Intelligent Systems Corporation (INS) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.08 million, or $ 0.01 a share in the quarter, against a net profit of $0.94 million, or $0.11 a share in the last year period.

Revenue during the quarter surged 83.35 percent to $2.33 million from $1.27 million in the previous year period. Gross margin for the quarter expanded 229 basis points over the previous year period to 54.37 percent. Operating margin for the quarter stood at negative 5.83 percent as compared to a negative 44.78 percent for the previous year period.

Operating loss for the quarter was $0.14 million, compared with an operating loss of $0.57 million in the previous year period.

"Our CoreCard operations (now the primary business of Intelligent Systems) were profitable for the 2016 year before deducting intercompany interest expense. We expect to continue to experience revenue growth for the calendar year 2017," commented Leland Strange, chief executive officer of Intelligent Systems, "but I feel like a broken record as I continue to caution that the reported financial results will not be consistent quarter to quarter. The business is not yet large enough to account for swings in revenue recognition on a quarter to quarter basis. We also may choose to incur expenses that will relate to potential future growth (hiring ramp-up, new product initiatives, etc.) that will affect the bottom line. For that reason, I am uncertain as to the impact on 2017 financially but I am very comfortable that CoreCard is in a good position to profit from the rapid changes we see in the FinTech space."