Intelligent Systems Corporation (NYSE MKT:INS) Q2 2020 Earnings Conference Call - Final Transcript
Aug 04, 2020 • 11:00 am ET
Ladies and gentlemen, thank you for standing by and welcome to the Earnings Release and Investors Conference Call. [Operator Instructions]
I would now like to hand the conference over to Chairman and CEO of Intelligent Systems, Leland Strange. Thank you. Please go ahead, sir.
J. Leland Strange
Good morning, everyone, and welcome to our quarterly earnings conference call. Thanks for joining us.
Before we get started, I'll remind you that our comments will include forward-looking statements. We list the factors that might cause actual results that we will probably speculate on in this call this morning to differ even materially in our latest SEC filings available as of this morning.
On our last call, we spoke about the unknown economic disruption and how it might affect our business as well as businesses around the world. I think we all hope that measures and suggestions put in place would be bringing the impact down by this point, but it doesn't appear to have happened. With COVID, we obviously are concerned about the health and safety of our employees, their families and also providing support for our customers and helping our partners with the financial challenges that they're facing. I'll speak more specifically to some of these issues later.
Turning to the second quarter results that we released this morning. Matt will discuss those in more detail in a minute, but as I stated in the press release, results were in line with our expectations even though the individual buckets were a little different than our earlier thinking. I'm very happy that [Technical Issues] that we solidly delivered for our partners even with considerable challenges related to lockdowns. Top line growth year-over-year, earnings growth year-over-year and significant cash growth from the end of 2019 all were positive both for the quarter and the six month period. And we've done this with declining revenue from Wirecard which we will discuss more later. But I should also add here, we don't expect the second half to have the same positive comps with last year as the second half of last year was very strong.
I think, with that intro, I'll turn it over to Matt White, our CEO, for further commentary. Matt?
Thanks, Leland. Good morning, everyone.
As Leland noted, our second quarter performed in line with our expectations as our business model aided us in adapting to our customers' evolving needs amidst a challenging environment. The COVID-19 pandemic has impacted demand, but our successful delivery of innovative services and products have helped mitigate the impact.
Revenue for the second quarter of 2020 was $8,053,000 compared to revenue for the second quarter of 2019 of $7,512,000, an increase of 7%. Similar to the first quarter of 2019, the second quarter of 2019 benefited from the timing of a $900,000 professional services agreement with a European customer we should not recur in the second quarter of 2020.
The components of our revenue for the second quarter consisted of professional services revenue of $5,156,000, processing and maintenance revenue of $2,673,000