ATLANTA, Feb. 17 -- Innotrac Corporation (NASDAQ:INOC) , a full-service provider of order processing, order fulfillment and call center services, today announced preliminary financial results for the fourth quarter and year ended December 31, 2002. The Company reported revenues of $22.0 million and a net loss of $390,000 or $0.03 per diluted share for the fourth quarter, including a special credit of $1.4 million. Cash flows from operations were $921,000 for the quarter ended December 31, 2002.
For the year ended December 31, 2002, the Company reported revenues of $82.4 million and a net loss of $4.4 million, or $0.38 per diluted share, including special charges and credits. Cash flows from operations were $4.3 million for the year ended December 31, 2002.
"We have made significant progress in our efforts to streamline our cost structure while improving operational efficiency and production quality. Our profitability turnaround plan is currently underway. We have reduced head count and significantly lowered our SG&A run rate. Our objective is to be the leanest, most efficiently operated order processing and order fulfillment provider in the nation while remaining focused on positive cash flow generation. Our goals for 2003 are to generate at least $6 million in positive cash flows from operations on increased revenues, to decrease overall SG&A costs and to significantly reduce capital expenditures, resulting in a return to profitability during the second half of 2003," stated Mr. Scott D. Dorfman, President and Chief Executive Officer. "We will track our performance relative to these goals and report on them quarterly. Their attainment within our quality parameters will solidify Innotrac`s position as an industry leader.
"Our rigorous efforts to enhance our systems to achieve the highest attainable level of quality were recognized when the International Organization for Standardization awarded Innotrac`s Atlanta operations with ISO 9001:2000 Certification. To our current and future clients, this demonstrates our commitment to quality at every step in the process and translates into another meaningful competitive advantage," continued Mr. Dorfman.
Innotrac Corporation will hold a conference call to discuss this release tomorrow, February 18, at 9:00 a.m. Eastern Standard Time. Investors can listen to the conference call live by dialing 1-800-291-3901 or 706-634-6500 (Conference ID: 7992192) or by logging on to http://www.innotrac.com/ and clicking on "Webcasts and Presentations" in the "Company" section. The Webcast will be archived and available for 48 hours at the same Web address. Additionally, a 48-hour audio playback will be available at 1-800-642-1687 or 706-645-9291 (Conference ID Number: 7992192).
About Innotrac
Innotrac Corporation, founded in 1984 and based in Atlanta, Georgia, is a full-service provider of order processing, order fulfillment and call center services. The Company operates fulfillment and call centers in various cities spanning all four time zones across the continental United States. For more information about Innotrac, visit the Innotrac Web site, http://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 2001 Annual Report on Form 10-K and other filings on file with the Securities and Exchange Commission.
CONTACT:
Jennifer Sekel Church
Investor Relations
Innotrac Corp.
, +1-678-584-4055
jsekelchurch@innotrac.com
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