IGI, INC. IG today reported net income of $3,000, or $.00 per diluted share, for the quarter ended March 31, 2004, compared to net income of $36,000, or $.00 per diluted share, for the first quarter of 2003. Product sales to new customers were higher during the first quarter of 2004 offset by lower royalty income from Johnson & Johnson.
"IGI continues to make progress in reducing general and administrative expenses while increasing spending in R&D for our patented Novasome(R) trans-dermal molecular delivery technology," stated Frank Gerardi, IGI's Chairman and CEO.
IGI is applying its patented Novasome(R) microencapsulation technologies to deliver pharmaceuticals, dermaceuticals, cosmetics, skin care, nutrients and other industrial products. Novasomes(R) drive large molecules deep into the skin in a moisturizing, non-irritating, controlled release lotion.
The statements in this release by Frank Gerardi are forward-looking statements that are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the following: changes in demand for the Company's products, product mix, the timing of customer orders or deliveries, the impact of competitive products and pricing, constraints on supplies of critical components, excess or shortage of production capacity and other risks discussed from time to time in the Company's SEC filings. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the release.
IGI, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share information)
(Unaudited)
Three months ended
March 31,
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2004 2003
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Revenues:
Product sales, net $855 $805
Licensing and royalty income 132 203
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Total revenues 987 1,008
Cost and expenses:
Cost of sales 349 330
Selling, general and administrative
expenses 429 499
Product development and research expenses 213 147
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Operating profit (loss) (4) 32
Interest income 9 6
Income before provision for income taxes 5 38
Provision for income taxes (2) (2)
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Net income $3 $36
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Basic Earnings Per Common Share
Net income per share $- $-
Diluted Earnings Per Common Share
Net income per share $- $-
Weighted Average of Common Stock and Common
Stock Equivalents Outstanding
Basic 11,447,253 11,382,692
Diluted 12,018,279 11,479,206
IGI, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands except share and per share data)
March 31, Dec. 31,
2004 2003
(unaudited)
------------ --------
ASSETS
Current assets:
Cash and cash equivalents $639 $821
Restricted cash 50 50
Marketable securities 804 800
Accounts receivable, less allowance for
doubtful accounts Of $10 and $16 in 2004
and 2003, respectively 514 350
Licensing and royalty income receivable 5 17
Inventories 213 192
Prepaid expenses and other current assets 201 133
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Total current assets 2,426 2,363
Property, plant and equipment, net 2,541 2,607
Other assets 230 54
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Total assets $5,197 $5,024
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $49 $105
Accrued payroll 50 75
Other accrued expenses 299 301
Income taxes payable 9 7
Deferred income 238 165
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Total current liabilities 645 653
Deferred income 171 205
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Total liabilities 816 858
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Stockholders' equity:
Common stock, $.01 par value, 50,000,000
shares authorized; 13,530,854 and
13,351,237 shares issued in 2004 and 2003,
respectively 135 134
Additional paid-in capital 23,909 23,702
Accumulated deficit (18,272) (18,275)
Less treasury stock, 1,965,740 shares at
cost in 2004 and 2003 (1,395) (1,395)
Accumulated other comprehensive income 4 -
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Total stockholders' equity 4,381 4,166
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Total liabilities and stockholders'
equity $5,197 $5,024
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Contact Information: IGI, Inc. Frank Gerardi, 856-697-1441 ext. 102 www.askigi.com