Innodata Isogen Inc. : Innodata Reports Second Quarter 2013 Results
NEW YORK - July 25, 2013 - INNODATA INC. (NASDAQ: INOD) today reported results
for the second quarter and the six months ended June 30, 2013.
*Total revenue was $16.2 million for the second quarter of 2013, a 4%
sequential decline from $16.9 million in the first quarter of 2013. Total
revenue was $22.8 million during the second quarter of 2012.
*In the second quarter of 2013 we incurred a net loss of $0.1 million, or
less than $0.01 per diluted share, compared to net earnings of $0.3
million, or $0.01 per diluted share, in the first quarter of 2013. Net
earnings in the second quarter of 2012 were $2.1 million, or $0.08 per
*For the first six months in 2013, revenues were $33 million, down 31% from
$48 million in the first six months of 2012. Net earnings were $0.2
million, or $0.01 per diluted share during the first six months of 2013,
compared with net earnings of $5.5 million, or $0.21 per diluted share for
the similar period in 2012.
*Cash, cash equivalents and investments were $27.2 million at June 30, 2013
compared to $28.5 million at December 31, 2012. As of June 30, 2013, the
Company had no debt and stockholders' equity was $49.7 million.
Jack Abuhoff, the Company's Chairman and CEO, said, "Revenues in our IADS
segment declined from the first quarter by $500,000 to $0.2 million primarily
because of the completion of two one-time projects in the first quarter.
Project volume fluctuations resulted in a $200,000 decline to $16 million from
the first quarter in revenues of our Content Services segment. Pre-operating
costs in our Synodex subsidiary were $2 million in the second quarter.
"We believe that our collective patience and perseverance in building the new
Synodex business line will pay off in the end. At the same time, we are
mindful of the investment we are making and the need to manage our cost
structure carefully. For that reason, we have reduced our cost structure by
approximately $6 million in annualized costs over the past 12 months,
including approximately $2 million of annualized costs that we reduced in the
second quarter of 2013."
Abuhoff added, "We anticipate revenues in the third quarter of 2013 to be in
the range of $14 million to $16 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: 6507252
Investors are also invited to access a live Webcast of the conference call at
the Investor Relations section of www.innodata.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
Innodata (NASDAQ: INOD) is a leading provider of business process, technology
and consulting services, as well as products and solutions, that help our
valued clients create, manage, use and distribute digital information.
Propelled by a culture of quality, service and innovation, we have developed
a client base that includes many of the world's preeminent media, publishing
and information services companies, as well as leading enterprises in
information-intensive industries such as aerospace, defense, financial
services, government, healthcare, high technology, insurance, intelligence,
manufacturing and law.
Recent honors include EContent 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", "optimistic"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 our Innodata Advanced Data Solutions
segment is subject to the risks and uncertainties of early-stage companies;
the primarily at-will nature of the Company's contracts with its Content
Services segment customers and the ability of the customers to reduce, delay
or cancel projects; continuing Content Services segment revenue concentration
in a limited number of customers; continuing Content Services segment 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 ventures 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 Commission. Actual results may differ
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.
Stanley or Andrew Berger
SM Berger & Company
INNODATA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except per-share amounts)
INNODATA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Innodata Isogen Inc. via Thomson Reuters ONE
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