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8-K - FORM 8-K - iGo, Inc. | p18731e8vk.htm |
Exhibit 99
CONTACTS:
|
Tony Rossi | |
Financial Profiles | ||
310-478-2700 x13 | ||
trossi@finprofiles.com |
IGO REPORTS FOURTH QUARTER 2010 FINANCIAL RESULTS
SCOTTSDALE, Ariz., March 10, 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 fourth quarter ending December 31, 2010.
Revenue was $13.2 million for the fourth quarter of 2010, an increase of 33% over revenue of $9.9
million in the same period of the prior year. Revenue in the fourth quarter of 2010 was positively
impacted by the recognition of $1.6 million in deferred revenue related to sales to Walmart.
Net income was $416,000, or $0.01 per share, in the fourth quarter of 2010, compared with net
income of $109,000, or $0.00 per share, in the same quarter of the prior year.
The Companys financial position remained strong with $24.5 million in cash, cash equivalents, and
short-term investments, $11.5 million in working capital (excluding cash, cash equivalents and
short-term investments), and no debt as of December 31, 2010.
Recent Developments
| Showcased more than 40 new products at the 2011 International CES including new charging solutions, pocket projectors, noise-cancelling headphones and other accessories for mobile electronic devices | ||
| Received first international patents related to iGo Green® technology | ||
| Entered rechargeable alkaline battery market through strategic partnership with PureEnergy Solutions |
Michael D. Heil, President and Chief Executive Officer of iGo, commented, Our strong revenue
growth in the fourth quarter reflects the impact of our expanded product portfolio and the
expansion of key retail relationships. We continue to execute on our strategy of product expansion
through our recent entrance into the rechargeable alkaline battery market. This new product line
is an excellent strategic fit with our existing portfolio and provides another catalyst for growing
our business in the years ahead. We are also on schedule with the development of an integrated
chip based on our iGo Green technology, which we continue to expect to be completed during the
fourth quarter of 2011.
-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 belief that the new rechargeable alkaline battery
product line provides another catalyst for growing the business in the years ahead; and the
expectation that the development of the integrated chip based on iGo Green technology will be
completed during the fourth quarter of 2011. 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 a significant customer;
our ability to expand and diversify our customer base; our reliance upon RadioShack and Walmart, 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, 2009 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 | Year ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
As recast* | As recast* | |||||||||||||||
Net revenue |
$ | 13,220 | $ | 9,919 | $ | 43,357 | $ | 48,944 | ||||||||
Gross profit |
4,407 | 3,248 | 14,410 | 15,168 | ||||||||||||
Selling, engineering and administrative expenses |
5,020 | 3,568 | 16,924 | 16,606 | ||||||||||||
Loss from operations |
(613 | ) | (320 | ) | (2,514 | ) | (1,438 | ) | ||||||||
Interest income (expense), net |
24 | 52 | 171 | 235 | ||||||||||||
Other income (expense), net |
238 | 143 | 2,176 | 506 | ||||||||||||
Loss before income tax benefit |
(351 | ) | (125 | ) | (167 | ) | (697 | ) | ||||||||
Income tax benefit |
767 | 234 | 1,002 | 234 | ||||||||||||
Net income (loss) |
$ | 416 | $ | 109 | $ | 835 | $ | (463 | ) | |||||||
Net income (loss) per share: |
||||||||||||||||
Basic |
$ | 0.01 | $ | 0.00 | $ | 0.03 | $ | (0.01 | ) | |||||||
Diluted |
$ | 0.01 | $ | 0.00 | $ | 0.02 | $ | (0.01 | ) | |||||||
Weighted average common shares outstanding: |
||||||||||||||||
Basic |
32,889 | 32,412 | 32,770 | 32,310 | ||||||||||||
Diluted |
35,199 | 33,921 | 35,081 | 32,310 |
* | Effective January 1, 2010, the Company determined it was no longer the primary beneficiary of Mission Technology Group. Accordingly, the results of Mission have been removed from the 2009 financial information. |
iGo, Inc.
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iGo, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(000s)
(unaudited)
Condensed Consolidated Balance Sheets
(000s)
(unaudited)
December 31, | ||||||||
2010 | 2009 | |||||||
As recast* | ||||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 9,942 | $ | 19,775 | ||||
Short-term investments |
14,532 | 12,777 | ||||||
Accounts receivable, net |
8,620 | 5,109 | ||||||
Inventories |
10,307 | 5,964 | ||||||
Prepaid expenses and other current assets |
460 | 401 | ||||||
Total current assets |
43,861 | 44,026 | ||||||
Other assets, net |
6,312 | 2,151 | ||||||
Total assets |
$ | 50,173 | $ | 46,177 | ||||
LIABILITIES AND EQUITY |
||||||||
Liabilities, excluding deferred revenue |
$ | 6,037 | $ | 4,981 | ||||
Deferred revenue |
1,838 | 914 | ||||||
Total liabilities |
7,875 | 5,895 | ||||||
Total stockholders equity |
42,298 | 40,282 | ||||||
Total liabilities and equity |
$ | 50,173 | $ | 46,177 | ||||
* | Effective January 1, 2010, the Company determined it was no longer the primary beneficiary of Mission Technology Group. Accordingly, the results of Mission have been removed from the 2009 financial information. |
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