8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): March 31, 2008
IGI, INC.
(Exact name of registrant as specified in charter)
DELAWARE		001-08568	01-0355758
(State or Other Jurisdiction of		(Commission	(I.R.S. Employer
Incorporation)		file number)	Identification Number)
105 Lincoln Avenue
Buena, New Jersey 08310
(Address of principal executive offices)(Zip Code)
(856) 697-1441
(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:
[ ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 2.02.	Results of Operations and Financial Condition.
On March 31, 2008, IGI, Inc. (the "Company") issued a press release announcing the Company's earnings for the fourth quarter and the full year ending December 31, 2007 and certain other information. A copy of the press release is attached hereto as Exhibit 99.1 The press release is being furnished and shall not be deemed to be filed.
Item 9.01.	Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number		Description of Exhibit
Exhibit 99.1		IGI, Inc. Press Release dated March 31, 2008

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SIGNATURE
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.
IGI, INC.
Date: April 4, 2008	By:/s/ Carlene Lloyd
	Name: Carlene Lloyd
	Title: Vice President of Finance

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EXHIBIT INDEX
Exhibit Number	Description of Exhibit
99.1	IGI, Inc. Press Release dated March 31, 2008

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EX-99

News From
Buena, NJ 08310
Release Date: March 31, 2008
Contact:			Rajiv Mathur
			President & Chief Executive Officer
			IGI, Inc.
			856-697-1441 ext. 102
			www.askigi.com
IGI, INC. ANNOUNCES 2007 YEAR END RESULTS
BUENA, NJ March 31, 2008 - IGI, INC. (AMEX: IG) a premier provider of topical formulation development, analytical, manufacturing and packaging services announces 2007 year end results and 2008 ongoing business plans.
IGI's business successes in 2007 include:
	~	Revenue growth of 75% over 2006
	~	Operating profitability for the fourth quarter
	~	Positive cash flow from operations in the fourth quarter
	~	Expansion of operations to include packaging services completed
	~	Additional Product Development, Supply and Manufacturing agreements signed
	~	Joint patent granted and additional patent research work initiated
IGI's business objectives for 2008:
	~	Maintain the growth of our technology based business by marketing, developing and manufacturing more innovative products for our customers.
	~	Continue research and strengthening of the Novasome® technology by filing additional patents.
	~	Expand the development of topical generic and branded generic products and seek partnerships with pharmaceutical companies.
	~	To seek synergistic business partners with whom we can partner to expand our product offerings.

"We are extremely pleased with the increase in revenue, our profitability, positive cash flow and operating successes. We anticipate that the growth in these areas will continue in 2008." Rajiv Mathur, President and CEO, stated.

Fourth Quarter and Fiscal 2007 Financial Results

Fourth Quarter

The company reported net income of $355,000 or $.02 per share, for the quarter ended December 31, 2007, compared to net loss of $(336,000), or $(.02) per share, for the comparable period in 2006. This net income is inclusive of an accrual of $175,000 relating to the penalties accessed by the NJ Department of Environmental Protection against the Company.

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SELECTED QUARTERLY FINANCIAL DATA
(in thousands, except per share data)
Total Revenues	$1,655
Gross Margin	$  811
Net Income	$  355
Net Income Per Basic and Diluted Common Share	$ 0.02
2007
For fiscal year 2007, the Company had a net loss of $(332,000) and an earnings per share attributable to common stockholders of $(0.03) per share compared to a net loss of $(1,667,000), or $(0.13) per share, in 2006. The earnings per share for 2007 is inclusive of a dividend accreted to preferred stockholders for a beneficial conversion feature associated with the preferred stock issuance.
Total revenues increased by $1,961,000 in 2007 to $4,581,000, which represents an increase of 75% over revenues from 2006. Licensing and royalty income increased by $184,000 in 2007 over 2006 to $841,000.
Selling, general and administrative expenses increased by $325,000, or 15%, from $2,105,000 in 2006 to $2,430,000 in 2007. The increase in selling, general and administrative expenses in 2007 compared to the comparable period in 2006 related to the accrual of the $175,000 penalty assessed to the Company by the Department of Environmental Protection in 2007 and an increase in stock-based compensation expense of $258,000 in accordance with SFAS 123(R) as discussed under "Summary of Significant Accounting Policies and Stock-based Compensation " which were offset by a decrease of professional fees in 2007 of $84,000.
Product development and research expenses decreased by $584,000 in 2007, or 55%, compared to 2006. The decrease in product development and research expenses in 2007 compared to the comparable period in 2006 relates to a change in classification of personnel costs.
Interest expense amounted to $48,000 (net of income) in 2007 compared to interest expense of $129,000 (net of income) in 2006. Interest expense decreased in 2007 as a result of a decrease in the Company's short term notes payable principal balance and a reduction in the Company's average interest rate on its short term notes payable in 2007.
The tax benefit of $453,000 in 2007 and $458,000 in 2006 was a result of the sales of a portion of the Company's state tax operating loss carry forwards.
The Company had positive working capital of $985,000 and a cash balance of $914,000 for the year ended December 31, 2007.
IGI is a company committed to growth by applying proprietary technologies to achieve cost-effective solutions for varied customer needs. IGI offers the patented Novasome® micro-vesicular delivery technology which contributes value-added qualities to cosmetics, skin care products, dermatological formulations and other consumer products, providing improved dermal absorption, controlled and sustained release as well as improved stability and greater ease of formulation.
This report contains forward-looking statements relating to IGI's hopes and expectations for the future. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "will," "possible," "one time," "provides an opportunity," "continue" and similar expressions are intended to identify forward-looking statements. Such statements involve a number of risks and uncertainties and actual future events and results could differ materially from those indicated by such forward-looking statements due to general economic conditions, and the risk factors detailed in IGI's periodic reports and registration statements filed with the Securities and Exchange Commission.

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IGI, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
December 31, 2007
(in thousands, except share information)
ASSETS
Current assets:
Cash and cash equivalents	$      914
Accounts receivable, less allowance for doubtful accounts of $48	666
Licensing and royalty income receivable	356
Inventories	376
Prepaid expenses and other current assets	93
Total current assets	2,405
Restricted cash	50
Property, plant and equipment, net	2,410
License fee, net	800
Total assets	$   5,665
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Note payable- related party	$      500
Accounts payable	282
Accrued expenses	419
Deferred income, current	219
Total current liabilities	1,420
Deferred income, long term	45
Other long term liabilities	60
Total liabilities	1,525
Commitments and contingencies	-
Stockholders' equity:
Series A Convertible Preferred stock, $.01 par value, 100 shares authorized; 50 shares      issued and outstanding; Liquidation preference- $500,000	500
Common stock, $.01 par value, 50,000,000 shares authorized; 16,795,202 shares issued     and 14,829,462 shares outstanding	168
Additional paid-in capital	27,411
Accumulated deficit	(22,544)
Less treasury stock, 1,965,740 shares at cost	(1,395)
Total stockholders' equity	4,140
Total liabilities and stockholders' equity	$   5,665

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IGI, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
for the years ended December 31, 2007 and 2006
(in thousands, except shares and per share information)
	2007	2006
Revenues:
Product sales, net	$      2,904	$      1,787
Licensing and royalty income	841	657
Research and development income	836	176
Total revenues	4,581	2,620
Costs and Expenses:
Cost of sales	2,476	1,388
Selling, general and administrative expenses	2,430	2,105
Product development and research expenses	481	1,065
Operating (loss)	(806)	(1,938)
Interest (expense), net	(48)	(129)
Other income, net	64	-
Loss before benefit from income taxes	(790)	(2,067)
Benefit from income taxes	453	458
Loss from continuing operations	(337)	(1,609)
Discontinued operations: (Note 15) Gain/(loss) from discontinued operations	5	(58)
Net loss	(332)	(1,667)
Dividend accreted to preferred stock for beneficial conversion feature	80	-
Net Loss Attributable to Common Stockholders	$      (412)	$     (1,667)
Basic and Diluted (Loss) per Share
Continuing operations	$       (.03)	$       (.13)
Discontinued operations	(.00)	(.00)
	$       (.03)	$       (.13)
Weighted average shares of common stock outstanding
Basic and diluted	14,308,583	12,845,711

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