MORRISVILLE, N.C., May 4, 2011 (GLOBE NEWSWIRE) -- Issuer Direct Corporation (OTCBB:ISDR), a market leader and innovator of unified regulatory, disclosure and compliance solutions, today reported financial results for the first quarter ended March 31, 2011. Additionally, the company anticipates filing its quarterly report including its financials in eXtensible Business Reporting Language (XBRL) with the Securities and Exchange Commission after market close today.
Highlights of the First Quarter of 2011 include:
- Compliance and Reporting services business increased 21%.
- Executed a key reseller partnership agreement for our XBRL tagging services that will substantially increase our market share in fiscal 2011.
- iFUND Direct signed post sale fulfillment agreements with key mutual funds and brokers.
- Non-GAAP net income was positive for the period.
Financial Results for First Quarter 2011 vs. First Quarter 2010
Revenues for the quarter ended March 31, 2011 decreased 15% to $513,556 as compared to $605,081 in the same period in fiscal 2010. The decrease in revenue from our printing and financial communication services business is primarily due to our strategic focus on our compliance and reporting business, specifically XBRL tagging services. Gross profit for the three months ended March 31, 2011 was $281,460 as compared to $405,826 in the same period of 2010. The Company reported a net loss of $25,782, or $0.00 per share, during the first quarter of 2011 compared to net income of $134,664, or $0.01 per share, during the same period of 2010.
"The company has generated momentum during the first quarter from new issuer contracts to resellers and strategic clients – this is encouraging for our shareholders. We are uniquely positioned in many of our businesses for sustained growth in fiscal 2011 and beyond," said Brian R. Balbirnie, chairman and CEO of Issuer Direct. "During the first quarter, we accelerated our goal of building a reseller channel for our reporting business."
During the first quarter of 2011, the Company began delivering its XBRL tagging services to its issuers, resulting in a 21% revenue increase in its compliance and reporting services business. The increase was attributable to the initial set up work for corporate issuers whom the Company has entered into annual contracts with. XBRL tagging services should provide significant revenue during the remainder of fiscal 2011 as the Company has secured commitments to perform XBRL services for hundreds of issuers.
At the end of the period, the Company has an ever-changing backlog of approximately $400,000 in XBRL tagging and reporting services, primarily due to the SEC's new regulatory requirement referred to as interactive data or XBRL. For the majority of public companies Issuer Direct serves, eXtensible Business Reporting Language or (XBRL) will be required during 2011 beginning in the quarter ended June 30. We believe this will result in a significant increase in reporting revenues from financial tagging and consulting engagements. Also consistent with past practice, the Company's backlog figures are not intended to constitute the entire amount of revenue expected to be recognized in future periods, as the Company's business includes other revenue sources in addition to those quantified in its backlog.
The Company reported non-GAAP net income during the three months ended March 31, 2011 of $6,759, or $0.00 per share, as compared to non-GAAP net income of $202,676, or $0.01 per share, during the same period of 2010. Please refer to the attached reconciliations of non-GAAP financial measures referred to in this release to the most directly comparable GAAP measures.
Certain non-GAAP financial measures are included in this press release. In the calculation of these measures, the Company generally excludes certain items such as amortization and impairment of acquired intangibles, non-cash stock-based compensation charges, and unusual, non-recurring gains and charges. The Company believes that excluding such items provides investors and management with a representation of the Company's core operating performance and with information useful in assessing its prospects for the future and underlying trends in the Company's operating expenditures and continuing operations. Management uses such non-GAAP measures to evaluate financial results and manage operations. The release and the attachments to this release provide a reconciliation of each of the non-GAAP measures referred to in this release to the most directly comparable GAAP measure. The non-GAAP financial measures are not meant to be considered a substitute for the corresponding GAAP financial measures.
About Issuer Direct Corporation:
Issuer Direct Corporation ("IDC") is a market leader and innovator in public company products and services. As an issuer services focused company, Issuer Direct alleviates the complexity of maintaining compliance through integrated products and services that help companies produce and distribute their financial and business communications both online and in print. As a shareholder compliance company, Issuer Direct is dedicated to assisting corporate issuers in an ever-changing regulatory environment and to comply with the myriad of rules imposed by regulatory bodies.
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Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "prospects," "outlook," and similar words or expressions, or future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. These forward looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. We disclaim any intention to, and undertake no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact our forward-looking statements, please see the Company's Annual Report on Form 10-K for the year ended December 31, 2009, including but not limited to the discussion under "Risk Factors" therein, filed with the SEC, which you may view at .
CONTACT: Issuer Direct Corporation Brian R. Balbirnie 919-481-4000 firstname.lastname@example.org