iGo Inc (IGOI, Financial) filed Quarterly Report for the period ended 2009-03-31.
IGO INC. based in Scottsdale Arizona is a developer of universal power adapters for portable computers and mobile electronic devices (e.g. mobile phones PDAs digital cameras etc.) and creator of the patented iGo intelligent tip technology. iGo offers a full line of AC DC and combination AC/DC power adapters for portable computers and low-power mobile electronic devices. All of these adapters leverage iGo?s intelligent tip technology which enables one power adapter to power/charge hundreds of brands and thousands of models of mobile electronic devices through the use of interchangeable tips. iGo Inc has a market cap of $23.2 million; its shares were traded at around $0.72 with and P/S ratio of 0.3. iGo Inc had an annual average earning growth of 53.1% over the past 5 years.
Low-Power Group. The decrease in Low-Power Group revenue was primarily due to a decline in sales of low-power products to RadioShack. Sales of low-power products to RadioShack decreased by $2.6 million, or 59.4%, to $1.8 million for the three months ended March 31, 2009 from $4.4 million for the three months ended March 31, 2008. Sales of foldable keyboard products declined to $0 for the three months ended March 31, 2009 compared to $405,000 for the three months ended March 31, 2008 as a result of our discontinuance of this product line. These declines in revenue were partially offset by an increase of $424,000 in sales of low-power products to various other customers to $593,000 for the three months ended March 31, 2009, compared to $169,000 for the three months ended March 31, 2008. We are focused on increasing revenue from sales of low-power products throughout 2009 by increasing penetration in new and existing retail accounts.
The increase in sales and marketing expenses primarily resulted from increased expenditures associated with the Conumer Electronics Association annual tradeshow, where we exhibited for the first time in January 2009. Specifically, tradeshow expense increased by $200,000 for the three months ended March 31, 2009 compared to the three months ended March 31, 2008. This increase was partially offset by a decline in cooperative advertising of $114,000 for the three months ended March 31, 2009 compared to the three months ended March 31, 2008. As a percentage of revenue, sales and marketing expenses increased to 14.1% for the three months ended March 31, 2009 from 10.6% for the three months ended March 31, 2008.
The decrease in general and administrative expenses primarily resulted from a decrease of $744,000 in external legal expenses due primarily to decreased patent enforcement litigation during the three months ended March 31, 2009 compared to the three months ended March 31, 2008. Also contributing to the decrease was a decline in equity compensation expense of $355,000 during the three months ended March 31, 2009, as a result of the reduction in force that occurred during the three months ended March 31, 2009. Included in general and administrative expense for the three months ended March 31, 2009 was $444,000 related to severance expenses incurred in connection with a 20% reduction in force. General and administrative expenses as a percentage of revenue decreased to 20.2% for the three months ended March 31, 2009 from 21.6% for the three months ended March 31, 2008.
Interest income, net. Interest income (expense) decreased by $210,000 to $57,000 for the three months ended March 31, 2009 compared to $267,000 for the three months ended March 31, 2008. The decrease was primarily due to declining interest rates during 2008 and into 2009. At March 31, 2009, the average yield on our cash and short-term investments was approximately 0.1%.
carrier in the amount of $1,500,000. Pursuant to indemnification claims made by Mr. Ken Hawk, a former iGo officer, and in connection with its settlement with the insurance carrier, we reimbursed $828,000 to Mr. Hawk in final settlement of all his indemnification claims. As a result of these settlements, we recorded net litigation settlement income of $672,000 during the three months ended March 31, 2008.
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IGO INC. based in Scottsdale Arizona is a developer of universal power adapters for portable computers and mobile electronic devices (e.g. mobile phones PDAs digital cameras etc.) and creator of the patented iGo intelligent tip technology. iGo offers a full line of AC DC and combination AC/DC power adapters for portable computers and low-power mobile electronic devices. All of these adapters leverage iGo?s intelligent tip technology which enables one power adapter to power/charge hundreds of brands and thousands of models of mobile electronic devices through the use of interchangeable tips. iGo Inc has a market cap of $23.2 million; its shares were traded at around $0.72 with and P/S ratio of 0.3. iGo Inc had an annual average earning growth of 53.1% over the past 5 years.
Highlight of Business Operations:
High-Power Group. The decrease in High-Power Group revenue was primarily due to declines in sales to OEMs. Overall sales of OEMspecific, high-power products decreased by $859,000, or 84.7%, to $155,000 during the three months ended March 31, 2009 as compared to $1.0 million during the three months ended March 31, 2008. Sales to Targus decreased by $622,000, to $6.8 million for the three months ended March 31, 2009 from $7.4 million for the three months ended March 31, 2008. We have been notified by Targus that they have selected a different sourcing solution for their power adapter product line and, in March 2009, Targus notified us of its intent not to renew our distribution agreement, which will expire by its terms in May 2009 . Accordingly, we do not anticipate any significant additional orders for our power products from Targus beyond the second quarter of 2009. The decrease in revenue from sales to OEMs and private-label resellers was partially offset by an increase in revenue from sales of high-power products to RadioShack. Revenue from sales to RadioShack increased by $224,000, or 15.8% to $1.6 million for the three months ended March 31, 2009 compared to $1.4 million for the three months ended March 31, 2008. We expect revenue from sales of high-power products to continue to decline during 2009 due to the loss of the Targus account, although we are working to partially offset the decline in Targus revenue with sales to other retailers and distributors.Low-Power Group. The decrease in Low-Power Group revenue was primarily due to a decline in sales of low-power products to RadioShack. Sales of low-power products to RadioShack decreased by $2.6 million, or 59.4%, to $1.8 million for the three months ended March 31, 2009 from $4.4 million for the three months ended March 31, 2008. Sales of foldable keyboard products declined to $0 for the three months ended March 31, 2009 compared to $405,000 for the three months ended March 31, 2008 as a result of our discontinuance of this product line. These declines in revenue were partially offset by an increase of $424,000 in sales of low-power products to various other customers to $593,000 for the three months ended March 31, 2009, compared to $169,000 for the three months ended March 31, 2008. We are focused on increasing revenue from sales of low-power products throughout 2009 by increasing penetration in new and existing retail accounts.
The increase in sales and marketing expenses primarily resulted from increased expenditures associated with the Conumer Electronics Association annual tradeshow, where we exhibited for the first time in January 2009. Specifically, tradeshow expense increased by $200,000 for the three months ended March 31, 2009 compared to the three months ended March 31, 2008. This increase was partially offset by a decline in cooperative advertising of $114,000 for the three months ended March 31, 2009 compared to the three months ended March 31, 2008. As a percentage of revenue, sales and marketing expenses increased to 14.1% for the three months ended March 31, 2009 from 10.6% for the three months ended March 31, 2008.
The decrease in general and administrative expenses primarily resulted from a decrease of $744,000 in external legal expenses due primarily to decreased patent enforcement litigation during the three months ended March 31, 2009 compared to the three months ended March 31, 2008. Also contributing to the decrease was a decline in equity compensation expense of $355,000 during the three months ended March 31, 2009, as a result of the reduction in force that occurred during the three months ended March 31, 2009. Included in general and administrative expense for the three months ended March 31, 2009 was $444,000 related to severance expenses incurred in connection with a 20% reduction in force. General and administrative expenses as a percentage of revenue decreased to 20.2% for the three months ended March 31, 2009 from 21.6% for the three months ended March 31, 2008.
Interest income, net. Interest income (expense) decreased by $210,000 to $57,000 for the three months ended March 31, 2009 compared to $267,000 for the three months ended March 31, 2008. The decrease was primarily due to declining interest rates during 2008 and into 2009. At March 31, 2009, the average yield on our cash and short-term investments was approximately 0.1%.
carrier in the amount of $1,500,000. Pursuant to indemnification claims made by Mr. Ken Hawk, a former iGo officer, and in connection with its settlement with the insurance carrier, we reimbursed $828,000 to Mr. Hawk in final settlement of all his indemnification claims. As a result of these settlements, we recorded net litigation settlement income of $672,000 during the three months ended March 31, 2008.
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