iGO Reports Third Quarter 2013 Financial Results
SCOTTSDALE, Ariz., Nov. 7, 2013 (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, 2013.
Revenue was $3.4 million for the third quarter of 2013, compared with $7.9
million for the same period of the prior year. The decline in revenue is
primarily attributable to lower sales of power products.
Net loss was $4.8 million, or ($1.65) per share, in the third quarter of 2013,
compared with a net loss of $1.8 million, or ($0.64) per share, in the same
quarter of the prior year.
As of September 30, 2013, the Company had $9.3 million in cash, cash
equivalents, and short-term investments, and no debt.
Following is a breakdown of year-over-year revenue trends in the Company's
major product categories:
*Power products – Sales of power products were $2.9 million for the third
quarter of 2013, compared with $6.2 million for the third quarter of 2012.
*Audio products – Sales of audio products were $339,000 for the third
quarter of 2013, compared with $643,000 for the third quarter of 2012.
*Rechargeable alkaline batteries – Sales of rechargeable alkaline batteries
were $149,000 for the third quarter of 2013, compared with $645,000 for
the third quarter of 2012.
Gross margin for the third quarter of 2013 was (13.8)%, compared with 19.0%
for the third quarter of 2012. The decrease in gross margin is primarily due
to increased warranty charges, increased inventory write downs, and labor and
overhead costs being spread over reduced revenue compared to the same quarter
of the prior year.
Total operating expenses were $4.4 million in the third quarter of 2013,
compared with $3.3 million in the third quarter of 2012. The increase is
primarily due to severance and transaction expenses related to the change of
control that occurred during the third quarter of 2013.
About iGO, Inc.
iGO, Inc. offers a full line of innovative accessories for almost every mobile
electronic device on the market. Whether consumers want to power, protect,
listen to, share, cool, hold or connect to their devices, iGO has the
accessories they need.
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
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. 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; 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 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; and
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.
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 Annual Report on Form
10-K for the year ended December 31, 2012 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)
Three months ended
Revenue $3,429 $7,931
Gross profit (474) 1,507
Sales and marketing 657 1,123
Research and development 511 484
General and administrative 3,204 1,684
Total operating expenses 4,372 3,291
Loss from operations (4,846) (1,784)
Interest income (expense), net 1 3
Other income (expense), net 46 (49)
Net loss $(4,799) $(1,830)
Basic and diluted net loss per share* $(1.65) $(0.64)
Basic and diluted weighted average common shares 2,917 2,866
*September 2012 common stock and per share information
has been retroactively restated to reflect the 1-for-12
reverse stock split, effective January 28, 2013.
iGo, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
September 30, December 31,
Cash and cash equivalents $7,208 $8,229
Short-term investments 2,138 2,129
Accounts receivable, net 1,144 4,131
Inventories 3,355 8,376
Prepaid expenses and other current assets 355 336
Total current assets 14,200 23,201
Other assets, net 575 1,664
Total assets $14,775 $24,865
LIABILITIES AND EQUITY
Liabilities, excluding deferred revenue $2,420 $3,494
Deferred revenue 40 307
Total liabilities 2,460 3,801
Total stockholders' equity 12,315 21,064
Total liabilities and equity $14,775 $24,865
CONTACT: Terry Gibson
iGO, Inc. Logo
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