8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported)  April 9, 2008

INNOTRAC CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Georgia

(State or Other Jurisdiction of Incorporation)

000-23741	58-1592285
(Commission File Number)	(IRS Employer Identification No.)

6655 Sugarloaf Parkway
Duluth, Georgia	30097
(Address of Principal Executive Offices)	(Zip Code)

(678) 584-4000

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On April 9, 2008, Innotrac Corporation (“Innotrac”) issued a press release to announce its financial results for the fourth quarter and fiscal year ended December 31, 2007.  A copy of the press release is attached as Exhibit 99.1.

The information in this Report, including the Exhibit attached hereto, is furnished solely pursuant to Item 2.02 of this Form 8-K.  Consequently, it is not deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section.  It may only be incorporated by reference in another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(c)	Exhibits
Exhibit No.	Description
99.1	Innotrac Corporation press release dated April 9, 2008, announcing Innotrac’s financial results for the fourth quarter and fiscal year ended December 31, 2007 (furnished pursuant to Item 2.02 of this Form 8-K).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		INNOTRAC CORPORATION
	By:	/s/ Scott D. Dorfman
		Scott D. Dorfman
Date:  April 9, 2008		Chairman, President and Chief Executive Officer

EX-99.1

Exhibit 99.1

Innotrac Corporation Announces 2007 Fourth Quarter and Year End Results

ATLANTA, GA (April 9, 2008) – Innotrac Corporation (NASDAQ-GM: INOC) announced financial results today for the fourth quarter and year ended December 31, 2007.  The Company reported revenues of $36.9 million for the quarter versus $29.3 million reported in the comparable period in 2006, an increase of 25.7%.  For the year ended December 31, 2007, the Company reported revenues of $121.8 million compared to $82.3 million for the year ended December 31, 2006, an increase of 47.9%.  The increase in revenue for the three months ended December 31, 2007 was primarily due to the addition of several new clients and increased revenue from existing clients in our retail/catalog and direct marketing verticals.  The increase in revenue for the twelve months ended December 31, 2007 was primarily attributed to the addition of several new retail/catalog clients and additional revenue resulting from clients acquired in the ClientLogic acquisition in October, 2006.

The Company reported net income of $425,000, or $0.03 per share, for the three months ended December 31, 2007, versus a net loss of $2.7 million, or $0.22 per share, in the comparable period of 2006.  For the year ended December 31, 2007, the Company reported net income of $712,000, or $0.06 per share, compared to a net loss of $5.3 million, or $0.43 per share, in the same period in 2006.

Conference Call

Innotrac Corporation will hold a conference call to discuss this release this afternoon, April 9, 2008 at 5:00 PM Eastern Daylight Time.  Investors can listen to the conference call live by dialing 1-877-569-0972 (Conference ID: 42006023) or by logging on to www.innotrac.com and clicking on “Webcasts and Presentations” in the “Investor Relations” section.  The Webcast will be archived and available at the same Web address.  Additionally, a 48-hour audio playback will be available at 1-800-642-1687 (Conference ID: 42006023).

Innotrac

Innotrac Corporation, founded in 1984 and based in Atlanta, Georgia, is a full-service fulfillment and logistics provider serving enterprise clients and world-class brands.  The Company employs sophisticated order processing and warehouse management technology and operates eight fulfillment centers and two call centers in six cities spanning all time zones across the continental United States. For more information about Innotrac, visit the Innotrac Web site, www.innotrac.com.

Information contained in this press release, other than historical information, may be considered forward-looking in nature.  Forward-looking statements in this press release include our expectations for future progress in our business and future generation of cash flows.  Forward-looking statements are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected.  Among the key factors that may have a direct bearing on Innotrac's operating results, performance or financial condition are competition, the demand for Innotrac's services, Innotrac's ability to retain its current clients and attract new clients, realization of expected revenues from new clients, the state of the telecommunications and direct response industries in general, changing technologies, Innotrac’s ability to maintain profit margins in the face of pricing pressures and numerous other factors discussed in Innotrac's 2006 Annual Report on Form 10-K and other filings on file with the Securities and Exchange Commission.  Innotrac disclaims any intention or obligation to update or revise any forward-looking statement whether as a result of new information, future events or otherwise.

Contact

George Hare

Chief Financial Officer

678-584-4020

ghare@innotrac.com

###

INNOTRAC CORPORATION
Condensed Statements of Operations
(in thousands, except per share amounts)
	Three Months Ended					Twelve Months Ended
	December 31,					December 31,
	(Unaudited)					(Unaudited)		(Audited)
	2007		2006			2007		2006
Service revenue	$	29,030	$	24,845		$	97,215	$	69,318
Freight revenue		7,870		4,501			24,601		13,025
Total revenue		36,900		29,346			121,816		82,343
Cost of revenues		16,351		14,902			47,723		32,980
Freight expense		7,711		4,425			24,299		12,814
Selling, general and
administrative expenses		10,950		11,250			43,342		37,463
Depreciation and amortization		1,170		1,280			4,957		3,919
Total operating expenses		36,182		31,857			120,321		87,176
Operating income (loss)		718		(2,511	)		1,495		(4,833	)
Interest expense		293		151			783		429
Total other expense		293		151			783		429
Income (loss) before income taxes		425		(2,662	)		712		(5,262	)
Income tax (benefit)		-		-			-		-
Net Income (loss)	$	425	$	(2,662	)	$	712	$	(5,262	)
Earnings per share:
Basic	$	0.03	$	(0.22	)	$	0.06	$	(0.43	)
Diluted	$	0.03	$	(0.22	)	$	0.06	$	(0.43	)
Weighted average shares
outstanding:
Basic		12,586		12,281			12,490		12,281
Diluted		12,586		12,281			12,490		12,281

INNOTRAC CORPORATION
Condensed Balance Sheets
(in thousands)
	December 31,		December 31,
	2007		2006
ASSETS	(Unaudited)		(Audited)
Current Assets:
Cash	$	1,079	$	1,014
Accounts receivable (net of allowance for doubtful accounts of $288 at December 31, 2007 and $257 at December 31, 2006)		28,090		22,939
Inventory		599		1,729
Prepaid expenses and other		1,100		1,088
Total current assets		30,868		26,770
Property and equipment, net		17,702		17,836
Goodwill		25,169		25,169
Other assets, net		1,192		1,765
Total assets	$	74,931	$	71,540
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	14,050	$	14,363
Line of credit		6,168		8,586
Term loan		5,000		-
Accrued expenses and other		5,708		4,981
Total current liabilities		30,926		27,930
Noncurrent Liabilities:
Other non-current liabilities		993		1,576
Total noncurrent liabilities		993		1,576
Total shareholders' equity		43,012		42,034
Total liabilities and shareholders' equity	$	74,931	$	71,540

INNOTRAC CORPORATION
Condensed Statements of Cash Flows
(in thousands)
	Twelve Months Ended
	December 31,
	(Unaudited)			(Audited)
	2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	712		$	(5,262	)
Adjustments to net income (loss):
Depreciation and amortization		4,957			3,919
Loss on disposal of fixed assets		16			8
Provision for bad debts		43			54
Stock issued to settle employee stock bonus		111			-
Amortization of deferred compensation-stock options		102			105
Amortization of deferred compensation-restricted stock		53			-
Changes in working capital:
Accounts receivable, gross		(5,193	)		(10,248	)
Inventory		1,130			2,947
Prepaid assets and other		400			206
Accounts payable, accrued expenses and other		1,214			7,966
Net cash provided by operating activities		3,545			(305	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(4,827	)		(8,260	)
Acquisition of business, net of cash acquired		-			(1,055	)
Installment payment on previous acquisition of business		(800	)		-
Cash (used in) investing activities		(5,627	)		(9,315	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) borrowings under line of credit		(2,418	)		8,586
Proceeds from term loan		5,000			-
Loan commitment fees		(435	)		(20	)
Cash provided by financing activities		2,147			8,566
Net increase (decrease) in cash		65			(1,054	)
Cash, beginning of period		1,014			2,068
Cash, end of period	$	1,079		$	1,014