INNODATA ISOGEN, INC. (NASDAQ: INOD) today reported results for the second quarter and the first six months ended June 30, 2011.
- Total revenue was $16.3 million for the second quarter of 2011, a sequential increase of 11% from $14.7 million in the first quarter of 2011, and a 6% increase from $15.4 million in the second quarter of 2010. The sequential increase primarily reflects higher revenues from eBook-related services and one-time fee of $0.6 million received from one of our customers for an early termination of an engagement.
- The Company reported net earnings of $0.8 million, or $0.03 per diluted share, in the second quarter of 2011, compared with essentially break-even earnings in the first quarter of 2011, and a net loss of $0.9 million or ($0.03) per diluted share, in the second quarter of 2010. The increase in net earnings primarily reflects an increase in gross margins from 27% in the first quarter of 2011 and 21% in the second quarter of 2010 to 30% in the second quarter of 2011.
- In the first half of 2011, revenue was $31.0 million, compared to $30.9 million for the first half of 2010. Pre-tax earnings improved significantly from a pre-tax loss of $1.4 million to pre-tax earnings of $1.1 million. The increase in pre-tax earnings primarily reflects an increase in gross margins from 21% of revenues to 29% of revenues. Net earnings were $0.8 million, or $0.03 per diluted share for the first half of 2011, up from a net loss of $2.3 million, or ($0.09) per diluted share, in the corresponding period of 2010.
- The Company’s balance sheet continues to be strong. Cash and cash equivalents and investments as of June 30, 2011 were $26.9 million, compared to $28.6 million as of March 31, 2011.
- The Company paid approximately $0.9 million to repurchase approximately 342,000 shares of its common stock during the second quarter of 2011 under the $2.1 million share repurchase program that the Company announced in July 2010. Through the end of the second quarter, the Company repurchased a total of 606,000 shares under this program at a total cost of $1.7 million.
In the second quarter, the Company launched a new segment, Innodata Advanced Data Solutions (“IADS”), to provide advanced data analytics to a variety of industries. The financial results reported for the second quarter of 2011 include $300,000 in start-up operating costs for IADS and $400,000 in start-up capital costs for IADS. The IADS segment, which will constitute a reporting segment in the Company’s filings with the Securities and Exchange Commission, currently consists of two new divisions, Synodex and docGenix. The Synodex division focuses on the information needs of the healthcare and insurance industries. The docGenix division is focusing on risk management data solutions for the financial services industry.