia 001-09330 58-1964787
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)

4355 Shackleford Road

Norcross, Georgia 30093

(Address of Principal Executive Offices) (Zip Code)

(770) 381-2900

(Registrant's telephone number, including area code)


(Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.01 par value for the class INS NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On November 4, 2021, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1. Press release dated November 4, 2021

Exhibit 104. Cover Page Interactive Data File (embedded within the Inline XBRL document)



Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

  Intelligent Systems Corporation
Date: November 4, 2021 By:  /s/ Matthew A. White        
    Matthew A. White
    Chief Financial Officer



Intelligent Systems Reports Third Quarter 2021 Results

NORCROSS, Ga., Nov. 04, 2021 (GLOBE NEWSWIRE) -- Intelligent Systems Corporation [NYSE: INS], the leading provider of innovative credit technology solutions and processing services to the financial technology and services market, announced today its financial results for the quarter ended September 30, 2021.

"Our strong performance in the first half of 2021 continued into the third quarter, and as a result, we now expect top-line growth of 30% to 35% for the full year,” said Leland Strange, CEO of Intelligent Systems. "We recognized $1.8 million in license revenue in the quarter, while also growing professional services and processing and maintenance revenue. Total revenue in the quarter was $12.9 million, a 26% increase year-over-year."

“Additionally, we continued making strategic investments that enable us to grow with existing customers while onboarding new ones. Specifically, we made R&D investments during the quarter to continue building our technology platform and in October we opened an office in Bogota, Colombia where we expect to hire and train operations and development personnel. These actions are critical steps that will expand our resources and allow us to integrate very large entities with complex needs onto the CoreCard platform.”

Mr. Strange continued, “Looking ahead, I remain pleased with CoreCard’s trajectory and excited about the opportunities ahead. We expect fiscal 2021 revenues to be 30% to 35% above fiscal 2020, and the revolving credit platform we built is faster, more agile, more scalable and more feature advanced than anything else currently on the market. The investments we are making reinforce our capabilities and help ensure that CoreCard remains the best platform to service the evolving needs of modern card issuers.”

Financial Highlights for the three months ended September 30, 2021

Total revenues in the three-month period ended September 30, 2021, was $12,935,000 which represents an increase of 26% compared to the comparable period in 2020.

In the following table, revenue is disaggregated by type of revenue for the three months ended September 30, 2021:

Three months ended September 30, (in thousands)   2021   2020
License $ 1,783 $ 1,600
Professional services   6,893   5,392
Processing and maintenance   3,457   2,950
Third party   802   362
Total $ 12,935 $ 10,304

Income from operations was $3,309,000 for the third quarter compared to income from operations of $3,481,000 in the comparable prior year quarter.

Net income was $2,534,000 for the third quarter compared to net income of $2,795,000 in the comparable prior year quarter.

Earnings per diluted share was $0.29 for the third quarter compared to $0.31 in the comparable prior year quarter.

Investor Conference Call Today

The company is holding an investor conference call today, November 4th, 2021, at 11 A.M. Eastern Time. Interested investors are invited to attend the conference call by accessing the webcast at https://www.webcast-eqs.com/ins11042021_en/en or by dialing 1-877-407-0890. As part of the conference call, Intelligent Systems will be conducting a question-and-answer session where participants are invited to email their questions to questions@intelsys.com prior to the call. A transcript of the call will be posted on the company’s website at www.intelsys.com as soon as available after the call.

The company will file its Form 10-Q for the period ended September 30, 2021, with the Securities and Exchange Commission today. For additional information about reported results, investors will be able to access the Form 10-Q on the company’s website at www.intelsys.com or on the SEC website, www.sec.gov.

About Intelligent Systems Corporation
For over forty years, Intelligent Systems Corporation [NYSE: INS] has identified, created, operated and grown technology companies. The company’s principal operations are CoreCard Software, Inc. (www.corecard.com) and its affiliate companies. CoreCard provides prepaid and credit card processing services using its proprietary software solutions that it also licenses to others. CoreCard has designed and developed a comprehensive suite of software solutions that corporations, financial institutions, retailers and processors use to manage credit and debit cards, prepaid cards, private label cards, fleet cards, buy now pay later programs, loyalty programs, and accounts receivable and small loan transactions. CoreCard’s flexible and proven processing platform is being utilized in many countries in addition to the United States including Australia, Canada, China, the United Arab Emirates, France, Italy, Mexico, New Zealand, Singapore, South Africa and the United Kingdom. Further information is available on the company’s website at www.intelsys.com or by calling the company at 770-381-2900.

In addition to historical information, this news release may contain forward-looking statements relating to Intelligent Systems Corporation and its subsidiary and affiliated companies. These statements include all statements that are not statements of historical fact regarding the intent, belief or expectations of Intelligent Systems Corporation and its management with respect to, among other things, results of operations, product plans, and financial condition. The words “may,” “will,” “anticipate,” “believe,” “intend,” “expect,” “estimate,” “plan,” “strategy” and similar expressions are intended to identify forward-looking statements. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those contemplated by such forward-looking statements. The company does not undertake to update or revise any forward-looking statements whether as a result of new developments or otherwise, except as required by law. Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are instability in the financial markets, delays in product development, undetected software errors, competitive pressures, changes in customers’ requirements or financial condition, market acceptance of products and services, the impact of new or changes in current laws, regulations or other industry standards, risks relating to unauthorized access to confidential information due to criminal conduct, attacks by hackers, employee or insider malfeasance and/or human error and declines in general economic and financial market conditions, particularly those that cause businesses to delay or cancel purchase decisions.

For further information, call
Matt White, 770-564-5504 or
email to matt@intelsys.com

Intelligent Systems Corporation

(unaudited, in thousands, except share and per share amounts)

  Three Months Ended
September 30,
Nine Months Ended
September 30,
    2021   2020     2021     2020  
Services $ 11,152 $ 8,704   $ 31,119   $ 24,650  
Products   1,783   1,600     4,083     1,600  
Total net revenue   12,935   10,304     35,202     26,250  
Cost of revenue        
Services   6,104   4,217     16,091     11,418  
Total cost of revenue   6,104   4,217     16,091     11,418  
Marketing   97   31     179     94  
General and administrative   1,069   936     3,190     2,698  
Research and development   2,356   1,639     7,109     3,477  
Income from operations   3,309   3,481     8,633     8,563  
Investment income (loss)   53   (92 )   (215 )   (1,237 )
Other income   74   59     230     312  
Income before Income taxes   3,436   3,448     8,648     7,638  
Income taxes   902   653     2,269     1,596  
Net income $ 2,534 $ 2,795   $ 6,379   $ 6,042  
Earnings per share:      
        Basic $ 0.29 $ 0.31   $ 0.72   $ 0.68  
        Diluted $ 0.29 $ 0.31   $ 0.72   $ 0.67  
Basic weighted average common shares outstanding   8,714,579   8,927,908     8,803,760     8,925,961  
Diluted weighted average common shares outstanding   8,744,818   9,022,996     8,835,427     9,021,314  


Intelligent Systems Corporation
(in thousands, except share and per share amounts)

As of September 30, 2021 December 31, 2020
ASSETS (unaudited) (audited)
Current assets:    
Cash $ 20,567   $ 37,956  
Accounts receivable, net   14,082     3,270  
Notes and interest receivable, current portion   220      
Other current assets   2,241     1,263  
Total current assets   37,110     42,489  
Investments   2,707     1,921  
Notes and interest receivable, net of current portion   2,995     2,681  
Property and equipment, at cost less accumulated depreciation   7,483     6,914  
Other long-term assets   3,995     3,020  
Total assets $ 54,290   $ 57,025  

Current liabilities:    
Accounts payable $ 1,528   $ 714  
Deferred revenue, current portion   1,552     1,322  
Accrued payroll   2,749     1,901  
Accrued expenses   347     321  
Income tax payable   636     954  
Other current liabilities   2,480     4,850  
Total current liabilities   9,292     10,062  
Noncurrent liabilities:    
Deferred revenue, net of current portion   76      
Deferred tax liability     818     818  
Long-term lease obligation   2,446     1,994  
Total noncurrent liabilities           3,340     2,812  
Stockholders’ equity:    
Common stock, $0.01 par value: Authorized shares - 20,000,000;  
Issued shares – 9,001,311 and 8,929,368 at September 30, 2021 and December 31, 2020, respectively;    
Outstanding shares – 8,700,569 and 8,885,797 at September 30, 2021 and December 31, 2020, respectively   90     89  
   Additional paid-in capital   16,229     15,836  
   Treasury stock, 300,742 and 43,571 shares at September 30, 2021 and December 31, 2020, respectively, at cost   (10,900 )   (1,639 )
Accumulated other comprehensive loss   (145 )   (140 )
Accumulated income   36,384     30,005  
Total stockholders’ equity   41,658     44,151  
Total liabilities and stockholders’ equity $ 54,290   $ 57,025