Contact: | Rajiv Mathur |
| President& Chief Executive Officer |
| IGI, Inc. |
| 856-697-1441 ext. 211 |
| www.askigi.com |
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IGI, INC. ANNOUNCES SECOND QUARTER 2007 RESULTS |
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BUENA, NJ August 15, 2007 - IGI, INC. (AMEX: IG) announces business highlights and second quarter 2007 financial results. |
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Highlights: |
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| * | Quarterly sales revenues hit $1 million dollars for the first time in 12 quarters |
| * | Total revenues increased 34% in the second quarter of 2007 compared to first quarter 2007 |
| * | Net losses were reduced by 58% from first quarter to second quarter |
| * | Initiated new product development for launch in 2008, 2009, and 2010 |
| * | Research has been completed for a new patent and we have initiated patent application filling |
| * | Negotiating several manufacturing and supply agreements which we are aiming to finalize in third quarter 2007 |
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Six months ended June 30, 2007 Financial Results |
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Total revenues increased $523,000, or 37% from $1,398,000 for the six months ended June 30, 2006 to $1,921,000 for the six months ended June 30, 2007. Product sales increased 57% as a result of an increase in sales volume due to the Company's packaging capabilities that began in 2007. Our research and development revenues increased by 77% as a result of an increase in product development services provided our customers. The decline in royalty revenue of 24% was related to a decline in royalties from Johnson & Johnson and Estee Lauder in 2007. |
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Total costs and expenses for the Company increased 18% for the six months ended June 30, 2007 compared to June 30, 2006. The increase in total costs and expenses substantially related to an increase in costs of goods sold from improved product sales offset by a slightly better absorption of fixed costs in 2007. There was also an increase in selling, general and administration expenses relating to stock option expense, salaries, and consulting fees. |
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The total net loss of the Company for the six months ended June 30, 2007 was $582,000, which represents a decrease in net loss of $238,000 compared to the six months ended June 30, 2006. The decrease in net loss relates to the increase in revenues offset by the increase in costs for the period ended June 30, 2007. |
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This report contains forward-looking statements relating to IGI's hopes and expectations for the future. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "will," "possible," "one time," "provides an opportunity," "continue" and similar expressions are intended to identify forward-looking statements. Such statements involve a number of risks and uncertainties and actual future events and results could differ materially from those indicated by such forward-looking statements due to general economic conditions, and the risk factors detailed in IGI's periodic reports and registration statements filed with the Securities and Exchange Commission. |
| Three months
ended June 30, | | Six months
ended June 30, |
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| 2007 | | 2006 | | 2007 | | 2006 |
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Revenues: | | | | | | | |
Product sales, net | $ 741 | | $ 490 | | $ 1,345 | | $ 856 |
R&D Revenues | 191 | | 133 | | 268 | | 163 |
R&D Revenue- related party | 20 | | - | | 20 | | - |
Licensing and royalty income | 148 | | 194 | | 288 | | 379 |
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Total revenues | 1,100 | | 817 | | 1,921 | | 1,398 |
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Cost and expenses: | | | | | | | |
Cost of sales | 622 | | 433 | | 1,138 | | 691 |
Selling, general and administrative expenses | 596 | | 442 | | 1,182 | | 900 |
Product development and research expenses | 114 | | 271 | | 225 | | 561 |
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Operating loss | (232) | | (329) | | (624) | | (754) |
Interest expense (net) | (8) | | (28) | | (27) | | (70) |
Other income | 64 | | - | | 64 | | 24 |
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Loss from continuing operations | (176) | | (357) | | (587) | | (800) |
Gain (loss) from discontinued operations | 5 | | (11) | | 5 | | (20) |
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Net loss | $ (171) | | $ (368) | | $ (582) | | $ (820) |
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Basic and Diluted Loss Per Share | | | | | | | |
Continued operations net loss per share | $ (.01) | | $ (.03) | | $ (.04) | | $ (.06) |
Discontinued operations net income (loss) per share | - | | - | | - | | - |
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Net loss per share | $ (.01) | | $ (.03) | | $ (.04) | | $ (.06) |
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Weighted Average of Common Stock and Common Stock
Equivalents Outstanding | | | | | | | |
Basic and diluted | 14,612,899 | | 12,781,255 | | 13,997,904 | | 12,705,984 |
| June 30, 2007 | | December 31, 2006* |
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| (unaudited) | | |
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ASSETS | | | |
Current assets: | | | |
Cash and cash equivalents | $ 123 | | $ 619 |
Restricted cash | 50 | | 50 |
Accounts receivable, less allowance for doubtful accounts | | | |
of $33 in 2007 and $ 34 in 2006 | 609 | | 197 |
Accounts receivable- related party | 20 | | - |
Licensing and royalty income receivable | 102 | | 91 |
Inventories | 474 | | 485 |
Prepaid expenses and other current assets | 103 | | 45 |
Assets of discontinued operations held for sale | - | | 350 |
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Total current assets | 1,481 | | 1,837 |
Property, plant and equipment, net | 2,423 | | 2,396 |
License fee, net | 850 | | 900 |
Other assets | 2 | | 10 |
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Total assets | $ 4,756 | | $ 5,143 |
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LIABILITIES AND STOCKHOLDERS' EQUITY | | | |
Current liabilities: | | | |
Note payable - related party | $ 500 | | $ 1,451 |
Accounts payable | 446 | | 505 |
Accrued expenses | 395 | | 417 |
Deferred income, current | 293 | | 400 |
Liabilities of discontinued operations | - | | 118 |
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Total current liabilities | 1,634 | | 2,891 |
Deferred income | 47 | | 59 |
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Total liabilities | 1,681 | | 2,950 |
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Stockholders' equity: | | | |
Common stock $.01 par value, 50,000,000 shares
authorized; 16,578,639 and 15,056,516 shares
issued in 2007 and 2006, respectively |
166
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151
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Additional paid-in capital | 27,018 | | 25,569 |
Accumulated deficit | (22,714) | | (22,132) |
Less treasury stock, 1,965,740 shares at cost | (1,395) | | (1,395) |
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Total stockholders' equity | 3,075 | | 2,193 |
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Total liabilities and stockholders' equity | $ 4,756 | | $ 5,143 |
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