IGo Reports Second Quarter 2011 Financial Results

iGo, Inc. (Nasdaq: IGOI), a leading provider of eco-friendly power management solutions and accessories for mobile electronic devices, today reported financial results for the second quarter ending June 30, 2011.

Revenue was $10.8 million for the second quarter of 2011, an increase of 11% over revenue of $9.7 million in the same period of the prior year.

Net loss was $1.9 million, or ($0.06) per share, in the second quarter of 2011, compared with a net loss of $400,000, or ($0.01) per share, in the same quarter of the prior year.

The Company had $16.0 million in cash, cash equivalents, and short-term investments, $15.3 million in working capital (excluding cash, cash equivalents and short-term investments), and no debt as of June 30, 2011.

Michael D. Heil, President and Chief Executive Officer of iGo, commented, “We continue to make good progress in expanding our distribution, including generating a significant increase in sales through the wireless carrier channel in the second quarter of 2011. However, we have seen a more rapid decline in sales to RadioShack than we anticipated and, as a result, we now expect our revenue in the second half of 2011 to be roughly equivalent to our revenue in the first half of the year.

“We remain optimistic about our opportunities to grow the business over the long-term. We believe that sales of our new audio products, protection products, and rechargeable alkaline batteries will steadily grow over time, and licensing opportunities with our iGo Green® technology provides another potential revenue stream. Accordingly, we have made adjustments to our organization in order to align our business in a manner that allows us to better capitalize on the stronger growth opportunities with our new product categories. As we diversify our revenue mix beyond power products, we believe we will be a stronger, healthier company with an improved ability to drive sustainable sales and earnings growth in the future,” said Mr. Heil.

About iGo, Inc.

iGo, Inc. offers a full line of innovative accessories for almost every mobile electronic device on the market. Whether a consumer wants to power, protect, listen to, share, cool, hold or connect to their device, iGo has the accessories they need. iGo is also a leader in developing eco-friendly power solutions based on its patented iGo Green® technology, which automatically reduces the wasteful and expensive standby, or “vampire,” power consumed by electronic devices.

iGo’s products are available at www.iGo.com as well as through leading resellers and retailers. For additional information call 480-596-0061, or visit www.igo.com.

iGo is a registered trademark of iGo, Inc. All other trademarks or registered trademarks are the property of their respective owners.

This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. The words “believe,” “expect,” “anticipate,” “should,” and other similar statements of our expectation identify forward-looking statements. Forward-looking statements in this press release include the expectation that our revenue in the second half of 2011 will be roughly equivalent to our revenue in the first half of 2011, expectations regarding opportunities to grow the business over the long-term, the belief that sales of our new audio products, protection products, and rechargeable alkaline batteries will steadily grow over time, the belief that licensing opportunities with our iGo Green® technology will provide another potential revenue stream for the Company, and the belief that as we diversify our revenue mix beyond power products, we will be a stronger, healthier company with an improved ability to drive sustainable sales and earnings growth in the future. These forward-looking statements are based largely on management’s expectations and involve known and unknown risks, uncertainties and other factors, which may cause the Company’s actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Risks that could cause results to differ materially from those expressed in these forward-looking statements include, among others, our dependence on large purchases from significant customers, namely Walmart and RadioShack; our ability to expand and diversify our customer base; our reliance upon Walmart and RadioShack, as well as other distributors and resellers; our ability to expand our revenue base and develop new products and product enhancements; the sufficiency of our revenue to absorb expenses; fluctuations in our operating results because of: increases in product costs from our suppliers, our suppliers’ ability to perform, the timing of new product and technology introductions and product enhancements relative to our competitors, market acceptance of our products, the size and timing of customer orders, our ability to effectively manage inventory levels, delay or failure to fulfill orders for our products on a timely basis, distribution of or changes in our revenue among distribution partners and retailers, our inability to accurately forecast our contract manufacturing needs, difficulties with new product production implementation or supply chain, product defects and other product quality problems, the degree and rate of growth in our markets and the accompanying demand for our products, our ability to expand our internal and external sales forces and build the required infrastructure to meet anticipated growth, and seasonality of sales; increased focus of consumer electronics retailers on their own private label brands; decreasing sales prices on our products over their sales cycles; our ability to expand our revenue base and develop new products and product enhancements; our failure to integrate acquired businesses, products and technologies; our reliance on and the risk relating to outsourced manufacturing fulfillment of our products, including potential increases in manufacturing costs; our ability to manage our anticipated growth; our ability to manage our inventory levels; the negative impacts of product returns; design and performance issues with our products; liability claims; our failure to expand or protect our proprietary rights and intellectual property; intellectual property infringement claims against us; our ability to hire and retain qualified personnel; our ability to secure additional financing to meet our future capital needs; increased competition and/or reduced demand in our industry; our failure to comply with domestic and international laws and regulations; economic conditions, political events, war, terrorism, public health issues, natural disasters and similar circumstances; volatility in our stock price; concentration of stock ownership among our executive officers and principal stockholders; provisions in our certificate of incorporation, bylaws and Delaware law, as well as our stockholder rights plan, that could make a proposed acquisition of the Company more difficult; and dilution resulting from potential future stock issuances.

Additionally, other factors that could cause actual results to differ materially from those set forth in, contemplated by, or underlying these forward-looking statements are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 under the heading “Risk Factors.” In light of these risks and uncertainties, the forward-looking statements contained in this press release may not prove to be accurate. The Company undertakes no obligation to publicly update or revise any forward-looking statements, or any facts, events, or circumstances after the date hereof that may bear upon forward-looking statements. Additionally, the Company does not undertake any responsibility to update you on the occurrence of unanticipated events which may cause actual results to differ from those expressed or implied by these forward-looking statements.

 
iGo, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(000's except per share data)
(unaudited)
       
 
Three months ended Six months ended
June 30, June 30,
  2011     2010     2011     2010  
 
 
Net revenue $ 10,831 $ 9,748 $ 20,059 $ 17,916
 
Gross profit 2,800 3,312 5,659 5,963
 
Selling, engineering and administrative expenses   4,810     3,809     9,359     7,536  
Loss from operations (2,010 ) (497 ) (3,700 ) (1,573 )
Interest income (expense), net 21 40 42 96
Other income (expense), net   50     57     80     1,846  
Net income (loss) $ (1,939 ) $ (400 ) $ (3,578 ) $ 369  
 
Net income (loss) per share:
Basic $ (0.06 ) $ (0.01 ) $ (0.11 ) $ 0.01
Diluted $ (0.06 ) $ (0.01 ) $ (0.11 ) $ 0.01
 
Weighted avg common shares outstanding:
Basic 33,315 32,750 33,170 32,654
Diluted 33,315 32,750 33,170 33,965
 
 
iGo, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(000's)
(unaudited)
       
June 30, December 31,
  2011   2010
 
ASSETS
 
Cash and cash equivalents $ 6,974 $ 9,942
Short-term investments 9,020 14,532
Accounts receivable, net 7,126 8,620
Inventories 14,283 10,307
Prepaid expenses and other current assets   828   460
Total current assets 38,231 43,861
Other assets, net   8,222   6,312
Total assets $ 46,453 $ 50,173
 
 
LIABILITIES AND EQUITY
 
Liabilities, excluding deferred revenue $ 6,272 $ 6,037
Deferred revenue   706   1,838
Total liabilities 6,978 7,875
 
Total stockholders' equity 39,475 42,298
   
Total liabilities and equity $ 46,453 $ 50,173
 

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX