ATLANTA, GA (August 9, 2004) – Innotrac Corporation (NASDAQ: INOC) announced financial results today for the second quarter and six months ended June 30, 2004. For the three months ended June 30, 2004, the Company earned $0.02 per share on revenues of $19.8 million and generated $2.6 million in positive cash flow from operations. Revenues were up 12.3% on a year-over-year basis and the Company improved earnings per share by $0.05 versus the second quarter of 2003. Gross margins were 54.7%, up from 51.9% in the same period in 2003.
For the six months ended June 30, 2004, the Company earned $0.04 per share on revenues of $39.8 million and delivered gross margins of 55.0%. This represents 10.7% revenue growth and 2.7% margin expansion from the year ago period. Cash flow from operations for the first six months of 2004 was $7.9 million.
"In the second quarter, we continued our pace of year-over-year revenue, earnings and cash flow growth. Additionally, we reduced inventory levels and outstanding borrowings on our line of credit to $5.0 million and $4.1 million, respectively, down from $10.9 million and $11.8 million at December 31, 2003," stated David L. Gamsey, Chief Financial Officer."
"Our focus on driving operational excellence and back-office efficiency has returned the Company to profitability. We are very pleased that our clients continue to present us with new business opportunities, and we have built an excellent backlog of new prospects that we believe will enable us to continue growing revenue, earnings and cash flow," stated Scott D. Dorfman, President and Chief Executive Officer.
Conference Call
Innotrac Corporation will hold a conference call to discuss this release this evening, August 9th, at 5:00 p.m. Eastern Daylight Time. Investors can listen to the conference call live by dialing 1-877-569-0972 (Conference ID: 8513271) 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 or 706-645-9291 (Conference ID: 8513271).
About Innotrac
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.
Contact:
David L. Gamsey
Chief Financial Officer
Phone:
678-584-4020
Email:
dgamsey@innotrac.com
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