iGo Inc (IGOI, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $25.3 million; its shares were traded at around $0.78 with and P/S ratio of 0.3.
Low-Power Group. The increase in Low-Power Group revenue was primarily due to an increase in sales of low-power products in the wireless channel. Sales of low-power products to wireless retailers increased by $693,000, or 148.7%, to $1.2 million for the three months ended June 30, 2009 from $466,000 for the three months ended June 30, 2008. These increases in revenue were partially offset by a decrease of $664,000 in sales of low-power products to RadioShack, to $3.5 million for the three months ended June 30, 2009, compared to $4.1 million for the three months ended June 30, 2008. Sales to other retailers increased $340,000, or 80.2%, to $764,000. We are focused on increasing revenues and expect revenue from sales of low-power products to increase throughout 2009 as a result of increased penetration in new and existing retail accounts.
Connectivity Group. Connectivity Group revenue consisted of approximately $1.5 million in Missions sales of docking and expansion products for the three months ended June 30, 2009. Compared to the three months ended June 30, 2008, expansion and docking revenue decreased by $271,000.
The decrease in research and development expenses primarily resulted from declines of $56,000 in personnel related expenses, $64,000 in expenses related to the closure of our Taiwan based engineering office, and $47,000 in product development costs. As a percentage of revenue, research and development expenses increased slightly to 5.0% for the three months ended June 30, 2009 from 4.9% for the three months ended June 30, 2008.
The decrease in general and administrative expenses primarily resulted from the favorable adjustment of $198,000 in taxes and fees associated with the Internal Revenue Service audit of employment taxes associated with stock options, a $142,000 decline in outside legal fees, and a $125,000 decline in personnel related expenses. General and administrative expenses as a percentage of revenue decreased to 13.9% for the three months ended June 30, 2009 from 14.2% for the three months ended June 30, 2008.
Interest income (expense), net. Interest income (expense), net decreased by $192,000 to $18,000 for the three months ended June 30, 2009 compared to $210,000 for the three months ended June 30, 2008. The decrease was primarily due to declining interest rates during 2008 and into 2009. At June 30, 2009, the average year-to-date yield on our cash and short-term investments was approximately 0.1%.
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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 $25.3 million; its shares were traded at around $0.78 with and P/S ratio of 0.3.
Highlight of Business Operations:
High-Power Group. The decrease in High-Power Group revenue was primarily due to declines in sales to private label resellers. Overall sales of high-power products to private label resellers decreased by $3.7 million, or 43.0%, to $4.9 million during the three months ended June 30, 2009 as compared to $8.6 million during the three months ended June 30, 2008. In March 2009, Targus notified us of its intent not to renew our distribution agreement, which expired 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. 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 increase in Low-Power Group revenue was primarily due to an increase in sales of low-power products in the wireless channel. Sales of low-power products to wireless retailers increased by $693,000, or 148.7%, to $1.2 million for the three months ended June 30, 2009 from $466,000 for the three months ended June 30, 2008. These increases in revenue were partially offset by a decrease of $664,000 in sales of low-power products to RadioShack, to $3.5 million for the three months ended June 30, 2009, compared to $4.1 million for the three months ended June 30, 2008. Sales to other retailers increased $340,000, or 80.2%, to $764,000. We are focused on increasing revenues and expect revenue from sales of low-power products to increase throughout 2009 as a result of increased penetration in new and existing retail accounts.
Connectivity Group. Connectivity Group revenue consisted of approximately $1.5 million in Missions sales of docking and expansion products for the three months ended June 30, 2009. Compared to the three months ended June 30, 2008, expansion and docking revenue decreased by $271,000.
The decrease in research and development expenses primarily resulted from declines of $56,000 in personnel related expenses, $64,000 in expenses related to the closure of our Taiwan based engineering office, and $47,000 in product development costs. As a percentage of revenue, research and development expenses increased slightly to 5.0% for the three months ended June 30, 2009 from 4.9% for the three months ended June 30, 2008.
The decrease in general and administrative expenses primarily resulted from the favorable adjustment of $198,000 in taxes and fees associated with the Internal Revenue Service audit of employment taxes associated with stock options, a $142,000 decline in outside legal fees, and a $125,000 decline in personnel related expenses. General and administrative expenses as a percentage of revenue decreased to 13.9% for the three months ended June 30, 2009 from 14.2% for the three months ended June 30, 2008.
Interest income (expense), net. Interest income (expense), net decreased by $192,000 to $18,000 for the three months ended June 30, 2009 compared to $210,000 for the three months ended June 30, 2008. The decrease was primarily due to declining interest rates during 2008 and into 2009. At June 30, 2009, the average year-to-date yield on our cash and short-term investments was approximately 0.1%.
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