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iGO Reports Third Quarter 2012 Financial Results



iGO Reports Third Quarter 2012 Financial Results

SCOTTSDALE, Ariz., Nov. 8, 2012 (GLOBE NEWSWIRE) -- iGO, Inc. (Nasdaq:IGOI), a
leading provider of eco-friendly power management solutions and accessories
for mobile electronic devices, today reported financial results for the third
quarter ending September 30, 2012.

Revenue was $7.9 million for the third quarter of 2012, compared with $9.7
million in the same period of the prior year.  The decline in revenue is
primarily attributable to lower sales of power and audio products, partially
offset by an increase in sales of rechargeable alkaline batteries. Compared to
the second quarter of 2012, total revenue increased $639,000, or 9%, primarily
due to higher sales of power products and rechargeable alkaline batteries.

Net loss was $1.8 million, or ($0.05) per share, in the third quarter of 2012,
compared with a net loss of $2.2 million, or ($0.07) per share, in the same
quarter of the prior year. The decline in net loss was primarily attributable
to a reduction in operating expenses. Compared to the second quarter of 2012,
net loss was reduced by $1.7 million, primarily due to higher revenues, lower
operating expenses, and the absence of significant non-recurring charges.

The Company had $11.4 million in cash, cash equivalents, and short-term
investments, and no debt as of September 30, 2012. 

Michael D. Heil, President and Chief Executive Officer of iGO, commented, "Our
total revenues increased 9% compared to the prior quarter, but we have not
made sufficient progress towards profitability. Accordingly, we are in the
process of an organizational review designed to better align our cost
structure with our current revenue base.  We are also developing new device
power products in response to market trends and we are aggressively pursuing
new distribution relationships that can generate additional revenue growth;
however, we expect the most significant driver of improved financial results
in the near-term will come from reductions in our operating expense levels."

Financial Review

Following is a breakdown of year-over-year revenue trends in the Company's
major product categories:

  * Power products – Sales of power products were $6.2 million for the third
    quarter of 2012, compared with $7.5 million for the third quarter of
    2011. The decline was primarily due to lower sales in the retail channel.
     
  * Audio products – Sales of audio products were $643,000 for the third
    quarter of 2012, compared with $1.3 million for the third quarter of
    2011. The decline was primarily due to reduced sales to the specialty
    retail channel.
     
  * Rechargeable alkaline batteries – Sales of rechargeable alkaline batteries
    were $645,000 for the third quarter of 2012, compared with $428,000 for
    the third quarter of 2011. The increase was primarily due to increased
    distribution in Europe and North America.

Gross margin for the third quarter of 2012 was 19.0%, compared with 22.0% in
the third quarter of 2011. The decline in gross margin is primarily due to the
lower level of sales and more competitive pricing for power products in the
retail channel.

Total operating expenses were $3.3 million in the third quarter of 2012,
compared with $4.4 million in the third quarter of 2011. The decline is
primarily attributable to lower sales and marketing expense.

iGO Green® Technology Chip Development

iGO continues to work with Texas Instruments on the collaborative development
of an integrated circuit based on iGO Green® technology. Based on the latest
information provided by the joint development team, the Company now expects
that the integrated circuit will be released to manufacturing no sooner than
the second quarter of 2013.

About iGO, Inc.

iGO has been a leader in the mobile accessories industry since 1995, offering
premium power solutions for laptop computers and electronic mobile devices
that enhance the possibility of living life fully charged. iGO's universal
chargers, batteries, and audio accessories offer support and performance that
elevates the mobile consumer experience.

iGO's products are available at www.igo.com as well as through leading
resellers and retailers. For additional information call 480-596-0061, or
visit www.igo.com.

iGO is a registered trademark of iGO, Inc. All other trademarks or registered
trademarks are the property of their respective owners.

This press release contains "forward-looking statements" within the meaning of
Section 21E of the Securities Exchange Act of 1934. The words "believe,"
"expect," "anticipate," "should," and other similar statements of our
expectation identify forward-looking statements. Forward-looking statements in
this press release include the expectation that improvements in the Company's
financial results in the near-term will be primarily driven by reductions in
operating expense levels; and the expectation that the integrated circuit
being developed with Texas Instruments will be released to manufacturing no
sooner than the second quarter of 2013. These forward-looking statements are
based largely on management's expectations and involve known and unknown
risks, uncertainties and other factors, which may cause the Company's actual
results, performance or achievements, or industry results, to be materially
different from any future results, performance or achievements expressed or
implied by these forward-looking statements. Risks that could cause results to
differ materially from those expressed in these forward-looking statements
include, among others, the sufficiency of our revenue to absorb expenses; our
dependence on large purchases from significant customers; our ability to
expand and diversify our customer base; increased focus of consumer
electronics retailers on their own private label brands; our ability to expand
our revenue base and develop new products and product enhancements;
fluctuations in our operating results because of: increases in product costs
from our suppliers, our suppliers' ability to perform, the timing of new
product and technology introductions and product enhancements relative to our
competitors, market acceptance of our products, the size and timing of
customer orders, our ability to effectively manage inventory levels, delay or
failure to fulfill orders for our products on a timely basis, distribution of
or changes in our revenue among distribution partners and retailers, our
inability to accurately forecast our contract manufacturing needs,
difficulties with new product production implementation or supply chain,
product defects and other product quality problems, the degree and rate of
growth in our markets and the accompanying demand for our products, our
ability to expand our internal and external sales forces and build the
required infrastructure to meet anticipated growth, and seasonality of sales;
our ability to manage our inventory levels; decreasing sales prices on our
products over their sales cycles; our failure to integrate acquired
businesses, products and technologies; our reliance on and the risk relating
to outsourced manufacturing fulfillment of our products, including potential
increases in manufacturing costs; the negative impacts of product returns;
design and performance issues with our products; liability claims; our failure
to expand or protect our proprietary rights and intellectual property;
intellectual property infringement claims against us; our ability to hire and
retain qualified personnel; our ability to secure additional financing to meet
our future capital needs; increased competition and/or reduced demand in our
industry; our failure to comply with domestic and international laws and
regulations; economic conditions, political events, war, terrorism, public
health issues, natural disasters and similar circumstances; that our common
stock could be delisted from the NASDAQ Capital Market; volatility in our
stock price; concentration of stock ownership among our executive officers and
principal stockholders; provisions in our certificate of incorporation, bylaws
and Delaware law, as well as our stockholder rights plan, that could make a
proposed acquisition of the Company more difficult; and dilution resulting
from potential future stock issuances.

Additionally, other factors that could cause actual results to differ
materially from those set forth in, contemplated by, or underlying these
forward-looking statements are included in the Company's Quarterly Report on
Form 10-Q for the quarter ended September 30, 2012 and the Company's Annual
Report on Form 10-K for the year ended December 31, 2011 under the heading
"Risk Factors." In light of these risks and uncertainties, the forward-looking
statements contained in this press release may not prove to be accurate. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, or any facts, events, or circumstances after the
date hereof that may bear upon forward-looking statements. Additionally, the
Company does not undertake any responsibility to update you on the occurrence
of unanticipated events which may cause actual results to differ from those
expressed or implied by these forward-looking statements.

iGO, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(000's except per share data)
(unaudited)
                                                                     
                                                         Three months ended
                                                         September 30, 
                                                         2012       2011
                                                                     
                                                                     
Net revenue                                               $ 7,931    $ 9,666
                                                                     
Gross profit                                              1,507      2,124
                                                                     
Selling, engineering and administrative expenses          3,291      4,375
 Loss from operations                                     (1,784)    (2,251)
Interest income (expense), net                            3          13
Other income (expense), net                               (49)       7
Net loss                                                  $ (1,830)  $ (2,231)
                                                                     
Basic and diluted net loss per share                      $ (0.05)   $ (0.07)
                                                                     
Basic and diluted weighted average common shares          34,388     33,566
outstanding

iGO, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(000's)
(unaudited)
                                                         
                                          September 30, December 31,
                                          2012          2011
                                                         
ASSETS                                                   
                                                         
Cash and cash equivalents                  $ 9,267       $ 10,290
Short-term investments                     $ 2,126       4,890
Accounts receivable, net                   $ 4,227       5,813
Inventories                                $ 9,539       11,177
Prepaid expenses and other current assets  $ 558         540
Total current assets                       25,717        32,710
Other assets, net                          3,596         4,568
Total assets                               $ 29,313      $ 37,278
                                                         
                                                         
LIABILITIES AND EQUITY                                   
                                                         
Liabilities, excluding deferred revenue    $ 4,446       $ 5,106
Deferred revenue                           511           1,305
Total liabilities                          4,957         6,411
                                                         
Total stockholders' equity                 24,356        30,867
                                                         
Total liabilities and equity               $ 29,313      $ 37,278

CONTACT: Tony Rossi
         Financial Profiles
         310-478-2700 x13
         trossi@finprofiles.com
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