MORRISVILLE, NC -- (Marketwired) -- 05/06/13 -- Issuer Direct Corporation (OTCBB: ISDR), a market leader and innovator of disclosure management solutions and cloud-based compliance technologies, today reported its operating results for the first quarter ended March 31, 2013. The Company will host an investor conference call at 4:30 p.m. EDT today, to discuss operating results and relevant topics of interest.
First Quarter 2013 Financial Highlights
•Revenue increased 77% to $1.4 million as compared to the first quarter of 2012 •Gross profit increased 130% to $1.0 million as compared to the first quarter of 2012 •Gross margins increased to 72%, compared to 55% in the first quarter of 2012 •Operating profit increased to $367,538, compared to a loss of $(98,008) in the first quarter of 2012 •Operating margins increased to 26%, compared to -12% in the first quarter of 2012 •Non-GAAP net income increased 481% to 308,640 as compared to the first quarter of 2012 •Non-GAAP diluted EPS increased 400% to $0.15 per share as compared to the first quarter of 2012 •The Company's cash balance remained in excess of $1.2 million at March 31, 2013
Brian R. Balbirnie, Chief Executive Officer of Issuer Direct Corporation, commented,
"We are pleased with our overall performance for our first quarter, which exceeded our estimates in almost every metric. Both our disclosure reporting and stock transfer businesses preformed remarkably well -- not only in revenue contributions but also in margins and new client acquisitions. We are excited about our second quarter start and what is ahead for us in fiscal 2013."
Wes Pollard, Chief Financial Officer, stated, "The overall 77% increase in revenue is primarily due to growth in compliance and reporting revenue, which generated 76% gross margins in the first quarter of 2013, and an improvement in transfer agent revenues, which generate 83% gross margins during that same period. Because of the large number of compliance and reporting clients that we have under annual contracts, we believe our revenue from this segment will continue to be much more predictable in the future. The improvement in transfer agent revenue was primarily due to significant business from corporate action engagements earned in the quarter. Historically, corporate action services are tied to a transaction that results in a project-based engagement, therefore the timing and predictability of this type of revenue becomes difficult to forecast. However, we do anticipate that corporate actions will be a continuing source of revenue in the future, especially as we raise our client count, the volume of these transactions will also go up."
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