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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000891092-03-003212.txt : 20031107
<SEC-HEADER>0000891092-03-003212.hdr.sgml : 20031107
<ACCEPTANCE-DATETIME>20031107090609
ACCESSION NUMBER:		0000891092-03-003212
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20031107
ITEM INFORMATION:		Financial statements and exhibits
ITEM INFORMATION:		Regulation FD Disclosure
FILED AS OF DATE:		20031107

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INTELLIGENT SYSTEMS CORP
		CENTRAL INDEX KEY:			0000320340
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-HOSPITALS [8060]
		IRS NUMBER:				581964787
		STATE OF INCORPORATION:			GA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09330
		FILM NUMBER:		03983672

	BUSINESS ADDRESS:	
		STREET 1:		4355 SHACKLEFORD RD
		CITY:			NORCROSS
		STATE:			GA
		ZIP:			30093
		BUSINESS PHONE:		4043812900

	MAIL ADDRESS:	
		STREET 1:		4355 SHACKLEFORD ROAD
		CITY:			NORCROSS
		STATE:			GA
		ZIP:			30093
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>e16158_8k.txt
<DESCRIPTION>FORM 8-K
<TEXT>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 Current Report
                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

       Date of Report (Date of earliest event reported): November 7, 2003

                         INTELLIGENT SYSTEMS CORPORATION
- --------------------------------------------------------------------------------
             (Exact name of Registrant as specified in its charter)

             Georgia                       1-9330                58-1964787
  (State or other jurisdiction      Commission file number    (I.R.S. Employer
of incorporation or organization)                            Identification No.)

  4355 Shackleford Road, Norcross, Georgia                         30093
- --------------------------------------------------------------------------------
  (Address of principal executive offices)                       (Zip Code)

       Registrant's telephone number, including area code: (770) 381-2900
<PAGE>

ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS

      Exhibits

            99.1  Press release issued by Intelligent Systems Corporation on
                  November 7, 2003

ITEM 9. REGULATION FD DISCLOSURE

      On November 7, 2003, Intelligent Systems Corporation issued a press
release announcing its financial results for the third quarter of 2003. A copy
of the press release is attached as Exhibit 99.1

      The information contained in this "Item 9. Regulation FD Disclosure" is
being furnished pursuant to "Item 12. Results of Operations and Financial
Condition" of Form 8-K.

      The information in this Form 8-K and the attached Exhibit shall not be
deemed "filed" for purposes of Section 18 of the Securities and Exchange Act of
1934, nor shall it be deemed incorporated by reference in any filing under the
Securities Act of 1933, except as shall be expressly set forth by specific
reference in such filing.

                                    SIGNATURE

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

Date: November 7, 2003                           INTELLIGENT SYSTEMS CORPORATION
                                                 (Registrant)

                                                  /s/ Bonnie L. Herron
                                                  --------------------
                                              By: Bonnie L. Herron
                                                  Chief Financial Officer
<PAGE>

                                  Exhibit Index

Exhibit Number    Description
- --------------    -----------

99.1              Press release issued by Intelligent Systems Corporation on
                  November 7, 2003.

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>e16158ex99_1.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>

                                                                    Exhibit 99.1

            Intelligent Systems Announces Third Quarter 2003 Results



         *** Earnings Conference Call and Webcast at 11 AM Today ***


   NORCROSS, Ga., Nov. 7 /PRNewswire-FirstCall/ -- Intelligent Systems
Corporation (Amex: INS) [ www.intelsys.com ] announced today its financial
results for the third quarter and year-to-date periods ended September 30,
2003.

    For the nine-month period ended September 30, 2003, Intelligent Systems
recorded revenue of $8.7 million, a 19 percent increase compared to the same
period last year.  Net loss for the nine months ended September 30, 2003 was
$3.6 million or $0.81 per share compared to a net loss of $9.5 million or
$2.12 for the nine month period in 2002.

    For the three months ended September 30, 2003, the company recorded
revenue of $2.7 million, an 8 percent decline compared to revenue of
$3.0 million for the same period in 2002.  Net loss for the three-month period
in 2003 was $2.4 million or $0.53 per share, 11 percent less than the net loss
of $2.7 million or $0.60 per share recorded in the third quarter of 2002.

    The increase in revenue in the year-to-date period of 2003 compared to
last year reflects an increase in service revenue (which includes professional
services and software maintenance revenue) at the company's VISaer and QS
Technologies subsidiaries as well as a higher volume of product sales at the
company's ChemFree subsidiary.

    The results for the year-to-date period ended September 30, 2003 include
net investment income of $3.6 million.  In the first half of the year, the
company recognized investment income totaling $4.5 million on the settlement
of an escrow fund related to the sale in April 2001 of an affiliate company,
PaySys International, Inc. to First Data Corporation.  Offset against this
income was a first-quarter write-down aggregating $719,000 against the
carrying value of the company's equity and debt investment in a private
technology company, a second-quarter charge of $76,000 to reduce the carrying
value of another minority owned start-up company and a third quarter loss of
$24,000 on the sale of securities.

    The reduction in the net losses reported in the year-to-date period in
2003 compared to the same period last year is a combination of a 19 percent
increase in revenue, a 15 percent reduction in consolidated operating
expenses, and the non-recurring investment gain on the escrow settlement.  The
loss from operations in the three and nine month periods ended September 30,
2003 was $2.5 million and $7.7 million, respectively, which is a reduction of
12 percent and 23 percent, respectively, compared to the same periods last
year, mainly due to a reduction in operating expenses.

    In the first nine months of 2003, the company continued to support
investment in product development activities at both its CoreCard Software and
VISaer subsidiaries for new software products.  While the company is incurring
significant product development costs in 2003 at these subsidiaries, license
revenue related to the new software products will not be recognized until 2004
at the earliest when customer installations are complete.  At September 30,
2003, the company had $3.9 million in current deferred revenue comprised of
amounts recorded by its four consolidated subsidiaries and $4.6 million in
non-current deferred revenue associated with its VISaer subsidiary.


    Conference Call and Webcast Information

    As announced previously, Intelligent Systems has scheduled a conference
call for today at 11 AM EST to discuss the results of the third quarter and
year-to-date period for 2003.  The call-in number is 877-226-7144 (domestic)
and 706-679-3941 (international).  A live webcast will be available at the
same time by logging onto www.intelsys.com and clicking on the webcast icon.
An archived version of the webcast will be available for 12 months.


    About Intelligent Systems Corporation

    For thirty years, Intelligent Systems Corporation (Amex: INS) has
identified, created, operated and grown early stage technology companies.  The
company has operations and investments, principally in the information
technology industry.  The company's consolidated subsidiaries include VISaer,
Inc. ( www.visaer.com ), QS Technologies, Inc. ( www.qsinc.com ), CoreCard
Software, Inc. ( www.corecard.com ), (all software companies) and ChemFree
Corporation ( www.chemfree.com )(an industrial products company).  Since 1990,
the company has operated the Intelligent Systems Incubator, an award-winning
pioneer in privately sponsored incubators.  Further information is available
on the company's website at www.intelsys.com , or by calling the company at
770/381-2900.

    In addition to historical information, this news release may contain
forward-looking statements relating to Intelligent Systems and its subsidiary
and affiliated companies. These statements include all statements that are not
statements of historical fact regarding the intent, belief or expectations of
Intelligent Systems and its management with respect to, among other things,
results of operations, product plans, and financial condition.  The words
"may," "will," "anticipate," "believe," "intend," "expect," "estimate,"
"plan," "strategy" and similar expressions are intended to identify forward-
looking statements.  Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance and
involve risks and uncertainties and that actual results may differ materially
from those contemplated by such forward-looking statements. The company does
not undertake to update or revise any forward-looking statements whether as a
result of new developments or otherwise.  Among the factors that could cause
actual results to differ materially from those indicated by such forward-
looking statements are delays in product development, undetected software
errors, competitive pressures (including pricing), changes in customers'
requirements or financial condition, market acceptance of products and
services, changes in financial markets, changes in the performance, financial
condition or valuation of affiliate companies, the risks associated with
investments in privately-held early stage companies, the impact of events such
as the war against IRAQ and the SARS epidemic, on the worldwide commercial
aviation industry, other geopolitical or military actions, and general
economic conditions, particularly those that cause business or government to
delay or cancel purchase decisions.


     For further information, call
     Bonnie Herron, 770/564-5504
     or email to bherron@intelsys.com


               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (unaudited, in thousands, except share amounts)

                    Three Months Ended Sept. 30,  Nine Months Ended Sept. 30,
                       2003            2002           2003         2002
    Revenue
     Products       $ 1,727         $ 1,849        $ 5,231      $ 4,535
     Services         1,021           1,124          3,508        2,838
      Total revenue   2,748           2,973          8,739        7,373
    Cost of revenue
     Products           855             889          2,520        2,202
     Services           755             760          2,597        1,839
      Total cost of
       revenue        1,610           1,649          5,117        4,041
    Expenses
      Marketing         714             725          2,166        2,123
      General &
       administrative   883           1,199          2,917        3,545
      Research &
       development    2,076           2,285          6,256        7,677
    Loss from
     operations      (2,535)         (2,885)        (7,717)     (10,013)
    Other income
      Interest income
      (expense), net      9              30              4          107
      Investment
       income
       (loss), net      (24)           (360)         3,645(a)      (902)
      Equity in
       earnings
       (losses) of
       affiliate
       companies         80              23             47         (103)
      Other income,
       net               74             133            288        1,035
    Loss before
     income tax
     provision
     (benefit)       (2,396)         (3,059)        (3,733)      (9,876)
    Income tax
     provision
     (benefit)           --            (362)          (104)        (350)
    Net loss       $ (2,396)       $ (2,697)      $ (3,629)    $ (9,526)
    Basic and
     diluted net
     loss per share  $(0.53)         $(0.60)        $(0.81)      $(2.12)
    Basic and
     diluted
     weighted
     average
     shares       4,478,971       4,495,530      4,484,954    4,495,530

    a.  Includes $4.5 million gain on escrow settlement offset in part by
        reserves/losses on investments.


                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (in thousands)

                             September 30, 2003  December 31, 2002
    ASSETS                       (unaudited)         (audited)
    Current assets:
     Cash                            $ 2,320         $ 2,644
     Accounts receivable, net          2,177           3,025
     Notes and interest receivable       223             205
     Inventories                         751             671
     Other current assets                219             213
      Total current assets             5,690           6,758
    Long-term investments              6,639           7,145
    Property and equipment, at cost
     less accumulated depreciation       652             761
    Goodwill                           2,038           2,380
    Intangibles, net                     554             788
    Other assets, net                     28              28
    Total assets                    $ 15,601        $ 17,860

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
     Accounts payable                $ 1,063         $ 1,301
     Deferred revenue                  3,897           1,784
     Deferred gain                       329             428
     Accrued expenses and other
      current liabilities              1,925           1,755
       Total current liabilities       7,214           5,268
    Deferred revenue, net of
     current portion                   4,590           4,813
    Other long-term liabilities            1              27
       Total long term liabilities     4,591           4,840
    Minority interest                  1,516           1,516
    Redeemable preferred stock
     of subsidiary                        --             342
    Total stockholders' equity         2,280           5,894
    Total liabilities and
     stockholders' equity           $ 15,601        $ 17,860



SOURCE  Intelligent Systems Corporation
    -0-                             11/07/2003
    /CONTACT: Bonnie Herron of Intelligent Systems Corporation,
+1-770-564-5504, or bherron@intelsys.com/
    /Web site:  http:// www.intelsys.com
                http:// www.qsinc.com
                http:// www.visaer.com
                http:// www.corecard.com
                http:// www.chemfree.com /
    (INS)

CO:  Intelligent Systems Corporation
ST:  Georgia
IN:  CPR
SU:  ERN ERP CCA MAV


</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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