(COMTEX) B: Innodata Announces Record Net Income, Revenues, and Opera
B: Innodata Announces Record Net Income, Revenues, and Operating Cash Flow for
Fourth Quarter and Fiscal Year Fourth Quarter EPS Climbs to $0.33 from $0.02 on
146% Revenue Growth
NEW YORK, Mar 7, 2001 (BUSINESS WIRE) -- INNODATA CORPORATION (NASDAQ: INOD), a
leading provider of digital content outsourcing services, today announced record
net income of $4,013,000, or $0.33 per diluted share, for the fourth quarter of
2000, versus net income of $268,000, or $0.02 per diluted share, for the fourth
quarter of 1999. At the same time, the Company announced record revenues of
$19,141,000 for the three months ended December 31, 2000, a 146% increase over
revenues of $7,780,000 for the same period in 1999.
Net income for the fiscal year ended December 31, 2000 nearly tripled to
$6,168,000, or $0.53 per diluted share, compared to $2,113,000, or $0.20 per
diluted share, for fiscal year 1999. Revenues for the fiscal year ended December
31, 2000 were a record $50,731,000, versus $27,490,000 for fiscal year 1999,
representing an 85% increase.
Cash provided by operations in 2000 was $12.4 million, or $1.06 per diluted
share, compared to $2.9 million, or $0.27 per diluted share, in 1999. The
Company also generated approximately $4.7 million of free cash flow (defined as
EBITDA minus capital expenditures and minus interest expense) for the year. The
Company's cash balance of $9.0 million at December 31, 2000 reflected an
increase of $5.6 million from its balance of $3.4 million at December 31, 1999.
The Company's $3 million revolving credit facility remains fully available. The
Company has no debt.
Commenting on the results, Jack Abuhoff, President and Chief Executive Officer,
said, "As we continue to execute our XML-driven strategy, we closed the fiscal
year with record revenues and record earnings that approach three times that of
a year ago. We are seeing clear evidence that the demand for large-scale,
customized XML services is growing at an increasing pace. Our strategic alliance
with Questia accounted for 71% of our fourth quarter revenues and demonstrates
the viability of our digital content outsourcing model for creating and managing
large-scale XML content.
"We are not managing our Company for sequential quarterly growth, and fully
expect sequential variations. However, the credibility we have achieved by our
Questia work is creating significant opportunities for additional large-scale
XML contracts that could ultimately reduce these variations and client
concentration. Equally important, we are continuing to find new ways to leverage
technology at our XML Content Factory(TM), and we are replicating the Content
Factory platform at two of our other facilities."
Mr. Abuhoff continued, "We generated strong free cash flow despite the fact that
we invested heavily in our technology. With a strong balance sheet, a proven
business model, multiple substantial contracts, and a first-mover strategy in
the XML conversion industry, we have built a solid foundation for the long-term
success of our business. We are well positioned to cultivate opportunities
consistent with our position as the leading provider of digital content
outsourcing services."
The Company will conduct an investor conference call at 11:00 AM EST today.
Interested parties can participate in this call by dialing (212) 346-0237. The
Company will also provide both live and replay coverage of the conference call
from its website, innodata.com.
Innodata is the premier provider of digital content outsourcing services. The
Company offers a "single solution" for companies needing to create high-value,
large-scale Web content. This approach empowers companies to become market
leaders by focusing on product development and marketing while partnering with
Innodata to build content. Innodata's digital content outsourcing services
include strategic and technical consulting for content initiatives across
multiple digital channels, content architecture services, data conversion,
metadata creation, and digital content management. Through its XML Content
Factory(TM), it builds large-scale XML-compliant information resources.
Innodata's clients range from leading Global 1000 companies to new media
companies, and include some of the largest and most prestigious publishers of
digital content. Its web site is innodata.com.
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 "believe," "expect," "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, changes in external market factors,
the ability of the Company's clients to continue to execute their business plans
which give rise to increased requirements for digital content services, changes
in the Company's business or growth strategy or an inability to execute its
strategy due to changes in its industry or the economy generally, the emergence
of new or growing competitors, various other competitive factors and other risks
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 in fact occur.
INNODATA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three months ended Year ended
December 31, December 31,
2000 1999 2000 1999
REVENUES $19,141,274 $7,780,450 $50,731,476 $27,490,138
----------- ---------- ----------- -----------
OPERATING COSTS
AND EXPENSES
Direct operating
costs 10,802,596 5,540,088 34,457,884 17,853,702
Selling and
administrative
expenses 2,339,385 1,862,643 7,247,901 6,783,313
Interest income
- net (58,386) (23,000) (111,523) (100,601)
--------- ----------- ----------- ----------
Total 13,083,595 7,379,731 41,594,262 24,536,414
---------- ----------- ----------- ----------
INCOME BEFORE
PROVISION
FOR INCOME
TAXES 6,057,679 400,719 9,137,214 2,953,724
PROVISION FOR
INCOME TAXES 2,045,000 132,450 2,969,000 841,000
---------- ----------- ----------- ----------
NET INCOME $4,012,679 $268,269 $6,168,214 $2,112,724
========== =========== =========== ==========
BASIC INCOME
PER SHARE $.38 $.03 $.61 $.23
==== ==== ==== ====
WEIGHTED AVERAGE
SHARES OUTSTANDING 10,465,019 9,940,058 10,130,822 9,350,744
========== =========== ============ =========
DILUTED INCOME
PER SHARE $.33 $.02 $.53 $.20
==== ==== ==== ====
ADJUSTED DILUTIVE
SHARES OUTSTANDING 12,200,072 11,367,816 11,638,991 10,646,876
========== ========== ========== ==========
INNODATA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31,
2000 1999
---- -----
ASSETS
CURRENT ASSETS:
Cash and equivalents $9,040,207 $3,380,242
Accounts receivable-net 5,799,102 5,247,428
Prepaid expenses
and other current assets 1,194,158 396,743
Deferred income taxes 839,000 540,000
------------ ------------
Total current assets 16,872,467 9,564,413
PROPERTY AND EQUIPMENT 9,464,056 4,891,992
OTHER ASSETS 1,609,514 1,189,472
--------- ---------
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion
of long-term debt $- $19,629
Accounts payable
and accrued expenses 3,196,112 1,553,585
Accrued salaries and wages 3,060,282 1,529,753
Income and other taxes 1,110,208 495,628
--------- ---------
Total current liabilities 7,366,602 3,598,595
LONG-TERM DEBT,
less current portion - 5,188
DEFERRED INCOME TAXES 1,263,000 390,000
STOCKHOLDERS' EQUITY 19,316,435 11,652,094
---------- ----------
$27,946,037 $15,645,877
=========== ===========
CONTACT: Lippert/Heilshorn Associates, Inc.
Jody Burfening/Ted Crawford, 212/838-3777
Jody@lhai.com/ted@lhai.com
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