Innodata Isogen Reports Third Quarter 2009 Results
NEW YORK--(BUSINESS WIRE)--Nov. 5, 2009-- INNODATA ISOGEN, INC. (NASDAQ: INOD), today reported results for the third quarter ended September 30, 2009 and the first nine months of 2009.

•Total revenue was $19.1 million for the third quarter of 2009, an increase of 4% year over year, and lower than revenue of $21.6 million in the second quarter of 2009. The decline from the second quarter was primarily due to reduced business volume from one of Innodata Isogen’s two largest clients, partially offset by continued growth in other areas of the company’s business.
•Net income in the quarter was $1.3 million or $0.05 per diluted share, compared to $1.1 million, or $0.05 per diluted share, in the third quarter of 2008, and $3.2 million or $0.13 per diluted share in the second quarter of 2009. Earnings in the third quarter reflect the company’s lower revenue level, start-up costs of new projects, and increased investment in the company’s consulting and technology outsourcing practices.
•For the first nine months, revenue was $62.6 million, up 15% from revenue of $54.6 million in the first nine months of 2008. Net income was $8.1 million, or $0.32 per diluted share, up substantially from net income of $2.0 million, or $0.08 per diluted share, in the first nine months of 2008.
•Cash from operations for the first nine months of 2009 was a record $12.9 million, an increase of $9.2 million from $3.7 million for the first nine months of 2008. During the first nine months of the fiscal year, the company’s cash and cash equivalents doubled, increasing from $13.9 million at December 31, 2008 to $27.9 million at September 30, 2009.
“While revenue from one of our largest clients was down considerably in the quarter, we were able to partially offset this decline with solid growth in other areas of the business,” said Jack Abuhoff, Chairman and CEO of Innodata Isogen. “We expect that work for this client may accelerate after its budgets for 2010 are approved.”

Abuhoff continued, "For the fourth quarter, we expect revenue essentially in line with the third quarter, as growth in the overall business continues to offset declines in volume from the one large client. Beyond the fourth quarter, we expect to see the revenue impact of significant new business bookings achieved in the second half of 2009, expanding contributions from our consulting and information technology outsourcing areas into which we are investing this year for growth, and likely increasing requirements from many of our existing clients. On this basis, we believe that we are poised for an exciting 2010 that brings growth and increased client diversification.”