Exhibit 99.1
Innodata Isogen Reports Third Quarter 2005 Results
NEW YORK--(BUSINESS WIRE)--Nov. 10, 2005--INNODATA ISOGEN, INC.
(NASDAQ: INOD), a leading provider of content supply chain solutions,
today reported a net loss of $875,000, or $.04 per diluted share, for
the third quarter of 2005, versus net income of $3,103,000, or $0.13
per diluted share, for the third quarter of 2004.
In the first nine months of 2005, the company lost $1,093,000, or
$0.05 per diluted share. Over the same period in 2004, the company
earned $6,760,000, or $0.28 per diluted share.
Revenues were $9,647,000 in the third quarter of 2005, down from
revenues of $15,927,000 in the third quarter of 2004; and revenues
were $30,947,000 for the nine months ending September 30, 2005, down
from $40,438,000 for the same period last year.
Innodata Isogen's cash and equivalents were approximately $21.4
million at September 30, 2005 and the company carries virtually no
debt.
"While revenues were higher than we initially anticipated, these
results are neither acceptable to me nor my management team," said
Jack Abuhoff, chairman and CEO of Innodata Isogen. "It's clear to me
that there is no shortage of opportunity in our core markets. That's
why we are investing in the talent, tools and capabilities -
especially in the areas of sales, marketing, product development and
solutions engineering - that we need to drive growth.
"I believe very strongly that we're making the right moves to
realize better performance. And I'm much encouraged by what I see."
Abuhoff said he anticipates that the company's revenues will
improve meaningfully next quarter on a sequential basis and that he
expects to see continued improvements into 2006.
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:
1-800-811-8824 (Domestic)
1-913-981-4903 (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: 4836798)
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 Nine Months Ended
------------------ -----------------
September 30, September 30,
------------- -------------
2005 2004 2005 2004
---- ---- ---- ----
REVENUES $9,647 $15,927 $30,947 $40,438
--------- --------- --------- ---------
OPERATING COSTS AND EXPENSES:
Direct operating expenses 7,272 8,847 22,972 24,481
Selling and administrative
expenses 3,677 2,847 9,767 7,514
Bad debt recovery - net - - - (963)
Interest income - net (114) (14) (309) (13)
--------- --------- --------- ---------
Total 10,835 11,680 32,430 31,019
--------- --------- --------- ---------
(LOSS) INCOME BEFORE (BENEFIT
FROM)
PROVISION FOR INCOME TAXES (1,188) 4,247 (1,483) 9,419
(BENEFIT FROM) PROVISION FOR
INCOME TAXES (313) 1,144 (390) 2,659
--------- --------- --------- ---------
NET (LOSS) INCOME $(875) $3,103 $(1,093) $6,760
========= ========= ========= =========
BASIC (LOSS) INCOME PER SHARE $(.04) $.14 $(.05) $.30
========= ========= ========= =========
WEIGHTED AVERAGE SHARES
OUTSTANDING 23,165 22,429 22,922 22,176
========= ========= ========= =========
DILUTED (LOSS) INCOME PER
SHARE $(.04) $.13 $(.05) $.28
========= ========= ========= =========
DILUTIVE SHARES OUTSTANDING 23,165 24,659 22,922 24,541
========= ========= ========= =========
INNODATA ISOGEN, INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2005 2004
---- ----
Unaudited From audited
financial statements
ASSETS:
CURRENT ASSETS
Cash and equivalents $21,380 $20,663
Accounts receivable-net 5,208 8,019
Prepaid expenses and other
current assets 2,997 1,757
Deferred income taxes 307 645
------- -------
Total current assets 29,892 31,084
PROPERTY AND EQUIPMENT - NET 4,555 4,559
OTHER ASSETS 1,752 893
GOODWILL 675 675
------- -------
TOTAL $36,874 $37,211
======= =======
LIABILITIES AND STOCKHOLDERS'
EQUITY:
CURRENT LIABILITIES
Accounts payable and accrued
expenses $2,900 $3,412
Accrued salaries, wages and
related benefits 3,421 3,979
Income and other taxes 1,089 1,304
Current portion of long-term
obligations 702 180
------- -------
Total current
liabilities 8,112 8,875
DEFERRED INCOME TAXES 1,480 1,449
LONG-TERM OBLIGATIONS 686 150
STOCKHOLDERS' EQUITY 26,596 26,737
------- -------
TOTAL $36,874 $37,211
======= =======
CONTACT: Innodata Isogen, Inc.
Al Girardi, 201-488-1200, ext. 5392
agirardi@innodata-isogen.com