INNODATA ISOGEN, INC. (NASDAQ: INOD), today reported results for the fourth quarter ended December 31, 2010 and fiscal year 2010.
- Total revenue was $14.9 million for the fourth quarter of 2010, a decline of 6% from the third quarter driven primarily by what the company believed to be a temporary volume decrease in an ongoing engagement. Year-over-year, the fourth quarter was down 8% compared to the fourth quarter of 2009.
- Net income for the fourth quarter was $1.2 million, or $0.05 per diluted share, compared to net income of $0.3 million, or $0.01 per diluted share in the third quarter of 2010, and a net loss of $0.8 million, or $0.03 per diluted share in the fourth quarter of 2009. The increase in net income largely resulted from certain tax benefits in the period.
- For the fiscal year ended December 31, 2010, revenue was $61.5 million, down 20% from 2009. The company incurred a net loss in 2010 of $0.7 million, or $0.03 per diluted share, compared to net income of $7.3 million, or $0.28 per diluted share, in 2009.
- The company’s balance sheet continues to be strong with cash, cash equivalents and investments of $28.0 million as of December 31, 2010, compared to $28.5 million at September 30, 2010.
- Innodata Isogen repurchased approximately 126,000 shares of its common stock during the fourth quarter of 2010 at a total cost of approximately $0.4 million. During 2010, the company repurchased a total of approximately 264,000 shares at a cost of $0.8 million. Under the company's authorized share repurchase program, an additional $1.3 million remains to be utilized.
Abuhoff continued, “2010 was a tough year, but we managed to close the year with $28 million in cash and equivalents, up from 2009, even while we invested $0.8 million toward our share buyback program and another approximately $2 million toward new services.”Abuhoff concluded, “In 2011, we intend to:
- Continue to invest in new services that have helped fuel our recent bookings acceleration within our core markets;
- Diversify our revenue base by investing in new businesses which are outside our core markets but are enabled by our capabilities; and
- Pursue opportunities for cost savings and productivity enhancement.”
Recent honors include Global Services Media’s Global Services 100, EContent Magazine’s EContent 100, KMWorld Magazine’s 100 Companies That Matter in Knowledge Management, the International Association of Outsourcing Professionals’ (IAOP) Global Outsourcing Top 100, D&B India’s Leading ITeS and BPO Companies and the Black Book of Outsourcing’s Top List of Leading Outsourcing Providers to the Printing and Publishing Business.Headquartered in the New York metro area, Innodata Isogen has offices and operations in the United States, the United Kingdom, Israel, India, Sri Lanka, and the Philippines. This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "project," "head start," "believe," "expect," "should," "anticipate," "indicate," "point to," "forecast," "likely" and other similar expressions generally identify forward-looking statements, which speak only as of their dates. These forward-looking statements are based largely on our current expectations, and are subject to a number of risks and uncertainties, including without limitation, the primarily at-will nature of the company's contracts with its customers and the ability of customers to reduce, delay or cancel projects, including projects that the company regards as recurring; continuing revenue concentration in a limited number of clients; continuing reliance on project-based work; inability to replace projects that are completed, cancelled or reduced; depressed market conditions; changes in external market factors; the ability and willingness of our customers and prospective customers to execute business plans which give rise to requirements for digital content and professional services in knowledge processing; difficulty in integrating and deriving synergies from acquisitions; potential undiscovered liabilities of companies that we acquire; changes in our business or growth strategy; the emergence of new or growing competitors; various other competitive and technological factors; and other risks and uncertainties indicated from time to time in our filings with the Securities and Exchange Commission. Actual results could differ materially from the results referred to in the forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the results referred to in the forward-looking statements contained in this release will occur.
|INNODATA ISOGEN, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)|
|Three Months Ended||Twelve Months Ended|
|December 31,||December 31,|
|Revenues||$14,890||$ 16,184||$ 61,513||$ 76,711|
|Operating costs and expenses:|
|Direct operating expenses||11,633||13,466||47,284||52,143|
|Selling and administrative expenses||3,736||5,896||15,659||16,318|
|Interest income, net||(131)||(5)||(215)||(30)|
|Income (loss) before provision for (benefit|
|from) income taxes||(348)||(3,173)||(1,215)||8,280|
|Provision for (benefit from) for income taxes||(1,566)||(2,405)||(468)||967|
|Net income (loss)||$ 1,218||$ (768)||$ (747)||$ 7,313|
|Income (loss) per share:|
|Basic||$ 0.05||$ (0.03)||$ (0.03)||$ 0.30|
|Diluted||$ 0.05||$ (0.03)||$ (0.03)||$ 0.28|
|Weighted average shares outstanding:|
|INNODATA ISOGEN, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2010 AND 2009 (Dollars in thousands)|
|December 31,||December 31,|
|Cash and cash equivalents||$ 14,120||$26,480|
|Short term investments - other||8,875||-|
|Accounts receivable, net||8,389||11,741|
|Prepaid expenses and other current assets||3,842||3,899|
|Deferred income taxes||1,581||1,763|
|Total current assets||36,807||43,883|
|Property and equipment, net||4,284||5,559|
|Long term investment - other||5,000||-|
|Deferred income taxes||2,797||943|
|TOTAL||$ 52,247||$ 53,565|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable and accrued expenses||$ 3,047||$3,554|
|Accrued salaries, wages and related benefits||4,870||5,022|
|Income and other taxes||1,852||1,339|
|Current portion of long-term obligations||458||892|
|Deferred income taxes||492||487|
|Total current liabilities||10,719||11,294|
|Deferred income taxes||137||87|
|Income and other taxes – long term||349||-|
|Long term obligations||1,604||1,199|