iGo, Inc. (iGo) has reported net revenues of $77.1 million for the year-end 2008, compared with the net revenues of $77.7 million in the previous year-end. It has also reported a net income of $451,000, or $0.01 per share, for the year-end 2008, compared with the net loss of $12.6 million, or $0.40 loss per share, in the previous year-end.

Total revenue was $19.6 million in the fourth quarter of 2008, compared with revenue of $20.3 million in the fourth quarter of 2007.

Excluding revenues related to business lines divested during and subsequent to the end of the first quarter of 2007 (handheld and expansion/docking), total revenues were $17.6 million in the fourth quarter of 2008, compared to $18.3 million in the same quarter of the prior year. According to generally accepted accounting principles in the US (US GAAP), iGo must consolidate the operating results of Mission Technology Group, the acquirer of the company’s expansion/docking business, into its financial results until such time as the company’s financial interest in the performance of Mission Technology Group no longer meets the criteria for consolidation.

Net income was $102,000, or $0.00 per share, in the fourth quarter of 2008, compared with a net loss of $5.0 million, or ($0.16) per share, in the same quarter of the prior year. The net loss in the fourth quarter of 2007 included a $5.0 million charge for asset impairment.

Excluding non-cash compensation expense, asset impairment in the fourth quarter of 2007, and the operating results of the divested businesses, net income was $549,000, or $0.02 per share, in the fourth quarter of 2008, compared to net income of $399,000, or $0.01 per share, in the fourth quarter of 2007.

Michael D. Heil, president and chief executive officer of iGo, commented, “We delivered another quarter of solid profitability driven by strong revenue growth in our key sales channels. During the fourth quarter, revenues from our North American retail, private label and wireless carrier channels increased by 16% over the prior year.”

Fourth Quarter Product Area Highlights:

Unit sales of universal chargers for high-power mobile electronic (ME) devices, such as portable computers, were about 288,000 units in the fourth quarter of 2008.

Unit sales of universal chargers for low-power ME devices, such as mobile phones, PDAs, MP3 players and digital cameras, were about 741,000 units in the fourth quarter of 2008.

Revenue from the sale of power products for high-power ME devices was $11.5 million in the fourth quarter of 2008, a decline of 12.0% from $13.0 million in the same period of the prior year. High-power revenue in the fourth quarter of 2007 included $2.4 million from the OEM channel, which the company no longer services. Excluding revenues from the OEM channel, sales of power products for high-power ME devices increased 5.7% in the fourth quarter of 2008.

Revenue from the sale of power products for low-power ME devices was $6.0 million in the fourth quarter of 2008, an increase of 28.5% from $4.7 million in the same period of the prior year.

Financial Highlights:

Gross margin was 27.9% in the fourth quarter of 2008, compared to 29.6% in the fourth quarter of 2007. Excluding the operations of the divested businesses, gross margin was 25.7% in the fourth quarter of 2008, compared to 27.5% in the fourth quarter of 2007. The decline in gross margins is primarily due to lower margins on sales through the private label channel.

Total operating expenses in the fourth quarter of 2008 were $6.2 million, compared with $6.1 million in the fourth quarter of 2007. Excluding non-cash equity compensation expense, the operations of the divested businesses and asset impairment charges incurred in 2007, operating expenses were $4.8 million in the fourth quarter of 2008, or 27.3% of revenue (excluding revenue from divested businesses), compared to $5.0 million in the fourth quarter of 2007, or 27.3% of revenue (excluding revenue from divested businesses).

Excluding assets of the divested businesses, the company’s balance sheet remained strong with $30.6 million in cash, cash equivalents, and short-term investments at December 31, 2008. The company continued to have no long-term debt and had a book value per share of $1.24 based on 31.9 million common shares issued and outstanding at December 31, 2008.

New Product Development:

During January 2009, iGo was an exhibitor at the 2009 International Consumer Electronics Show (CES). The company displayed an array of new products scheduled for launch during 2009 including the following:

iGo Netbook Charger – A travel and home/office charger that can simultaneously power a netbook and another device;

iGo Green Laptop Charger – A 90-watt AC laptop charger that utilizes 80% less standby power than standard power products.

“This was the first time that iGo was an exhibitor at CES and it served as a great venue for showcasing both our new and existing products,” said Heil. “We received a great deal of media coverage for our products and had very positive discussions with the major retailers that we are targeting.”

Outlook:

The company has elected not to provide US GAAP-based financial guidance for the first quarter of 2009 because Mission Technology Group does not prepare financial forecasts. However, Mission Technology Group’s revenue and operating results for the first quarter of 2009 are not expected to be more or less significant to the company’s consolidated financial results than they were for the fourth quarter of 2008.

On a non-GAAP basis, which excludes revenue from divested businesses, the company believes that revenue will range from $13.5 million to $14.5 million in the first quarter of 2009. The company also believes that net loss, excluding the operating results of divested businesses and non-cash equity compensation, will range from $0.04 to $0.05 per share.

Heil commented on the company’s outlook, “We are beginning to see the effect of the weaker economic conditions on sales through our retail channel. We expect this to negatively impact our revenue and earnings during the first half of 2009. However, our investment in product development has produced a strong pipeline of new products that we expect to start generating meaningful revenue in the second half of 2009. Our balance sheet continues to be exceptionally strong, which we believe positions us well to weather the current challenging economic conditions.”