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iGo Inc Reports Operating Results (10-Q)

August 05, 2010 | About:
10qk

10qk

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iGo Inc (IGOI) filed Quarterly Report for the period ended 2010-06-30.

Igo Inc has a market cap of $60.6 million; its shares were traded at around $1.85 with and P/S ratio of 1.1. Igo Inc had an annual average earning growth of 0.8% over the past 5 years.IGOI is in the portfolios of Louis Moore Bacon of Moore Capital Management, LP, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

In April, 2010, we entered into an agreement with Mission, wherein Mission paid us $1.7 million in complete satisfaction of the outstanding balance owed to us pursuant to a promissory note, having an original principal balance of $2.5 million. In connection with Missions repayment of this promissory note, we also assigned our 15% ownership in Mission back to Mission in exchange for the right to receive 15% of the net proceeds generated from a sale of Mission at any time on or prior to April 19, 2011, or 7.5% of the net proceeds generated from a sale of Mission at any time between April 19, 2011 and April 19, 2012.

The decrease in revenue was primarily due to the decline in sales to private-label resellers in the second quarter of 2010. Sales to private-label resellers decreased by $4.5 million, to $438,000 for the three months ended June 30, 2010 compared to $4.9 million for the three months ended June 30, 2009. Sales to RadioShack decreased by $1.9 million, to $3.7 million for the three months ended June 30, 2010 from $5.6 million for the three months ended June 30, 2009. These decreases were partially offset by sales to Walmart of $1.5 million during the three months ended June 30, 2010. There were no sales to Walmart during the three months ended June 30, 2009. Sales of iGo-branded products through other channels increased by $900,000, to $4.1 million for the three months ended June 30, 2010, from $3.2 million for the three months ended June 30, 2009. We anticipate continuing to gain market penetration for our iGo-branded power products into wireless distribution and other retail channels in 2010, which could partially offset the decrease in revenue from Targus. We also expect sales to RadioShack to continue to decline in 2010 as a result of the introduction of its own private-label brand of power products.

Interest income, net. Interest income, net increased by $5,000 to $40,000 for the three months ended June 30, 2010 compared to $35,000 for the three months ended June 30, 2009. The increase was primarily due to increased cash and short-term investment balances during 2010. At June 30, 2010, the average year-to-date yield on our cash and short-term investments was approximately 0.1%.

Other income, net. Other income, net of $57,000 for the three months ended June 30, 2010 was consistent compared to $63,000 for the three months ended June 30, 2009. Other income, net for the three months ended June 30, 2010 primarily represents the recognition of a gain from the reversal of a reserve against a note receivable in connection with the sale of the assets of our handheld software product line in 2004.

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10qk
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