Exhibit 99.1
Innodata Isogen Reports 2006 Fourth Quarter and Year-End Results and
Improved Outlook for 2007
NEW YORK--(BUSINESS WIRE)--March 8, 2007--Innodata Isogen, Inc.
(NASDAQ: INOD), a leading provider of content-related IT and BPO
services, today announced financial results for the fourth quarter and
the 12 months ended December 31, 2006 and its improved 2007 outlook.
The company reported a net loss of $829,000, or $0.03 per diluted
share, for the fourth quarter of 2006, compared with a net loss of
$558,000, or $0.02 per diluted share, for the fourth quarter of 2005.
Revenues for the fourth quarter of 2006 were $10,547,000, slightly
higher than revenues of $10,400,000 for the third quarter of 2006, but
$558,000 lower than revenues of $11,105,000 for the fourth quarter of
2005.
For the twelve months ended December 31, 2006, the company
recorded a net loss of $7,323,000, or $0.30 per diluted share,
compared to a net loss of $1,651,000, or $0.07 per diluted share in
2005. Revenues for all of 2006 were $40,953,000 versus $42,052,000 in
2005.
The company's cash position was $13,597,000 at December 31, 2006,
compared with $20,059,000 at the end of 2005.
"For 2007, we are anticipating solid revenue growth in the first
quarter and continued improvement in the second quarter," said Jack
Abuhoff, chairman and CEO of Innodata Isogen, Inc. "Over the last
year, we have made substantial investments in our new business
development capability. These investments and our careful cost
management should also drive better year-over-year results."
Abuhoff concluded, "Our clients are continuing to invest
significantly in digital information and are relying on our offerings
of technology systems and outsourcing services to lower the costs of
their initiatives."
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:
The call-in numbers for the conference call are:
1-800-811-8824 (Domestic)
1-913-981-4903 (International)
1-888-203-1112 (Domestic Replay)
1-719-457-0820 (International Replay)
Pass code on replay only: 5458696
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 Magazine 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 Year Ended
------------------- -----------------
December 31 December 31
------------------- -----------------
2006 2005 2006 2005
---------- -------- -------- --------
REVENUES $10,547 $11,105 $40,953 $42,052
---------- -------- -------- --------
OPERATING COSTS AND EXPENSES:
Direct operating expenses 8,392 7,948 34,141 30,920
Selling and administrative
expenses 3,384 3,917 14,284 13,684
Restructuring costs 50 - 604 -
Interest (income) - net (172) (130) (676) (439)
---------- -------- -------- --------
Total 11,654 11,735 48,353 44,165
---------- -------- -------- --------
LOSS BEFORE BENEFIT FROM
INCOME TAXES (1,107) (630) (7,400) (2,113)
BENEFIT FROM INCOME TAXES (278) (72) (77) (462)
---------- -------- -------- --------
NET LOSS $ (829) $ (558) $(7,323) $(1,651)
========== ======== ======== ========
BASIC AND DILUTED LOSS PER SHARE $ (.03) $ (.02) $ (.30) $ (.07)
========== ======== ======== ========
WEIGHTED AVERAGE SHARES
OUTSTANDING 23,913 23,267 24,021 23,009
========== ======== ======== ========
INNODATA ISOGEN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2006 AND 2005
(Dollars in Thousands)
December 31, December 31,
2006 2005
-------------- --------------
Unaudited From audited
financial
statements
ASSETS:
CURRENT ASSETS
Cash and cash equivalents $ 13,597 $20,059
Accounts receivable-net 6,484 7,169
Prepaid expenses and other current
assets 1,589 1,543
Refundable income taxes 1,062 1,215
Deferred income taxes 190 338
-------------- --------------
Total current assets 22,922 30,324
PROPERTY AND EQUIPMENT - NET 4,564 4,823
OTHER ASSETS 1,912 1,789
DEFERRED INCOME TAXES 256 -
GOODWILL 675 675
-------------- --------------
TOTAL $ 30,329 $37,611
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 3,104 $ 3,299
Accrued salaries, wages and related
benefits 4,259 3,567
Income and other taxes 1,295 1,363
Current portion of long-term
obligations 632 663
-------------- --------------
Total current liabilities 9,290 8,892
-------------- --------------
DEFERRED INCOME TAXES 1,126 1,357
-------------- --------------
LONG-TERM OBLIGATIONS 904 548
-------------- --------------
STOCKHOLDERS' EQUITY 19,009 26,814
-------------- --------------
TOTAL $ 30,329 $37,611
============== ==============
CONTACT: Innodata Isogen, Inc.
Steven L. Ford, Chief Financial Officer, 201-371-2510
sford@innodata-isogen.com