NORCROSS, Ga. -- Internet Commerce Corporation (ICC) (Nasdaq: ICCA), a leader in business-to-business e-commerce solutions, today announced financial results for its fiscal third quarter 2007.
"Overall, this quarter was productive for ICC in regards to our 'Growth with Profitability' strategy," said Thomas Stallings, chief executive officer of ICC. "With our continued focus on revenue growth, streamlined operations and shareholder value, we met our internal financial forecasts with a 19% increase in revenue and a 32% increase in operating income, implemented organizational changes to save approximately $1.3 million annually beginning in the fourth quarter fiscal 2007 and announced a definitive agreement to acquire EasyLink Services Corporation."
Mr. Stallings continued, "We made great progress toward achieving our long-term marketplace and financial goals, and I am confident that our core strength in operational excellence will result in a solid performance for fiscal year 2007."
Third Quarter Fiscal Year 2007 Results
Third quarter revenue from continuing operations in fiscal 2007 was approximately $5.4 million, up 19% compared with our third quarter of fiscal 2006 revenues of approximately $4.5 million. In the EC Solutions segment, comprised of the ICC.NET(TM) Value Added Network, browser-based and hosted applications and desktop software, third quarter revenues from continuing operations were approximately $4.1 million, up 28% from approximately $3.2 million in the fiscal third quarter 2006 period. Revenues from the EC Services segment, comprised of the EC service center, managed services and professional services, were approximately $1.29 million, down 3% from approximately $1.33 million in the third quarter of fiscal 2006.
Total expenses from continuing operations increased 17% in third quarter fiscal 2007 from the prior-year period to $4.8 million from $4.1 million. The increase in expenses during the quarter was primarily driven by the acquisition of Enable Corp and restructuring charges to eliminate redundancy from acquisitions and streamlined operations.
Operating income increased 32% to approximately $635,000 in third quarter fiscal 2007 from approximately $482,000 for the same period in fiscal 2006. With a $124,000 increase in provision for income taxes, consisting primarily of state income taxes not covered by our existing state net loss carryforwards and a true up of past years' state income tax timing differences as a result of changing the tax year-end from December 31 to July 31, net income was approximately $551,000 compared to a net income of approximately $550,000 for third quarter fiscal 2006. Basic and diluted income per common share from continuing operations were $0.02 as compared with $0.02 per basic and diluted common share for the fiscal 2006 period.
Nine Month Fiscal 2007 Results
For the nine months ended April 30, 2007, revenues from continuing operations totaled approximately $16.5 million, up 13% compared with the first nine months fiscal 2006 revenues of approximately $14.6 million. Net income was approximately $1.8 million compared to a net income of approximately $1.6 million for the same period in fiscal 2006, an increase of 11%. Basic and diluted income per common share from continuing operations were $0.08 and $0.07, respectively, as compared to $0.07 per basic and diluted common share for the nine month period of fiscal 2006 period.
The Company ended the first nine months of fiscal 2007 with approximately $7.0 million of cash on hand. The balance sheet remains strong with current assets ending at approximately $11.8 million and current liabilities at approximately $2.0 million.
Forward-Looking and Cautionary Statements
Except for the historical information and discussion contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in the company's filing with the U.S. Securities and Exchange Commission (SEC).
About Internet Commerce Corporation (ICC)
Internet Commerce Corporation (Nasdaq: ICCA), headquartered in Norcross, Georgia, is a leader in providing business-to-business e-commerce solutions. Thousands of customers rely on ICC's comprehensive line of solutions, in-depth expertise, and unmatched customer service to help balance cost, fit, and function required to meet unique requirements for trading partner compliance, coordination, and collaboration. With its software solutions, network services, hosted web applications, managed services, and consulting services, ICC is the trusted provider of e-commerce solutions for businesses, regardless of size and level of technical sophistication, to connect them with their trading communities. For more information, visit www.icc.net.
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