Innodata Isogen Inc. : Innodata Reports First Quarter 2013 Results

      Innodata Isogen Inc. : Innodata Reports First Quarter 2013 Results


NEW YORK  - April  25, 2013  -  INNODATA INC.  (NASDAQ: INOD)  today  reported 
results for the first quarter ended March 31, 2013.

  *Total revenue  was $16.9  million in  the first  quarter of  2013, an  11% 
    sequential decline from $19.0 million in the fourth quarter of 2012 and  a 
    33% decline from $25.1 million in the first quarter of 2012. 

  *Net earnings for the first quarter of 2013 were $0.3 million, or $0.01 per
    diluted share, compared with  net earnings of $0.7  million, or $0.03  per 
    diluted share, in the  fourth quarter of 2012.  Net earnings in the  first 
    quarter of 2012 were $3.4 million, or $0.13 per diluted share. 

  *Cash, cash equivalents and investments were $30.7 million as of March  31, 
    2013, compared to $28.5 million as of December 31, 2012. As of March  31, 
    2013, the Company had no debt, and stockholders' equity was $50.8 million.

Jack Abuhoff, the Company's Chairman and  CEO, said, "Among the highlights  of 
our content services work this quarter are the continued expansion of both our
foreign language and interactive e-book capabilities and a successful  project 
to help a  major customer  launch its Japanese  e-book store.  The decline  in 
revenue for the quarter,  which was expected, reflects  the fluctuations of  a 
project-based  business.  Our  relationships   and  reputation  with   leading 
companies in our industry  continue to strengthen, positioning  us to take  on 
large projects that can move revenue quickly in the opposite direction.

"From a strategic perspective and for the benefit of our public investors,  we 
are investing significantly in building our  new IADS segment and its  Synodex 
medical  data  analytics  subsidiary  which   we  believe  may  provide   more 
predictable revenue.  In  2012, we  invested  about $9.5  million  in  Synodex 
consisting of $7.5 million in operating  expenses and $2.0 million in  capital 
expense, and our net  earnings for the first  quarter takes into account  $1.1 
million of Synodex pre-operating cost, net of revenue. After about six  months 
of marketing, we  have a significant  "pipeline" of active  prospects for  our 
Synodex  business,  which  includes  several  of  the  largest  insurance  and 
reinsurance companies. Even more importantly, we announced earlier this  month 
that one of our first  quarter pilots resulted in  a two-year contract with  a 
Fortune 1000 company. With a large addressable market, we believe this win  is 
a proof of concept and a  powerful indication that meaningful revenue may  lie 
in front of us."

Abuhoff added, "We are forecasting second quarter revenue to be in a range  of 
$15.5 million to $17 million."

Timing of Conference Call with Q&A

Innodata   will   conduct   an   earnings   conference   call,   including   a 
question-and-answer  period,  at  11:00  AM  eastern  time  today.  You   can 
participate in this call by dialing the following call-in numbers:

The call-in numbers for the conference call are:


1-888-203-1112(Domestic Replay) 
1-719-457-0820(International Replay)

Pass code on both: 7761757

Investors are also invited to access a live Webcast of the conference call at
the Investor Relations section of 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

Innodata(NASDAQ: INOD)is a leading provider of business process, information
technology and professional services to publishers, information providers, and
other enterprises  that are  focused on  digital enablement.  Clients  include 
leading media,  publishing  and information  services  companies, as  well  as 
enterprises that  are  prominent  in  information  technology,  manufacturing, 
aerospace, defense,  financial  services, government,  healthcare,  insurance, 
intelligence, manufacturing and law.

Recent Innodata  honors  include  Content  Magazine's  EContent  100,  KMWorld 
Magazine's  100   Companies  That   Matter   in  Knowledge   Management,   the 
International  Association   of  Outsourcing   Professionals'  (IAOP)   Global 
Outsourcing Top 100, D&B India's Leading ITeS and BPO Companies and the  Black 
Book of Outsourcing's Top List ofLeading Outsourcing Providers to the Printing
and Publishing Business.

Headquartered in the New York metro area, Innodata has offices and  operations 
in the United States,  the United Kingdom, Israel,  India, Sri Lanka, and  the 

This release contains forward-looking statements that are made pursuant to the
safe harbor  provisions of  the Private  Securities Litigation  Reform Act  of 
1995. The  words  "project,"  "head  start,"  "believe,"  "expect,"  "should," 
"anticipate," "indicate," "point  to," "forecast,"  "likely"and other  similar 
expressions generally identify forward-looking statements, which speak only as
of their dates.

These  forward-looking   statements  are   based   largely  on   our   current 
expectations, and  are  subject  to  a  number  of  risks  and  uncertainties, 
including without limitation, that contracts could be terminated by customers,
projected or committed volumes of work may not materialize; that our  Innodata 
Advanced Data Solutions segment has  not reported any substantial revenues  to 
date and is subject to the  risks and uncertainties of early-stage  companies; 
the primarily  at-will nature  of the  contracts with  our customers  and  the 
ability of customers to reduce,  delay or cancel projects; continuing  Content 
Services revenue concentration  in a limited  number of customers;  continuing 
Content Services reliance on project-based work; inability to replace projects
that are completed, cancelled or reduced; depressed market conditions; changes
in external market factors; the ability  and willingness of our customers  and 
prospective  customers  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, joint venture and strategic investments; potential  undiscovered 
liabilities of companies that  we acquire; changes in  our 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 our filings  with the Securities and  Exchange 

We undertake no  obligation to  update or review  any guidance  or changes  in 
status of customer contracts,  client relationships, or other  forward-looking 
information, whether as a  result of new  information, future developments  or 
otherwise. 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.

Company Contact
Raj Jain
Vice President
Innodata Inc.
(201) 371-8024


Media Contact
Stanley or Andrew Berger
SM Berger & Company
(216) 464-6400

(In thousands, except per-share amounts)

                                                   Three Months Ended
                                                        March 31,
                                                 2013               2012
Revenues                                      $   16,903    $   25,136
Operating costs and expenses:
 Direct operating expenses                            12,791            16,105
 Selling and administrative expenses                   4,624             5,400
 Interest income, net                                 (140)              (91)
                 Total                                17,275            21,414
Income (loss) before income taxes                      (372)             3,722
Provision for (benefit from) income
taxes                                                  (475)               908
Net income                                       103              2,814
Loss attributable to non-controlling
interests                                         213                618
Net income attributable to Innodata
Inc. and
 Subsidiaries                               $     316    $    3,432
Income per share attributable to
 Innodata Inc. and Subsidiaries:
 Basic                                      $     0.01  $     0.14
 Diluted                                    $     0.01  $     0.13
Weighted average shares outstanding:
 Basic                                                24,880            24,459
 Diluted                                              25,671            25,974
Net income attributable to
 Innodata Inc. and Subsidiaries               $    316   $    3,432
 Pension liability adjustment, net of
 taxes                                            18         8
 Change in fair value of derivatives,
 net of taxes                                     (9)        693
Comprehensive income attributable to
 Innodata Inc. and Subsidiaries               $    325   $    4,133

                        INNODATA INC. AND SUBSIDIARIES
                           (Dollars in thousands)

                                              March 31,        December 31,
                                                2013               2012
Current assets:
    Cash and cash equivalents                   $    
                                                   27,147  $     25,425
    Short term investments - other                   3,592       3,091    
    Accounts receivable, net                        10,240              14,317
    Prepaid expenses and other current
    assets                                           2,572               2,561
    Deferred income taxes                            1,241               1,104
           Total current assets                     44,792              46,498
Property and equipment, net                         11,527              10,656
Other assets                                         3,363               3,504
Deferred income taxes                                5,625               4,848
Goodwill                                               675                 675
           Total assets                         $    
                                                   65,982  $     66,181
Current liabilities:
    Accounts payable and accrued expenses     $     
                                                    4,288  $      4,100
    Accrued salaries, wages and related
    benefits                                         5,569               6,584
    Income and other taxes                           2,229               2,155
    Current portion of long-term                  
    obligations                                       643                 818
    Deferred income taxes                               41                  57
           Total current liabilities                12,770              13,714
Deferred income taxes                                  186                 182
Long-term obligations                                3,625               3,374
Non-controlling interests                          (1,426)             (1,598)
STOCKHOLDERS' EQUITY                                50,827              50,509
           Total liabilities and                $    
           stockholders' equity                    65,982  $     66,181


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Source: Innodata Isogen Inc. via Thomson Reuters ONE
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