-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 FA+JmRv9jNLRrnHmfkeDFHcZD81FUabIAbWIutDea0Enq2+st8oAopUw4Ue6cUL7
 qfzMwHSZ9VVpEuclEYLyPA==

<SEC-DOCUMENT>0000891092-04-001325.txt : 20040318
<SEC-HEADER>0000891092-04-001325.hdr.sgml : 20040318
<ACCEPTANCE-DATETIME>20040318104213
ACCESSION NUMBER:		0000891092-04-001325
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040318
ITEM INFORMATION:		Financial statements and exhibits
ITEM INFORMATION:		Regulation FD Disclosure
FILED AS OF DATE:		20040318

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:		04676874

	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>e17255_8k.txt
<DESCRIPTION>CURRENT REPORT
<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): March 18, 2004

                         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                                      Identification No.)
       or organization)

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
            March 18, 2004

ITEM 9. REGULATION FD DISCLOSURE

      On March 18, 2004, Intelligent Systems Corporation issued a press release
announcing its financial results for the fourth quarter and fiscal year 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: March 18, 2004                             INTELLIGENT SYSTEMS CORPORATION
                                                 (Registrant)

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

                                  Exhibit Index

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

99.1              Press release issued by Intelligent Systems Corporation on
                  March 18, 2004

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>e17255ex99_1.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>

                                                                    Exhibit 99.1

       Intelligent Systems Announces 4th Quarter and Fiscal 2003 Results
          *** Earnings Conference Call and Webcast at 11 AM Today ***

    NORCROSS, Ga., March 18 /PRNewswire-FirstCall/ -- Intelligent Systems
Corporation (AMEX: INS) ( www.intelsys.com ) announced today its financial
results for the fourth quarter and fiscal year periods ended December 31,
2003.

    For the fiscal year ended December 31, 2003, the company recorded revenue
of $13.3 million, a 24 percent increase compared to revenue of $10.7 million
for the twelve-month period in 2002.  Net loss for the twelve-month period in
2003 was $4.8 million or $1.07 per share, which was 61 percent less than the
net loss of $12.3 million or $2.73 per share recorded in 2002.

    For the fourth quarter ended December 31, 2003, Intelligent Systems
recorded revenue of $4.6 million, a 36 percent increase compared to the same
period last year when revenue was $3.4 million.  Net loss for the three months
ended December 31, 2003 was $1.2 million or $0.26 per share, representing a 57
percent reduction compared to a net loss of $2.7 million or $0.61 for the same
three-month period in 2002.

    Revenue from products grew 84 percent and 34 percent for the fourth
quarter and annual periods in 2003, respectively, compared to the same periods
last year, reflecting an unusually high number of fourth quarter software
license sales at the company's QS Technologies subsidiary and an increased
volume of industrial product sales at the company's ChemFree subsidiary.
Revenue from services increased ten percent year-to-year reflecting mainly a
larger installed base of QS Technologies customers that purchased maintenance
and support services.

    The results for the twelve-month period ended December 31, 2003 include
net investment income of $3.0 million compared to a net investment loss of
$934,000 in 2002.  During 2003, 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.  Offset
against this 2003 income were a first-quarter write-down aggregating $719,000
and a fourth quarter charge of $632,000 against the carrying values of the
company's equity and debt investments in two privately-held technology
companies, as well as other investment charges aggregating $100,000 in 2003.

    The reduction in the net loss reported in fiscal 2003 compared to 2002 is
related primarily to a 24 percent increase in revenue, a 13 percent reduction
in consolidated operating expenses, and the non-recurring investment gain on
the escrow settlement.  The loss from operations in the three and twelve-month
periods ended December 31, 2003 was $675,000 and $8.4 million, respectively,
which is a reduction of 72 percent and 33 percent, respectively, compared to
the same periods last year, mainly due to higher product revenue, lower cost
of goods and lower operating expenses.

    During 2003, the company continued to support investment in important
development activities at both its CoreCard Software and VISaer subsidiaries
for new software products.  While the company incurred significant product
development costs in 2003 at these subsidiaries, license revenue related to
the new software products is deferred and will be recognized beginning in 2004
when customer installations are complete.  At December 31, 2003, the company
has recorded $2.6 million in current deferred revenue comprised of amounts
recorded by its four consolidated subsidiaries and $5.0 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 fourth quarter and
annual periods for 2003.  The call-in number is (877) 266-7144 (domestic) and
(706) 679-3941 (local and 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
                     (in thousands, except share amounts)

                                     Three Months Ended   Twelve Months Ended
                                           Dec. 31,             Dec. 31,
                                       2003      2002       2003        2002
    Revenue
       Products                      $3,235    $1,761     $8,466      $6,296
       Services                       1,360     1,626      4,868       4,445
        Total revenue                 4,595     3,387     13,334      10,741
    Cost of revenue
       Products                         804       816      3,324       3,019
       Services                         783     1,043      3,380       2,862
        Total cost of revenue         1,587     1,859      6,704       5,881
    Expenses
        Marketing                       645       836      2,811       2,960
        General & administrative        978     1,016      3,895       4,562
        Research & development        2,060     2,122      8,316       9,798
    Loss from operations               (675)   (2,446)    (8,392)    (12,460)
    Other income
        Interest income (expense), net   (2)       22          2         129
        Investment income (loss), net  (604)(a)   (32)     3,040(b)     (934)

        Equity in earnings (losses) of
         affiliate companies            137      (132)       184        (235)

        Other income (expense), net      40      (135)       328         900
    Loss before income tax
     provision (benefit)             (1,104)   (2,723)    (4,838)    (12,600)
    Income tax provision (benefit)       64         7        (40)       (343)
    Net loss                        $(1,168)  $(2,730)   $(4,798)   $(12,257)
    Basic and diluted net loss
     per share                       $(0.26)   $(0.61)    $(1.07)     $(2.73)
    Basic and diluted weighted
     average shares               4,478,971 4,493,640  4,483,458   4,495,058

    (a). Includes write-down of $632,000 against carrying value of investment.
    (b). Includes $4.5 million gain on escrow settlement offset in part by
         $1.5 million in reserves/losses on investments.


                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (in thousands)

                                                     December 31, December 31,
                                                           2003        2002
    ASSETS
    Current assets:
      Cash                                                $1,133      $2,644
      Accounts receivable, net                             1,543       3,025
      Notes and interest receivable                          142         205
      Inventories                                            766         671
      Other current assets                                   614         213
        Total current assets                               4,198       6,758
    Long-term investments                                  6,275       7,145
    Property and equipment, at cost less accumulated
     depreciation                                            746         761
    Goodwill                                               2,039       2,380
    Intangibles, net                                         476         788
    Other assets, net                                          8          28
    Total assets                                         $13,742     $17,860

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Accounts payable                                      $932      $1,301
      Short-term borrowings                                  250          --
      Deferred revenue                                     2,586       1,784
      Deferred gain                                          291         428
      Accrued expenses and other current liabilities       2,037       1,755
        Total current liabilities                          6,096       5,268
    Deferred revenue, net of current portion               5,060       4,813
    Other long-term liabilities                               --          27
        Total long term liabilities                        5,060       4,840
    Minority interest                                      1,516       1,516
    Redeemable preferred stock of subsidiary                  --         342
    Total stockholders' equity                             1,070       5,894
    Total liabilities and stockholders' equity           $13,742     $17,860



SOURCE  Intelligent Systems Corporation
    -0-                             03/18/2004
    /CONTACT:  Bonnie Herron of Intelligent Systems Corporation,
+1-770-564-5504, or bherron@intelsys.com /
    /Web site:  http://www.intelsys.com
                http://www.visaer.com
                http://www.qsinc.com
                http://www.corecard.com
                http://www.chemfree.com /
    (INS)

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


</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
