BUENA, NJ November 16, 2007 - IGI, INC. (AMEX: IG) announces business highlights and third quarter 2007 financial results.
Highlights:
Nine months ended September 30, 2007 Financial Results
Total revenues increased $870,000 or 42% from $2,056,000 for the nine months ended September 30, 2006 to $2,926,000 for the nine months ended September 30, 2007. Product sales increased 34% primarily as a result of the Company’s ability to package and fill the products we manufacture for our customers and sales of new products developed by the Company. Our research and development revenues increased by 276% resulting from recognition of the product development revenue received from DermWorx Incorporated for the 2% Salicylic Acid product and several other new products developed for new and existing customers. The decrease in royalty revenue of 11% was related to a decline in royalties from Johnson & Johnson and Estee Lauder in 2007.
Total costs and expenses for the Company increased 13% for the nine months ended September 30, 2007 compared to September 30, 2006. The increase in total costs and expenses substantially related to an increase in costs of goods sold from improved product sales offset by a better absorption of fixed costs in 2007. There was also a decrease in selling, general and administration expenses as a result of the Company’s continuing efforts to curtail costs, we were able to reduce professional fees.
The total net loss of the Company for the nine months ended September 30, 2007 was $687,000, which represents a decrease in net loss of $644,000 compared to the nine months ended September 30, 2006. The decrease in net loss relates to the increase in revenues.
Fourth Quarter Targets
Net revenues for the fourth quarter are expected to be between $1.7 and $2.2 million, an increase of at least 70% over third quarter. Operating profits are expected to be between $155,000 and $407,000. Total net income, including income from sales of our Net Operating Loss carry forwards are expected to be between $600,000 and $890,000. We are also working to regain compliance with our American Stock Exchange Listing Standards through an equity transaction and fourth quarter net income; however, there can be no assurance that we will be able to complete such a transaction or generate the necessary income to regain compliance.
This report contains forward-looking statements relating to IGI's hopes and expectations for the future. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "will," "possible," "one time," "provides an opportunity," "continue" and similar expressions are intended to identify forward-looking statements. Such statements involve a number of risks and uncertainties and actual future events and results could differ materially from those indicated by such forward-looking statements due to general economic conditions, and the risk factors detailed in IGI's periodic reports and registration statements filed with the Securities and Exchange Commission.
IGI, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share information)
(Unaudited)
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Three months ended September 30, |
Nine months ended September 30, |
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2007 |
2006 |
2007 |
2006 |
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Revenues: |
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Product sales, net |
$ 520 |
$ 537 |
$ 1,865 |
$ 1393 |
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R&D Revenues |
252 |
1 |
520 |
164 |
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R&D Revenue- related party |
77 |
- |
97 |
- |
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Licensing and royalty income |
156 |
120 |
444 |
499 |
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Total revenues |
1,005 |
658 |
2,926 |
2,056 |
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Cost and expenses: |
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Cost of sales |
494 |
401 |
1,632 |
1,092 |
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Selling, general and administrative expenses |
469 |
447 |
1,651 |
1,324 |
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Product development and research expenses |
135 |
253 |
360 |
814 |
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Operating loss |
(93) |
(443) |
(717) |
(1,174) |
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Interest expense (net) |
(12) |
(29) |
(39) |
(99) |
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Other income
|
- |
- |
64 |
- |
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Loss from continuing operations |
(105) |
(472) |
(692) |
(1,273) |
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Gain (loss) from discontinued operations |
- |
(38) |
5 |
(58) |
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Net loss |
$ (105) |
$ (510) |
$ (687) |
$ (1,331) |
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Basic and Diluted Loss Per Share |
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Continued operations net loss per share |
$ (.01) |
$ (.04) |
$ (.05) |
$ (.10) |
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Discontinued operations net income (loss) per share |
- |
- |
- |
- |
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Net loss per share |
$ (.01) |
$ (.04) |
$ (.05) |
$ (.10) |
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Weighted Average of Common Stock and Common Stock Equivalents Outstanding |
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Basic and diluted |
14,612,899 |
12,888,186 |
14,210,812 |
12,767,341 |
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September 30, 2007 (unaudited) |
December 31, 2006 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ 134 |
$ 619 |
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Restricted cash |
50 |
50 |
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Accounts receivable, less allowance for doubtful accounts of $33 in 2007 and $ 34 in 2006 |
374 |
197 |
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Accounts receivable- related party |
51 |
- |
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Licensing and royalty income receivable |
146 |
91 |
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Inventories |
522 |
485 |
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Prepaid expenses and other current assets |
81 |
45 |
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Assets of discontinued operations held for sale |
- |
350 |
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Total current assets |
1,358 |
1,837 |
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Property, plant and equipment, net |
2,379 |
2,396 |
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License fee, net |
825 |
900 |
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Other assets |
- |
10 |
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Total assets |
$ 4,562 |
$ 5,143 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Note payable – related party |
$ 500 |
$ 1,145 |
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Note payable |
- |
306 |
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Accounts payable |
428 |
505 |
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Accrued expenses |
361 |
417 |
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Deferred income, current |
191 |
400 |
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Liabilities of discontinued operations |
- |
118 |
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Total current liabilities |
1,480 |
2,891 |
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Deferred income |
46 |
59 |
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Total liabilities |
1,526 |
2,950 |
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Stockholders’ equity: |
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Common stock $.01 par value, 50,000,000 shares authorized; 16,578,639 and 15,056,516 shares issued in 2007 and 2006, respectively |
166 |
151 |
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Additional paid-in capital |
27,084 |
25,569 |
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Accumulated deficit |
(22,819) |
(22,132) |
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Less treasury stock, 1,965,740 shares at cost |
(1,395) |
(1,395) |
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Total stockholders’ equity |
3,036 |
2,193 |
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Total liabilities and stockholders’ equity |
$ 4,562 |
$ 5,143 |
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Contact:
Rajiv Mathur President & Chief Executive Officer IGI, Inc. 856-697-1441 ext. 211 www.askigi.com