IIG – Imergent Inc. (AMEX) $6.97 – $79.8 (Market Cap)
iMergent, Inc. (AMEX:IIG), a leading provider of eCommerce software, site development, web hosting and search engine optimization for businesses and entrepreneurs, today reported financial results for its six month transition period and calendar fourth quarter ended December 31, 2009.
I listened in on the conference call and noted three few key financials:
1. Net income for the 4th quarter was $613,000
2. Total operating expenses decreased by 45% for the 4th quarter
3. The company has $21.5M cash on hand
Obviously profits came from cutting operating costs and not increased sales, as workshops were closed down during an economically tough time.
Nevertheless, the future is promising for three non-financial reasons:
1. Currently working with a company in India to provide programming and design services
2. It is in final negotiations to acquire a small boutique SEO Company in a major U.S city
3. Finally, iMergent’s first telecom offering is now in the initial Beta test stage
iMergent is considering a relationship to a joint venture which, if completed, could enable iMergent to market its award winning products and services to businesses in India. We all know how promising India has become.
As far as the SEO acquisition, if completed, would provide iMergent with a customer base and additional sales and fulfillment capabilities. Search Engine Optimization seems to be a very valuable asset to any company trying to gain an internet footprint.
Although the early results of the telecom offering are preliminary, it’s encouraging to see beta testing. iMergent intends to make the telecom offering available to end-user customers in the second half of 2010. They also intend to offer the services through their workshops.
The company also feels its stock in undervalued and wants to buy back stock. Steven G. Mihaylo, Chief Executive Officer of iMergent stated, “It is our intention to repurchase our common stock, through strategic open market transactions, particularly when the price per share is at or below $7.25.”