<SEC-DOCUMENT>0001171843-16-008463.txt : 20160309
<SEC-HEADER>0001171843-16-008463.hdr.sgml : 20160309
<ACCEPTANCE-DATETIME>20160309084510
ACCESSION NUMBER:		0001171843-16-008463
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20160309
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20160309
DATE AS OF CHANGE:		20160309

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INTELLIGENT SYSTEMS CORP
		CENTRAL INDEX KEY:			0000320340
		STANDARD INDUSTRIAL CLASSIFICATION:	BOLTS, NUTS, SCREWS, RIVETS & WASHERS [3452]
		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:		161493451

	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>f8k_030916.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"><html><head></head><body style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><div style="margin-top: 3pt; margin-bottom: 12pt;"><div style="font-size: 1pt; border-top: Black 2.5pt solid; border-bottom: Black 1.1pt solid; width: 100%;">&#160;</div></div><p style="font-size: 14pt;" align="center"><strong>UNITED STATES</strong><br><strong>SECURITIES AND EXCHANGE COMMISSION</strong><br><strong>Washington, D.C. 20549<br></strong>______________________</p><p style="font-size: 14pt; text-transform: uppercase;" align="center"><strong>Form 8-K<br></strong>______________________</p><p style="font-size: 12pt;" align="center"><strong>CURRENT REPORT</strong></p><p style="font-size: 12pt;" align="center"><strong>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</strong></p><p align="center">Date of Report (Date of earliest event Reported): <!--March 9, 2016-->March 9, 2016 &#160;</p><p align="center"><strong style="font-size: 14pt;">Intelligent Systems Corporation</strong><br>(Exact Name of Registrant as Specified in Charter)</p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="top"><td align="center" width="33%"><strong>Georgia</strong></td><td align="center" width="34%"><strong>001-09330</strong></td><td align="center" width="33%"><strong>581964787</strong></td></tr><tr valign="top"><td align="center" width="33%">(State or Other Jurisdiction of Incorporation)</td><td align="center" width="34%">(Commission File Number)</td><td align="center" width="33%">(I.R.S. Employer Identification Number)</td></tr></table><p>&#160;</p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="bottom"><td align="center" width="50%"><strong>4355 Shackleford Road, Norcross, Georgia 30093<!----></strong></td></tr><tr valign="top"><td align="center" width="50%">(Address of Principal Executive Offices) (Zip Code)</td></tr></table><p align="center"><strong>(770) 381-2900</strong><br>(Registrant's telephone number, including area code)</p><p align="center"><strong></strong><br>(Former name or former address, if changed since last report)</p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="top"><td colspan="3">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:<br><br></td></tr><tr valign="top"><td width="21">&#160;</td><td width="40">[ &#160; ]</td><td nowrap="nowrap">&#160;&#160;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</td></tr><tr valign="top"><td width="21">&#160;</td><td width="40">[ &#160; ]</td><td nowrap="nowrap">&#160;&#160;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</td></tr><tr valign="top"><td width="21">&#160;</td><td width="40">[ &#160; ]</td><td nowrap="nowrap">&#160;&#160;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</td></tr><tr valign="top"><td width="21">&#160;</td><td width="40">[ &#160; ]</td><td nowrap="nowrap">&#160;&#160;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</td></tr></table><div style="margin-top: 12pt; margin-bottom: 3pt;"><div style="font-size: 1pt; border-top: Black 1.1pt solid; border-bottom: Black 2.5pt solid; width: 100%;">&#160;</div>&#160;</div><hr style="page-break-after: always;" noshade="noshade"><p>  <strong> &#160;</strong></p><p><strong>Item 2.02. Results of Operations and Financial Condition.</strong></p><p>On March 9, 2016, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.</p><p><strong> &#160;</strong></p><p><strong>Item 9.01. Financial Statements and Exhibits.</strong></p><p>Exhibit 99.1.   Press release dated March 9, 2016</p><p><p> &#160;</p><hr style="page-break-after: always;" noshade="noshade"><p align="center"><strong>SIGNATURE</strong></p><p>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.</p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="top"><td valign="top" width="49%">&#160;</td><td style="font-size: 12pt;" colspan="2" valign="top"><strong>Intelligent Systems Corporation</strong></td></tr><tr valign="top"><td width="49%">&#160;</td><td width="2%">&#160;</td><td width="49%">&#160;</td></tr><tr valign="top"><td width="49%">&#160;</td><td width="2%">&#160;</td><td width="49%">&#160;</td></tr><tr valign="top"><td width="49%">Date:&#160;March 9, 2016</td><td width="2%">By:&#160;</td><td style="text-decoration: underline;" width="49%">/s/ Bonnie L. Herron&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td></tr><tr valign="top"><td width="49%">&#160;</td><td width="2%">&#160;</td><td width="49%">Name: Bonnie L. Herron</td></tr><tr valign="top"><td width="49%">&#160;</td><td width="2%">&#160;</td><td width="49%">Title: Vice President and CFO</td></tr><tr valign="top"><td width="49%">&#160;</td><td width="2%">&#160;</td><td width="49%"></td></tr></table><p><table style="border: solid grey;   border-width: 2pt 0 0 0;   page-break-after: always;  width: 100%;    font-size: 0;    height: 0; border-collapse: collapse; "><tr><td style="border: solid grey;   border-width: 2pt 0 0 0;   page-break-after: always;  width: 100%;    font-size: 0;    height: 0; ">&#160;</td></tr></table> <p align="center"><strong>EXHIBIT INDEX</strong></p>  <p align="center">&#160;</p> <table style="border-collapse: collapse; "><tr><td style="vertical-align: bottom ; "><strong><u>Exhibit Number</u></strong></td><td style="">&#160;</td><td style="vertical-align: bottom ; "><strong><u>Description</u></strong></td></tr><tr><td style="">&#160;</td><td style="">&#160;</td><td style="">&#160;</td></tr><tr><td style="">EXHIBIT 99.1</td><td style="">&#160;</td><td style="">Press Release dated March 09, 2016 </td></tr></table> <p>&#160;</p>  <p>&#160;</p> </p></body></html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exh_991.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"><html lang="en-US"><head><title>EdgarFiling</title><meta content="text/html; charset=windows-1252"><meta name="GENERATOR" content="MSHTML 8.00.7601.18094"></head><body bgcolor="#ffffff"><p style="text-align: right;"><strong>EXHIBIT 99.1</strong></p><p style="text-align: center;"><strong>Intelligent&#160;Systems&#160;Announces&#160;Fiscal&#160;Year&#160;2015&#160;Results</strong></p><p style="text-align: center;"><p> <p align="left">NORCROSS, Ga., March  09, 2016  (GLOBE NEWSWIRE) -- Intelligent Systems Corporation (NYSE MKT:INS) announced today its financial results for the three and twelve month periods ended December 31, 2015.&#160;<br></p>  <p align="justify">For the twelve month period ended December 31, 2015, the company recorded net income&#160; attributable to Intelligent Systems Corporation of $18,020,000 ($2.05 per basic share and $2.02 per diluted share), compared to a net loss attributable to Intelligent Systems of $76,000 ($0.01 per basic and diluted share) in the same period in 2014. The dramatic change between periods reflects primarily a gain of $18,802,000 on the sale of the company&#8217;s former ChemFree subsidiary.</p>  <p align="justify">As previously announced, the company sold its ChemFree subsidiary on March 31, 2015 for a purchase price of $21,600,000 in an all cash transaction. &#160;In accordance with accounting standards, the ChemFree operations have been retroactively classified as discontinued operations for all periods presented in 2015 and 2014 and the assets and liabilities associated with the former subsidiary are presented on the balance sheet as single line items titled assets and liabilities from discontinued operations.</p>  <p align="justify">The company&#8217;s cash balance at December 31, 2015 was $18,059,000, not including $2,200,000 in restricted cash that is related to certain escrow conditions of the ChemFree sale. Total stockholders&#8217; equity grew to $23,169,000 at December 31, 2015 from $6,578,000 at December 31, 2014. On February 8, 2016, the company paid a special cash dividend of $0.35 per share, aggregating $3,056,000 in total, to shareholders of record on January 29, 2016.&#160;</p>  <p align="justify">Our revenue from continuing operations grew 27 percent and 14 percent, respectively, in the three and twelve month periods ended December 31, 2015, as compared to the same periods in 2014.&#160; Growth is attributed not only to more software license revenue but also to a higher volume of processing and professional services.&#160;</p>  <p align="justify">For the three month period ended December 31, 2015, the company recorded net income attributable to Intelligent Systems of $940,000 ($0.11 per basic and diluted share) compared to net income attributable to Intelligent Systems of $211,000 ($0.02 per basic and diluted share) in the fourth quarter of 2014. In the fourth quarter of 2015, investment income of $1,247,000 offset a loss from continuing operations, resulting in a profitable quarter.&#160; The investment income represents primarily a gain of $2,034,000 from the sale of our ownership interest in Lancope, Inc. to Cisco, Inc. in December 2015, offset in part by a write-down of $792,000 on the carrying value of another investment. Despite the solid revenue growth in 2015, our G&amp;A expenses were also significantly higher in 2015 than in 2014, contributing to the loss from continuing operations.&#160; In 2014, a significant component of corporate G&amp;A expenses was charged to our former ChemFree subsidiary for services provided by the corporate office. Following the sale of ChemFree in March 2015, corporate activities and resources (and the associated expense) have been re-focused on our CoreCard operations and strategic initiatives, resulting in higher G&amp;A expenses for continuing operations in 2015.&#160;</p>  <p align="justify">&#8220;CoreCard Software is now our primary business activity and most of our efforts are focused on expanding our footprint in the FinTech space,&#8221; commented J. Leland Strange, CEO of Intelligent Systems. &#8220;We believe our software is equal to or better than anything in the industry and we will be more aggressive in telling our story in 2016.&#160; Typically, new business results in long-term relationships so we expect our revenue to continue to climb, although GAAP revenue recognition policies sometimes make it difficult to see growth on a quarter-to-quarter basis.&#8221;</p>  <p align="justify"><strong>Investor Conference Call Today</strong><br>The company is holding an investor conference call today, March 9, 2016, at 11 AM Eastern time.&#160; Interested investors are invited to attend the conference call by dialing (888) 636-8160 and entering conference ID code 63850276.&#160; A transcript of the call will be posted on our website at www.intelsys.com as soon as available after the call.</p>  <p align="justify">The company expects to file its 2015 Form 10-K with the Securities and Exchange Commission on or about March 16, 2016. For additional information about reported results, investors will be able to access the Form 10-K, when filed, on our company&#8217;s website at www.intelsys.com or on the SEC site, www.sec.gov.&#160;</p>  <p align="justify"><strong>About Intelligent Systems Corporation</strong></p>  <p>For over thirty-five years, Intelligent Systems Corporation (NYSE MKT:INS) has identified, created, operated and grown technology companies.&#160; The company&#8217;s principal operations are CoreCard Software, Inc. (www.corecard.com) and its affiliate companies. CoreCard designs, develops, and markets a comprehensive suite of software solutions to corporations, financial institutions, retailers and processors to manage their credit and debit cards, prepaid cards, private label cards, fleet cards, loyalty programs, and accounts receivable and small loan transactions.&#160; CoreCard also offers prepaid and credit card processing services using its proprietary software solutions. &#160; Further information is available on the company&#8217;s website at http://www.intelsys.com or by calling the company at 770/381-2900.</p>  <p align="justify"><em>In addition to historical information, this news release may contain forward-looking statements relating to Intelligent Systems Corporation 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 Corporation 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.&#160; 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, except as required by law. Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are instability in the financial markets, delays in product development, undetected software errors, competitive pressures, changes in customers&#8217; requirements or financial condition, market acceptance of products and services, and declines in general economic and financial market conditions, particularly those that cause businesses to delay or cancel purchase decisions.</em></p>  <p align="center"><br></p> <table style="border-collapse: collapse; border-collapse: collapse; border-collapse: collapse; border-collapse: collapse; border-collapse: collapse; "><tr><td colspan="26" style="vertical-align: top ; text-align: center ;  vertical-align: bottom; "><em><strong>CONSOLIDATED STATEMENTS OF OPERATIONS</strong></em></td></tr><tr><td colspan="26" style="vertical-align: top ; text-align: center ;  vertical-align: bottom; "><em>(in thousands, except share and per share amounts)</em></td></tr><tr><td colspan="3" style="vertical-align: top ; 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text-align: right ;  vertical-align: bottom; vertical-align: top ; ">(1,466</td><td style="border-top: solid black 1pt ; padding-left: 0 ; text-align: left ;  vertical-align: bottom; vertical-align: top ; ">)</td><td style="border-top: solid black 1pt ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: top ; ">&#160;</td><td colspan="3" style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: top ; ">(2,148</td><td style="border-top: solid black 1pt ; padding-left: 0 ; text-align: left ;  vertical-align: bottom; vertical-align: top ; ">)</td><td colspan="3" style="">&#160;</td></tr><tr><td colspan="3" style="border-bottom: solid black 1pt ; vertical-align: top ; ">Income taxes</td><td colspan="6" style="border-bottom: solid black 1pt ; vertical-align: top ; text-align: right ;  vertical-align: bottom; ">--</td><td colspan="4" style="border-bottom: solid black 1pt ; vertical-align: top ; 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padding-left: 0 ; text-align: left ;  vertical-align: bottom; vertical-align: top ; ">&#160;</td></tr></table> <p>&#160;<br></p></p><p>For&#160;further&#160;information,&#160;call<br>Bonnie&#160;Herron,&#160;770-564-5504<br>or&#160;email&#160;to&#160;bherron@intelsys.com</p></body></html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
