INNODATA ISOGEN, INC. (NASDAQ: INOD) today reported results for the fourth quarter and the 12 months ended December 31, 2011.
- Total revenue was a record $23.7 million in the fourth quarter of 2011, a sequential increase of 23% from $19.2 million in the third quarter of 2011, and a 59% increase from $14.9 million in the fourth quarter of 2010. The increase is primarily attributable to higher revenue from eBook-related services that the Company performs for one of its larger clients and to revenue from analytics services that the Company performs for a major accounting firm.
- Net income for the fourth quarter of 2011 was $2.3 million, or $0.09 per diluted share, compared to net income of $1.4 million, or $0.06 per diluted share, in the third quarter of 2011, and net income of $1.2 million, or $0.05 per diluted share, in the fourth quarter of 2010. The increase in net income is primarily attributable to higher revenue and to an increase in gross margins from 33% in the third quarter of 2011 and 22% in the fourth quarter of 2010 to 36% in the fourth quarter of 2011.
- For the 12 months ended December 31, 2011, total revenue was $73.9 million, a 20% increase from $61.5 million in 2010. Net earnings improved significantly, from a net loss of $0.7 million, or ($0.03) per diluted share, in 2010, to net earnings of $4.5 million, or $0.18 per diluted share, in 2011. The growth in net earnings is primarily attributable to higher revenue and to an increase in gross margins from 23% in 2010 to 32% in 2011.
- Cash and cash equivalents and short-term investments totaled $17.2 million as of December 31, 2011, a decline of $7.0 million from $24.2 million as of September 30, 2011. The reduction is primarily on account of an $8.8 million increase in accounts receivable from $12.9 million as of September 30, 2011 to $21.7 million as of December 31, 2011 and approximately $2.5 million in investments made during the quarter for establishing two new delivery centers in Asia, and continuing investment in the Company’s recently-launched Innodata Advanced Data Solutions (IADS) segment. A significant portion of the increase in accounts receivable as of December 31, 2011 was from one of our large customers because of a process delay.
“In 2011, we succeeded at growing revenue by 20% and turning a 2010 pre-tax loss of $1.2 million to 2011 pre-tax earnings of $5.3 million, all the while making an investment of $2.7 million in operating expenses and $2 million in capital expenditures in our IADS division,” stated Jack Abuhoff, the Company’s Chairman and CEO. “Our IADS investment has enabled us to build a platform and service capability to provide high quality advanced data analytics to healthcare, financial, and insurance sectors for risk management and related business operations. We expect that IADS will begin contributing to revenue during the first half of 2012.”