Message #13 From:
Stock News Bot Date: August 17, 2005 07:00:00 AM
IOMG News I/OMagic Posts Second Quarter 2005 Financial Results
IRVINE, Calif.--(BUSINESS WIRE)--Aug. 17, 2005--I/OMagic Corporation (OTCBB:IOMG), a provider of data storage products, recently reported a 115.7 percent increase in net income over the same period last year, primarily due to the strong demand for its GigaBank(TM) line of portable storage devices and an increase in the sale of its DVD-based products.
Net sales for the second quarter 2005 rose 27.6 percent to $9.6 million from $7.5 million (restated) in the second quarter 2004. Net income for the second quarter 2005 improved to $227,000, or $0.05 per diluted share, up from a net loss of $1.4 million (restated), or ($0.32) (restated) per diluted share, in the second quarter 2004.
"Management believes the increase in second quarter sales is due in part to the significant growth in our line of GigaBank(TM) products, which are compact and portable hard disk drives with built-in USB connectors," said Tony Shahbaz, president and CEO of I/OMagic Corporation. "We expect to broaden our range of data storage products by expanding our GigaBank(TM) product line and we anticipate that sales of these devices will increase as a percentage of our total net sales over the next twelve months."
About I/OMagic
I/OMagic is a leading provider of data storage products (such as CD-RW and DVD+/-RW drives, USB Portable Storage Devices and floppy drives, including its MediaStation, DataStation and GigaBank(TM) products). The Company sells products under three brand names -- I/OMagic(R), Hi-Val(R) and Digital Research Technologies(R) -- through nationally recognized computer, consumer electronics and office supply superstores and other retailers.
Forward-looking statements in this release with respect to the Company's continued sales of its GigaBank(TM) line of devices, sales objectives, as well as future product offerings, are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, but not limited to, the Company's dependence on the PC and consumer electronics industries and on product lines based on new technologies; the Company's ability to develop new products based on new or evolving technology and the market's acceptance of those products; manufacturing capacity, availability and reliability; competition and pricing pressures in the technology industry; general economic and business conditions; and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. These forward-looking statements are based on a number of assumptions and I/OMagic's actual results and operations may be materially different from those expressed or implied by such statements. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
