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INNODATA First Half of 2013 Revenues Decline by 31%

INNODATA INC. (INOD) total revenue was $16.2 million for the second quarter of 2013, a 4% sequential decline from $16.9 million in the first quarter of 2013.  Total revenue was $22.8 million during the second quarter of 2012.  For the first six months in 2013, revenues were $33 million, down 31% from $48 million in the first six months of 2012.

Net earnings were $0.2 million, or $0.01 per diluted share during the first six months of 2013, compared with net earnings of $5.5 million, or $0.21 per diluted share for the similar period in 2012.  Cash, cash equivalents and investments were $27.2 million at June 30, 2013 compared to $28.5 million at December 31, 2012. As of June 30, 2013, the Company had no debt and stockholders` equity was $49.7 million.

Jack Abuhoff, the Company`s Chairman and CEO, said, “Revenues in our IADS segment declined from the first quarter by $500,000 to $0.2 million primarily because of the completion of two one-time projects in the first quarter.  Project volume fluctuations resulted in a $200,000 decline to $16 million from the first quarter in revenues of our Content Services segment. Pre-operating costs in our Synodex subsidiary were $2 million in the second quarter.

“We believe that our collective patience and perseverance in building the new Synodex business line will pay off in the end.  At the same time, we are mindful of the investment we are making and the need to manage our cost structure carefully. For that reason, we have reduced our cost structure by approximately $6 million in annualized costs over the past 12 months, including approximately $2 million of annualized costs that we reduced in the second quarter of 2013.”

Abuhoff added, “We anticipate revenues in the third quarter of 2013 to be in the range of $14 million to $16 million.”

About Innodata:  Innodata is a leading services company providing content solutions, data analytics and related services to publishers, information providers, and enterprises.  Innodata (NASDAQ: INOD) provides services, products and solutions that which its clients use to create, manage and distribute digital information.

In response to market demand for transformation from print publishing to online publishing, from search-based information products to workflow-based information products, and from web-based distribution to multiple-channel distribution—including mobile, tablet and eReading devices – Innodata are continuously adopting new strategies, technologies and processes.

Source:  UK.Finance.Yahoo

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