Exhibit 99.1
Innodata Isogen Reports Second Quarter 2005 Results
NEW YORK--(BUSINESS WIRE)--Aug. 11, 2005--INNODATA ISOGEN, INC.
(NASDAQ: INOD), a leading provider of content supply chain solutions,
today reported a net loss of $517,000, or $.02 per diluted share, for
the second quarter of 2005, versus net income of $1,577,000, or $0.06
per diluted share, for the second quarter of 2004.
In the first six months of 2005, the company lost $218,000, or
$0.01 per diluted share. Over the same period in 2004, the company
earned $3,657,000, or $0.15 per diluted share.
Revenues were $10,110,000 in the second quarter of 2005, down from
revenues of $12,354,000 in the second quarter of 2004; and revenues
were $21,300,000 for the six months ending June 30, 2005, down from
$24,511,000 for the same period last year.
Innodata Isogen's cash and equivalents were approximately $23
million at June 30, 2005 and the company carries virtually no debt
other than routine payables.
Innodata Isogen attributed the results primarily to the
unscheduled termination of a large project in the first six months of
2005 without sufficient replacement by other revenues.
"These results are disappointing, especially in light of several
quarters of strong, sustained profitability," said Jack Abuhoff,
chairman and CEO of Innodata Isogen. "As we gear up to turn our
results around, our position as a leading provider in an attractive,
growing market is an important asset.
"We will continue to invest wisely to grow our business -
especially in the areas of sales, business and product development and
solutions engineering - and we're confident that these investments
will bear fruit in the coming year."
The company recently hired a new vice president of sales and
solutions, Tim Christin (formerly director of enterprise sales at
Bowne Global Solutions), and is planning to introduce a significant
new content services offering in the second half of 2005.
Abuhoff said he anticipates the company's financial results will
be down slightly next quarter as well, but remains optimistic the
company will see an improvement in the fourth quarter.
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:
1-800-289-0743 (Domestic)
1-913-981-5546 (International)
Replays will also be made available at:
1-888-203-1112 (Domestic Replay)
1-719-457-0820 (International Replay)
(Pass code on Replay only: 3975445)
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) provides business and
technology services that help organizations create, manage and
distribute information more effectively and economically. We are
headquartered in Hackensack, New Jersey, just outside of New York
City. We have two additional solution centers in North America, seven
production facilities in Asia (the Philippines, India and Sri Lanka)
and a technology and tools development center in India.
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 our 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 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 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
----------------- -----------------
2005 2004 2005 2004
-------- -------- -------- --------
REVENUES $10,110 $12,354 $21,300 $24,511
-------- -------- -------- --------
OPERATING COSTS AND EXPENSES:
Direct operating expenses 7,497 7,859 15,700 15,634
Selling and administrative
expenses 3,406 2,413 6,090 4,667
Bad debt recovery - net - - - (963)
Interest (income) expense - net (114) - (195) 1
-------- -------- -------- --------
Total 10,789 10,272 21,595 19,339
-------- -------- -------- --------
(LOSS) INCOME BEFORE (BENEFIT FROM)
PROVISION FOR INCOME TAXES (679) 2,082 (295) 5,172
(BENEFIT FROM) PROVISION FOR INCOME
TAXES (162) 505 (77) 1,515
-------- -------- -------- --------
NET (LOSS) INCOME $(517) $1,577 $(218) $3,657
======== ======== ======== ========
BASIC (LOSS) INCOME PER SHARE $(.02) $.07 $(.01) $.17
======== ======== ======== ========
WEIGHTED AVERAGE SHARES OUTSTANDING 22,903 22,145 22,798 22,049
======== ======== ======== ========
DILUTED (LOSS) INCOME PER SHARE $(.02) $.06 $(.01) $.15
======== ======== ======== ========
DILUTIVE SHARES OUTSTANDING 22,903 24,433 22,798 24,480
======== ======== ======== ========
INNODATA ISOGEN, INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December
June 30, 31,
2005 2004
--------------------
Unaudited From
audited
financial
statements
ASSETS:
CURRENT ASSETS
Cash and equivalents $22,945 $20,663
Accounts receivable-net 5,979 8,019
Prepaid expenses and other current assets 2,009 1,757
Deferred income taxes 385 645
--------------------
Total current assets 31,318 31,084
PROPERTY AND EQUIPMENT - NET 4,511 4,559
OTHER ASSETS 1,609 893
GOODWILL 675 675
--------------------
TOTAL $38,113 $37,211
====================
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES
Accounts payable and accrued expenses $3,248 $3,412
Accrued salaries, wages and related benefits 3,363 3,979
Income and other taxes 810 1,304
Current portion of long-term obligations 980 180
--------------------
Total current liabilities 8,401 8,875
DEFERRED INCOME TAXES 1,432 1,449
LONG-TERM OBLIGATIONS 848 150
STOCKHOLDERS' EQUITY 27,432 26,737
--------------------
TOTAL $38,113 $37,211
====================
CONTACT: Innodata Isogen
Al Girardi, 201-488-1200, ext. 5392
agirardi@innodata-isogen.com