INNODATA ISOGEN, INC. (NASDAQ: INOD) today reported results for the third quarter and the nine months ended September 30, 2011.
- Total revenue was $19.2 million in the third quarter of 2011, a sequential increase of 18% from $16.3 million in the second quarter of 2011, and a 22% increase from $15.8 million in the third quarter of 2010. Approximately 80% of the sequential increase is attributable to increased revenue from e-book-related services that the Company performs for one of its large clients and the balance is attributable to analytics services that the Company performs for a major accounting firm.
- The Company reported net earnings of $1.4 million, or $0.06 per diluted share, in the third quarter of 2011, compared to $0.8 million, or $0.03 per diluted share, in the second quarter of 2011, and $0.3 million, or $0.01 per diluted share, in the third quarter of 2010. The increase in net earnings primarily reflects higher revenues and an increase in gross margins to 33% from 30% in the second quarter of 2011 and 28% in the third quarter of 2010.
- For the nine months ended September 30, 2011, total revenue was $50.2 million, compared to $46.6 million in the corresponding period of 2010. Pre-tax earnings improved significantly from a pre-tax loss of $0.9 million to pre-tax earnings of $3.0 million. The increase in pre-tax earnings primarily reflects higher revenues and an increase in gross margins to 31% from last year’s 24%. Net earnings were $2.2 million, or $0.09 per diluted share, for the nine months in 2011, up from a net loss of $2.0 million, or ($0.08) 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 September 30, 2011 were $24.2 million, compared to $26.9 million as of June 30, 2011. The reduction primarily reflects cash used during the quarter for two new delivery centers in Asia and for investment in the Company’s recently-launched Innodata Advanced Data Solutions (IADS) segment, as well as for the repurchase of stock under the Company’s previously announced stock buyback programs.
“This was our third consecutive quarter of improved revenues and margins,” stated Jack Abuhoff, the Company’s Chairman and CEO. “Much of our new business has been in the area of e-book-related services in which we believe we enjoy competitive advantages that enable us to produce e-books at significant scale and at the uncompromised quality levels that are demanded by leading consumer brands and publishers.