Investing to Wealth

iGo Inc. (NASDAQ: IGOI)

iGo Inc. (IGOI) is a provider of products and solutions for the mobile electronics industry. Its major products include power accessories, foldable keyboards and connectivity solutions. The Company offers branded and private-label products that focus primarily on providing accessories for mobile electronic devices. These products primarily include power accessories and connectivity solutions. The Company primarily sells its products through private-label resellers, such as Targus Group International; retailers, such as RadioShack Corp.; resellers, such as Ingram Micro Inc.; wireless carriers, such as AT&T; and directly to end users through its IGOI brand Web site, www.igo.com. The Company operates in three business segments: High-Power Group, Low-Power Group and Connectivity Group.

The Company was formerly known as Mobility Electronics Inc. and changed its name to iGo Inc. in May 2008. iGo Inc. was founded in 1995 and is based in Scottsdale, Arizona.

Source: Reuters.com, SEC Filings.

Financial Summary

IGOI recently reported financial results for the fourth quarter ended December 31, 2009, posting net income attributable to IGOI at $90,000, or $0.00 per share, in the fourth quarter of 2009, compared with net income of $103,000, or $0.00 per share, in the same quarter of the prior year. Net income was positively impacted by a $234,000 income tax benefit recorded in the fourth quarter of 2009 relating to an application for a refund of federal alternative minimum taxes paid in 2005 and 2006 in connection with the Worker, Homeownership and Business Assistance Act of 2009. Total revenue was $11.6 million in the fourth quarter of 2009, compared with revenue of $19.6 million in the fourth quarter of 2008.

According to Generally Accepted Accounting Principles in the United States (U.S. GAAP), IGOI must consolidate the operating results of Mission Technology Group, which acquired the Company’s expansion/docking business in 2007, 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. As a result of a recently issued accounting pronouncement, beginning with the first quarter of 2010, the Company has determined it will no longer be required to consolidate the operating results of Mission Technology Group.

Excluding revenues related to business lines acquired by Mission Technology Group, total revenues were $9.9 million in the fourth quarter of 2009, compared to $17.6 million in the same quarter of the prior year.

Excluding the operating results of the divested business, net loss was ($10,000), or ($0.00) per share, in the fourth quarter of 2009, compared to net income of $45,000, or $0.00 per share, in the fourth quarter of 2008.

Gross margin was 35.1% in the fourth quarter of 2009, compared to 27.9% in the fourth quarter of 2008. Excluding the operations of the divested business, gross margin was 32.7% in the fourth quarter of 2009, compared to 25.7% in the fourth quarter of 2008. The increase in gross margin is primarily due to a decline in sales to private label distributors.

Total selling, general and administrative expenses in the fourth quarter of 2009 were $4.3 million, compared with $6.2 million in the fourth quarter of 2008. Excluding the operations of the divested business, selling, general and administrative expenses were $3.6 million in the fourth quarter of 2009, compared to $5.3 million in the fourth quarter of 2008. The decline in selling, general and administrative expenses is primarily due to expense reductions made during the past year.

Excluding assets of the divested business, the Company’s balance sheet remained strong with $32.6 million in cash, cash equivalents and short-term investments as of December 31, 2009. The Company continues to have no long-term debt and had a book value per share of $1.24 based on 32.4 million common shares issued and outstanding as of December 31, 2009.

Source: Reuters.com, SEC Filings.

Analyst Consensus

This is the consensus forecast among 0 polled investment analysts. Against the iGo Inc. company.

Source: www.ft.com

Consensus Estimates Analysis

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=IGOI.W

Investment Highlights

IGOI offers a full line of universal power adapters for portable computers and devices such as mobile phones, Bluetooth accessories, PDAs, MP3 players, digital cameras, GPS devices and more. These iGo adapters allow users the option of powering from any standard wall, vehicle or airplane outlet or from AA batteries. iGo adapters also provide additional functionality to simultaneously power and charge a notebook computer and a second mobile device such as a mobile phone, MP3 player, smartphone and more.

The Company is headquartered in Scottsdale, Arizona, and has offices in Chicago and the UK; distribution partners in Irwindale, Calif. and Peoria, Ill.; and manufacturing partners in China and Taiwan.

During the fourth quarter of 2009, IGOI introduced three new products designed to reduce energy power consumption:

• Power Smart Tower with iGo Green Technology - A tower-style surge protector that features four outlets with iGo Green Technology that reduce energy consumption, four “always on” outlets for devices requiring continuous power and two USB ports to conveniently charge mobile devices
• Power Smart Wall with iGo Green Technology - A wall-mounted surge protector with two power outlets with iGo Green Technology and two “always on” outlets for devices requiring continuous power
• Laptop Anywhere Charger with iGo Green Technology - An energy-saving charger that powers laptops and mobile devices at the same time from a wall, car or airplane power outlet

Company Milestones:

• 1995 - Mobility Electronics is founded.
• 2000 - Mobility Electronics (MOBE) initial public offering (IPO) launches in June.
• 2003 - Universal adapters for notebook computers launch with the introduction of iGo juice70.
• 2004 - Strategic partnerships with Motorola and Targus are established. Universal chargers for low-power mobile electronic devices, including mobile phones, smartphones/PDAs, MP3 players, and portable GPS systems launch in the third quarter.
• 2005 - An initial equity investment of $10M from RadioShack and Motorola creating a new low-power product division.
• 2006 - Think Outside is acquired adding portable Bluetooth® keyboards to portfolio of mobile accessories. Low-power products begin selling in additional U.S. retail stores.
• 2008 - Mobility Electronics changes name to iGo Inc. Ticker symbol changes from MOBE to IGOI .
• 2009 - iGo launches new line of products dedicated to reducing standby power, called iGo Green Technology.

Source: http://www.igo.com/

Technical Analysis

Source: http://stockcharts.com

IGOI is trading above its 50-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

IGOI is trading above its upper Bollinger Band. Relative to recent price action, the stock is currently overextended and due for either a pause or retracement.

The MACD for IGOI currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

Comparative Analysis

Source: Thomson Financial

Insider Trading Activity

Source: Yahoo Finance

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