Exhibit 99.1
Innodata Isogen Reports First Quarter 2007 Results
-- Revenues Up 24% from 2006 First Quarter
NEW YORK--(BUSINESS WIRE)--May 10, 2007--INNODATA ISOGEN, INC.
(NASDAQ: INOD), a leading provider of content-related IT and BPO
solutions, today announced revenues of $12,729,000 for the three
months ended March 31, 2007, up 24% from revenues of $10,285,000 in
the first quarter of 2006.
The company reported a net loss of $643,000, or $0.03 per diluted
share, for the first quarter of 2007, versus a net loss of $1,346,000
or $0.06 per diluted share, for the first quarter of 2006.
For the second quarter of 2007, the company expects to achieve an
approximately 50% increase in revenues over the second quarter of
2006, and it anticipates that its financial performance will continue
to improve in the second half of 2007. Based on business that the
company has secured to date, 2007 revenues could potentially exceed
2006 revenues by more than 20%.
Jack Abuhoff, chairman and CEO of Innodata Isogen, said, "Our
revamped organizational structure is in full swing and we are
concentrating strongly on expanding our franchise with high-profile
clients."
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:
1-877-704-5378 (Domestic)
1-913-312-1292 (International)
1-888-203-1112 (Domestic Replay)
1-719-457-0820 (International Replay)
Pass code on Replay only: 3696284
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 and
manage 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.
In addition, Innodata Isogen was also recently ranked as a leading
provider of specialized BPO services by the International Association
of Outsourcing Professionals (IOAP) on its annual Global Outsourcing
100 top list.
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,
2007 2006
-------- --------
REVENUES $12,729 $10,285
-------- --------
OPERATING COSTS AND EXPENSES:
Direct operating expenses 10,044 8,353
Selling and administrative expenses 3,445 3,386
Interest (income) - net (137) (151)
-------- --------
Total 13,352 11,588
-------- --------
LOSS BEFORE PROVISION FOR INCOME TAXES (623) (1,303)
PROVISION FOR INCOME TAXES 20 43
-------- --------
NET LOSS $ (643) $(1,346)
======== ========
BASIC AND DILUTED LOSS PER SHARE $ (.03) $ (.06)
======== ========
WEIGHTED AVERAGE SHARES OUTSTANDING 23,906 24,033
======== ========
INNODATA ISOGEN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in Thousands)
March 31, December 31,
2007 2006
------------- --------------
Unaudited Derived from
audited
financial
statements
ASSETS
CURRENT ASSETS:
Cash and equivalents $12,462 $13,597
Accounts receivable-net 7,893 6,484
Prepaid expenses and other current
assets 1,657 1,589
Refundable income taxes 1,062 1,062
Deferred income taxes 213 190
------------- --------------
Total current assets 23,287 22,922
PROPERTY AND EQUIPMENT - NET 4,562 4,564
OTHER ASSETS 1,849 1,912
DEFERRED INCOME TAXES 256 256
GOODWILL 675 675
------------- --------------
TOTAL $30,629 $30,329
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 1,273 $ 987
Accrued expenses 2,116 2,117
Accrued salaries, wages and related
benefits 4,715 4,259
Income and other taxes 1,448 1,295
Current portion of long term
obligations 518 632
------------- --------------
Total current liabilities 10,070 9,290
DEFERRED INCOME TAXES 1,143 1,126
LONG TERM OBLIGATIONS 1,011 904
STOCKHOLDERS' EQUITY 18,405 19,009
------------- --------------
TOTAL $30,629 $30,329
============= ==============
CONTACT: Innodata Isogen, Inc.
Steven L. Ford, 201-371-2510
Chief Financial Officer
sford@innodata-isogen.com