ATLANTA, May 15 /PRNewswire-FirstCall/ -- Innotrac Corporation (NASDAQ: INOC) announced financial results today for the first quarter ended March 31, 2008. The Company reported revenues of $32.7 million for the quarter versus $27.8 million reported in the comparable period in 2007, an increase of 17.8%. The increase in revenue for the three months ended March 31, 2008 was primarily due to the addition of several new direct marketing clients and increased revenue from existing clients in our retail/catalog, DSL and direct marketing verticals. These increases were offset by a decrease in revenues from our B2B vertical. The Company reported net income of $862,000, or $0.07 per share, fully diluted, for the three months ended March 31, 2008, versus a net loss of ($793,000), or ($0.06) per share, fully diluted, in the comparable period of 2007. Conference Call Innotrac Corporation will hold a conference call to discuss this release Monday afternoon, May 19, 2008 at 5:00 PM Eastern Daylight Time. Investors can listen to the conference call live by dialing 1-877-569-0972 (Conference ID: 48280563) or by logging on to http://www.innotrac.com/ and clicking on "Webcasts and Presentations" in the "Investor Relations" section. The Webcast will be archived and available at the same Web address. Additionally, an audio playback will be available for 48-hours at 1-800-642-1687 (Conference ID: 48280563). 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 eight fulfillment centers and two call centers in seven cities spanning all time zones across the continental United States. For more information about Innotrac, visit the Innotrac Website, http://www.innotrac.com/ . Information contained in this press release, other than historical information, may be considered forward-looking in nature. Forward-looking statements in this press release include our expectations for future progress in our business and future generation of cash flows. Forward-looking statements are 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 current clients and attract new clients, realization of expected revenues from new clients, the state of the telecommunications and direct response industries in general, changing technologies, Innotrac's ability to maintain profit margins in the face of pricing pressures and numerous other factors discussed in Innotrac's 2007 Annual Report on Form 10-K and other filings on file with the Securities and Exchange Commission. Innotrac disclaims any intention or obligation to update or revise any forward-looking statement whether as a result of new information, future events or otherwise. INNOTRAC CORPORATION Condensed Statements of Operations (in thousands, except per share amounts) Three Months Ended March 31, (Unaudited) 2008 2007 Service revenue $25,471 $22,115 Freight revenue 7,242 5,660 Total revenue 32,713 27,775 Cost of service revenues 12,099 10,390 Freight expense 7,249 5,562 Selling, general and administrative expenses 11,079 11,164 Depreciation and amortization 1,155 1,285 Total operating expenses 31,582 28,401 Operating income (loss) 1,131 (626) Interest expense 269 167 Total other expense 269 167 Income (loss) before income taxes 862 (793) Income tax - - Net income (loss) $862 $(793) Earnings per share: Basic $0.07 $(0.06) Diluted $0.07 $(0.06) Weighted average shares outstanding: Basic 12,320 12,281 Diluted 12,605 12,281 INNOTRAC CORPORATION Condensed Balance Sheets (in thousands) March 31, December 31, 2008 2007 ASSETS (Unaudited) (Audited) Current Assets: Cash $51 $1,079 Accounts receivable (net of allowance for doubtful accounts of $303 at March 31, 2008 and $288 at December 31, 2007) 24,811 28,090 Inventory 1,073 599 Prepaid expenses and other 1,592 1,100 Total current assets 27,527 30,868 Property and equipment, net 16,773 17,702 Goodwill 25,169 25,169 Other assets, net 1,112 1,192 Total assets $70,581 $74,931 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $10,688 $14,050 Line of credit 5,036 6,168 Term loan 5,000 5,000 Accrued expenses and other 5,003 5,708 Total current liabilities 25,727 30,926 Noncurrent Liabilities: Other non-current liabilities 940 993 Total noncurrent liabilities 940 993 Total shareholders' equity 43,914 43,012 Total liabilities and shareholders' equity $70,581 $74,931 INNOTRAC CORPORATION Condensed Statements of Cash Flows (in thousands) Three Months Ended March 31, (Unaudited) 2008 2007 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 862 $(793) Adjustments to net income (loss): Depreciation and amortization 1,155 1,285 Provision for bad debts 22 (46) Amortization of deferred compensation-stock options 21 19 Amortization of deferred compensation-restricted stock 19 - Changes in working capital: Accounts receivable, gross 3,257 4,440 Inventory (474) 144 Prepaid assets and other (516) (440) Accounts payable, accrued expenses and other (4,122) (4,727) Net cash provided by (used in) operating activities 224 (118) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (120) (691) Cash used in investing activities (120) (691) CASH FLOWS FROM FINANCING ACTIVITIES: Net repayments under line of credit (1,132) (140) Cash used in financing activities (1,132) (140) Net decrease in cash (1,028) (949) Cash, beginning of period 1,079 1,014 Cash, end of period $51 $65 DATASOURCE: Innotrac Corporation CONTACT: George Hare, Chief Financial Officer of Innotrac Corporation, +1-678-584-4020, Web site: http://www.innotrac.com/

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