MORRISVILLE, N.C., Aug. 2, 2011 (GLOBE NEWSWIRE) — Issuer Direct Corporation (OTCBB:ISDR), a market leader and innovator of unified regulatory, disclosure and compliance solutions, today reported financial results for the second quarter ended June 30, 2011. Additionally, the company anticipates filing its quarterly report including its financials in eXtensible Business Reporting Language (XBRL) with the Securities and Exchange Commission after market close today.
Highlights of the Second Quarter of 2011 include:
Net income increased to 0,218, or .02 per share, as compared to 8,843, or .01 per share in the second quarter of 2010.
Compliance and Reporting services business increased 196% as compared to the second quarter of 2010.
Cash for the period increased 22% over previous period.
Acquired the rights to the customers of Edgar Tech Filing Services.
Financial Results for the Second Quarter 2011 compared to the Second Quarter 2010
Revenues for the quarter ended June 30, 2011 decreased 53% to ,103,871 as compared to ,359,650 in the same period in fiscal 2010. Although revenues decreased during the three month period ended June 30, 2011 as compared to the same periods in fiscal 2010, overall gross profits increased significantly. Gross profit was 6,756, or 60% of revenues for the quarter ended June 30, 2011 as compared to 6,549, or 19% of revenues, for same period in fiscal 2010.
“We are pleased with the progress from our compliance and reporting services business,” said Brian R. Balbirnie, chairman and CEO of Issuer Direct. “Our overall gross margins for the period returned to acceptable levels as our XBRL business begins to come into full swing.” Margins achieved during the three month period ended June 30, 2011 are more reflective of the expected margins going forward, as most of the company’s revenue was achieved from its core service offerings, and not single one-off non-recurring transactions.
The Company reported net income of 0,218 during the second quarter of 2011 as compared to 8,843 during the same period of fiscal 2010. The Company reported net income of 4,436 during the six month period ended June 30, 2011 as compared to 3,507 during the same period of fiscal 2010.
During the first six months of 2011, the Company began providing XBRL tagging services to corporate issuers. These tagging services attributed to an increase in revenue from compliance and reporting services of 196% during the quarter ended June 30, 2011 as compared to the same period of fiscal 2010. The improvement in gross margin during the first half of 2011 are also largely due to these services. Many of the Company’s clients are small reporting companies who will be required to file quarterly and annual reports in XBRL format for all periods ending after June 15, 2011, and therefore the company anticipates that XBRL services will continue to be a significant revenue opportunity.�
During the period, the Company acquired the rights to the clients of Edgar Tech Filing Services, which will provide immediate access to additional clients in need of both our XBRL services and compliance reporting services. “We are excited to have Edgar Tech Filing Services as part of the family, we believe this synthetic opportunity is going to be the first of many we will see in the future,” said Wes Pollard, Chief Financial Officer of Issuer Direct.
Non-GAAP Results
The Company reported non-GAAP net income during the three months ended June 30, 2011 of 9,962, or .02 per share, as compared to non-GAAP net income of 3,576, or .01 per share, during the same period of 2010.�The Company reported non-GAAP net income during the six months ended June 30, 2011 of 8,360, or .02 per share, as compared to non-GAAP net income of 6,352, or .02 per share, during the same period of 2010. Please refer to the attached reconciliations of non-GAAP financial measures referred to in this release to the most directly comparable GAAP measures.
Non-GAAP Information
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.
About Issuer Direct Corporation:
Issuer Direct Corporation (“IDC”) is a market leader and innovator in public company products and services. As an issuer services focused company, Issuer Direct alleviates the complexity of maintaining compliance through integrated products and services that help companies produce and distribute their financial and business communications both online and in print. As a shareholder compliance company, Issuer Direct is dedicated to assisting corporate issuers in an ever-changing regulatory environment and to comply with the myriad of rules imposed by regulatory bodies.
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 our actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. We disclaim any intention to, and undertake 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 our forward-looking statements, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2009, including but not limited to the discussion under “Risk Factors” therein, filed with the SEC, which you may view at http://www.sec.gov.
CONTACT: Issuer Direct Corporation
Brian R. Balbirnie
919-481-4000
brian.balbirnie@issuerdirect.com
http://bit.ly/oYadRf
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