INNODATA ISOGEN, INC. (NASDAQ: INOD), today reported results for the first quarter ended March 31, 2010.
Total revenue was $15.5 million for the first quarter of 2010, down $5.6 million from $21.1 million in the same period a year ago. These amounts are net of $0.9 million for the 2010 quarter and $0.7 million for the 2009 quarter that the Company has reclassified and netted from both revenues and costs. The $5.6 million reduction primarily reflects a $7.7 million decline in revenue from the company’s top two customers that was partially offset by an increase of 24%, from $8.9 million to $11.0 million, in revenue from other customers.
Pre-tax loss was approximately $0.9 million in the first quarter of 2010 compared to a pre-tax profit of $5.1 million in the same period last year. The losses primarily reflect the decline in revenue and the company’s strategic initiative to invest in consulting and IT services offerings.
Net loss for the first quarter of 2010 was $1.4 million or ($0.06) per diluted share, compared to a net profit of $3.6 million or $0.15 per diluted share in the first quarter of 2009.
The company’s balance sheet continues to be strong with $39.9 million in stockholders’ equity and $25.8 million of cash and cash equivalents as of March 31, 2010, compared to $41.0 million of stockholders’ equity and $26.5 million of cash and cash equivalents as of December 31, 2009.
“We’ve previously reported that a significant piece of new business was discontinued early in 2010,” said Jack Abuhoff, Chairman and CEO of Innodata Isogen. “We are working to accelerate our pipeline to replace the revenues that we expected from this project, and we have also managed to better align our cost structure via reduced headcount and other efficiencies. But our primary goal remains to get back into the kind of revenue growth mode we were seeing last year and return to profitability.”