EXHIBIT 99.1
Innodata Isogen Reports Third Quarter 2004 Results
NEW YORK--(BUSINESS WIRE)--Nov. 11, 2004--INNODATA ISOGEN, INC.
(NASDAQ:INOD)
-- Company earns $3.1 million on 42% increase in revenues
-- Revenues up 56% in first nine months of 2004
-- Margins improve, balance sheet strengthened
INNODATA ISOGEN, INC. (NASDAQ:INOD), a leading provider of content
supply chain solutions, today reported earnings of $3,103,000, or
$0.13 per diluted share, for the third quarter of 2004, versus
earnings of $1,490,000 or $0.06 per diluted share, for the third
quarter of 2003.
Earnings in the first nine months of 2004 were $6,760,000, or
$0.28 per diluted share, as compared to a loss of $259,000, $0.01 per
diluted share, over the same period in 2003.
Revenues increased 42% to $15,927,000 in the third quarter of 2004
from revenues of $11,184,000 in the third quarter of 2003; and
revenues rose 56% to $40,438,000 for the nine months ended September
30, 2004 from $25,893,000 for the same period last year.
In addition, the company's cash position increased from
approximately $14.3 million at the end of the second quarter 2004 to
total $16.1 million at the end of the third quarter 2004.
Innodata Isogen generated approximately $2.2 million in cash from
operations in the third quarter of 2004. In addition, working capital
increased to approximately $20.2 million. The company currently
carries virtually no debt other than routine payables.
The increased revenues primarily reflect increased project-based
sales to several of Innodata Isogen's largest clients, made possible
by its enhanced services portfolio and increased capital spending by
companies in the markets it serves.
"We're pleased to report another quarter of strong revenue and
income growth," said Jack Abuhoff, Chairman and CEO of Innodata
Isogen. "Our profitability has improved substantially and the
company's financial condition is robust."
Abuhoff said that he expects the company's financial results in
the fourth quarter of 2004 to show continued significant
year-over-year improvement, but at a lower revenue level than achieved
in the third quarter, and that he expects 2005 to continue to show
double-digit growth.
"I am optimistic about growth," Abuhoff continued. "We're seeing
companies in our core markets continuing, if not accelerating, their
investment in content infrastructure, technology and processes -
mainly because intellectual assets, such as content, are increasingly
the basis of economic activity, especially in the United States and
other developed countries."
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:
1-800-289-0569 (Domestic)
1-913-981-5542 (International)
Replays will also be made available at:
1-888-203-1112 (Domestic Replay)
1-719-457-0820 (International Replay)
(Passcode on Replay only: 805926)
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 more than 7,500 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, continuing revenue
concentration in a limited number of clients, continuing reliance on
project-based work, worsening of 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 Nine Months
Ended Ended
----------------- -----------------
September 30 September 30
----------------- -----------------
2004 2003 2004 2003
-------- -------- -------- --------
REVENUES $15,927 $11,184 $40,438 $25,893
-------- -------- -------- --------
OPERATING COSTS AND EXPENSES:
Direct operating expenses 8,847 7,225 24,481 19,458
Selling and administrative
expenses 2,847 2,002 7,514 6,561
Bad debt recovery - net - - (963) -
Interest (income) - net (14) (4) (13) (19)
-------- -------- -------- --------
Total 11,680 9,223 31,019 26,000
-------- -------- -------- --------
INCOME (LOSS) BEFORE PROVISION FOR
INCOME TAXES 4,247 1,961 9,419 (107)
PROVISION FOR INCOME TAXES 1,144 471 2,659 152
-------- -------- -------- --------
NET INCOME (LOSS) $ 3,103 $ 1,490 $ 6,760 $ (259)
======== ======== ======== ========
INCOME (LOSS) PER SHARE:
Basic $ .14 $ .07 $ .30 $ (.01)
======== ======== ======== ========
Diluted $ .13 $ .06 $ .28 $ (.01)
======== ======== ======== ========
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 22,429 21,593 22,176 21,499
======== ======== ======== ========
Diluted 24,659 23,225 24,541 21,499
======== ======== ======== ========
INNODATA ISOGEN, INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Sept. 30, Dec. 31,
2004 2003
---------- ----------
Unaudited Derived
from
audited
financial
statements
ASSETS
CURRENT ASSETS
Cash and equivalents $ 16,109 $ 5,051
Cash and equivalents - restricted - 1,000
Accounts receivable-net 10,611 8,497
Refundable income taxes - 1,075
Prepaid expenses and other current assets 1,383 999
Deferred income taxes 307 1,421
---------- ----------
Total current assets 28,410 18,043
PROPERTY AND EQUIPMENT - NET 4,860 5,628
OTHER ASSETS 932 800
GOODWILL 675 675
---------- ----------
TOTAL $ 34,877 $ 25,146
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 2,657 $ 2,451
Accrued salaries and wages 4,104 2,865
Income and other taxes 1,286 598
Current portion of capital lease obligations 156 146
---------- ----------
Total current liabilities 8,203 6,060
---------- ----------
DEFERRED INCOME TAXES PAYABLE 1,423 1,410
---------- ----------
OBLIGATIONS UNDER CAPITAL LEASE 152 272
---------- ----------
STOCKHOLDERS' EQUITY 25,099 17,404
---------- ----------
TOTAL $ 34,877 $ 25,146
========== ==========
CONTACT: Innodata Isogen
Al Girardi, 201-488-1200, Ext. 5392
agirardi@innodata-isogen.com