BUENA, NJ May 10, 2007 - IGI, INC. (AMEX: IG) announces first quarter 2007 financial results.
Highlights:Total revenues increased $240,000, or 41% from $581,000 for the period ended March 31, 2006 to $821,000 for the period ended March 31, 2007. Product sales increased 65% as a result of an increase in sales volume to three of the Company's major customers for the three months ended March 31, 2007. The Company received additional purchase orders from one of these customers as a result of our packaging capabilities that began in 2007. Our research and development revenues increased by 157% as a result of an increase in product development services provided to our customers. The decline in royalty revenue of 24% was related to a decline in royalties from Johnson & Johnson and Estee Lauder in 2007.
Total costs and expenses for the Company increased 20% for the period ended March 31, 2007 compared to March 31, 2006. The increase in costs was substantially related to the increase in costs of goods sold as a result of the product mix having a lower gross margin for the period ended March 31, 2007. There was also an increase in selling, general and administration expenses relating to stock option expense, salaries, and consulting fees.
The total net loss of the Company for the period ended March 31, 2007 was $410,000, which represents a decrease in net loss of $42,000 compared to the period ended March 31, 2006. The decrease in net loss relates to the increase in revenues offset by the increase in costs for the period ended March 31, 2007.
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)
|
Three months ended March 31, |
|
|
2007 |
2006 |
Revenues: |
|
|
Revenues, net |
$ 681 |
$ 396 |
Licensing and royalty income |
140 |
185 |
Total revenues |
821 |
581 |
|
|
|
Cost and expenses: |
|
|
Cost of sales |
516 |
258 |
Selling, general and administrative expenses |
585 |
457 |
Product development and research expenses |
111 |
291 |
Operating loss |
(391) |
(425) |
Interest income (expense) |
(19) |
(42) |
Other income |
- |
24 |
|
|
|
Loss from continuing operations |
(410) |
(443) |
Loss from discontinued operations |
- |
(9) |
|
|
|
|
|
|
Net loss |
$ (410) |
$ (452) |
|
|
|
| Basic and Diluted Loss Per Common Share |
|
|
Continued operations net loss per share |
$ (.03) |
$ (.04) |
Discontinued operations net loss per share |
- |
- |
|
|
|
Net loss per share |
$ (.03) |
$ (.04) |
|
|
|
| Weighted Average of Common Stock and Common Stock Equivalents Outstanding |
|
|
Basic and Diluted |
13,393,234 |
12,632,604 |
|
|
|
IGI, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share information)
|
March 31, 2007 |
December 31, 2006 |
||
|
|
|
||
| ASSETS |
|
|
||
Current assets: |
|
|
||
Cash and cash equivalents |
$ 353 |
$ 619 |
||
Restricted cash |
50 |
50 |
||
Accounts receivable, less allowance for doubtful accounts |
|
|
||
of $33 and $34 in 2007 and 2006, respectively |
433 |
197 |
||
Licensing and royalty income receivable |
83 |
91 |
||
Inventories |
472 |
485 |
||
Prepaid expenses and other current assets |
110 |
45 |
||
Assets of discontinued operations held for sale |
350 |
350 |
||
Total current assets |
1,851 |
1,837 |
||
Property, plant and equipment, net |
2,437 |
2,396 |
||
License fee, net |
875 |
900 |
||
Other assets |
8 |
10 |
||
Total assets |
$ 5,171 |
$ 5,143 |
||
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
||
Current liabilities: |
|
|
||
Accounts payable |
$ 285 |
$ 505 |
||
Accrued expenses |
452 |
417 |
||
Note payable- related party |
- |
1,145 |
||
Note payable |
500 |
306 |
||
Deferred income, current |
403 |
400 |
||
Advance on sale of equipment of discontinued operations |
130 |
- |
||
Liabilities of discontinued operations |
118 |
118 |
||
Total current liabilities |
1,888 |
2,891 |
||
Deferred income |
41 |
59 |
||
Total liabilities |
1,929 |
2,950 |
||
|
|
|
||
Stockholders’ equity: |
|
|
||
Common stock, $.01 par value, 50,000,000 shares |
166 |
151 |
||
Additional paid-in capital |
27,013 |
25,569 |
||
Accumulated deficit |
(22,542) |
(22,132) |
||
Less treasury stock, 1,965,740 shares at cost |
(1,395) |
(1,395) |
||
Total stockholders’ equity |
3,242 |
2,193 |
||
Total liabilities and stockholders' equity |
$ 5,171 |
$ 5,143 |
||
Contact:
Rajiv Mathur President & Chief Executive Officer IGI, Inc. 856-697-1441 ext. 102 www.askigi.com