Exhibit 99.1
Innodata Isogen Reports 74% Growth in
Q3 2007 Revenues
-- Earnings Per Share of $0.08 in Q3 2007
-- Raises Guidance for Q4 2007
-- Expects Solid Performance in 2008
NEW YORK--(BUSINESS WIRE)--Nov. 14, 2007--INNODATA ISOGEN, INC.
(NASDAQ: INOD), today announced revenues of $18,138,000 for the three
months ended September 30, 2007, up 74% from revenues of $10,400,000
in the third quarter of 2006 and up 11% from revenues of $16,347,000
in the second quarter of 2007.
The company reported net income of $2,115,000, or $0.08 per
diluted share, for the third quarter of 2007, up 145% from net income
of $862,000, or $0.03 per diluted share, for the second quarter of
2007, and compared with a net loss of $2,196,000, or $0.09 per diluted
share, for the third quarter of 2006.
For the first nine months of 2007, revenues were $47,214,000, up
55% from revenues of $30,406,000 for the first nine months of 2006.
The company earned $2,334,000, or $0.09 per diluted share, for the
first nine months of 2007, compared with a loss of $6,494,000, or
$0.27 per diluted share, for the first nine months of 2006.
The company generated $2.6 million in cash from operations in the
third quarter of 2007 and ended the quarter with $12.1 million in
cash.
"As a result of solid execution and strong client demand, we are
now anticipating more than 75% year-over-year revenue growth in the
second half of 2007," said Jack Abuhoff, chairman and CEO of Innodata
Isogen. "We anticipate that our momentum will continue to produce
solid year-over-year results in 2008.
"That the company was able to drive the $7.7 million revenue
increase in the third quarter of this year versus last year, with only
a minimal increase in SG&A and a $3.7 million increase in operating
expense, shows the leveragability of our business model," Abuhoff
continued. "But more significantly, we have improved revenue quality.
Our revenue growth is now dominated by knowledge process outsourcing,
which has higher switching costs, greater barriers to entry and is
less susceptible to commoditization."
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:
1-888-668-1637 (Domestic)
1-913-312-9321 (International)
1-888-203-1112 (Domestic Replay)
1-719-457-0820 (International Replay)
Pass code on replay only: 1074684
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 (IAOP) "Global Outsourcing Top 100."
Headquartered in Northern New Jersey, Innodata Isogen has more
than 5,000 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 Ended Nine Months Ended
------------------ -----------------
September 30 September 30
------------------ -----------------
2007 2006 2007 2006
--------- -------- -------- --------
REVENUES $18,138 $10,400 $47,214 $30,406
--------- -------- -------- --------
OPERATING COSTS AND EXPENSES:
Direct operating expenses 12,508 8,851 34,522 25,749
Selling and administrative
expenses 3,553 3,347 10,547 10,900
Restructuring costs - 554 - 554
Interest income - net (205) (192) (467) (504)
--------- -------- -------- --------
Total 15,856 12,560 44,602 36,699
--------- -------- -------- --------
INCOME (LOSS) BEFORE
PROVISION FOR INCOME TAXES 2,282 (2,160) 2,612 (6,293)
PROVISION FOR INCOME TAXES 167 36 278 201
--------- -------- -------- --------
NET INCOME (LOSS) $ 2,115 $(2,196) $ 2,334 $(6,494)
========= ======== ======== ========
BASIC INCOME (LOSS) PER SHARE $ .09 $ (.09) $ .10 $ (.27)
========= ======== ======== ========
DILUTED INCOME (LOSS) PER SHARE $ .08 $ (.09) $ .09 $ (.27)
========= ======== ======== ========
WEIGHTED AVERAGE BASIC SHARES
OUTSTANDING 24,122 24,050 23,994 24,057
========= ======== ======== ========
WEIGHTED AVERAGE DILUTED SHARES
OUTSTANDING 25,559 24,050 25,118 24,057
========= ======== ======== ========
INNODATA ISOGEN, INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September December
30, 31,
2007 2006
----------- -----------
Unaudited Derived
from
audited
financial
statements
ASSETS:
CURRENT ASSETS
Cash and equivalents $12,133 $13,597
Accounts receivable-net 11,301 6,484
Prepaid expenses and other current assets 1,935 1,589
Refundable income taxes 15 1,062
Deferred income taxes 405 190
----------- -----------
Total current assets 25,789 22,922
PROPERTY AND EQUIPMENT - NET 6,483 4,564
OTHER ASSETS 1,855 1,912
DEFERRED INCOME TAXES 202 256
GOODWILL 675 675
----------- -----------
TOTAL $35,004 $30,329
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 991 $ 987
Accrued expenses 2,670 2,117
Accrued salaries, wages and related benefits 6,346 4,259
Income and other taxes 1,668 1,295
Current portion of long term obligations 451 632
----------- -----------
Total current liabilities 12,126 9,290
----------- -----------
DEFERRED INCOME TAXES 1,332 1,126
----------- -----------
LONG TERM OBLIGATIONS 1,444 904
----------- -----------
STOCKHOLDERS' EQUITY 20,102 19,009
----------- -----------
TOTAL $35,004 $30,329
=========== ===========
CONTACT: Innodata Isogen, Inc.
Steven L. Ford, 201-371-2510
Chief Financial Officer
sford@innodata-isogen.com