EXHIBIT 99.1
Innodata Isogen Reports Second Quarter 2004 Results
NEW YORK--(BUSINESS WIRE)--Aug. 12, 2004--INNODATA ISOGEN, INC.
(NASDAQ: INOD)
-- Company Earns $1.6 Million on a 53% Jump in Revenues
-- Additional $3 Million in Cash to Balance Sheet
-- Revenues up 67% for First Half of This Year
INNODATA ISOGEN, INC. (NASDAQ: INOD), a leading provider of
content supply chain solutions, today reported earnings of $1,577,000,
or $.06 per diluted share, for the second quarter of 2004, versus a
net loss of $636,000, or $0.03 per diluted share, for the second
quarter of 2003.
Earnings in the first six months of 2004 are $3,657,000, or $0.15
per diluted share, as compared to a loss of $1,749,000, $0.08 per
diluted share, over the same period in 2003.
Revenues increased 53% to $12,354,000 in the second quarter of
2004 from revenues of $8,056,000 in the second quarter of 2003; and
revenues rose 67% to $24,511,000 for the six months ending June 30,
2004 from $14,709,000 for the same period last year.
In addition, the company's cash position increased from
approximately $10.3 million at the end of the first quarter 2004 to
$13.3 million at the end of the second quarter 2004.
In the second quarter of 2004, Innodata Isogen generated
approximately $3.1 million in cash from operations. In addition,
working capital increased to approximately $16.8 million. The company
currently carries virtually no debt other than routine payables.
Innodata Isogen attributed the strong financial results to
enhanced competitive positioning, organizational improvements and
increased levels of capital spending in the commercial and enterprise
publishing sectors and other segments in which the company markets its
services.
"We've improved our financial performance significantly in 2004,
delivering substantial gains in revenue and profitability over the
same period last year," said Jack Abuhoff, Chairman and CEO of
Innodata Isogen. "Our company consistently demonstrates the ability to
generate significant amounts of cash, which of course can be used to
fund further growth, organic or otherwise."
Abuhoff said he expects the company's financial results in the
third quarter of 2004 to show continued improvement.
"We're building a company with broader horizons and that takes a
lot of work," Abuhoff concluded. "But our team is enthusiastic about
the next set of challenges. No company I'm aware of can more
effectively help leading organizations control their content creation,
management and distribution costs. It's a very exciting place to be."
Timing of Conference Call with Q&A
Innodata Isogen will conduct an investor conference call,
including a question & answer period, at 11:00 AM ET today. Interested
parties can participate in this call by dialing the following call-in
numbers:
1-800-915-4836 (Domestic)
1-973-317-5319 (International)
Replays will also be made available at:
1-800-428-6051 (Domestic Replay)
1-973-709-2089 (International Replay)
(Passcode on Replay only: 369109)
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 a listen-only mode. Call-in or Webcast replay will be available for
30 days following the conference call.
About Innodata Isogen
Innodata Isogen (www.innodata-isogen.com) optimizes content supply
chains, helping clients realize significant cost savings and
productivity gains from content-related operations, achieve better
outcomes and compete more effectively in demanding global markets.
Our solutions encompass virtually every activity necessary to
create, use and distribute information products. Clients can choose
from an array of integrated point solutions or simply outsource their
entire content supply chain to Innodata Isogen.
The company, based in metro New York, has three content solution
centers in North America, seven certified content production
facilities and a dedicated tools and technology center in Asia,
together employing over 7,000 content specialists worldwide.
Among our extensive roster of blue-chip clients are the world's
leading commercial publishers, Global 2000 enterprises, government
agencies, and major archives, libraries and museums.
This release contains certain forward-looking statements,
including without limitation, statements concerning the company's
operations, economic performance, and financial condition. These
forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
The words "believe," "expect," "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 the
company's current expectations, and are subject to a number of risks
and uncertainties, including without limitation, continuation or
worsening of present depressed market conditions, changes in external
market factors, the ability and willingness of the company's clients
and prospective clients 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 Innodata Isogen acquires, changes in the company's 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 the company's 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 Six Months Ended
------------------- -------------------
June 30 June 30
------- -------
2004 2003 2004 2003
------- ------- ------- -------
REVENUES $ 12,354 $ 8,056 $ 24,511 $ 14,709
------- ------- ------- -------
OPERATING COSTS AND EXPENSES:
Direct operating expenses 7,859 6,408 15,634 12,233
Selling and administrative
expenses 2,413 2,513 4,667 4,559
Bad debt recovery - net - - (963) -
Interest expense (income) -
net - (6) 1 (15)
------- ------- ------- -------
Total 10,272 8,915 19,339 16,777
------- ------- ------- -------
INCOME (LOSS) BEFORE
PROVISION FOR (BENEFIT FROM)
INCOME TAXES 2,082 (859) 5,172 (2,068)
PROVISION FOR (BENEFIT FROM)
INCOME TAXES 505 (223) 1,515 (319)
------- ------- ------- -------
NET INCOME (LOSS) $ 1,577 $ (636) $ 3,657 $ (1,749)
======= ======= ======= =======
BASIC INCOME (LOSS) PER SHARE $ .07 $ (.03) $ .17 $ (.08)
======= ======= ======= =======
WEIGHTED AVERAGE SHARES
OUTSTANDING 22,145 21,466 22,049 21,451
======= ======= ======= =======
DILUTED INCOME (LOSS) PER
SHARE $ .06 $ (.03) $ .15 $ (.08)
======= ======= ======= =======
ADJUSTED DILUTIVE SHARES
OUTSTANDING 24,433 21,466 24,480 21,451
======= ======= ======= =======
INNODATA ISOGEN, INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2004 2003
-------- -------
Unaudited From audited
financial
statements
ASSETS
CURRENT ASSETS
Cash and equivalents $ 13,336 $ 5,051
Cash and equivalents - restricted 1,000 1,000
Accounts receivable-net 7,674 8,497
Refundable income taxes - 1,075
Prepaid expenses and other current assets 1,322 999
Deferred income taxes 278 1,421
-------- -------
Total current assets 23,610 18,043
PROPERTY AND EQUIPMENT - NET 4,886 5,628
OTHER ASSETS 868 800
GOODWILL 675 675
-------- -------
TOTAL $ 30,039 $25,146
======== =======
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 2,677 $ 2,451
Accrued salaries and wages 3,393 2,865
Income and other taxes 622 598
Current portion of capital lease obligations 153 146
-------- -------
Total current liabilities 6,845 6,060
-------- -------
DEFERRED INCOME TAXES PAYABLE 1,401 1,410
-------- -------
OBLIGATIONS UNDER CAPITAL LEASE 192 272
-------- -------
STOCKHOLDERS' EQUITY 21,601 17,404
-------- -------
TOTAL $ 30,039 $25,146
======== =======
CONTACT: Innodata Isogen
Al Girardi, 201-488-1200, ext. 5392
agirardi@innodata-isogen.com