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8-K - FORM 8-K - iGo, Inc. | c20973e8vk.htm |
Exhibit 99.1
CONTACT: | Tony Rossi Financial Profiles 310-478-2700 x13 trossi@finprofiles.com |
IGO REPORTS SECOND QUARTER 2011 FINANCIAL RESULTS
SCOTTSDALE, Ariz., August 4, 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 second quarter ending June 30, 2011.
Revenue was $10.8 million for the second quarter of 2011, an increase of 11% over revenue of $9.7
million in the same period of the prior year.
Net loss was $1.9 million, or ($0.06) per share, in the second quarter of 2011, compared with a net
loss of $400,000, or ($0.01) per share, in the same quarter of the prior year.
The Company had $16.0 million in cash, cash equivalents, and short-term investments, $15.3 million
in working capital (excluding cash, cash equivalents and short-term investments), and no debt as of
June 30, 2011.
Michael D. Heil, President and Chief Executive Officer of iGo, commented, We continue to make good
progress in expanding our distribution, including generating a significant increase in sales
through the wireless carrier channel in the second quarter of 2011. However, we have seen a more
rapid decline in sales to RadioShack than we anticipated and, as a result, we now expect our
revenue in the second half of 2011 to be roughly equivalent to our revenue in the first half of the
year.
We remain optimistic about our opportunities to grow the business over the long-term. We believe
that sales of our new audio products, protection products, and rechargeable alkaline batteries will
steadily grow over time, and licensing opportunities with our iGo Green® technology provides
another potential revenue stream. Accordingly, we have made adjustments to our organization in
order to align our business in a manner that allows us to better capitalize on the stronger growth
opportunities with our new product categories. As we diversify our revenue mix beyond power
products, we believe we will be a stronger, healthier company with an improved ability to drive sustainable sales and earnings
growth in the future, said Mr. Heil.
- more -
iGo, Inc.
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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
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 our revenue in the second half of
2011 will be roughly equivalent to our revenue in the first half of 2011, expectations regarding
opportunities to grow the business over the long-term, the belief that sales of our new audio
products, protection products, and rechargeable alkaline batteries will steadily grow over time,
the belief that licensing opportunities with our iGo Green® technology will provide another
potential revenue stream for the Company, and the belief that as we diversify our revenue mix
beyond power products, we will be a stronger, healthier company with an improved ability to drive
sustainable sales and earnings growth in the future. 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, namely Walmart and RadioShack; 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 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; increased focus of
consumer electronics retailers on their own private label brands; decreasing sales prices on our
products over their sales cycles; our ability to expand our revenue base and develop new products
and product enhancements; our failure to integrate
iGo, Inc.
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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.
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 | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net revenue |
$ | 10,831 | $ | 9,748 | $ | 20,059 | $ | 17,916 | ||||||||
Gross profit |
2,800 | 3,312 | 5,659 | 5,963 | ||||||||||||
Selling, engineering and
administrative expenses |
4,810 | 3,809 | 9,359 | 7,536 | ||||||||||||
Loss from operations |
(2,010 | ) | (497 | ) | (3,700 | ) | (1,573 | ) | ||||||||
Interest income (expense), net |
21 | 40 | 42 | 96 | ||||||||||||
Other income (expense), net |
50 | 57 | 80 | 1,846 | ||||||||||||
Net income (loss) |
$ | (1,939 | ) | $ | (400 | ) | $ | (3,578 | ) | $ | 369 | |||||
Net income (loss) per share: |
||||||||||||||||
Basic |
$ | (0.06 | ) | $ | (0.01 | ) | $ | (0.11 | ) | $ | 0.01 | |||||
Diluted |
$ | (0.06 | ) | $ | (0.01 | ) | $ | (0.11 | ) | $ | 0.01 | |||||
Weighted avg common shares outstanding: |
||||||||||||||||
Basic |
33,315 | 32,750 | 33,170 | 32,654 | ||||||||||||
Diluted |
33,315 | 32,750 | 33,170 | 33,965 |
iGo, Inc.
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iGo, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(000s)
(unaudited)
Condensed Consolidated Balance Sheets
(000s)
(unaudited)
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 6,974 | $ | 9,942 | ||||
Short-term investments |
9,020 | 14,532 | ||||||
Accounts receivable, net |
7,126 | 8,620 | ||||||
Inventories |
14,283 | 10,307 | ||||||
Prepaid expenses and other current
assets |
828 | 460 | ||||||
Total current assets |
38,231 | 43,861 | ||||||
Other assets, net |
8,222 | 6,312 | ||||||
Total assets |
$ | 46,453 | $ | 50,173 | ||||
LIABILITIES AND EQUITY |
||||||||
Liabilities, excluding deferred revenue |
$ | 6,272 | $ | 6,037 | ||||
Deferred revenue |
706 | 1,838 | ||||||
Total liabilities |
6,978 | 7,875 | ||||||
Total stockholders equity |
39,475 | 42,298 | ||||||
Total liabilities
and equity |
$ | 46,453 | $ | 50,173 | ||||
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