iGo releases results, announces chip delay

Morningstar reports.

The company expects total revenue to range between $8.5 million and $8.8 million for the fourth quarter of 2011. The company expects its net loss for the fourth quarter of 2011 will exceed the loss of $0.07 per share reported in the third quarter of 2011. The company is currently in the process of evaluating its goodwill and other intangible assets for possible impairment. If it is determined that goodwill or other intangible assets are impaired, it is likely that the net loss for the fourth quarter of 2011 could far exceed the net loss recorded in the third quarter of 2011.

The expected completion date of the iGo (IGOI) Green technology chip, being jointly developed with Texas Instruments (TXN), has been changed to the end of the second quarter or early third quarter of 2012. During the qualification process for the chip, it was determined that a new design for the lead frame was required, which will delay completion of the chip by several months, Yahoo News reports.

Michael D Heil, president and CEO of iGo, commented: "We continue to experience highly competitive pricing in the power product market, which negatively impacted our sales and gross margin in the fourth quarter. We continue to be optimistic about the possibilities for the iGo Green chip, particularly in light of new standards for battery chargers adopted by the California Energy Commission (CEC) last week, Market Watch says.

The CEC's new standards, which will come into effect on 1 February 2013, will require battery chargers for devices such as mobile phones and laptops to consume less energy while providing the same performance.