INNODATA Reports Third Quarter Results.BROOKLYN, N.Y.--(BUSINESS WIRE)--Nov. 13, 1997--INNODATA Corporation (NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NMS-INOD) today announced results for its third quarter ended September 30, 1997.
Revenues for the third quarter ended September 30, 1997 were $5,269,000, an increase of $318,000, or 6%, over the comparable period in 1996. Net loss for the 1997 period was $(1,278,000), or $(.28) per share, compared to a net loss of $(405,000) in the 1996 period, or $(.09) per share. The 1997 loss includes a charge of $1,000,000 for an unrealized loss Unrealized Loss
A loss that results from holding onto an asset rather than cashing it in and officially taking the loss.
Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on foreign currency forward contracts which are presently in dispute. In addition, no tax benefits have been provided in connection with the loss incurred in 1997.
Revenues for the nine months ended September 30, 1997 were $15,289,000, a decrease of $503,000, or 3%, from the comparable period in 1996. Net loss for the 1997 period was $(4,142,000), or $(.92) per share, compared to a net loss of $(67,000), or $(.01) per share, in the 1996 period. The 1997 loss includes a charge of $1,500,000 for restructuring costs and an asset impairment write-down and an unrealized loss on foreign currency forward contracts of $1,000,000. In addition, no tax benefits have been provided in connection with the loss incurred in 1997.
"Certainly we are pleased to report an increase in quarterly revenues over the comparable quarter of 1996," said Jack Abuhoff, Innodata's newly installed CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President. "However, losses continued as revenues are short of plan and have not been sufficient to justify the increased capacity investments.
"I am mounting a turnaround plan which is designed to lower our operating expenses Operating expenses
The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , better manage the costs associated with production, sales and overhead, and realign re·a·lign
tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns
1. To put back into proper order or alignment.
2. To make new groupings of or working arrangements between. sales and marketing resources to more aggressively pursue increased market share within our core business of data conversion and related services for the Internet.
"Toward this end, we have recently merged our east and west coast imaging operations and are in the process of migrating certain publishing-related production processes from the U.S. to Manila, reducing U.S. overhead without compromising our ability to seize future opportunity. In addition, we are opening a new production facility in India; implementing an enterprise-wide customer support application complete with a Web-based front-end to facilitate customer access to information; incorporating state-of-the-art OCR OCR
in full optical character recognition
Scanning and comparison technique intended to identify printed text or numerical data. It avoids the need to retype already printed material for data entry. production solutions; and completing ISO (1) See ISO speed.
(2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9000 certification in our Philippines production facility.
"In the fourth quarter we will continue to take aggressive steps to stabilize Innodata's business. Once these actions are behind us, we believe the stage will be set for restoring revenue growth and profitability in 1998."
INNODATA is a worldwide electronic publishing An umbrella term for non-paper publishing, which includes publishing online or on media such as CDs and DVDs. services company specializing in superior quality data conversion for Internet, CD-ROM CD-ROM: see compact disc.
in full compact disc read-only memory
Type of computer storage medium that is read optically (e.g., by a laser). , print and online database publishers around the globe. Services include all the necessary steps for product development and data capture: the highest accuracy data entry (99.995%+), OCR, SGML SGML
in full Standard Generalized Markup Language
Markup language for organizing and tagging elements of a document, including headings, paragraphs, tables, and graphics. and custom coding, hypertext linking, imaging and document management systems, page composition, copyediting, indexing and abstracting, and applications programming. The Company also offers medical transcription
Forward-looking statements in this release are made under the Safe Harbor Safe Harbor
1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.
2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Reform Act of 1996. These statements are based on current expectations and actual results may differ materially due to risks, uncertainties, and other factors. Additional information covering factors that could cause results to differ materially from projected statements can be found in Innodata's 10-K and 10-Q filings, as well as its annual report. -0-
FINANCIAL HIGHLIGHTS Three Months Ended September 30 1997 1996 ---- ---- Revenues $5,269,000 $4,951,000 Net loss (1,278,000) (a) (405,000) Loss per share $(.28) $(.09) Nine Months Ended September 30 1997 1996 ---- ---- Revenues $15,289,000 $15,792,000 Net loss (4,142,000) (a)(b) (67,000) Loss per share $(.92) $(.01) (a) Includes an unrealized loss of $1,000,000 on foreign currency forward contracts. No tax benefits have been provided in connection with the loss incurred in 1997. (b) Includes restructuring costs and impairment write-down of $1,500,000.
CONTACT: Cindy Belmore
Investor Relations Investor relations
The process by which the corporation communicates with its investors.