ATLANTA, GA (May 10, 2004) -- Innotrac Corporation (NASDAQ: INOC) announced today financial results for the first quarter ended March 31, 2004. For the three months ended March 31, 2004, the Company earned $0.02 per share on revenue of $20.0 million and generated $5.0 million in positive cash flow from operations. Revenues were up 9.1% on a year-over-year basis and the Company improved earnings per share by $0.10 versus the first quarter of 2003. Gross margins were 55.3%, up from 52.8% in the same period in 2003.
"In the first quarter, we exhibited solid revenue, earnings and cash flow growth. Our business is strengthening along with the economy, and our prospects for further top line and earnings growth remain excellent. Additionally, we capitalized on strong cash flows from operations and further reductions in inventory to reduce outstanding borrowings on our line of credit from $11.8 million at December 31, 2003 to $6.1 million at quarter end," stated David L. Gamsey, Chief Financial Officer.
"We are pleased that our focus on operational improvement returned the Company to profitability. With an active new sales pipeline, and our existing clients introducing new products and programs to the market, we believe our potential for growth is strong," stated Scott D. Dorfman, President and Chief Executive Officer.
Innotrac Corporation held a conference call to discuss this release on May 10th, at 5:00 p.m. Eastern Daylight Time. Investors can listen to the conference call live by dialing 1-877-569-0972 (Conference ID: 6956042) or by logging on to www.innotrac.com and clicking on "Webcasts and Presentations" in the "Company" section. The Webcast will be archived and available at the same Web address. Additionally, audio playback will be available at 1-800-642-1687 (Conference ID: 6956042).
Innotrac Corporation, founded in 1984 and based in Atlanta, Georgia, is a full-service fulfillment and logistics provider serving enterprise clients and world-class brands. The Company employs sophisticated order processing and warehouse management technology and operates seven fulfillment centers and two call centers in five cities spanning all time zones across the continental United States. For more information about Innotrac, visit the Innotrac Web site, www.innotrac.com.
Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Innotrac`s operating results, performance or financial condition are competition, the demand for Innotrac`s services, Innotrac`s ability to retain its clients, the state of the telecommunications industry in general, Innotrac’s ability to maintain profit margins in the face of pricing pressures and numerous other factors discussed in Innotrac`s 2003 Annual Report on Form 10-K and other filings on file with the Securities and Exchange Commission.
David L. Gamsey
Chief Financial Officer