Exhibit 99.1
Innodata Isogen Reports Second Quarter 2007 Results
-- Revenues Up 68% from Q2 2006, Up 28% from Q1 2007
-- Returns to Profitability
-- Anticipates Continued Revenue Growth in Second Half of 2007
-- Expects Sustained Financial Performance into 2008
NEW YORK--(BUSINESS WIRE)--Aug. 9, 2007--INNODATA ISOGEN, INC.
(NASDAQ: INOD), today announced revenues of $16,347,000 for the three
months ended June 30, 2007, up 68% from revenues of $9,721,000 in the
second quarter of 2006 and up 28% from revenues of $12,729,000 in the
first quarter of 2007.
The company reported net income of $862,000, or $0.03 per diluted
share, for the second quarter of 2007, versus a net loss of
$2,952,000, or $0.12 per diluted share, for the second quarter of 2006
and a net loss of $643,000, or $0.03 per diluted share, for the first
quarter of 2007.
For the first six months of 2007, revenues were $29,076,000, up
45% from revenues of $20,006,000 for the first six months of 2006; and
earnings of $219,000, or $0.01 per diluted share, for the first six
months of 2007, were up from a loss of $4,298,000, or $0.18 per
diluted share, for the first six months of 2006.
"We anticipate continued growth in revenues and sustained
profitability in coming quarters," said Jack Abuhoff, chairman and CEO
of Innodata Isogen. "For the second half of 2007, we are targeting a
65% increase in revenues over the second half of 2006 and a 15-20%
increase in revenues over the first half of 2007.
"Moreover, given increasing revenue levels and our considerable
operating leverage, we anticipate that we should continue to deliver
strong financial performance into 2008."
At June 30, 2007, the company had $11,208,000 in cash and
equivalents and no appreciable debt.
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:
1-877-704-5385 (Domestic)
1-913-312-1303 (International)
1-888-203-1112 (Domestic Replay)
1-719-457-0820 (International Replay)
Pass code on replay only: 4384228
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, Inc. (NASDAQ: INOD) is a leading provider of
knowledge process outsourcing (KPO) and information technology
services.
We work as a product development partner to our clients, helping
them meet their content creation and publishing challenges. We provide
outsourcing services that draw upon offshore global resources, proven
project management and highly engineered processes and tools. We also
help our clients improve their internal business operations with
information technology (IT) and systems engineering. Our clients
include leading enterprises in information-intensive industries such
as media, information services and publishing, technology,
manufacturing, aerospace, defense, government and intelligence.
2007 honors include EContent Magazine's "EContent 100", KMWorld
Magazine's "100 Companies That Matter", and International Association
of Outsourcing Professionals (IOAP) "Global Outsourcing Top 100".
Headquartered in Northern New Jersey, Innodata Isogen has more
than 6000 employees in offices and operations in the United States,
the Philippines, India, Sri Lanka, Israel, China and France.
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 Six Months Ended
Ended
----------------- -----------------
June 30 June 30
----------------- -----------------
2007 2006 2007 2006
-------- -------- -------- --------
REVENUES $16,347 $ 9,721 $29,076 $20,006
-------- -------- -------- --------
OPERATING COSTS AND EXPENSES:
Direct operating expenses 11,970 8,545 22,014 16,898
Selling and administrative
expenses 3,549 4,167 6,994 7,553
Interest (income) - net (125) (161) (262) (312)
-------- -------- -------- --------
Total 15,394 12,551 28,746 24,139
-------- -------- -------- --------
INCOME (LOSS) BEFORE
PROVISION FOR INCOME TAXES 953 (2,830) 330 (4,133)
PROVISION FOR INCOME TAXES 91 122 111 165
-------- -------- -------- --------
NET INCOME (LOSS) $ 862 $(2,952) $ 219 $(4,298)
======== ======== ======== ========
BASIC INCOME (LOSS) PER SHARE $ .04 $ (.12) $ .01 $ (.18)
======== ======== ======== ========
DILUTED INCOME (LOSS) PER SHARE $ .03 $ (.12) $ .01 $ (.18)
======== ======== ======== ========
WEIGHTED AVERAGE BASIC SHARES
OUTSTANDING 23,953 24,087 23,930 24,060
======== ======== ======== ========
WEIGHTED AVERAGE DILUTED SHARES
OUTSTANDING 25,051 24,087 24,897 24,060
======== ======== ======== ========
INNODATA ISOGEN, INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, 2007 December 31, 2006
Unaudited Derived from
audited
financial
statements
ASSETS:
CURRENT ASSETS
Cash and equivalents $ 11,208 $ 13,597
Accounts receivable-net 10,483 6,484
Prepaid expenses and other
current assets 1,835 1,589
Refundable income taxes 1,062 1,062
Deferred income taxes 298 190
-------------------- -----------------
Total current assets 24,886 22,922
PROPERTY AND EQUIPMENT - NET 5,141 4,564
OTHER ASSETS 2,027 1,912
DEFERRED INCOME TAXES 257 256
GOODWILL 675 675
-------------------- -----------------
TOTAL $ 32,986 $ 30,329
==================== =================
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable $ 1,202 $ 987
Accrued expenses 2,290 2,117
Accrued salaries, wages and
related benefits 5,586 4,259
Income and other taxes 1,548 1,295
Current portion of long-term
obligations 481 632
-------------------- -----------------
Total current liabilities 11,107 9,290
-------------------- -----------------
DEFERRED INCOME TAXES 1,209 1,126
-------------------- -----------------
LONG-TERM OBLIGATIONS 1,244 904
-------------------- -----------------
STOCKHOLDERS' EQUITY 19,426 19,009
-------------------- -----------------
TOTAL $ 32,986 $ 30,329
==================== =================
CONTACT: Innodata Isogen, Inc.
Steven L. Ford, CFO, 201-371-2510
sford@innodata-isogen.com