INNODATA ISOGEN, INC. (NASDAQ: INOD), today reported results for the first quarter ended March 31, 2011.
- Total revenue was $14.7 million in the first quarter of 2011, a decline of 1% from fourth quarter 2010 revenue of $14.9 million. This decline was primarily due to the completion of several one-time projects and the termination of an engagement which in the aggregate reduced revenues by $0.8 million, partially offset by a $0.6 million increase in recurring revenue. Year-over-year revenue was lower by approximately 5%.
- The Company generated pre-tax income of $0.1 million compared to a ($0.3) million pre-tax loss in the fourth quarter of 2010 and a ($0.9) million pre-tax loss in the first quarter of 2010. Higher-margin revenue was the primary contributor to the increases in operating margins, bolstered by innovations in processes and technology.
- Net earnings were at break-even in the first quarter of 2011, or less than $0.01 per diluted share, compared to net income of $1.2 million in the preceding quarter, or $0.05 per diluted share, and a net loss of $1.4 million, or ($0.06) per diluted share, in the first quarter of 2010. Net income in the preceding quarter reflected significant tax benefits to the Company in that period.
- The company’s balance sheet continues to be strong with $28.6 million in cash, cash equivalents and investments as of March 31, 2011, compared to $28 million at the end of December 31, 2010, and stockholders’ equity of $39.5 million as of March 31, 2011.
“We’re committed to an aggressive three-year growth strategy. We believe that the level of change taking place in the way people consume and utilize digital information - in combination with our proven execution capability, global platform and strong customer franchise - creates fertile ground for us to pursue growth.”Timing of Conference Call with Q&A Innodata Isogen will conduct an earnings conference call, including a question & answer period, at 11:00 AM EDT today. You can participate in this call by dialing the following call-in numbers:
|The call-in numbers for the conference call are:|
|1-888-203-1112 (Domestic Replay)|
|1-719-457-0820 (International Replay)|
Recent honors include 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,” “intend” 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)|
|Three Months Ended|
|Operating costs and expenses:|
|Direct operating expenses||10,673||12,272|
|Selling and administrative expenses||4,053||4,135|
|Interest income, net||(109||)||(2||)|
|Income (loss) before provision for (benefit from) income taxes||85||(931||)|
|Provision for income taxes||69||473|
|Net income (loss)||$||15||$||(1,404||)|
|Income (loss) per share – basic and diluted||$||-||$||(.06||)|
|Weighted average shares outstanding:|
|INNODATA ISOGEN, INC. AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|(Dollars in Thousands)|
|March 31,||December 31,|
|Cash and cash equivalents||$||14,379||$||14,120|
|Short term investments - other||8,547||8,875|
|Accounts receivable, net||8,004||8,389|
|Prepaid expenses and other current assets||3,350||3,842|
|Deferred income taxes||1,479||1,581|
|Total current assets||35,759||36,807|
|Property and equipment, net||4,120||4,284|
|Long term investments - other||5,674||5,000|
|Deferred income taxes||3,333||2,797|
|LIABILITIES AND STOCKHOLDERS' EQUITY:|
|Accounts payable and accrued expenses||$||2,923||$||3,047|
|Accrued salaries, wages and related benefits||4,808||4,870|
|Income and other taxes||1,908||1,852|
|Current portion of long term obligations||215||458|
|Deferred income taxes||432||492|
|Total current liabilities||10,286||10,719|
|Deferred income taxes||153||137|
|Income and other taxes – long term||360||349|
|Long term obligations||1,914||1,604|