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8-K - FORM 8-K - iGo, Inc. | p18850e8vk.htm |
Exhibit 99.1
For Immediate Release
CONTACT:
|
Tony Rossi Financial Profiles 310-478-2700 x13 trossi@finprofiles.com |
IGO REPORTS FIRST QUARTER 2011 FINANCIAL RESULTS
SCOTTSDALE, Ariz., May 5, 2011 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 first quarter ending March 31, 2011.
Revenue was $9.2 million for the first quarter of 2011, an increase of 13% over revenue of $8.2
million in the same period of the prior year.
Net loss was $1.6 million, or ($0.05) per share, in the first quarter of 2011, compared with net
income of $769,000, or $0.02 per share, in the same quarter of the prior year. Financial results
for the first quarter of 2010 were positively impacted by the recognition of a $1.7 million gain
related to the reversal of a valuation allowance on a note receivable that was subsequently paid in
full.
The Companys financial position remained strong with $23.3 million in cash, cash equivalents, and
short-term investments, $11.0 million in working capital (excluding cash, cash equivalents and
short-term investments), and no debt as of March 31, 2011.
Michael D. Heil, President and Chief Executive Officer of iGo, commented, Our first quarter
financial results were in-line with our expectations and reflect our seasonally weakest quarter of
the year. We are pleased that we were able to generate strong year-over-year revenue growth
despite a significant decline in sales to RadioShack. We were able to more than offset this
decline through growth in our other retail accounts and sales of our new audio products and mobile
electronic device accessories. We believe several positive trends will enable us to generate
strong year-over revenue growth in 2011, while improving our level of profitability, particularly
in the seasonally stronger third and fourth quarters of the year.
About iGo, Inc.
iGo, Inc. offers a full line of innovative accessories for almost every mobile electronic device on
the market. Whether a consumer wants to power, protect, listen to, share, cool, hold or connect to
their device, iGo has the accessories they need. iGo is also a leader in developing eco-friendly
power solutions based on its patented iGo Green® technology, which automatically reduces the
- more -
iGO, Inc.
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wasteful and expensive standby, or vampire, power consumed by electronic devices.
iGos 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 the company will generate strong
year-over-year revenue growth in 2011 and the belief that its level of profitability will improve
in the third and fourth quarters of the year. These forward-looking statements are based largely
on managements expectations and involve known and unknown risks, uncertainties and other factors,
which may cause the Companys 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, our dependence on large
purchases from significant customers; our ability to expand and diversify our customer base; our
reliance upon Walmart and RadioShack, as well as other distributors and resellers; our ability to
expand our revenue base and develop new products and product enhancements; the sufficiency of our
revenue to absorb expenses; fluctuations in our operating results because of: increases in product
costs from our supplies, 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; increased focus on consumer electronics retailers on their own private label
brands; 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;
our ability to manage our anticipated growth; our ability to manage our inventory levels; 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; 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.
iGO, Inc.
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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
Companys Annual Report on Form 10-K for the year ended December 31, 2010 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.
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iGo, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(000s except per share data)
(unaudited)
Condensed Consolidated Statements of Operations
(000s except per share data)
(unaudited)
Three months ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Net revenue |
$ | 9,228 | $ | 8,168 | ||||
Gross profit |
2,859 | 2,651 | ||||||
Selling, engineering and administrative expenses |
4,549 | 3,726 | ||||||
Loss from operations |
(1,690 | ) | (1,075 | ) | ||||
Interest income (expense), net |
21 | 56 | ||||||
Other income (expense), net |
30 | 1,788 | ||||||
Net income (loss) |
$ | (1,639 | ) | $ | 769 | |||
Net income (loss) per share: |
||||||||
Basic |
$ | (0.05 | ) | $ | 0.02 | |||
Diluted |
$ | (0.05 | ) | $ | 0.02 | |||
Weighted avg common shares outstanding: |
||||||||
Basic |
33,026 | 32,558 | ||||||
Diluted |
33,026 | 33,634 |
iGO, Inc.
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iGo, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(000s)
(unaudited)
Condensed Consolidated Balance Sheets
(000s)
(unaudited)
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 16,399 | $ | 9,942 | ||||
Short-term investments |
6,923 | 14,532 | ||||||
Accounts receivable, net |
4,350 | 8,620 | ||||||
Inventories |
12,169 | 10,307 | ||||||
Prepaid expenses and other current assets |
787 | 460 | ||||||
Total current assets |
40,628 | 43,861 | ||||||
Other assets, net |
6,689 | 6,312 | ||||||
Total assets |
$ | 47,317 | $ | 50,173 | ||||
LIABILITIES AND EQUITY |
||||||||
Liabilities, excluding deferred revenue |
$ | 5,933 | $ | 6,037 | ||||
Deferred revenue |
568 | 1,838 | ||||||
Total liabilities |
6,501 | 7,875 | ||||||
Total stockholders equity |
40,816 | 42,298 | ||||||
Total liabilities and equity |
$ | 47,317 | $ | 50,173 | ||||
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