Exhibit 99.1
Innodata Isogen Reports Second Quarter 2006 Results
NEW YORK--(BUSINESS WIRE)--Aug. 9, 2006--INNODATA ISOGEN, INC.
(NASDAQ: INOD), a leading provider of content supply chain solutions,
today reported a net loss of $2,952,000, or $.12 per diluted share,
for the second quarter of 2006, versus a net loss of $517,000, or $.02
per diluted share, for the second quarter of 2005.
For the first six months of 2006, the company lost $4,298,000, or
$.18 per diluted share. For the same period in 2005, the company lost
$218,000, or $.01 per diluted share.
Revenues were $9,721,000 in the second quarter of 2006, down from
revenues of $10,110,000 in the second quarter of 2005; and revenues
were $20,006,000 for the six months ended June 30, 2006, down from
$21,300,000 for the same period last year.
Innodata Isogen's cash and equivalents were approximately
$18,026,000 at June 30, 2006 and the company carries virtually no debt
other than routine payables.
"The results continue to reflect the fluctuations inherent in the
company's largely project-based business," said Jack Abuhoff, chairman
and CEO of Innodata Isogen. "We are building on our efforts to develop
a sales team that will generate a stronger and more consistent deal
flow and we are beginning to see resulting improvements in our
bookings and in the health of our pipeline."
Abuhoff added that, "We will also work on improving our margins
through tighter cost management. We anticipate revenue growth in the
second half of the year and expect to finish 2006 at approximately the
same revenue level we achieved in 2005."
Timing of Conference Call with Q&A
Innodata Isogen will conduct an investor conference call,
including a question & answer period, at 11:00 a.m. 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: 4543471)
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 KMWorld magazine's 100 Companies
That Matter In Knowledge Management. KMWorld 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 "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 Six Months
Ended Ended
----------------- -----------------
June 30 June 30
----------------- -----------------
2006 2005 2006 2005
-------- -------- -------- --------
REVENUES $9,721 $10,110 $20,006 $21,300
-------- -------- -------- --------
OPERATING COSTS AND EXPENSES:
Direct operating expenses 8,545 7,497 16,898 15,700
Selling and administrative
expenses 4,167 3,406 7,553 6,090
Interest (income) - net (161) (114) (312) (195)
-------- -------- -------- --------
Total 12,551 10,789 24,139 21,595
-------- -------- -------- --------
LOSS BEFORE (BENEFIT FROM)
PROVISION FOR INCOME TAXES (2,830) (679) (4,133) (295)
PROVISION FOR (BENEFIT FROM) INCOME
TAXES 122 (162) 165 (77)
-------- -------- -------- --------
NET LOSS $(2,952) $(517) $(4,298) $(218)
======== ======== ======== ========
BASIC LOSS PER SHARE $(.12) $(.02) $(.18) $(.01)
======== ======== ======== ========
WEIGHTED AVERAGE SHARES OUTSTANDING 24,087 22,903 24,060 22,798
======== ======== ======== ========
DILUTED LOSS PER SHARE $(.12) $(.02) $(.18) $(.01)
======== ======== ======== ========
DILUTIVE SHARES OUTSTANDING 24,087 22,903 24,060 22,798
======== ======== ======== ========
INNODATA ISOGEN, INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December
June 30, 31,
2006 2005
--------- -----------
Unaudited From
audited
financial
statements
ASSETS:
CURRENT ASSETS
Cash and equivalents $18,026 $20,059
Accounts receivable-net 5,902 7,169
Prepaid expenses and other current assets 1,826 1,543
Refundable income taxes 1,215 1,215
Deferred income taxes 133 338
--------- -----------
Total current assets 27,102 30,324
PROPERTY AND EQUIPMENT - NET 5,140 4,823
OTHER ASSETS 1,819 1,789
GOODWILL 675 675
--------- -----------
TOTAL $34,736 $37,611
========= ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES
Accounts payable and accrued expenses $4,154 $3,299
Accrued salaries, wages and related benefits 4,135 3,567
Income and other taxes 1,329 1,363
Current portion of long-term obligations 663 663
--------- -----------
Total current liabilities 10,281 8,892
DEFERRED INCOME TAXES 1,152 1,357
LONG-TERM OBLIGATIONS 314 548
STOCKHOLDERS' EQUITY 22,989 26,814
--------- -----------
TOTAL $34,736 $37,611
========= ===========
CONTACT: Innodata Isogen
Steven L. Ford, 201-371-2510
sford@innodata-isogen.com