Exhibit 99.1
Innodata Isogen Reports Fourth Quarter and Year-End 2005 Results
NEW YORK--(BUSINESS WIRE)--March 9, 2006--INNODATA ISOGEN, INC. (NASDAQ:
INOD), a leading provider of content supply chain solutions, today announced a
loss of $558,000, or $0.02 per diluted share, for the fourth quarter of 2005,
versus net income of $1,097,000, or $0.04 per diluted share, for the fourth
quarter of 2004.
Revenues were $11,105,000 for the three months ended December 31, 2005, 15%
higher than revenues of $9,647,000 for the third quarter of 2005, but a decline
from revenues of $13,511,000 for the fourth quarter of 2004.
For the twelve months ended December 31, 2005, the company recorded a loss
of $1,651,000 or $0.07 per diluted share, down from net income of $7,857,000, or
$0.32 per diluted share, earned in 2004. Revenues for the 2005 fiscal year were
$42,052,000 versus $53,949,000 for the same period in 2004.
Innodata Isogen's cash position remains substantial at $20,059,000 as of
December 31, 2005, compared with $20,663,000 at the end of 2004. The company
generated approximately $1,100,000 cash from operating activities in 2005.
While Innodata Isogen anticipates first quarter 2006 revenues to be lower
year over year, the company expects to achieve improved results for the year
overall, according to Jack Abuhoff, chairman and chief executive officer of
Innodata Isogen.
"Demand for the type of outsourced information management and knowledge
services we provide is increasing at a healthy pace," Abuhoff said.
"Satisfaction and loyalty among our clients are at historic highs and we've seen
some very important relationships progress steadily.
"The entire management team understands what we need to do to improve new
business acquisition, and ultimately, our financial results. To that end, we're
making the continued investments to get there as quickly as possible. I'm quite
confident that we will deliver improved performance and achieve higher overall
revenues in 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:
1-800-811-8830 (Domestic)
1-913-981-4904 (International)
Replays will also be made available at:
1-888-203-1112 (Domestic Replay)
1-719-457-0820 (International Replay)
(Passcode on replay only: 2624535)
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 (NASDAQ: INOD) helps organizations create, manage and
distribute information more effectively and economically, providing a
comprehensive range of content-focused IT and BPO services to solve information
management and publishing challenges.
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.
Innodata Isogen (www.innodata-isogen.com) is named to both EContent
Magazine's EContent 100 and KM World Magazine's 100 Companies That Matter In
Knowledge Management. KM World Magazine also recognized the unique value of the
Innodata Isogen's comprehensive content supply chain solutions in its
Trend-Setting Products of 2005 annual honors.
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 STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2005 2004 2005 2004
------- ------- ------- -------
(Un-
(Unaudited) audited)(Audited)
REVENUES $11,105 $13,511 $42,052 $53,949
------- ------- ------- -------
OPERATING COSTS AND EXPENSES:
Direct operating expenses 7,948 8,569 30,920 33,050
Selling and administrative
expenses 3,917 2,691 13,684 10,205
Aborted offering costs - 625 - 625
Bad debt recovery - net - - - (963)
Interest income - net (130) (49) (439) (62)
------- ------- ------- -------
Total 11,735 11,836 44,165 42,855
------- ------- ------- -------
(LOSS) INCOME BEFORE (BENEFIT
FROM) PROVISION FOR INCOME TAXES (630) 1,675 (2,113) 11,094
(BENEFIT FROM) PROVISION FOR
INCOME TAXES (72) 578 (462) 3,237
------- ------- ------- -------
NET (LOSS) INCOME $ (558)$ 1,097 $(1,651) $ 7,857
======= ======= ======= =======
(LOSS) INCOME PER SHARE:
Basic $ (.02)$ .05 $ (.07) $ .35
======= ======= ======= =======
Diluted $ (.02)$ .04 $ (.07) $ .32
======= ======= ======= =======
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 23,267 22,622 23,009 22,288
======= ======= ======= =======
Diluted 23,267 25,646 23,009 24,817
======= ======= ======= =======
INNODATA ISOGEN, INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
December 31,
2005 2004
--------- ---------
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 20,059 $ 20,663
Accounts receivable-net 7,169 8,019
Prepaid expenses and other current assets 1,543 1,757
Refundable income taxes 1,215 -
Deferred income taxes 338 645
--------- ---------
Total current assets 30,324 31,084
PROPERTY AND EQUIPMENT - NET 4,756 4,559
OTHER ASSETS 1,789 893
GOODWILL 675 675
--------- ---------
TOTAL $ 37,544 $ 37,211
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 3,232 $ 3,412
Accrued salaries, wages and related
benefits 3,567 3,979
Income and other taxes 1,363 1,304
Current portion of long term obligations 663 180
--------- ---------
Total current liabilities 8,825 8,875
DEFERRED INCOME TAXES 1,357 1,449
LONG TERM OBLIGATIONS 548 150
STOCKHOLDERS' EQUITY 26,814 26,737
--------- ---------
TOTAL $ 37,544 $ 37,211
========= =========
CONTACT: Innodata Isogen
Al Girardi, 201-488-1200, ext. 5392
agirardi@innodata-isogen.com