Exhibit 99.1
Innodata Isogen Reports Third Quarter 2006 Results
NEW YORK--(BUSINESS WIRE)--Nov. 2, 2006--INNODATA ISOGEN, INC.
(NASDAQ: INOD), a leading provider of content supply chain solutions,
today reported a net loss of $2,196,000 or $.09 per diluted share for
the third quarter of 2006, versus a net loss of $875,000 or $.04 per
diluted share, for the third quarter of 2005. The net loss in the
third quarter of 2006 included a restructuring charge of $554,000.
For the first nine months of 2006, the company lost $6,494,000,
inclusive of the $554,000 third quarter restructuring charge, or $.27
per diluted share. For the same period in 2005, the company lost
$1,093,000, or $.05 per diluted share.
Revenues were $10,400,000 in the third quarter of 2006, up from
revenues of $9,647,000 in the third quarter of 2005; and revenues were
$30,406,000 for the nine months ended September 30, 2006, down from
$30,947,000 for the same period last year.
Innodata Isogen's cash and equivalents were approximately
$15,284,000 at September 30, 2006 and the company carries virtually no
debt.
"We anticipate seeing continued sequential improvement in our
bottom line next quarter, due to a lower cost structure and a revenue
level that we anticipate will approximate that of the third quarter,"
said Jack Abuhoff, chairman and CEO of Innodata Isogen. "We are
continuing to invest in our sales team, expanding its size and
enhancing its capabilities to help drive revenue growth."
In accordance with a share repurchase plan announced in August,
2006, the company purchased 170,962 shares of its common stock on the
open market at a cost of $298,000, including commissions, during the
third quarter of 2006. The company intends to continue open market
purchases during the fourth quarter of 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:
1-800-817-4887 (Domestic)
1-913-981-4913 (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: 2797604
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 2006 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, continuation or
worsening of present depressed 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 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
------------------- -------------------
2006 2005 2006 2005
--------- --------- --------- ---------
REVENUES $ 10,400 $ 9,647 $ 30,406 $ 30,947
--------- --------- --------- ---------
OPERATING COSTS AND EXPENSES:
Direct operating expenses 8,851 7,272 25,749 22,972
Selling and administrative
expenses 3,347 3,677 10,900 9,767
Restructuring costs 554 - 554 -
Interest (income) - net (192) (114) (504) (309)
--------- --------- --------- ---------
Total 12,560 10,835 36,699 32,430
--------- --------- --------- ---------
LOSS BEFORE PROVISION FOR
(BENEFIT FROM)
INCOME TAXES (2,160) (1,188) (6,293) (1,483)
PROVISION FOR (BENEFIT FROM)
INCOME TAXES 36 (313) 201 (390)
--------- --------- --------- ---------
NET LOSS $ (2,196) $ (875) $ (6,494) $ (1,093)
========= ========= ========= =========
BASIC AND DILUTED LOSS PER
SHARE $ (.09) $ (.04) $ (.27) $ (.05)
========= ========= ========= =========
WEIGHTED AVERAGE SHARES
OUTSTANDING 24,050 23,165 24,057 22,922
========= ========= ========= =========
INNODATA ISOGEN, INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2006 2005
------------- -------------
Unaudited From audited
financial
statements
ASSETS:
CURRENT ASSETS
Cash and equivalents $ 15,284 $ 20,059
Accounts receivable-net 5,961 7,169
Prepaid expenses and other current
assets 1,801 1,543
Refundable income taxes 1,266 1,215
Deferred income taxes 104 338
------------- -------------
Total current assets 24,416 30,324
PROPERTY AND EQUIPMENT - NET 4,932 4,823
OTHER ASSETS 1,783 1,789
GOODWILL 675 675
------------- -------------
TOTAL $ 31,806 $ 37,611
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 3,332 $ 3,299
Accrued salaries, wages and related
benefits 4,633 3,567
Income and other taxes 1,339 1,363
Current portion of long-term obligations 637 663
------------- -------------
Total current liabilities 9,941 8,892
DEFERRED INCOME TAXES 1,122 1,357
LONG-TERM OBLIGATIONS 152 548
STOCKHOLDERS' EQUITY 20,591 26,814
------------- -------------
TOTAL $ 31,806 $ 37,611
============= =============
CONTACT: Innodata Isogen
Steven L. Ford, 201-371-2510
sford@innodata-isogen.com