iGo Releases 2001 First Quarter Results; Quarterly Net Sales Up 27%; Net Loss Down 31.7%

Apr 30, 2001, 01:00 ET from iGo Corporation

    RENO, Nev., April 30 /PRNewswire/ -- iGo Corporation (Nasdaq:   IGOC), a
 leading business-to-business developer and multi-channel marketer of mobile
 and wireless accessories today announced a 27% increase in revenues to
 $9.6 million for the first quarter ended March 31, 2001 compared to
 $7.6 million for the first quarter ended March 31, 2000.  The net loss for the
 quarter ended March 31, 2001 decreased by 31.7% to $5.6 million, or $0.24 per
 share, compared to $8.2 million, or $0.40 per share, reported for the quarter
 ended March 31, 2000.  The decrease in net loss was primarily attributable to
 expense reductions in the sales and marketing area, reflecting a continuation
 of improved efficiency of marketing efforts, as well as, reduced product
 merchandising expenses.
     The gross margin for the first quarter of 2001 declined to 19.7% compared
 to a 31.3% gross margin in the first quarter of 2000.  The decline in gross
 margin was primarily due to increased inventory reserves in the current-year
 period related to discontinued products resulting from the company's decision
 to exit certain product categories and to focus more on targeted core
 products.  Excluding the effect of the increased inventory reserves, the
 company's gross margin was 30.1% for the quarter.
     "Along with significantly restructuring our management team, we are
 focusing on the most profitable lines of the business and concentrating our
 internal efforts on cost reduction initiatives.  To achieve our goal of
 cash-flow break-even during this fiscal year, we have regained our focus on
 the core products and strategies that have made us a leading designer and
 marketer of mobile computing accessories," said Rick Shaff, iGo's acting
 President and CEO.  "Our streamlined product offering of core accessories and
 high quality proprietary products, which command higher gross margins and
 differentiate us in the market place, combined with our improved cost
 structure and leveraging our strategic relationships with OEM's, will further
 solidify iGo's leadership position."
 
     First Quarter Highlights
 
     -- Average net revenue per order increased by 37.6% from $156 in the first
        quarter of 2000 to $214 in the first quarter of 2001.
 
     -- Advertising spending as a percent of revenue decreased from 53% in the
        first quarter of 2000 to 11% in the first quarter of 2001.
 
     -- Sales and Marketing expenses decreased by $3.0 million or 44% from
        $6.9 million in the first quarter of 2000 to $3.9 million in the first
        quarter of 2001.
 
     -- Lonnie Ramos joined iGo as Senior Vice President of Sales after
        spending over nine years with Ingram Micro, the largest global
        wholesale provider of technology products and supply chain management
        services.  At Ingram, he was responsible for building and directing
        account managers, inside sales and field sales teams.
 
     In addition, the company announced that, as anticipated, it has received
 preliminary notification from Nasdaq that the company is not meeting one of
 the continued listing criteria required by Marketplace Rule 4450(a)(5), namely
 the minimum bid price of $1.00 per share.  iGo has 90 days, or until July 15,
 2001, to bring its bid price back into compliance with this rule.  If
 compliance is not attained within this period, the company anticipates
 receiving notification from Nasdaq of the company's pending delisting.  Should
 this occur, the company may, and most likely will, appeal the delisting
 determination to the Nasdaq Listing Qualifications Panel.  In the event that
 any appeal is denied, the Company's shares would thereafter be quoted on the
 OTC Bulletin Board unless re-listed on Nasdaq or another exchange or quotation
 system.
 
     About iGo Corporation
     Reno, NV-based iGo Corporation (Nasdaq:   IGOC) develops and markets parts
 and accessories including batteries, adapters and chargers for mobile
 technology products such as laptops, cell phones and wireless devices.  The
 company's products address the needs of mobile professionals and corporations
 with mobile workforces who demand solutions to keep them powered up and
 connected.  iGo develops its own line of mobile accessories under the Xtend
 and Road Warrior brands.  iGo enables more than half of the FORTUNE 500 to
 efficiently purchase and receive mobile products and services overnight.
 iGo's products are available through a catalog toll-free (1-800-DIAL-IGO), its
 award-winning Website (www.igo.com), and through dedicated corporate account
 teams.  Products are also available through leading distributors including
 Ingram Micro and TechData, value-added resellers such as GE Capital, and
 1,100 resellers nationwide.  iGo's industry leading alliances and business
 partners include companies such as Acer, Handspring,  IBM, NEC, and Ericsson.
 Some of iGo's corporate accounts include AT&T, UPS, and Merck.  For more
 information about iGo, please see "About iGo" at www.igo.com.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995:  All statements in this release relating to future events,
 predictions or any other forward-looking matters, including the Company's
 ability to reach cash-flow break-even, necessarily involve known and unknown
 risks and uncertainties which may cause iGo's actual future results to differ
 substantially from any performance suggested in this release.  Important
 factors include, but are not limited to, fluctuations in customer demand (both
 in timing and volume) and preferences, success in building the iGo, Road
 Warrior and Xtend brands, effectiveness of proposed or ongoing marketing
 campaigns, the ability to effectively balance cost reductions with revenue
 growth, and increased competition from companies entering or expanding their
 presence in the Company's marketplace.  For a more expansive discussion of the
 risks and uncertainties related to the company's business, please carefully
 review the Factors That May Effect Future Results set forth in the company's
 Annual Report on Form 10-K for the year ended December 31, 2000 as filed with
 the Securities and Exchange Commission, which risks may be updated from time
 to time in future public securities filings by the company.
 
 
                                  iGo CORPORATION
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                        MARCH 31, 2001 AND DECEMBER 31, 2000
 
     Dollars in Thousands                            March 31,   December 31,
                                                       2001          2000
     ASSETS
     Current Assets:
       Cash and cash equivalents                      $14,448      $20,321
       Accounts receivable, net                         5,884        6,875
       Inventory, net                                   6,853        8,179
       Prepaid expenses                                   834          905
         Total current assets                          28,019       36,280
     Property and equipment, net                        4,238        4,466
     Intangibles and other assets, net                 12,243       13,093
           Total assets                               $44,500      $53,839
 
     LIABILITES AND STOCKHOLDERS' EQUITY
     Current liabilities:
       Accounts payable                                $2,180       $5,117
       Accrued liabilites                               3,023        3,446
       Current portion of capital lease obligations
        and long-term debt                                500          501
       Short-term note payable                            212          280
         Total current liabilities                      5,915        9,344
     Long-term portion of capital lease obligations
      and long-term debt                                  140          190
           Total liabilites                             6,055        9,534
 
     Stockholders' equity:
       Common stock, $0.001 par value: 50,000,000
        shares authorized; 20,304,593 and 23,282,842
        shares issued and outstanding                      23           23
       Additional paid-in capital                      87,925       87,921
       Deferred compensation                             (542)        (604)
       Receivable from stockholder                       (367)         (47)
       Accumulated deficit                            (48,594)     (42,988)
           Total stockholders' equity                  38,445       44,305
             Total liabilities and
              stockholders' equity                    $44,500      $53,839
 
 
                                iGo CORPORATION
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
           FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2001 AND 2000
 
     Dollars in Thousands                              Three-Month Periods
      (except per share data)                            Ended March 31,
                                                        2001          2000
 
     Net product revenue                               $9,636        $7,604
     Cost of goods sold                                 7,736         5,225
       Gross profit                                     1,900         2,379
 
     Operating expenses:
       Sales and marketing                              3,895         6,934
       Product development                                843         1,629
       General and administrative                       2,259         1,970
       Merger and acquisition costs, including
        amortization of goodwill and other
        purchased intangibles                             853           599
         Total operating expenses                       7,850        11,132
 
     Loss from operations                              (5,950)       (8,753)
 
     Other income (expense)                               344           546
 
     Loss before provision for income taxes            (5,606)       (8,207)
     Provision for income taxes                            --            --
     Net loss attributable to common shareholders     $(5,606)      $(8,207)
 
     Net loss per share:
       Basic and diluted                              $(0.24)        $(0.40)
 
     Weighted average shares outstanding:
       Basic and diluted                           23,298,951    20,563,358
 
     Pro forma results excluding merger and
      acquisition costs:
 
     Pro forma loss from operations, excluding
      merger and acquisition costs                    $(5,097)      $(8,129)
 
     Pro forma net loss, excluding merger and
      acquisition costs                               $(4,753)      $(7,566)
 
     Pro forma basic and diluted loss per share,
      excluding merger and acquisition costs          $(0.20)        $(0.37)
 
 
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SOURCE iGo Corporation
    RENO, Nev., April 30 /PRNewswire/ -- iGo Corporation (Nasdaq:   IGOC), a
 leading business-to-business developer and multi-channel marketer of mobile
 and wireless accessories today announced a 27% increase in revenues to
 $9.6 million for the first quarter ended March 31, 2001 compared to
 $7.6 million for the first quarter ended March 31, 2000.  The net loss for the
 quarter ended March 31, 2001 decreased by 31.7% to $5.6 million, or $0.24 per
 share, compared to $8.2 million, or $0.40 per share, reported for the quarter
 ended March 31, 2000.  The decrease in net loss was primarily attributable to
 expense reductions in the sales and marketing area, reflecting a continuation
 of improved efficiency of marketing efforts, as well as, reduced product
 merchandising expenses.
     The gross margin for the first quarter of 2001 declined to 19.7% compared
 to a 31.3% gross margin in the first quarter of 2000.  The decline in gross
 margin was primarily due to increased inventory reserves in the current-year
 period related to discontinued products resulting from the company's decision
 to exit certain product categories and to focus more on targeted core
 products.  Excluding the effect of the increased inventory reserves, the
 company's gross margin was 30.1% for the quarter.
     "Along with significantly restructuring our management team, we are
 focusing on the most profitable lines of the business and concentrating our
 internal efforts on cost reduction initiatives.  To achieve our goal of
 cash-flow break-even during this fiscal year, we have regained our focus on
 the core products and strategies that have made us a leading designer and
 marketer of mobile computing accessories," said Rick Shaff, iGo's acting
 President and CEO.  "Our streamlined product offering of core accessories and
 high quality proprietary products, which command higher gross margins and
 differentiate us in the market place, combined with our improved cost
 structure and leveraging our strategic relationships with OEM's, will further
 solidify iGo's leadership position."
 
     First Quarter Highlights
 
     -- Average net revenue per order increased by 37.6% from $156 in the first
        quarter of 2000 to $214 in the first quarter of 2001.
 
     -- Advertising spending as a percent of revenue decreased from 53% in the
        first quarter of 2000 to 11% in the first quarter of 2001.
 
     -- Sales and Marketing expenses decreased by $3.0 million or 44% from
        $6.9 million in the first quarter of 2000 to $3.9 million in the first
        quarter of 2001.
 
     -- Lonnie Ramos joined iGo as Senior Vice President of Sales after
        spending over nine years with Ingram Micro, the largest global
        wholesale provider of technology products and supply chain management
        services.  At Ingram, he was responsible for building and directing
        account managers, inside sales and field sales teams.
 
     In addition, the company announced that, as anticipated, it has received
 preliminary notification from Nasdaq that the company is not meeting one of
 the continued listing criteria required by Marketplace Rule 4450(a)(5), namely
 the minimum bid price of $1.00 per share.  iGo has 90 days, or until July 15,
 2001, to bring its bid price back into compliance with this rule.  If
 compliance is not attained within this period, the company anticipates
 receiving notification from Nasdaq of the company's pending delisting.  Should
 this occur, the company may, and most likely will, appeal the delisting
 determination to the Nasdaq Listing Qualifications Panel.  In the event that
 any appeal is denied, the Company's shares would thereafter be quoted on the
 OTC Bulletin Board unless re-listed on Nasdaq or another exchange or quotation
 system.
 
     About iGo Corporation
     Reno, NV-based iGo Corporation (Nasdaq:   IGOC) develops and markets parts
 and accessories including batteries, adapters and chargers for mobile
 technology products such as laptops, cell phones and wireless devices.  The
 company's products address the needs of mobile professionals and corporations
 with mobile workforces who demand solutions to keep them powered up and
 connected.  iGo develops its own line of mobile accessories under the Xtend
 and Road Warrior brands.  iGo enables more than half of the FORTUNE 500 to
 efficiently purchase and receive mobile products and services overnight.
 iGo's products are available through a catalog toll-free (1-800-DIAL-IGO), its
 award-winning Website (www.igo.com), and through dedicated corporate account
 teams.  Products are also available through leading distributors including
 Ingram Micro and TechData, value-added resellers such as GE Capital, and
 1,100 resellers nationwide.  iGo's industry leading alliances and business
 partners include companies such as Acer, Handspring,  IBM, NEC, and Ericsson.
 Some of iGo's corporate accounts include AT&T, UPS, and Merck.  For more
 information about iGo, please see "About iGo" at www.igo.com.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995:  All statements in this release relating to future events,
 predictions or any other forward-looking matters, including the Company's
 ability to reach cash-flow break-even, necessarily involve known and unknown
 risks and uncertainties which may cause iGo's actual future results to differ
 substantially from any performance suggested in this release.  Important
 factors include, but are not limited to, fluctuations in customer demand (both
 in timing and volume) and preferences, success in building the iGo, Road
 Warrior and Xtend brands, effectiveness of proposed or ongoing marketing
 campaigns, the ability to effectively balance cost reductions with revenue
 growth, and increased competition from companies entering or expanding their
 presence in the Company's marketplace.  For a more expansive discussion of the
 risks and uncertainties related to the company's business, please carefully
 review the Factors That May Effect Future Results set forth in the company's
 Annual Report on Form 10-K for the year ended December 31, 2000 as filed with
 the Securities and Exchange Commission, which risks may be updated from time
 to time in future public securities filings by the company.
 
 
                                  iGo CORPORATION
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                        MARCH 31, 2001 AND DECEMBER 31, 2000
 
     Dollars in Thousands                            March 31,   December 31,
                                                       2001          2000
     ASSETS
     Current Assets:
       Cash and cash equivalents                      $14,448      $20,321
       Accounts receivable, net                         5,884        6,875
       Inventory, net                                   6,853        8,179
       Prepaid expenses                                   834          905
         Total current assets                          28,019       36,280
     Property and equipment, net                        4,238        4,466
     Intangibles and other assets, net                 12,243       13,093
           Total assets                               $44,500      $53,839
 
     LIABILITES AND STOCKHOLDERS' EQUITY
     Current liabilities:
       Accounts payable                                $2,180       $5,117
       Accrued liabilites                               3,023        3,446
       Current portion of capital lease obligations
        and long-term debt                                500          501
       Short-term note payable                            212          280
         Total current liabilities                      5,915        9,344
     Long-term portion of capital lease obligations
      and long-term debt                                  140          190
           Total liabilites                             6,055        9,534
 
     Stockholders' equity:
       Common stock, $0.001 par value: 50,000,000
        shares authorized; 20,304,593 and 23,282,842
        shares issued and outstanding                      23           23
       Additional paid-in capital                      87,925       87,921
       Deferred compensation                             (542)        (604)
       Receivable from stockholder                       (367)         (47)
       Accumulated deficit                            (48,594)     (42,988)
           Total stockholders' equity                  38,445       44,305
             Total liabilities and
              stockholders' equity                    $44,500      $53,839
 
 
                                iGo CORPORATION
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
           FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2001 AND 2000
 
     Dollars in Thousands                              Three-Month Periods
      (except per share data)                            Ended March 31,
                                                        2001          2000
 
     Net product revenue                               $9,636        $7,604
     Cost of goods sold                                 7,736         5,225
       Gross profit                                     1,900         2,379
 
     Operating expenses:
       Sales and marketing                              3,895         6,934
       Product development                                843         1,629
       General and administrative                       2,259         1,970
       Merger and acquisition costs, including
        amortization of goodwill and other
        purchased intangibles                             853           599
         Total operating expenses                       7,850        11,132
 
     Loss from operations                              (5,950)       (8,753)
 
     Other income (expense)                               344           546
 
     Loss before provision for income taxes            (5,606)       (8,207)
     Provision for income taxes                            --            --
     Net loss attributable to common shareholders     $(5,606)      $(8,207)
 
     Net loss per share:
       Basic and diluted                              $(0.24)        $(0.40)
 
     Weighted average shares outstanding:
       Basic and diluted                           23,298,951    20,563,358
 
     Pro forma results excluding merger and
      acquisition costs:
 
     Pro forma loss from operations, excluding
      merger and acquisition costs                    $(5,097)      $(8,129)
 
     Pro forma net loss, excluding merger and
      acquisition costs                               $(4,753)      $(7,566)
 
     Pro forma basic and diluted loss per share,
      excluding merger and acquisition costs          $(0.20)        $(0.37)
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X57862311
 
 SOURCE  iGo Corporation