Innodata(US:INOD)2020-05-14 17:39Revenue Performance - Total revenues for the three months ended March 31, 2020, were $14.5 million, an increase of approximately $0.8 million or 6% compared to $13.7 million for the same period in 2019[143]. - Revenues from the Digital Data Solutions (DDS) segment were $10.4 million for Q1 2020, up from $10.2 million in Q1 2019, reflecting a 2% increase primarily due to volume from new customers[144]. - Revenues from the Synodex segment increased by approximately 30%, from $1.0 million in Q1 2019 to $1.3 million in Q1 2020, attributed to higher revenues from one existing client[146]. - The Agility segment saw revenues rise by approximately 12%, from $2.5 million in Q1 2019 to $2.8 million in Q1 2020, driven by increased subscriptions to the Agility intelligent data platform[147]. - One client in the DDS segment accounted for approximately 14% of total revenues in Q1 2020, down from 16% in Q1 2019, indicating a slight diversification in revenue sources[148]. - Non-U.S. clients represented 54% of total revenues in Q1 2020, compared to 52% in Q1 2019, highlighting the company's growing international presence[148]. Financial Position - The company has sufficient cash and cash equivalents to meet financial needs for the next 12 months, despite reduced demand for services due to COVID-19[136]. - Cash and cash equivalents stood at $10.7 million as of March 31, 2020, with $5.4 million held by foreign subsidiaries[166]. - Working capital decreased to approximately $8.1 million as of March 31, 2020, down from $8.8 million as of December 31, 2019[167]. - Cash provided by operating activities was $0.7 million for Q1 2020, a decrease from $2.1 million in Q1 2019[171]. - The company received loan proceeds of $579,700 under the Paycheck Protection Program on May 4, 2020[169]. Operating Costs - Direct operating costs increased to $9.8 million for the three months ended March 31, 2020, from $9.6 million in the same period of 2019, representing a 2% increase[150]. - Direct operating costs as a percentage of total revenues decreased to 68% for Q1 2020 from 70% in Q1 2019[150]. - Selling and administrative expenses rose to $4.7 million in Q1 2020, compared to $4.6 million in Q1 2019, an increase of approximately 2%[156]. Profitability - Net loss for the company was $0.4 million for the three months ended March 31, 2020, a slight improvement from a net loss of $0.5 million in the same period of 2019[162]. Operational Resilience - The company experienced a remote working capability of 93% as of April 20, 2020, ensuring continued operations during the pandemic[133]. - The company has not identified any impairment of long-lived assets as of March 31, 2020, despite the economic challenges posed by COVID-19[138]. - The company anticipates potential challenges in recovering cost increases due to high inflation in wage rates in the countries where it operates[139]. Efficiency Metrics - Days' sales outstanding (DSO) improved to 60 days for Q1 2020, down from 66 days for the year ended December 31, 2019[173]. Capital Expenditures - Anticipated capital expenditures for ongoing technology upgrades are expected to be between $2.0 million and $2.3 million over the next 12 months[175].