IGI, INC. ANNOUNCES SECOND QUARTER 2007 RESULTS

BUENA, NJ August 15, 2007 - IGI, INC. (AMEX: IG) announces business highlights and second quarter 2007 financial result.

Highlights:

  1. Quarterly sales revenues hit $1 million dollars for the first time in 12 quarters
  2. Total revenues increased 34% in the second quarter of 2007 compared to first quarter 2007
  3. Net losses were reduced by 58% from first quarter to second quarter
  4. Initiated new product development for launch in 2008, 2009, and 2010
  5. Research has been completed for a new patent and we have initiated patent application filling
  6. Negotiating several manufacturing and supply agreements which we are aiming to finalize in third quarter 2007

Six months ended June 30, 2007 Financial Results

Total revenues increased $523,000, or 37% from $1,398,000 for the six months ended June 30, 2006 to $1,921,000 for the six months ended June 30, 2007. Product sales increased 57% as a result of an increase in sales volume due to the Company’s packaging capabilities that began in 2007. Our research and development revenues increased by 77% as a result of an increase in product development services provided 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 18% for the six months ended June 30, 2007 compared to June 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 slightly better absorption of fixed costs in 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 six months ended June 30, 2007 was $582,000, which represents a decrease in net loss of $238,000 compared to the six months ended June 30, 2006. The decrease in net loss relates to the increase in revenues offset by the increase in costs for the period ended June 30, 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 June 30,

Six months ended June 30,

 

2007

    2006

      2007

      2006

Revenues:

 

 

 

 

     Product sales, net

$    741

$    490

$   1,345

$     856

     R&D Revenues

      191

      133

        268

       163

     R&D Revenue- related party

        20     

          -

          20

           -

     Licensing and royalty income

      148

      194

        288

       379

         Total revenues

   1,100

      817

     1,921

    1,398

 

 

 

 

 

Cost and expenses:

 

 

 

 

     Cost of sales

      622

      433

     1,138

       691

     Selling, general and administrative expenses

      596

      442

     1,182

       900

     Product development and research expenses

      114

      271

        225

       561

Operating loss

     (232)

     (329)

       (624)

      (754)

Interest expense (net)

         (8)

       (28)

         (27)

        (70)

Other income

        64

           -

           64

         24

Loss from continuing operations

     (176) 

     (357)

       (587)

      (800)

Gain (loss) from discontinued operations

          5

       (11)

            5

        (20)

 

 

 

 

 

Net loss

$   (171)

$   (368)

$     (582)

$    (820)

 

 

 

 

 

 

 

 

 

 

Basic and Diluted Loss Per Share

 

 

 

 

Continued operations net loss per share

$   (.01)

$   (.03)

$     (.04)

$    (.06)

Discontinued operations net income (loss) per share

          -

          -

            -

           -

 

 

 

 

 

  Net loss per share

$    (.01)

$   (.03) 

$     (.04)

$    (.06)

 

 

 

 

 

Weighted Average of Common Stock and
Common Stock Equivalents Outstanding

 

 

 

 

  Basic and diluted

14,612,899

12,781,255

13,997,904

12,705,984

 

IGI, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share information)

 

June 30, 2007
(unaudited)

December 31, 2006*

ASSETS

 

Current assets:

           

            

     Cash and cash equivalents

$            123

       $       619

     Restricted cash

                50

                  50

     Accounts receivable, less allowance for doubtful accounts
          of $33 in 2007 and $ 34 in 2006                                                                                        

 

              609

          
    197

     Accounts receivable- related party

                20 

  -

     Licensing and royalty income receivable

              102

                 91

     Inventories

              474

                485

     Prepaid expenses and other current assets

              103

                 45

     Assets of discontinued operations held for sale

                  -

             350

          Total current assets

           1,481

            1,837

Property, plant and equipment, net

           2,423

            2,396

License fee, net

              850

            900 

Other assets

                  2

                 10

     Total assets

$         4,756

   $       5,143

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

Current liabilities:

 

 

     Note payable – related party

$           500

$           1,451

     Accounts payable

             446

505

     Accrued expenses

             395

                417

     Deferred income, current

             293

400

     Liabilities of discontinued operations

                  -

              118

          Total current liabilities

          1,634

            2,891

Deferred income

               47

                59

          Total liabilities

          1,681

            2,950

 

 

 

Stockholders’ equity:

 

 

     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

    Additional paid-in capital

        27,018

       25,569

     Accumulated deficit

       (22,714)

      (22,132)

     Less treasury stock, 1,965,740 shares at cost    

         (1,395)

        (1,395)

            Total stockholders’ equity

          3,075

         2,193

            Total liabilities and stockholders’ equity

$        4,756

     $  5,143

Contact: 

	Rajiv Mathur
	President & Chief Executive Officer
	IGI, Inc.
	856-697-1441 ext. 211
	www.askigi.com