Bli medlem
Bli medlem

Du är här

2016-11-01

Innodata Inc.: Innodata Reports Third Quarter 2016 Results

NEW YORK - November 1, 2016 - INNODATA INC. (NASDAQ: INOD)
today reported results for the third quarter and the nine months ended
September 30, 2016.

* Total revenue was $16.1 million in the third quarter of 2016, a 3% increase
from $15.6 million in the second quarter of 2016. Total revenue was $15.1
million in the third quarter of 2015.
* In the third quarter of 2016 the Company incurred a net loss of $2.8
million, or $(0.11) per diluted share, compared to a net loss of $1.8
million, or $(0.07) per diluted share, in the second quarter of 2016. Net
income in the third quarter of 2015 was $0.4 million, or $0.02 per diluted
share. The third quarter 2016 results were impacted by $1.6 million in
one-time costs and charges, consisting of a $1.0 million charge for an
amendment to potential supplemental purchase price payments under the
MediaMiser share purchase agreement, $220,000 in costs associated with an
internal investigation by the Company's audit committee that was reported
by the Company in its Form 10-Q for the second quarter, and $360,000 in
costs associated with the reorganization and integration of Agility within
the Company's Media Intelligence Solutions segment. Third quarter revenue
was benefited by $240,000 of one-time revenue that relates to the
acquisition of Agility.
* For the first nine months of 2016, total revenue was $47.4 million, an
increase of 10% from $43.0 million in the first nine months of 2015. Net
loss was $4.5 million, or $(0.18) per diluted share, in the first nine
months of 2016, compared to a net loss of $2.2 million, or $(0.09) per
diluted share, for the same period in 2015.

* Adjusted EBITDA (as defined below) was $(0.4) million in the third quarter
of 2016, compared to $(0.7) million in the second quarter of 2016. Adjusted
EBITDA was $1.7 million in the third quarter of 2015.
* Cash, cash equivalents and investments were $17.3 million at September 30,
2016 compared to $24.9 million at December 31, 2015. Cash used in the third
quarter includes $4.1 million paid for the acquisition of Agility.

Jack Abuhoff, Chairman and CEO, said, "Revenue for our Digital Data Solutions
(formerly Content Services) segment was $12.1 million compared to $13.2
million in the second quarter, primarily as a result of a key client for our
eBook services reducing its requirements for certain eBook services and
pricing concessions extended to another key client. In our IADS Synodex
business, we commenced production for an additional insurance company.
Revenue for the entire segment was $1 million compared to $1,170,000 last
quarter primarily on account of a $160,000 decrease in docGenix revenue.
Revenue in our Media Intelligence Solutions (MIS) segment was $3 million in
the third quarter, of which $1.8 million is attributable to Agility.

"We achieved our targeted 10% Adjusted EBITDA this quarter in MIS before
considering one-time integration and restructuring costs, and are combining
the Agility and MediaMiser businesses in order to compete in the estimated $1
billion combined market for media contact management and media monitoring
solutions. Except for $240,000 of revenue that relates to the acquisition of
Agiity, we regard almost all of the revenue in our MIS business as recurring.
In this quarter we regard approximately 80% of our total revenue as
recurring."

Abuhoff concluded, "We anticipate third quarter revenue to be in the range of
$14.7 - $15.8 million, consisting of DDS revenue in the range of $11.3 -
$12.0 million, IADS revenue in the range of $1.0 - $1.2 million and MIS
revenue in the range of $2.4 - $2.6 million."

Non-GAAP Financial Measures
This press release and the accompanying tables include references to Adjusted
EBITDA, which is a non-GAAP financial measure. We define Adjusted EBITDA as
net income (loss) attributable to Innodata Inc. and subsidiaries in
accordance with GAAP before income taxes, depreciation, amortization of
intangible assets, changes in fair value of contingent consideration,
stock-based compensation, loss attributable to non-controlling interests and
interest income (expense). We believe Adjusted EBITDA is useful to our
management and investors in evaluating our operating performance and for
financial and operational decision-making purposes. In particular, it
facilitates comparisons of the core operating performance of our company from
period to period on a consistent basis and helps us identify underlying
trends in our business. We believe it provides useful information about our
operating results, enhances the overall understanding of our past performance
and future prospects, and allows for greater transparency with respect to key
metrics used by management in our financial and operational decision making.
We use this measure to establish operational goals for managing our business
and evaluating our performance.

Adjusted EBITDA has limitations as an analytical tool and should not be
considered in isolation or as a substitute for results reported under GAAP.
Some of these limitations are:

* Adjusted EBITDA does not reflect tax payments, and such payments reflect a
reduction in cash available to us;
* Adjusted EBITDA does not reflect changes in, or cash requirements for, our
working capital needs or for our cash expenditures or future requirements
for capital expenditures or contractual commitments;
* Adjusted EBITDA excludes the potential dilutive impact of stock-based
compensation expense related to our workforce, interest income (expense)
and net loss attributable to non-controlling interests, and these items may
represent a reduction or increase in cash available to us;
* Although depreciation and amortization are non-cash charges, the assets
being depreciated and amortized may have to be replaced in the future, and
Adjusted EBITDA does not reflect cash capital expenditure requirements for
such replacements or for new capital expenditure requirements; and
* Other companies, including companies in our own industry, may calculate
Adjusted EBITDA differently than we do, limiting its usefulness as a
comparative measure.

Because of these limitations, Adjusted EBITDA should be considered alongside
other financial performance measures, including various cash flow metrics,
net income (loss) and our other GAAP results.

A reconciliation from net loss to Adjusted EBITDA is attached to this release.

Timing of Conference Call with Q&A

Innodata will conduct an earnings conference call, including a
question-and-answer period, at 11:00 AM eastern time today. You can
participate in this call by dialing the following call-in numbers:

The call-in numbers for the conference call are:

1-800-894-5910 (Domestic)
1-785-424-1052 (International)

1-888-203-1112 (Domestic Replay)
1-719-457-0820 (International Replay)

Pass code on both: 6808319

Investors are also invited to access a live Webcast of the conference call at
the Investor Relations section ofwww.innodata.com. Please note that the
Webcast feature will be in listen-only mode.

Call-in or Webcast replay will be available for 30 days following the
conference call.

About Innodata
Innodata(NASDAQ: INOD)
is a global digital services and solutions company. Innodata's technology and
services power leading information products and online retail destinations
around the world. Innodata's solutions help prestigious enterprises harness
the power of digital data to re-imagine how they operate and drive
performance. Innodata serves publishers, media and information companies,
digital retailers, banks, insurance companies, government agencies and many
other industries.

Founded in 1988, Innodata comprises a team of 5,000 diverse people in 8
countries who are dedicated to delivering services and solutions that help
the world's businesses make better decisions.

Recent Innodata honors include EContent Magazine's EContent 100, KMWorld
Magazine's 100 Companies That Matter in Knowledge Management, the
International Association of Outsourcing Professionals' (IAOP) Global
Outsourcing Top 100, D&B India's Leading ITeS and BPO Companies and the Black
Book of Outsourcing's Top List of Leading Outsourcing Providers to the
Printing and Publishing Business.

Forward Looking Statement

This release contains forward-looking statements that are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. The words "project," "head start," "believe," "expect," "should,"
"anticipate," "indicate," "point to," "forecast," "likely," "goals,"
"optimistic," "foster" and other similar expressions generally identify
forward-looking statements, which speak only as of their dates.

These forward-looking statements are based largely on our current expectations
and are subject to a number of risks and uncertainties, including without
limitation, that contracts may be terminated by clients; projected or
committed volumes of work may not materialize; our Innodata Advanced Data
Solutions ("IADS") segment is a venture formed in 2011 that has incurred
losses since inception and has recorded impairment charges for all of its
fixed assets; we currently intend to continue to invest in IADS; the
primarily at-will nature of contracts with our Digital Data Solutions clients
and the ability of these clients to reduce, delay or cancel projects;
continuing Digital Data Solutions segment revenue concentration in a limited
number of clients; continuing Digital Data Solutions segment reliance on
project-based work; inability to replace projects that are completed,
canceled or reduced; difficulty in integrating and deriving synergies from
acquisitions, joint venture and strategic investments; potential undiscovered
liabilities of companies and businesses that we may acquire; depressed market
conditions; changes in external market factors; the ability and willingness
of our clients and prospective clients to execute business plans which give
rise to requirements for our services; changes in our business or growth
strategy; the emergence of new or growing competitors; various other
competitive and technological factors; and other risks and uncertainties
indicated from time to time in our filings with the Securities and Exchange
Commission.

Our 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 will occur.

We undertake no obligation to update or review any guidance or other
forward-looking information, whether as a result of new information, future
developments or otherwise.

Company Contact

Raj Jain
Vice President
Innodata Inc.
rjain@innodata...

Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.