iGo Falls after Third Quarter 2011 Financial Results Yesterday

iGo, Inc.

today reported financial results for the third quarter ending September 30, 2011. Revenue was $9.7 million for the third quarter of 2011, compared with $12.2 million in the same period of the prior year. Sales of power products declined $4.3 million to $7.5 million for the third quarter of 2011, compared to $11.8 million for the third quarter of 2010. This decline was partially offset by $1.8 million in sales of the new audio and rechargeable alkaline battery lines. Net loss was $2.2 million, or ($0.07) per share, in the third quarter of 2011, compared with net income of $51,000, or $0.00 per share, in the same quarter of the prior year. The reduction in profitability is primarily due to a lower level of sales of power products and lower gross margins in the retail channel. The Company had $14.2 million in cash, cash equivalents, and short-term investments, $15.3 million in working capital (excluding cash, cash equivalents and short-term investments), and no debt as of September 30, 2011. Michael D. Heil, President and Chief Executive Officer of iGo, commented, "Our third quarter results reflect the increasing competition we are seeing in the power product market, which is having a negative impact on both sales and margins. As our sales mix moves more towards our new audio and rechargeable alkaline battery lines, we should be able to better offset these competitive pressures. The development of the iGo Green® technology chip remains on schedule to be completed in the first quarter of 2012, which we believe could provide a higher margin revenue stream that will improve our overall financial results."