-----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, EZ0LiYLi0h81IRe31T9/4PDQof04frE+eOmouTm1QE15ZTVW86kPpV5IJ34xGXQd p9XO5MBR17iby4Ye8VpJ3w== 0001201800-04-000133.txt : 20040824 0001201800-04-000133.hdr.sgml : 20040824 20040824133334 ACCESSION NUMBER: 0001201800-04-000133 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040820 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20040824 DATE AS OF CHANGE: 20040824 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DIRECT INSITE CORP CENTRAL INDEX KEY: 0000879703 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 112895590 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20660 FILM NUMBER: 04993597 BUSINESS ADDRESS: STREET 1: 80 ORVILLE DR CITY: BOHEMIA STATE: NY ZIP: 11716 BUSINESS PHONE: 5162441500 MAIL ADDRESS: STREET 1: 80 ORVILLE DRIVE CITY: BOHEMIA STATE: NY ZIP: 11716 FORMER COMPANY: FORMER CONFORMED NAME: COMPUTER CONCEPTS CORP /DE DATE OF NAME CHANGE: 19930328 8-K 1 diri8k-august2004.txt 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: August 20, 2004 (Date of earliest event reported) DIRECT INSITE CORP. (Exact Name of Registrant as Specified in its Charter) Delaware 0-20660 11-2895590 (State or other Jurisdiction (Commission File (IRS Employer of Incorporation) Number) Identification Number) 80 Orville Drive, Bohemia, NY 11716 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (631) 244-1500 Not applicable (Former name or former address, if changed since last report) 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: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act [ ] Pre-commencement communications pursuant to Rule 13e-4c under the Exchange Act (17 CFR 240.13e-4c) Item 7.01 Regulation FD Disclosure On August 20, 2004, the Registrant issued a press release announcing the Registrant's financial results for the second quarter ended June 30, 2004. A copy of the Registrant's press release is attached as Exhibit 99. The information in this Form 8-K is being furnished under Item 7.01 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. Item 9.01 Financial Statements and Exhibits. (c) Exhibits 99 Press release dated August 20, 2004 issued by Direct Insite Corp. ("Registrant"). SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DIRECT INSITE CORP. By: /s/ Michael J. Beecher Michael J. Beecher Chief Financial Officer Dated: August 23, 2004 EX-99 2 diri8k-aug2004ex99.txt PRESS RELEASE 80 Orville Drive Bohemia, NY 11716 631-244-1500 631-563-8085 fax Corporate Contact: Communications Contact: Warren Wright, EVP, Sales & Marketing Pamela Preston/Kelly Fitzgerald Direct Insite Corp. Breakaway Communications 631.244.1500 212.590.2554/2555 FOR IMMEDIATE RELEASE Direct Insite Announces Continued Improvement in Operating Results for First Half 2004 Direct Insite adds another Fortune 100 Client for "IOL" services and Reports Reduced Net Loss of $366,000 Compared To $2,323,000 Loss In 2003 Bohemia, N.Y. - August 20, 2004 - Direct Insite Corp (OTC BB:DIRI.OB), a global provider of Electronic Invoice Presentment and Payment ("EIP&P") solutions, today announced its financial results for the three and six months ended June 30, 2004. Revenue from continuing operations for the three and six months ended June 30, 2004 was $1,716,000 and $3,822,000, respectively, compared to revenue from continuing operations of $1,958,000 and $3,894,000 for the same periods in 2003. The significant improvement in the net loss for the three and six month periods ended June 30, 2004 compared to 2003 is attributable to gains in the higher margin recurring revenues associated with electronic invoice delivery through the company's Invoices on Line ("IOL") service, offset by reduced revenues from the professional services associated with the continued global deployment of the IOL application service. Direct Insite reduced its loss from continuing operations for the three and six month periods ended June 30, 2004, 37.8% and 63.2%, to $567,000 and $629,000, respectively, compared to losses of $910,000 and $1,707,000 for the three and six month periods ended June 30, 2003, respectively. The company closed its Platinum Communications, Inc. ("Platinum") operations during the fourth quarter of 2003. Income from the Platinum discontinued operations was $59,000 and $263,000 for the three and six month periods ended June 30, 2004, respectively, compared to a loss from discontinued operations of $$343,000 and $616,000 for the same periods in 2003. This resulted in a net loss after taxes for the three and six months ended June 30, 2004, of $508,000 and $366,000, respectively, compared to a net loss, after taxes, of $1,253,000 and $2,323,000 for the same periods in 2003. Basic and diluted net loss per share from continuing operations for the three and six month periods ended June 30, 2004 was $0.17 and $0.22, respectively, compared to basic and diluted net loss per share from continuing operations of $0.25 and $0.46 for the same periods in 2003. The net income per share from discontinued operations for the three and six month periods ended June 30, 2004 was $0.01 and $0.06, respectively, compared to a net loss per share from discontinued operations of $0.08 and $0.16 for the same periods in 2003. Direct Insite CEO and Chairman of the Board James A. Cannavino said, "We have observed a shift in our business as we are becoming increasingly more efficient in the delivery of the one time custom development activities necessary to generate the higher margin recurring revenues. This is a positive development for our longer-term interests, however, there is a short term impact on our revenue attributable to the reduced one time engineering fees such as we have seen in the second quarter. We are focused on growing the recurring revenues based upon the continued global deployment of the Invoices on Line (IOL) service offering while maintaining strict cost controls. These recurring revenues result from "per invoice transaction fees" derived from our largest customers under multi-year agreements. Therefore, as more of our revenues are derived from such agreements, there is better predictability of our revenue stream. The Company continued to expand the IOL service in the second quarter by adding another Fortune 100 customer. We plan on launching IOL into new geographic areas during the second half of 2004 and to leverage that success into additional opportunities in 2005." Direct Insite offers IOL, a uniquely positioned service offering in the industry, to provide web- based billing and payment system designed to handle the complex invoicing found in today's global business environment. The solution allows Global 1000 companies to receive, route, approve and pay invoices on-line in all major languages and currencies. By automating the traditional paper-based invoicing process, customers now have easy and quick access to line- item billing information, reporting and analytics. With the enhanced level of accuracy provided by IOL, invoice disputes are greatly reduced and overall customer satisfaction is substantially increased. Direct Insite also provides additional service offerings in the form of its patented dbExpress TM technology, a management information tool that allows users to visually data mine large volumes of transactional data via the Internet. A complete Internet Customer Care tool set integrated with the EIP&P product set is also available. Headquartered in Bohemia, NY, Direct Insite Corp. employs a staff of 56. The Company's IOL solution is deployed in North and South America and in the Europe/Middle East/Africa geographic areas, delivering electronic invoices to more than 20 countries, and in 10 languages and currencies. For more information about Direct Insite Corp. call (631) 244-1500 or visit www.directinsite.com. The financial information stated above and in the tables below has been abstracted from the Company's Form 10-QSB for the six months ended June 30, 2004, to be filed with the Securities and Exchange Commission, and should be read in conjunction with the information provided therein. 2
Summarized Financial Information - ----------------------------------------- ---------------------- ---------------------- ---------------------- -------------------- STATEMENT FOR THE THREE FOR THE THREE FOR THE SIX FOR THE SIX OF MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED OPERATIONS JUNE 30, 2004 JUNE 30, 2003 JUNE 30, 2004 JUNE 30, 2003 - ----------------------------------------- ---------------------- ---------------------- ---------------------- -------------------- Revenue from continuing operations $ 1,716,000 $ 1,958,000 $ 3,822,000 $ 3,894,000 - ----------------------------------------- ---------------------- ---------------------- ---------------------- -------------------- Operating loss ($449,000) ($782,000) ($445,000) ($1,512,000) - ----------------------------------------- ---------------------- ---------------------- ---------------------- -------------------- Net other expense ($115,000) ($126,000) ($180,000) ($193,000) - ----------------------------------------- ---------------------- ---------------------- ---------------------- -------------------- Net loss before taxes ($564,000) ($908,000) ($625,000) ($1,705,000) - ----------------------------------------- ---------------------- ---------------------- ---------------------- -------------------- Provision for income taxes ($3,000) ($2,000) ($4,000) ($2,000) - ----------------------------------------- ---------------------- ---------------------- ---------------------- -------------------- Income (Loss) from discontinued operations $59,000 ($343,000) $263,000 ($616,000) - ----------------------------------------- ---------------------- ---------------------- ---------------------- -------------------- Net loss ($508,000) ($1,253,000) ($366,000) ($2,323,000) - ----------------------------------------- ---------------------- ---------------------- ---------------------- -------------------- Preferred Stock Dividends ($170,000) ($66,000) ($298,000) ($129,000) - ----------------------------------------- ---------------------- ---------------------- ---------------------- -------------------- Net loss attributable to common shareholders ($678,000) ($1,319,000) ($664,000) ($2,452,000) - ----------------------------------------- ---------------------- ---------------------- ---------------------- -------------------- Basic and diluted income (loss) per share: From continuing operations ($0.17) ($0.25) ($0.22) ($0.46) From discontinued operations $0.01 ($0.08) $0.06 ($0.16) ------ ------ ------ ------ Total income (loss) per share ($0.16) ($0.33) ($0.16) ($0.62) ====== ====== ====== ====== - ----------------------------------------- ---------------------- ---------------------- ---------------------- -------------------- ------------------------------------ -------------------------- -------------------------- BALANCE SHEET June 30, 2004 December 31, 2003 ------------------------------------ -------------------------- -------------------------- Total Current Assets $1,671,000 $1,405,000 ------------------------------------ -------------------------- -------------------------- Total Assets $2,583,000 $2,511,000 ------------------------------------ -------------------------- -------------------------- Total Current Liabilities $3,216,000 $4,390,000 ------------------------------------ -------------------------- -------------------------- Total Shareholders' Deficiency ($1,383,000) ($2,390,000) ------------------------------------ -------------------------- --------------------------
FORWARD-LOOKING STATEMENTS. All statements other than statements of historical fact included in this release, including without limitation statements regarding the company's financial position, business strategy, and the plans and objectives of the company's management for future operations, are forward-looking statements. When used in this release, words such as "anticipate", "believe", "estimate", "expect", "intend" "plan", and similar expressions, as they relate to the company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the company's management, as well as assumptions made by and information currently available to the company's management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, business and economic conditions, competitive factors and pricing pressures, capacity and supply constraints. Such statements reflect the views of the company with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the company. Readers are cautioned not to place undue reliance on these forward-looking statements. The company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events. 3 -----END PRIVACY-ENHANCED MESSAGE-----