Fiscal First Quarter 2010 Compared to 2009
Net income for the first quarter of fiscal 2010 was
Product and other revenues for the first quarter of fiscal 2010 were
Total operating expenses decreased 42% to
Cash provided by operating activities was
Steven G. Mihaylo, Chief Executive Officer of iMergent, stated, "We are pleased with these results, particularly since the first fiscal quarter is typically our slowest quarter of the year. The fiscal first quarter normally includes seasonal weakness due to summer vacations which inhibit our ability to conduct events during the first several weeks of July. Our cost saving initiatives and cost controls continue to improve which were instrumental in enabling us to obtain profitability in our first fiscal quarter for the first time since the
Conference Call
The company is hosting a conference call today,
About iMergent
iMergent provides eCommerce solutions to entrepreneurs and businesses enabling them to market and sell their business products or ideas via the Internet. The company sells its proprietary software and training services which help users build Internet strategies to allow entrepreneurs and businesses to market and sell their products, accept online orders, analyze marketing performance and manage pricing and customers over the Internet. In addition to software and training, iMergent offers site development, web hosting and search engine optimization (SEO). iMergent,
Safe Harbor Statement
This press release contains forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. The words "believe," "expect," "anticipate," "estimate," "will" and other similar statements of expectation identify forward-looking statements. Specific forward-looking statements in this press release include information about iMergent, (1) continuing to focus on the small to medium enterprise market (SME) through its Crexendo Business Solutions division, 2) expecting to launch its hosted telecom service during the first half of calendar 2010. You are cautioned not to place undue reliance on our forward-looking statements. We do not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after the release of this press release, or to reflect the occurrence of unanticipated events.
For a more detailed discussion of risk factors that may affect iMergent's operations and results, please refer to the company's Form 10-Q for the quarter ended
iMERGENT, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except shares and per share data) (unaudited) Sept. 30, June 30, 2009 2009 -------- -------- Assets Current Assets: Cash and cash equivalents $ 20,309 $ 20,474 Restricted cash 1,773 1,802 Trade receivables, net of allowance for doubtful accounts of$6,304 as ofSeptember 30, 2009 and$9,670 as of June 30, 2009 19,427 20,771 Inventories 439 256 Income taxes receivable 137 1,826 Deferred income taxes 1,051 2,171 Prepaid expenses and other 4,650 1,524 -------- -------- Total Current Assets 47,786 48,824 Certificate of deposit 500 500 Long-term trade receivables, net of allowance for doubtful accounts of$4,114 as ofSeptember 30, 2009 and$4,437 as of June 30, 2009 8,476 9,985 Property and equipment, net 1,473 1,322 Deferred income taxes 5,650 4,975 Intangible assets, net 1,303 1,400 Other assets 331 348 -------- -------- Total Assets $ 65,519 $ 67,354 ======== ======== Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 3,124 $ 2,265 Accrued expenses 6,566 6,257 Income taxes payable 160 41 Dividend payable -- 229 Deferred revenue, current portion 21,372 23,627 Note payable, current portion 69 68 -------- -------- Total Current Liabilities 31,291 32,487 Deferred revenue, net of current portion 8,693 10,236 Note payable, net of current portion 30 47 Other long-term liabilities 187 184 -------- -------- Total Liabilities 40,201 42,954 -------- -------- Commitments and contingencies Stockholders' Equity: Preferred stock, par value$0.001 per share - authorized 5,000,000 shares; none issued -- -- Common stock, par value$0.001 per share - authorized 100,000,000 shares; 11,446,320 shares outstanding as ofSeptember 30, 2009 and 11,425,320 shares outstanding as of June 30, 2009 11 11 Additional paid-in capital 52,982 52,782 Accumulated deficit (27,675) (28,393) -------- -------- Total Stockholders' Equity 25,318 24,400 -------- -------- Total Liabilities and Stockholders' Equity $ 65,519 $ 67,354 ======== ======== iMERGENT, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (In thousands, except per share data) (unaudited) Three Months Ended September 30, -------------------------- 2009 2008 ----------- ----------- Revenues: Product and other $ 12,684 $ 19,401 Commission and other 4,694 7,865 ----------- ----------- Total revenues 17,378 27,266 ----------- ----------- Operating expenses: Cost of product and other revenues 5,583 8,367 Selling and marketing 7,904 17,066 General and administrative 3,601 4,512 Research and development 503 583 ----------- ----------- Total operating expenses 17,591 30,528 ----------- ----------- Loss from operations (213) (3,262) ----------- ----------- Other income (expense): Interest income 1,343 1,861 Interest expense (3) (4) Other expense, net (27) (213) ----------- ----------- Total other income, net 1,313 1,644 ----------- ----------- Income (loss) before income tax provision 1,100 (1,618) Income tax provision (382) (5,881) ----------- ----------- Net income (loss) $ 718 $ (7,499) =========== =========== Net income (loss) per common share: Basic $ 0.06 $ (0.66) Diluted $ 0.06 $ (0.66) Dividends per common share: $ 0.02 $ 0.11 Weighted average common shares outstanding: Basic 11,398,115 11,338,917 Diluted 11,525,148 11,338,917 iMERGENT, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (unaudited) Three Months Ended September 30, -------------------- 2009 2008 ---------------------------------------------- -------- -------- CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 718 $ (7,499) Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: Depreciation and amortization 354 352 Stock-based compensation expense 429 337 Deferred income taxes 445 (499) Changes in assets and liabilities: Restricted cash 29 -- Trade receivables 2,853 (1,230) Inventories (183) (50) Income taxes receivable 1,689 (536) Prepaid expenses and other (2,830) (2,818) Other assets 17 (253) Accounts payable and accrued expenses 1,118 3,998 Income taxes payable 119 (212) Deferred revenue (3,798) 1,463 Other long-term liabilities 3 6,434 -------- -------- Net cash provided by (used for) operating activities 963 (513) -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property and equipment (358) (337) Acquisition of property held-for-sale (296) -- Proceeds from sale of available-for-sale securities -- 900 -------- -------- Net cash provided by (used for) investing activities (654) 563 -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from exercise of stock options -- 296 Principal payments on note payable (16) -- Dividend payments (458) (1,259) -------- -------- Net cash used for financing activities (474) (963) -------- -------- NET DECREASE IN CASH AND CASH EQUIVALENTS (165) (913) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 20,474 26,184 -------- -------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 20,309 $ 25,271 ======== ======== Supplemental cash flow information: Interest paid 4 4 Income taxes paid 781 428 Non-cash investing and financing information: Accrued purchases of property and equipment 50 --
CONTACT:iMergent, Inc. Steven G. Mihaylo, CEO 775-530-3955 Stevemihaylo@imergentinc.com