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Innodata Q3 2013 Revenues Declined by 20% – Down 28% for the First Nine Months

Total revenue for Q3 was $15.7 million for the third quarter of 2013, a 3% sequential decline from $16.2 million in the second quarter of 2013, and a 20% decline from $19.7 million in the third quarter of 2012.   In the third quarter of 2013 we incurred a net loss of $11.7 million, or $0.47 per diluted share, compared to a net loss of $0.1 million, or less than $0.01 per diluted share, in the second quarter of 2013.

For the first nine months of 2013, revenues were $48.8 million, down 28% from $67.6 million in the first nine months of 2012. We incurred a net loss of $11.5 million, or $0.46 per diluted share, during the nine months of 2013.

Jack Abuhoff, Chairman and CEO, said, “As a result of a relentless focus on efficiencies, our Content Services segment succeeded at earning $1.5 million in operating earnings on revenues of $15.6 million. In our IADS segment, however, in which we are incubating new businesses, we have not yet achieved significant revenue. Accordingly, and in accordance with GAAP, we took a $5.5 million accounting charge to write off all its assets on our books and created a $7.1 million valuation allowance against all our U.S. deferred tax assets. Still, we continue to believe in its potential and are continuing to invest in building it.

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 which 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 is continuously adopting new strategies, technologies and processes.

Innodata operates in two separate reporting segments. Its Content Services segment provides business process, technology and consulting services to assist clients in setting digital content production and product strategies, integrating new technologies and processes, and improving the quality and efficiency of content creation, enrichment and transformation.  Innodata launched its other segment, Innodata Advanced Data Solutions, during the second quarter of 2011, to perform advanced data analysis services in the financial, healthcare, medical and insurance industries.

Innodata clients include leading media, publishing and information services companies, as well as enterprises that are prominent in information technology, manufacturing, aerospace, defense, financial services, government, healthcare and law.

Source:  Innodata Press Release

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