NYSE$CCRD

CoreCard Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Intelligent Systems reported an increase in revenue and a decrease in net income for Q3 2020.

Intelligent Systems reported an 8% increase in revenue compared to the prior-year period. The company's third-quarter results were slightly better than expected, with license revenue contributing to the increase. However, net income and earnings per diluted share decreased compared to the prior year quarter.

  • Total revenue increased by 8% to $10.3 million compared to the same period in 2019.
  • Income from operations was $3.481 million, compared to $4.2 million in the prior year quarter.
  • Net income decreased to $2.795 million, compared to $3.092 million in the prior year quarter.
  • Earnings per diluted share decreased to $0.31, compared to $0.34 in the prior year quarter.

Headline financials

Total Revenue

$10.3M

Previous: $9.52M+8.2%
EPS (adj)

$0.31

Previous: $0.34-8.8%
Capital Expenditures

-$6.17M

Previous: -$1.55M-297.5%
Free Cash Flow

$9.01M

Previous: $6.13M+47.1%
Net Income

$2.8M

Previous: $3.09M-9.6%
Operating Income

$3.48M

Previous: $4.2M-17.1%
Gross Profit

$6.09M

Previous: $6.51M-6.5%
Cash & Equivalents

$34.4M

Previous: $23.7M+45.3%
Total Assets

$54.6M

Previous: $39.5M+38.0%
Stock-Based Comp

$207K

Previous: $49K+322.4%

Revenue & EPS history

CoreCard · Revenue · Quarterly

$10.3M

Q3 2020+8.2%vs Q3 2019
Beat estimate in 5 of 8 quarters(63%)
ActualEstimate

Revenue by segment

CoreCard · $24.2M total across 3 segments · Q1 2022

  • License Revenue
    $12.5M
  • Professional Services
    $5.9M
  • Processing & Maintenance
    $5.8M

Forward guidance

The company anticipates incremental revenue opportunities and growth for fiscal 2021 and beyond due to infrastructure investments. License revenues are expected in both the first and second half of the next fiscal year, with the second half being much larger than the first six months.

Tailwinds

  • Momentum built in the third quarter reaffirms optimism for growth in 2021.
  • Expect to receive license revenues in both the first and the second half of the next fiscal year.
  • Second half license revenue will be much larger than what we report in the first 6 months.
  • Unique position, strong management team, and solid financial position will enable continued growth in fiscal 2021.
  • Investments in infrastructure needed to ensure CoreCard exceeds current and future customer needs.

Headwinds

  • Anticipate no additional license revenue for the remainder of 2020.
  • Investments will place near-term pressure on margins.
  • Difficult to project quarter by quarter license revenues.
  • Challenges of the COVID-19 pandemic.
  • Potential instability in the financial markets.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 6 quarterly earnings reports

Historical avg

+3.1%

Avg return

Earnings day

+5.8%

Avg return

5 days after

+18.9%

Avg return

30 days after

60%

37 / 62 earnings

Positive

+37.0%

Q2 2010

Best reaction

-29.6%

Q4 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2025
Q2 2025-1.1%-4.0%-4.9%
Q1 2025+14.2%+39.3%+61.9%
Q4 2024+3.1%-8.6%-7.4%
Q3 2024+11.5%+16.1%+53.0%
Q2 2024+6.1%+1.9%+21.1%
Q1 2024+8.8%+8.1%+17.3%
Q4 2023-10.8%-12.5%-9.1%
Q3 2023-21.1%
Q2 2023-4.2%
Q1 2023-4.2%
Q4 2022-0.9%
Q3 2022+2.7%
Q2 2022-0.4%
Q1 2022+3.4%
Q4 2021+0.7%
Q3 2021+1.4%
Q2 2021+7.3%
Q1 2021-3.5%
Q4 2020-19.6%
Q3 2020-5.9%
Q2 2020+10.8%
Q1 2020+3.9%
Q4 2019+0.7%
Q3 2019-5.9%
Q2 2019+1.4%
Q1 2019+35.5%
Q4 2018+2.6%
Q3 2018+22.6%
Q2 2018+21.2%
Q1 2018+34.4%
Q4 2017-6.9%
Q3 2017-5.2%
Q2 2017+10.0%
Q1 2017-2.7%
Q4 2016-5.1%
Q3 2016+9.5%
Q2 2016-6.7%
Q1 2016-1.1%
Q4 2015+4.3%
Q3 2015+2.0%
Q2 2015+5.1%
Q1 2015+2.4%
Q4 2014+0.0%
Q3 2014+5.8%
Q2 2014-9.7%
Q1 2014+4.5%
Q4 2013-25.4%
Q3 2013-1.9%
Q2 2013+9.8%
Q1 2013-4.4%
Q4 2012+26.9%
Q3 2012+1.3%
Q2 2012+3.2%
Q1 2011+0.0%
Q1 2012+1.4%
Q4 2011-2.0%
Q3 2011+7.6%
Q3 2010+7.6%
Q2 2011+37.0%
Q2 2010+37.0%
Q4 2010-29.6%
Q1 2010+5.9%

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