CoreCard Corporation Reports Second Quarter 2023 Results
NORCROSS, Ga., Aug. 02, 2023 (GLOBE NEWSWIRE) -- CoreCard Corporation (NYSE:CCRD) ("CoreCard" or the "Company"), 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 June 30, 2023.
"CoreCard's strong performance continued in the second quarter and resulted in total revenue of $15.7 million in-line with our expectations," said Leland Strange, CEO of CoreCard Corporation. "Our top-line growth in services revenue was driven by 26% growth in processing and maintenance revenue, partially offset by declines in professional services and third party revenues. As a reminder, third party revenues are very low margin. Additionally, we achieved a new license tier which resulted in $1.8 million of license revenue in the second quarter. We continue to invest in our platform and processing capabilities, which are showing encouraging results. CoreCard provides a best-in-class credit platform that is extremely well positioned to capture the growing demand for next-generation card management platforms by large and complex modern card issuers."
Mr. Strange continued, "We recently converted a portion of our professional services revenue from variable to recurring, which is beneficial from a visibility perspective but will result in lower services revenue for the remainder of the year. We now expect services revenue growth of approximately 5% and continue to expect total license revenue in the range of $3 million to $7 million. The opportunity ahead of us is significant, and CoreCard remains a growth business focused on meeting the evolving needs of modern issuers while generating long-term value for our shareholders."
Financial Highlights for the three months ended June 30, 2023
Total revenues in the three-month period ended June 30, 2023, was $15.7 million compared to $15.2 million in the comparable period in 2022.
In the following table, revenue is disaggregated by type of revenue for the three months ended June 30, 2023 and 2022:
| Three Months Ended | ||||
| June 30, | ||||
| (in thousands) | 2023 | 2022 | ||
| License | $ | 1,794 | $ | 1,794 |
| Professional services | 7,354 | 7,605 | ||
| Processing and maintenance | 5,689 | 4,510 | ||
| Third party | 855 | 1,297 | ||
| Total | $ | 15,692 | $ | 15,206 |
Income from operations was $2.7 million for the second quarter compared to income from operations of $3.5 million in the comparable prior year quarter.
Net income was $1.9 million for the second quarter compared to net income of $2.9 million in the comparable prior year quarter.
Earnings per diluted share was $0.22 for the second quarter compared to $0.33 in the comparable prior year quarter.
Investor Conference Call
The company is holding an investor conference call today, August 2, 2023, 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/register/corecard080223/en or by dialing 1-877-407-0890. As part of the conference call CoreCard will be conducting a question-and-answer session where participants are invited to email their questions to [email protected] prior to the call. A transcript of the call will be posted on the company's website at investors.corecard.com as soon as available after the call.
The company will file its Form 10-Q for the period ended June 30, 2023, 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 investors.corecard.com or on the SEC website, www.sec.gov.
About CoreCard Corporation
CoreCard Corporation (NYSE:CCRD) provides the gold standard card issuing platform built for the future of global transactions in an embedded digital world. Dedicated to continual technological innovation in the ever-evolving payments industry backed by decades of deep expertise in credit card offerings, CoreCard helps customers conceptualize, implement, and manage all aspects of their issuing card programs. Keenly focused on steady, sustainable growth, CoreCard has earned the trust of some of the largest companies and financial institutions in the world, providing truly real-time transactions via their proven, reliable platform operating on private on-premise and leading cloud technology infrastructure.
Forward-Looking Statements
The forward-looking statements in this press release are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The Company's actual results could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties including those listed in Item 1A of the Company's Annual Report on Form 10-K and in the Company's other filings and reports with the Securities and Exchange Commission. All of the risks and uncertainties are beyond the ability of the Company to control, and in many cases, the Company cannot predict the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this press release, the words "believes," "plans," "expects," "will," "intends," "continue," "outlook," "progressing," and "anticipates" and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. Except as required by law, the Company is not obligated to publicly release any revisions to these forward-looking statements to reflect the events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
For further information,
email [email protected]
| CoreCard Corporation | ||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
| (unaudited, in thousands, except share and per share amounts) | ||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||
| Revenue | ||||||||||
| Services | $ | 13,898 | $ | 13,412 | $ | 28,654 | $ | 25,207 | ||
| Products | 1,794 | 1,794 | 1,794 | 14,283 | ||||||
| Total net revenue | 15,692 | 15,206 | 30,448 | 39,490 | ||||||
| Cost of revenue | ||||||||||
| Services | 9,296 | 7,937 | 19,101 | 15,393 | ||||||
| Products | − | − | − | − | ||||||
| Total cost of revenue | 9,296 | 7,937 | 19,101 | 15,393 | ||||||
| Expenses | ||||||||||
| Marketing | 105 | 85 | 174 | 151 | ||||||
| General and administrative | 1,516 | 1,255 | 3,065 | 2,940 | ||||||
| Research and development | 2,092 | 2,463 | 3,605 | 5,787 | ||||||
| Income from operations | 2,683 | 3,466 | 4,503 | 15,219 | ||||||
| Investment income (loss) | (391 | ) | 260 | (686 | ) | 157 | ||||
| Other income | 201 | 29 | 345 | 66 | ||||||
| Income before income taxes | 2,493 | 3,755 | 4,162 | 15,442 | ||||||
| Income taxes | 618 | 899 | 1,031 | 3,916 | ||||||
| Net income | $ | 1,875 | $ | 2,856 | $ | 3,131 | $ | 11,526 | ||
| Earnings per share: | ||||||||||
| Basic | $ | 0.22 | $ | 0.33 | $ | 0.37 | $ | 1.34 | ||
| Diluted | $ | 0.22 | $ | 0.33 | $ | 0.37 | $ | 1.33 | ||
| Basic weighted average common shares outstanding | 8,493,040 | 8,595,478 | 8,497,888 | 8,625,504 | ||||||
| Diluted weighted average common shares outstanding | 8,516,573 | 8,616,354 | 8,524,337 | 8,651,874 | ||||||
| CoreCard Corporation | ||||||
| CONSOLIDATED BALANCE SHEETS | ||||||
| (in thousands, except share and per share amounts) | ||||||
| As of | June 30, 2023 | December 31, 2022 | ||||
| ASSETS | (unaudited) | (audited) | ||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 31,005 | $ | 20,399 | ||
| Marketable securities | 5,099 | 4,973 | ||||
| Accounts receivable, net | 6,110 | 13,220 | ||||
| Other current assets | 3,884 | 3,729 | ||||
| Total current assets | 46,098 | 42,321 | ||||
| Investments | 4,494 | 5,180 | ||||
| Property and equipment, at cost less accumulated depreciation | 12,315 | 12,006 | ||||
| Other long-term assets | 3,055 | 3,725 | ||||
| Total assets | $ | 65,962 | $ | 63,232 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 1,407 | $ | 2,011 | ||
| Deferred revenue, current portion | 1,724 | 1,094 | ||||
| Accrued payroll | 2,003 | 1,888 | ||||
| Accrued expenses | 877 | 525 | ||||
| Other current liabilities | 1,959 | 2,025 | ||||
| Total current liabilities | 7,970 | 7,543 | ||||
| Noncurrent liabilities: | ||||||
| Deferred revenue, net of current portion | 363 | 473 | ||||
| Deferred tax liability | 494 | 472 | ||||
| Long-term lease obligation | 1,556 | 1,981 | ||||
| Total noncurrent liabilities | 2,413 | 2,926 | ||||
| Stockholders' equity: | ||||||
| Common stock, $0.01 par value: Authorized shares - 20,000,000; | ||||||
| Issued shares – 9,016,140 and 9,010,119 at June 30, 2023 and December 31, 2022, respectively; | ||||||
| Outstanding shares – 8,490,681 and 8,502,735 at June 30, 2023 and December 31, 2022, respectively | 90 | 90 | ||||
| Additional paid-in capital | 16,621 | 16,471 | ||||
| Treasury stock, 525,459 and 507,384 shares at June 30, 2023 and December 31, 2022, respectively, at cost | (17,105 | ) | (16,662 | ) | ||
| Accumulated other comprehensive income (loss) | (83 | ) | (61 | ) | ||
| Accumulated earnings | 56,056 | 52,925 | ||||
| Total stockholders' equity | 55,579 | 52,763 | ||||
| Total liabilities and stockholders' equity | $ | 65,962 | $ | 63,232 | ||
