Innodata Isogen (NASDAQ:INOD) Reports 4Q and FY 2009 Results

Innodata Isogen Inc announced results for the fourth quarter ended December 31 2009 and fiscal year 2009

-- Total revenue was 168 million for the fourth quarter of 2009 a decrease of 12% from third quarter revenue of 191 million

-- Gross profit was 27 million for the fourth quarter of 2009 a decrease of 52% from third quarter gross profit of 57 million

-- SGA was 59 million for the fourth quarter of 2009 an increase of 57% from third quarter SGA of 37 million

-- The company generated a net loss of 768000 or 003 per diluted share compared to net earnings in the third quarter of 13 million or 005 per diluted share

-- For the fiscal year ended December 31 2009 revenue was 793 million in 2009 up 6% from 2008 Net income was 73 million or 028 per diluted share up 10% from 2008

-- The companys balance sheet continues to be strong with net assets of 41 million and cash and cash equivalents of 265 million as of December 31 2009 compared to net assets of 293 million and cash and cash equivalents of 139 million as of December 31 2008

Our disappointing performance in the fourth quarter reflects the impact of the cancellation of a major project we announced last week for which we incurred approximately 450000 in unreimbursed costs in the quarter the establishment of a 12 million reserve for receivables from another client which impacted our selling and administrative expenses and the non-recognition of 430000 in fourth quarter revenues from this client and 09 million of other increases in selling and administrative expenses that are primarily one-time or end of year related These negative results were offset in part by approximately 24 million of income tax benefits said Jack Abuhoff Chairman and CEO of Innodata Isogen

While it will take some time to fully redeploy our resources from the cancelled project to other client activities we are working hard to make 2010 another year of profitable growth for Innodata Isogen (Market Watch)