Exhibit 99.1
Innodata Isogen Reports First Quarter 2006 Results
NEW YORK--(BUSINESS WIRE)--May 10, 2006--INNODATA ISOGEN, INC.
(NASDAQ:INOD), a leading provider of content supply chain solutions,
today announced a loss of $1,346,000, or $0.06 per diluted share, for
the first quarter of 2006, versus net income of $299,000, or $0.01 per
diluted share, for the first quarter of 2005.
Revenues were $10,285,000 for the three months ended March 31,
2006, down 8% from revenues of $11,190,000 for the same period last
year. Despite the lower revenues, the company saw cash and equivalents
increase slightly, from approximately $20,059,000 at December 31, 2005
to approximately $20,305,000 at March 31, 2006.
While second quarter 2006 revenues could be somewhat lower year
over year, the company remains confident that its performance will
improve in the second half of the year, and that revenues for all of
2006 will exceed 2005 revenues, according to Jack Abuhoff, chairman
and chief executive officer of Innodata Isogen.
"The pace of new business activity is brisk - and we're seeing a
growing number of attractive opportunities emerge," Abuhoff said. "In
addition, I'm seeing signs of improvement and growing momentum in our
sales efforts."
Abuhoff continued, "There is a lot of opportunity out there for
both our content and professional services divisions - as an
increasing number of Global 2000 enterprises, as well as major
publishers and information services providers, seek to control content
costs, compete more aggressively and achieve better outcomes."
Abuhoff said that continued growth in the economy, especially in
the business sector, should sustain capital spending in Innodata
Isogen's target markets. He expects the company's customers to
continue to fund and expand new product development and legacy product
enhancements and also invest in systems and infrastructure upgrades.
Timing of Conference Call with Q&A
Innodata Isogen will conduct an earnings conference call,
including a question & answer period, at 11:00 AM ET today. You can
participate in this call by dialing the following call-in numbers:
1-877-704-5386 (Domestic)
1-913-312-1302 (International)
1-888-203-1112 (Domestic Replay)
1-719-457-0820 (International Replay)
Pass code on Replay only: 2692204
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 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 also recognized the
unique value of 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 "estimate," "believe," "expect," and "anticipate" 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 risk 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. We undertake no obligation to update or review any guidance or
other forward-looking information, whether as a result of new
information, future developments or otherwise.
INNODATA ISOGEN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
2006 2005
--------- --------
REVENUES $10,285 $11,190
--------- --------
OPERATING COSTS AND EXPENSES:
Direct operating expenses 8,353 8,203
Selling and administrative expenses 3,386 2,684
Interest (income) - net (151) (81)
--------- --------
Total 11,588 10,806
--------- --------
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES (1,303) 384
PROVISION FOR INCOME TAXES 43 85
--------- --------
NET (LOSS) INCOME ($ 1,346) $ 299
========= ========
BASIC (LOSS) INCOME PER SHARE ( $.06) $.01
========= ========
WEIGHTED AVERAGE SHARES OUTSTANDING 24,033 22,691
========= ========
DILUTED (LOSS) INCOME PER SHARE ( $.06) $.01
========= ========
ADJUSTED DILUTIVE SHARES OUTSTANDING 24,033 25,110
========= ========
INNODATA ISOGEN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in Thousands)
March 31, December 31,
2006 2005
----------- ------------
Unaudited Derived from
audited
financial
statements
ASSETS
CURRENT ASSETS:
Cash and equivalents $20,305 $20,059
Accounts receivable-net 6,078 7,169
Prepaid expenses and other current assets 1,723 1,543
Refundable income taxes 1,215 1,215
Deferred income taxes 133 338
----------- ------------
Total current assets 29,454 30,324
PROPERTY AND EQUIPMENT - NET 5,086 4,823
OTHER ASSETS 1,872 1,789
GOODWILL 675 675
----------- ------------
TOTAL $37,087 $37,611
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 4,135 $ 3,299
Accrued salaries, wages and related benefits 3,455 3,567
Income and other taxes 1,431 1,363
Current portion of long term obligations 621 663
----------- ------------
Total current liabilities 9,642 8,892
DEFERRED INCOME TAXES 1,152 1,357
LONG TERM OBLIGATIONS 411 548
STOCKHOLDERS' EQUITY 25,882 26,814
----------- ------------
TOTAL $37,087 $37,611
=========== ============
CONTACT: Innodata Isogen, Inc.
Steven L. Ford, 201-371-2510
sford@innodata-isogen.com