The Company had net income for the three months ended September 30, 2012 of $92,000, compared to $216,000 for the three months ended September 30, 2011. Net income for the nine months ended September 30, 2012 was $228,000, compared to a net loss of $723,000 for the same period in 2011. The decrease in income for the third quarter is primarily due to the decrease in revenues and an increase in depreciation expense related to new equipment purchased at the end of 2011. The increase in income for the nine months ended September 30, 2012 compared to 2011 is primarily due to severance expenses of $620,000 recorded in 2011, the non-recurrence of proxy solicitation costs incurred in 2011 and the increase in revenues, offset by increases in sales and marketing and operations, research and development costs as the Company continued to focus on sales and marketing initiatives and support increased engineering and development work related to new customers.
Working capital was $1,717,000 at September 30, 2012 compared to working capital of $1,138,000 as of December 31, 2011, an increase of $579,000 (50.9%).
“Direct Insite maintained its focus in Q3 by boarding additional new vendors into our Global Supplier Network and increasing our recurring revenue streams,” commented Direct Insite President and Chief Executive Officer Matthew E. Oakes. “Our goals for the balance of the year are to continue the conversion of 2012 customer contract revenues from professional services fees to recurring revenue, close additional new customer contracts and increase the depth of our sales opportunity pipeline while managing costs associated with each initiative.”
About Direct InsiteDirect Insite Corp. delivers cloud-based e-invoicing solutions for AP, AR and payments automation. For nine years, Direct Insite has built a track record in automating some of the most demanding financial environments and helping users extend the value of their Enterprise Resource Planning (ERP) applications. Today, over 175,000 suppliers and customers use our e-invoicing network across 100 countries (representing more than 35 currencies and 17 languages). Direct Insite’s Invoices On-Line (IOL) suite simplifies AP and AR processes such as: electronic invoice distribution and submission; purchase order submission, distribution and acknowledgement, invoice processing and validation, line-item matching, approval routing, invoice consolidation, dispute management, e-payment processing, and reporting and analysis. To learn more, visit www.directinsite.com. The financial information stated above and in the tables below has been abstracted from Direct Insite Corp.’s September 30, 2012 Form 10-Q, filed with the Securities and Exchange Commission on November 14, 2012, and should be read in conjunction with the information provided therein.