INNODATA ISOGEN, INC. (NASDAQ: INOD), today reported results for the first quarter ended March 31, 2011.
- Total revenue was $14.7 million in the first quarter of 2011, a decline of 1% from fourth quarter 2010 revenue of $14.9 million. This decline was primarily due to the completion of several one-time projects and the termination of an engagement which in the aggregate reduced revenues by $0.8 million, partially offset by a $0.6 million increase in recurring revenue. Year-over-year revenue was lower by approximately 5%.
- The Company generated pre-tax income of $0.1 million compared to a ($0.3) million pre-tax loss in the fourth quarter of 2010 and a ($0.9) million pre-tax loss in the first quarter of 2010. Higher-margin revenue was the primary contributor to the increases in operating margins, bolstered by innovations in processes and technology.
- Net earnings were at break-even in the first quarter of 2011, or less than $0.01 per diluted share, compared to net income of $1.2 million in the preceding quarter, or $0.05 per diluted share, and a net loss of $1.4 million, or ($0.06) per diluted share, in the first quarter of 2010. Net income in the preceding quarter reflected significant tax benefits to the Company in that period.
- The company’s balance sheet continues to be strong with $28.6 million in cash, cash equivalents and investments as of March 31, 2011, compared to $28 million at the end of December 31, 2010, and stockholders’ equity of $39.5 million as of March 31, 2011.
”We are reporting both sequential and year-over-year improvement in pre-tax earnings, despite lower revenue, as a result of our focus on winning new higher margin business,” said Jack Abuhoff, Chairman and CEO of Innodata. “Next quarter, we expect revenues to increase sequentially to between $14.9 and $15.2 million.”