EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONTACT:
Elaine Parfitt
Chief Financial Officer
Integral Systems, Inc.
Phone: 301-731-4233
Fax: 301-731-9606
INTEGRAL SYSTEMS ANNOUNCES FINANCIAL RESULTS
FOR THE SECOND QUARTER OF 2003
Quarterly Revenue and Net Income are Historic Highs
Lanham, Md., May 12, 2003 -- Integral Systems, Inc. (NASDAQ: ISYS) today
reported financial results for the second quarter of fiscal 2003. Revenues for
the quarter were $20 million, up from $10.6 million in the second quarter of
fiscal 2002--an increase of approximately 89%, and a new Company record.
Operating income also rose to $2.3 million for the quarter, versus $152,000 in
the second quarter of fiscal 2002--a fifteen fold increase.
Net income increased to $1.5 million in the second quarter of fiscal 2003 from
$434,000 in the second quarter of fiscal 2002, an increase of 246% and also a
new Company record. Further, net income from the second quarter last year was
boosted by a gain of approximately $390,000 on the sale of marketable equity
securities which did not recur during the current quarter, making the current
quarter to quarter increase in net operating income that much more dramatic. On
a fully diluted per share basis, net income tripled to $.15 during the second
quarter of fiscal 2003 from $.05 during the second quarter of fiscal 2002.
"While we are pleased with our second quarter revenue totals, we are even more
gratified to see the improvements in operating income and net income," commented
Steven R. Chamberlain, Chairman and Chief Executive Officer. "Although our SAT
and Newpoint subsidiaries have yet to reach break-even, the results from the
Company's core command and control business plus operating income from our newly
acquired subsidiary, RT Logic, have handsomely offset the losses from the two
losing subsidiaries."
"Despite the losses at SAT and Newpoint, we are seeing operating improvements
and efficiencies for both entities each consecutive quarter. Our focus continues
to be long term in nature and we intend to invest in these businesses for the
foreseeable future. We believe that once the commercial satellite market in
general turns around both SAT and Newpoint will begin to generate positive
operating results," Chamberlain said.
Operating results for the three months ended March 31, 2003 include full quarter
results for Newpoint and RT Logic. The Company did not own RT Logic in the
second quarter of the prior year while Newpoint was only owned for two months of
the prior year's second quarter.
For the six months ended March 31, 2003 revenues were $39.5 million compared to
$20.8 million for the six months ended March 31, 2002 - an increase of $18.7
million or 90%. For the current six-month
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period, operating income was $3.6 million compared to $810,000 for the same
period last year, while net income increased to $2.3 million from $1.1 million,
an increase of approximately $1.3 million. On a fully diluted per share basis,
net income increased to $.24 during the six months ended March 31, 2003 from
$.11 during the first half of fiscal 2002.
"Currently we are on target to meet or beat our previously announced guidance
for the full fiscal year," remarked Chamberlain. "Through the first half of the
current fiscal year, we have already recorded 78% of our full fiscal 2002
revenue and more importantly 89% of all the net income posted in fiscal 2002.
One should also remember that the net income figure for fiscal 2002 included
gains of approximately $1.1 million on marketable security sales that have not
recurred this year," stated Chamberlain.
Mr. Chamberlain will host a conference call Wednesday, May 14, 2003 at 11:00
a.m. Eastern Time (ET). Chamberlain will discuss the earnings release and other
Company prospects. To participate or listen to the call, dial 800-558-9407. A
replay of the conference call can be heard May 14, 2003 from 12:30 p.m. ET
through Friday, May 16, 2003 12:30 p.m. ET by dialing 800-633-8284 or
402-977-9140. Ask for reservation number 21143893.
Founded in 1982, Integral Systems is a leading provider of satellite systems and
has supported over 190 different satellite missions for communications, science,
meteorological and earth resource applications. The Company was the first to
offer an integrated suite of COTS (Commercial-Off-The-Shelf) software products
for satellite command & control, the EPOCH 2000 product line. EPOCH has become a
world market leader in commercial applications with successful installations on
5 continents. The Company also offers products and services for satellite
integration and test and payload data processing.
Through its wholly owned subsidiary SAT Corporation, the Company provides
satellite and terrestrial communications signal monitoring systems to satellite
operators and users throughout the world. The Company also provides software for
equipment monitoring and control to satellite operators and telecommunications
firms through its Newpoint Technologies, Inc. subsidiary. The Company's RT Logic
subsidiary builds telemetry processing systems for military applications
including tracking stations, control centers and range operations. Integral
Systems has approximately 350 employees working at Company headquarters in
Lanham, Maryland, and at other locations in the U.S. and Europe. For more
information, visit http: //www.integ.com.
Except for statements of historical facts, this news release contains
forward-looking statements about the Company, including but not necessarily
limited to financial projections, all of which are based on the Company's
current expectations. There is no assurance that the Company's projections will
in fact be achieved and these projections do not reflect any acquisitions or
divestitures that may occur in the future. Such statements are subject to risks
and uncertainties, including the Company's reliance on contracts and
subcontracts funded by the U.S. government, intense competition in the ground
systems industry, the competitive bidding process to which the Company's
government and commercial contracts are subject, the Company's dependence on the
satellite industry for most of its revenues, rapid technological changes in the
satellite industry, the Company's acquisition strategy and those other risks
noted in the Company's SEC filings. The Company assumes no obligation to update
or revise any forward-looking statements appearing in this news release.
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INTEGRAL SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
March 31, March 31,
2003 2002 2003 2002
(unaudited) (unaudited) (unaudited) (unaudited)
-------------- ------------ ------------ ------------
Revenue $ 19,956,596 $ 10,557,529 $ 39,526,377 $ 20,814,986
Total Cost of Revenue 13,082,953 7,506,650 27,036,355 14,650,334
-------------- ------------ ------------ ------------
Gross Margin 6,873,643 3,050,879 12,490,022 6,164,652
-------------- ------------ ------------ ------------
Operating Expenses
SG&A 2,936,196 2,346,786 5,670,652 4,053,926
Research and Development 578,885 5,218 1,108,502 206,119
Product Amortization 747,231 547,276 1,494,462 1,094,526
Intangible Asset Amortization 322,265 0 644,530 0
-------------- ------------ ------------ ------------
Total Operating Expenses 4,584,577 2,899,280 8,918,146 5,354,571
-------------- ------------ ------------ ------------
Income from Operations 2,289,066 151,599 3,571,876 810,081
-------------- ------------ ------------ ------------
Other Income (Expense) 77,318 556,126 70,422 766,236
-------------- ------------ ------------ ------------
Income Before Income Taxes 2,366,384 707,725 3,642,298 1,576,317
-------------- ------------ ------------ ------------
Income Taxes 881,630 274,126 1,307,736 526,613
-------------- ------------ ------------ ------------
Net Income $ 1,484,754 $ 433,599 $ 2,334,562 $ 1,049,704
============== ============ ============ ============
Weighted Average Number of Common Shares
Outstanding During Period 9,710,205 9,120,763 9,705,717 9,096,980
============== ============ ============ ============
Earnings Per Share (Basic) $ 0.15 $ 0.05 $ 0.24 $ 0.12
============== ============ ============ ============
Weighted Average Number of Fully Diluted
Common Shares Outstanding During Period 9,758,275 9,316,743 9,751,072 9,296,883
============== ============ ============= =============
Earnings Per Share (Diluted) $ 0.15 $ 0.05 $ 0.24 $ 0.11
============== ============ ============= =============
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