Innovaro, Inc. Reports Financial Results For The Three Months Ended June 30, 2012
Innovaro, Inc. (NYSE Amex: INV), today announced that total revenue from continuing operations was $1.9 million for the quarter ended June 30, 2012 as compared to $800,000 for the quarter ended March 31, 2012 and compared to $4.7 million for the quarter ended June 30, 2011 and loss from continuing operations for the quarter ended June 30, 2012 was ($4.8) million as compared to ($1.4) million for the quarter ended March 31, 2012 and compared to ($1.6) million for the quarter ended June 30, 2011.
Second Quarter 2012 Financial Results Summary from Continuing Operations
- Total revenue decreased to $1.9 million for the three months ended June 30, 2012 from $4.7 million for the three months ended June 30, 2011.
- Strategic Services revenue decreased by 62% over second quarter 2011.
- Intelligence and Insights revenue increased by 32% over second quarter 2011.
- Total expenses increased to $7.3 million for the three months ended June 30, 2012 from $6.2 million for the three months ended June 30, 2011. The expenses for the three months ended June 30, 2012 included an impairment loss related to goodwill and intangibles of $4.8 million.
- Loss from continuing operations for the three months ended June 30, 2012 was ($4.8) million, which included the following non-cash expenses: $4.8 million impairment loss, $259,000 in non-cash depreciation and amortization, and $91,000 in non-cash stock-based compensation expense related to vesting options, partially offset by a non-cash benefit of $516,000 from the provision for income tax. Loss from continuing operations for the three months ended June 30, 2011 was ($1.6) million, which included the following non-cash expenses: $310,000 in non-cash depreciation and amortization and $186,000 in non-cash stock-based compensation expense related to vesting options.
During the quarter ended June 30, 2012, as part of the Company’s strategy to maximize cash flow, the Company decided to dispose of certain of its operating divisions that are included in its Intelligence and Insights segment. On June 4, 2012, the Company entered into a non-binding letter of intent with IPFlow International, LLC to sell its Pharmalicensing, Pharma Transfer, Global Licensing and Knowledge Express operating divisions and all related assets for $2,000,000. Under the letter of intent, a definitive agreement had to be reached before August 4, 2012. However, the Company is in continuing discussions with the buyer and believes that it is probable that a definitive agreement will still be reached. The agreement remains subject to customary conditions including negotiation of mutually agreeable terms, satisfactory completion of due diligence and the buyer securing financing. No assurances can be provided that a definitive agreement will be reached and that the sale will be completed.
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