EX-99 4 d69861-991.htm EXHIBIT 99.1

News From
 

 

Buena, NJ 08310

 

Release Date: May 7, 2008

Exhibit 99.1
 

Contact:

Rajiv Mathur
 

President & Chief Executive Officer
 

IGI, Inc.
 

856-697-1441 ext. 102
 

www.askigi.com

   

IGI, INC. ANNOUNCES PROFITABLE FIRST QUARTER RESULTS
 

BUENA, NJ May 7, 2008 - IGI, INC. (AMEX: IG) a premier provider of topical formulation development, analytical, manufacturing and packaging services announces first quarter 2008 results.

 

Highlights of First Quarter 2008:
 
 

•

Revenue increased 83% to $1,500,000 over same period last year.
 

•

Net Income increased 110% to $40,000 compared to a loss of $410,000 during the same period last year.
 

•

Second consecutive quarter of operating profit from continuing operations.
     

"Our consolidated business is performing to our expectations. We saw a healthy revenue increase with increased profitability. We continued the turnaround we began last year with another quarter of profitable growth" stated Rajiv Mathur, President and CEO.
 

First Quarter
 

The company reported net income of $40,000 or $.00 per share, for the three month period ended March 31, 2008 compared to a net loss of $(410,000), or $(.03) per share for the comparable period in 2007, which represents a 110% increase.
 

Total revenues increased by $679,000 for the three month period ended March 31, 2008 to $1,500,000, which represents an increase of 83% over revenues for the comparable period in 2007. Research and Development income decreased $12,000 for the three months ended March 31, 2008 compared to the comparable period in 2007. Licensing and royalty income decreased by $5,000 in 2008 compared to 2007.
 

Cost of sales increased for the three month period ended March 31, 2008 as a result of the increase in product sales offset by the change in the product mix for the period ended March 31, 2008. Products sold in 2008 had higher gross margin than those products sold in the comparable period in 2007; this also allowed for a higher gross margin percentage for the three month period ended March 31, 2008. Gross margin as a percentage of total revenues was 55% for the three month period ended March 31, 2008 compared to 37% for the comparable period in 2007.
 

Selling, general and administrative expenses for three month period ended March 31, 2008 increased as a result of higher stock based compensation expense of $46,000 from the issuance of stock options to our CEO, higher consulting fees of $28,000 from the Sarbanes Oxley compliance consultants which we did not engage until the second quarter of last year, and higher employer match contribution in our 401k plan of $12,000 as a result of changing our 401k plan.

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Product development and research expenses increased by $2,000 for the three month period ended March 31, 2008, or 2%, compared to the comparable period in 2007.
 

Interest expense amounted to $3,000 (net of income) for the three month period ended 2008 compared to interest expense of $19,000 (net of income) in 2007. Interest expense decreased in 2008 as a result of a decrease in the Company's short term notes payable principal balance and a reduction in the Company's average interest rate on its short term notes payable in 2008.
 

The Company had positive working capital of $1,175,000 for the three months ended March 31, 2008 and a cash balance of $603,000 at March 31, 2008.
 

IGI is a company committed to growth by applying proprietary technologies to achieve cost-effective solutions for varied customer needs. IGI offers the patented Novasome® micro-vesicular delivery technology which contributes value-added qualities to cosmetics, skin care products, dermatological formulations and other consumer products, providing improved dermal absorption, controlled and sustained release as well as improved stability and greater ease of formulation.
 

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.

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IGI, INC. AND SUBSIDIARIES
 

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share information)

(Unaudited)
 
   

Three months ended March 31,
   

   

2008

  

2007
   

 

Revenues:

        

   Product sales

  

$1,300 

  

$ 604 

   Research &development income

  

65 

  

77 

   Licensing and royalty income

  

135 

  

140 
   

 

      Total revenues

  

1,500 

  

821 
         

Cost and expenses:

        

   Cost of sales

  

681 

  

516 

   Selling, general and administrative expenses

  

663 

  

585 

   Product development and research expenses

  

113 

  

111 
   

 

Operating income (loss)

  

43 

  

(391)

Interest expense, net

  

(3)

  

(19)
   

 

         

Net income (loss)

  

$     40 

  

$(410)
   

 

         
         
         

Basic income (loss) per share

  

$    .00 

  

$  (.03)

Diluted income (loss) per share

  

$    .00 

  

$  (.03)

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IGI, INC. AND SUBSIDIARIES
 

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share information)
 
 

March 31,
2008
(unaudited)

  

December 31,
2007*
 

 

ASSETS

      

Current assets:

      

   Cash and cash equivalents

$      603 

  

$      914 

   Accounts receivable, less allowance for doubtful accounts

      

    of $28 and $48 in 2008 and 2007, respectively

875 

  

666 

   Licensing and royalty income receivable

126 

  

356 

   Inventories

531 

  

376 

   Prepaid expenses and other current assets

129 

  

93 
 

 

      Total current assets

2,264 

  

2,405 

Property, plant and equipment, net

2,355 

  

2,410 

Restricted cash - long term

50 

  

50 

Other assets - long term

18 

  

- 

License fee, net

775 

  

800 
 

 

      Total assets

$   5,462 

  

$   5,665 
 

 

       

LIABILITIES AND STOCKHOLDERS' EQUITY

      

Current liabilities:

      

   Note payable - related party

$      250 

  

$      500 

   Accounts payable

486 

  

282 

   Accrued expenses

345 

  

419 

   Deferred income, current

8 

  

219 
 

 

      Total current liabilities

1,089 

  

1,420 

Deferred income, long term

43 

  

45 

Other long term liabilities

31 

  

60 
 

 

      Total liabilities

1,163 

  

1,525 
 

 

       

Stockholders' equity:

      
       

   Series A Convertible Preferred stock, $.01 par value, 100 shares authorized;
    50 shares issued and outstanding as of March 31, 2008 and December 31,
    2007, respectively;
    Liquidation preference- $500,000

500 

  

500 

   Common stock, $.01 par value, 50,000,000 shares authorized; 16,799,202 and
    16,795,202 shares issued and outstanding as of March 31, 2008 and
    December 31, 2007, respectively

168 

  

168 

   Additional paid-in capital

27,530 

  

27,411 

   Accumulated deficit

(22,504)

  

(22,544)

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

(1,395)

  

(1,395)
 

 

      Total stockholders' equity

4,299 

  

4,140 
 

 

         Total liabilities and stockholders' equity

$   5,462 

  

$   5,665 
 

 

* Derived from the audited December 31, 2007 financial statements

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