Underscores Company's Commitment to Shareholder Value
OREM, Utah--(BUSINESS WIRE)--March 7, 2007--iMergent, Inc. (AMEX:IIG), a leading provider of eCommerce software and services for small businesses and entrepreneurs, today announced its board of directors authorized the initiation of a quarterly cash dividend of $0.10 per common share. The record date will be the twentieth day of the last month of each quarter; the first record date will be March 20, 2007. Dividends will be paid semi-annually, starting on June 29, 2007.
Don Danks, iMergent's chairman and chief executive officer, stated, "Initiating this dividend underscores our commitment to shareholder value. The dividend is intended to deliver immediate value to our shareholders while enabling them to participate in iMergent's future growth. Our focus on growth and our consistent execution delivered strong results during the second quarter of fiscal 2007. We believe our business will continue to provide sufficient free cash flow to invest in future growth, to fund our $20 million share repurchase program and to pay dividends."
For its second quarter of fiscal 2007, the company reported revenue of $35.7 million and record Net Dollar Volume of Contracts Written (NDVCW) of $37.6 million, representing a 50 percent increase over the second quarter last year. In addition, during the quarter, the company generated $5.1 million in net cash from operating activities.
Danks continued, "On February 6th, 2007, we increased our expectations for fiscal 2007 annual growth of NDVCW to approximately 40 percent over fiscal 2006 NDVCW, of $99.8 million. Additionally, we continue to anticipate non-GAAP net income, which assumes NDVCW is recognized as revenue and related expenses are recognized at the time of sale, including income taxes at a blended rate of 40 percent, will grow at a faster percentage rate than NDVCW."
The company defines NDVCW as the gross dollar amount of contracts executed during the period less estimates for bad debts, discounts incurred on sales of trade receivables, and estimates for customer returns and believes NDVCW, although a non-U.S. generally accepted accounting principles (GAAP) metric, is a relevant metric to understand company operations.
Safe Harbor
Statements made in this press release regarding the Company's (i) plans to initiate a cash dividend, (ii) the continued ability and determination to offer cash dividends (iii) the anticipated effect of such cash dividend on the Company's liquidity, (iv) that the dividend will deliver immediate value to shareholders while enabling them to participate in future growth and (v) the ability of the Company to provide sufficient free cash flow to invest in future growth, fund the $20 million share repurchase program and pay dividends, and other statements that are not historical in nature constitute forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on the current expectations and beliefs of the management of iMergent and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include, without limitation, the Company's expectation that fiscal 2007 Net Dollar Volume of Contracts Written will grow 40 percent over fiscal 2006; the Company's expectation that non-GAAP net income will grow at a faster percentage rate than Net Dollar Volume of Contracts Written in fiscal 2007; the Company's continued ability to maintain operations; the Company's ability generally to continue to provide domestic and international workshops; the Company's ability to offer solutions to customers; the Company's ability to have lucrative long-term relationships with its customers; that the market for the Company's products will continue to grow; whether regulatory authorities will bring future actions against iMergent; the Company's ability to generate cash flows from operating activities; the Company's ability to expand current markets and develop new markets and establish profitable strategic partnerships; the Company's ability to build long-term shareholder value; the Company's ability to have available resources and cash flows from operating activities to continue to issue a cash dividend; the Company's ability to have available resources and cash flows from operating activities to continue to repurchase shares of Commons Stock and whether shares will be available for repurchase; the Company's ability to continue to finance extended payment term arrangement customer contracts; and whether there is continued demand for the Company's products and services in its target market of small businesses and entrepreneurs for assistance in establishing websites. For a more detailed discussion of risk factors that affect iMergent's operations, please refer to the Company's Form 10-K for the year ended June 30, 2006 and its Forms 10-Q for the quarterly periods ended September 30, 2006 and December 31, 2006. The Company undertakes no obligation to update this forward-looking information, except as required by law.
About iMergent
iMergent provides eCommerce solutions to entrepreneurs and small businesses enabling them to market and sell their business products or ideas via the Internet. Headquartered in Orem, Utah, the company sells its proprietary StoresOnline software and training services, helping users build a successful Internet strategy to market products, accept online orders, analyze marketing performance, and manage pricing and customers. In connection with Internet software, iMergent also offers Web site development, Web hosting, marketing and mentoring products and services. iMergent typically reaches its target audience through concentrated direct marketing efforts to fill Preview Sessions, in which a StoresOnline expert reviews the product opportunities and costs. These sessions lead to a follow-up Workshop Conference, where experts train potential users on the software and services and encourage them to make purchases.
iMergent, Inc. and StoresOnline are trademarks of iMergent, Inc.
CONTACT: iMergent, Inc.
Rob Lewis, CFO, 801-431-4695
investor_relations@imergentinc.com
or
Lippert/Heilshorn & Assoc.
Kirsten Chapman, 415-433-3777 (Investor Relations)
kchapman@lhai.com
SOURCE: iMergent, Inc.