iGo Inc (IGOI, Financial) filed Quarterly Report for the period ended 2010-03-31.
Igo Inc has a market cap of $52.4 million; its shares were traded at around $1.61 with and P/S ratio of 1. IGOI is in the portfolios of Jim Simons of Renaissance Technologies LLC.
The decrease in revenue was primarily due to the loss of the Targus account in the second quarter of 2009. Sales to Targus decreased by $6.8 million, to almost zero for the three months ended March 31, 2010 compared to $6.8 million for the three months ended March 31, 2009. Sales to RadioShack decreased by $192,000, to $3.2 million for the three months ended March 31, 2010 from $3.4 million for the three months ended March 31, 2009. These decreases were partially offset by increases in sales of iGo-branded products to retailers and distributors of $1.0 million, to $3.6 million for the three months ended March 31, 2010 from $2.6 million for the three months ended March 31, 2009. Also partially offsetting the decrease in revenue was an increase in sales of private-label product to Belkin of $644,000 for the three months ended March 31, 2010, to whom we began selling in the second quarter of 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.
The decrease in research and development expenses primarily resulted from declines of $113,000 in personnel-related expenses and $176,000 in consulting, prototype and product certification and testing expenses. As a percentage of revenue, research and development expenses decreased to 3.9% for the three months ended March 31, 2010 from 4.9% for the three months ended March 31, 2009.
The decrease in general and administrative expenses primarily resulted from a declines of $649,000 in personnel-related expenses, $115,000 in external legal expenses due primarily to decreased patent enforcement litigation during the three months ended March 31, 2010 compared to the three months ended March 31, 2009, and $276,000 in expenses related to the Internal Revenue Service audit of employment taxes that was resolved in 2009. General and administrative expenses as a percentage of revenue decreased slightly to 20.0% for the three months ended March 31, 2010 from 20.3% for the three months ended March 31, 2009.
Interest income, net. Interest income, net decreased by $36,000 to $56,000 for the three months ended March 31, 2010 compared to $92,000 for the three months ended March 31, 2009. The decrease was primarily due to declining interest rates during 2009 and into 2010. At March 31, 2010, the average yield on our cash and short-term investments was approximately 0.1%.
Other income, net. Other income, net was $1.8 million for the three months ended March 31, 2010 compared to $210,000 for the three months ended March 31, 2009. The increase in other income was primarily due to the recognition of a deferred gain of $1.7 million in connection with the 2007 sale of the assets of the docking and expansion business to Mission.
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Igo Inc has a market cap of $52.4 million; its shares were traded at around $1.61 with and P/S ratio of 1. IGOI is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
On April 19, 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 under 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 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 loss of the Targus account in the second quarter of 2009. Sales to Targus decreased by $6.8 million, to almost zero for the three months ended March 31, 2010 compared to $6.8 million for the three months ended March 31, 2009. Sales to RadioShack decreased by $192,000, to $3.2 million for the three months ended March 31, 2010 from $3.4 million for the three months ended March 31, 2009. These decreases were partially offset by increases in sales of iGo-branded products to retailers and distributors of $1.0 million, to $3.6 million for the three months ended March 31, 2010 from $2.6 million for the three months ended March 31, 2009. Also partially offsetting the decrease in revenue was an increase in sales of private-label product to Belkin of $644,000 for the three months ended March 31, 2010, to whom we began selling in the second quarter of 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.
The decrease in research and development expenses primarily resulted from declines of $113,000 in personnel-related expenses and $176,000 in consulting, prototype and product certification and testing expenses. As a percentage of revenue, research and development expenses decreased to 3.9% for the three months ended March 31, 2010 from 4.9% for the three months ended March 31, 2009.
The decrease in general and administrative expenses primarily resulted from a declines of $649,000 in personnel-related expenses, $115,000 in external legal expenses due primarily to decreased patent enforcement litigation during the three months ended March 31, 2010 compared to the three months ended March 31, 2009, and $276,000 in expenses related to the Internal Revenue Service audit of employment taxes that was resolved in 2009. General and administrative expenses as a percentage of revenue decreased slightly to 20.0% for the three months ended March 31, 2010 from 20.3% for the three months ended March 31, 2009.
Interest income, net. Interest income, net decreased by $36,000 to $56,000 for the three months ended March 31, 2010 compared to $92,000 for the three months ended March 31, 2009. The decrease was primarily due to declining interest rates during 2009 and into 2010. At March 31, 2010, the average yield on our cash and short-term investments was approximately 0.1%.
Other income, net. Other income, net was $1.8 million for the three months ended March 31, 2010 compared to $210,000 for the three months ended March 31, 2009. The increase in other income was primarily due to the recognition of a deferred gain of $1.7 million in connection with the 2007 sale of the assets of the docking and expansion business to Mission.
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