Exhibit 99.1
Innodata Isogen Reports Strong Results for Second Quarter 2009
Revenues, earnings climb significantly year-over-year
Company on track for record revenue in 2009
NEW YORK--(BUSINESS WIRE)--August 6, 2009--INNODATA ISOGEN, INC. (NASDAQ:INOD), today announced revenue of $21,635,000 for the second quarter of 2009, up 21% from revenue of $17,870,000 in the second quarter of 2008, and slightly lower than record revenue of $21,815,000 achieved in the first quarter of 2009.
The company also reported net income of $3,204,000 in the second quarter of 2009, or $0.13 per diluted share, up substantially from net income of $36,000, or less than $0.01 per diluted share, in the second quarter of 2008. In the first quarter of 2009, the company achieved net income of $3,581,000, or $0.15 per diluted share.
In the first six months of 2009, revenue was $43,450,000, up 20% from revenue of $36,270,000 in the first six months of 2008. Net income in the first half of 2009 was $6,785,000, or $0.27 per diluted share, up substantially from net income of $869,000, or $0.03 per diluted share, in the first half of 2008.
The company reported cash from operations for the first six months of 2009 was a record $10 million, an increase of $6.1 million from nearly $4 million for the first six months of 2008. Cash and cash equivalents rose 51% to $23,118,000 at June 30, 2009 from $15,263,000 at June 30, 2008.
“We’re enthusiastic about our second half,” said Jack Abuhoff, chairman and CEO of Innodata Isogen. “We’re optimistic about the opportunities we have with both new and existing clients – opportunities that have significant strategic value in addition to their financial value.
“These opportunities should contribute to strong year-over-year revenue performance in the second half of 2009 and help position us to drive strong performance in 2010.”
Abuhoff said he anticipated revenue in the third quarter of 2009 to be approximately $20 million, with a sequential increase in the fourth quarter.
Timing of Conference Call with Q&A
Innodata Isogen will conduct an earnings conference call, including a question & answer period, at 11:00 AM ET today. You can participate in this call by dialing the following call-in numbers:
| 1-888-778-9052 (Domestic) |
| 1-913-312-1517 (International) |
| 1-888-203-1112 (Domestic Replay) |
| 1-719-457-0820 (International Replay) |
Pass code on replay only: 6023545
Investors are also invited to access a live Webcast of the conference call at the Investor Relations section of www.innodata-isogen.com. Please note that the Webcast feature will be in listen-only mode. Call-in or Webcast replay will be available for 30 days following the conference call.
About Innodata Isogen
Innodata Isogen (NASDAQ:INOD), is a leading provider of knowledge process outsourcing (KPO) services, as well as publishing and related information technology (IT) services.
We work as a product development partner to our clients, helping them meet their content creation and publishing challenges. We provide outsourcing services that draw upon onshore and offshore resources, proven project management and highly engineered processes and tools. We also help our clients improve their internal business operations with process and systems engineering. Our clients include leading enterprises in information-intensive industries such as media, publishing and information services, high technology, manufacturing, aerospace, defense, law, government and intelligence.
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, France, Israel, China, 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" 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
(Unaudited)
(In thousands, except per share amounts) |
| | | | |
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| | | | | | | | |
| | 2009 | | 2008 | | 2009 | | 2008 |
| | | | | | | | |
| Revenues | | $ | 21,635 | | | $ | 17,870 | | | $ | 43,450 | | | $ | 36,270 | |
| | | | | | | | |
| Operating costs and expenses: | | | | | | | | |
| Direct operating expenses | | | 14,199 | | | | 13,738 | | | | 27,309 | | | | 27,067 | |
| Selling and administrative expenses | | | 3,063 | | | | 4,074 | | | | 6,670 | | | | 8,391 | |
| Interest income, net | | | (6 | ) | | | (50 | ) | | | (19 | ) | | | (106 | ) |
| | | | | | | | |
| Total | | | 17,256 | | | | 17,762 | | | | 33,960 | | | | 35,352 | |
| Income before provision for income taxes | | | 4,379 | | | | 108 | | | | 9,490 | | | | 918 | |
| | | | | | | | |
| Provision for income taxes | | | 1,175 | | | | 72 | | | | 2,705 | | | | 49 | |
| Net income | | $ | 3,204 | | | $ | 36 | | | $ | 6,785 | | | $ | 869 | |
Income per share: | | | | | | | | |
| Basic | | $ | .13 | | | $ | - | | | $ | .28 | | | $ | .04 | |
| Diluted | | $ | .13 | | | $ | - | | | $ | .27 | | | $ | .03 | |
Weighted average shares outstanding: | | | | | | | | |
| Basic | | | 24,249 | | | | 24,600 | | | | 24,194 | | | | 24,662 | |
| Diluted | | | 25,373 | | | | 25,408 | | | | 24,912 | | | | 25,807 | |
| | | | | | | | |
INNODATA ISOGEN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands) |
| | | | |
| | June 30,
2009 | | December 31,
2008 |
| | | | |
| ASSETS | | | | |
| | | | |
| Current assets: | | | | |
| Cash and cash equivalents | | $ | 23,118 | | $ | 13,875 |
| Accounts receivable, net | | | 14,177 | | | 14,017 |
| Prepaid expenses and other current assets | | | 2,949 | | | 2,246 |
| Deferred income taxes | | | 2,282 | | | 4,115 |
| | | | |
| Total current assets | | | 42,526 | | | 34,253 |
| | | | |
| Property and equipment, net | | | 6,133 | | | 6,726 |
| | | | |
| Other assets | | | 2,694 | | | 2,825 |
| | | | |
| Deferred income taxes | | | 948 | | | 906 |
| | | | |
| Goodwill | | | 675 | | | 675 |
| | | | |
| Total assets | | $ | 52,976 | | $ | 45,385 |
| | | | |
| | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | |
| | | | |
| Current liabilities: | | | | |
| Accounts payable and accrued expenses | | $ | 3,958 | | $ | 3,593 |
| Accrued salaries, wages and related benefits | | | 5,481 | | | 5,289 |
| Income and other taxes | | | 1,437 | | | 1,649 |
| Current portion of long-term obligations | | | 865 | | | 915 |
| | | | |
| Total current liabilities | | | 11,741 | | | 11,446 |
| | | | |
| Deferred income taxes | | | 2,075 | | | 2,080 |
| | | | |
| Long term obligations | | | 1,348 | | | 1,671 |
| | | | |
| Stockholders' equity | | | 37,812 | | | 30,188 |
| | | | |
| Total liabilities and stockholders’ equity | | $ | 52,976 | | $ | 45,385 |
CONTACT:
Innodata Isogen, Inc.
Al Girardi, Vice President, 201-371-8034
agirardi@innodata-isogen.com
www.innodata-isogen.com
