Full Press Release Details
| For additional information contact: | ||||
| Richard S. DeRose (703) 293-7901 | ||||
| For release: | ||||
| November 9, 2006 |
Information Analysis Inc. Reports Third Quarter Results
FAIRFAX, VIRGINIA Information Analysis Inc. (IAIC:OTCBB) today reported results for its third fiscal quarter ended September 30, 2006. Revenues were
$2,574,000, compared to $2,629,000 reported in the third quarter 2005. The information technology services company reported net income of $157,000, or $0.01 per share basic and diluted, compared to net income of $251,000 or $0.02 per share basic and
diluted, in the third quarter 2005.
For the nine months ended September 30, 2006, IAI s revenues were $7,457,000, compared to
revenues of $7,822,000 for the same period in 2005. The Company reported net income of $396,000, or $0.04 per share basic and $0.03 per share diluted, compared to net income of $471,000, or $0.05 per share basic and $0.04 per share diluted, reported
for the comparable 2005 period.
Our third quarter revenue was essentially the same as this year s second quarter. Some of the
business that we expected during this quarter came in late in the quarter and we expect to derive revenue from these contracts during the fourth quarter and into 2007, said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI.
We still have a number of bid opportunities outstanding for new business and additional add-on business to existing contracts, which are expected to materialize during the fourth quarter. This should give the company impetus to increase
Since we engaged an advisory firm in July, our M&A activities have increased significantly.
About Information Analysis Incorporated
Information Analysis Incorporated (www.infoa.com), headquartered in Fairfax, Virginia, is an information technology services company. The Company is a web solution provider and software conversion specialist, modernizing legacy systems and
extending their reach to the internet world.
Additional information for investors
This release may contain forward-looking statements regarding the Company s business, customer prospects, or other factors that may affect future
earnings or financial results. Such statements involve risks and uncertainties which could cause actual results to vary materially from those expressed in the forward-looking statements. Investors should read and understand the risk factors detailed
in the Company s 10-KSB for the fiscal year ended December 31, 2005 and in other filings with the Securities and Exchange Commission.
Information Analysis Reports Third Quarter Results
Information Analysis Incorporated
Statements of Operations
| Three months ended September 30, | |||||||
| (in thousands, except per share data; unaudited) | 2006 | 2005 | |||||
| Revenue: | |||||||
| Professional fees | $ | 2,180 | $ | 2,371 | |||
| Software sales | 394 | 258 | |||||
| Total revenue | 2,574 | 2,629 | |||||
| Cost of goods sold and services provided: | |||||||
| Cost of professional fees | 1,626 | 1,753 | |||||
| Cost of software sales | 183 | 208 | |||||
| Total cost of sales | 1,809 | 1,961 | |||||
| Gross margin | 765 | 668 | |||||
| Selling, general and administrative expense | 610 | 413 | |||||
| Operating income | 155 | 255 | |||||
| Other income (expense) | 2 | (4 | ) | ||||
| Income before income taxes | 157 | 251 | |||||
| Provision for income taxes | |||||||
| Net income | $ | 157 | $ | 251 | |||
| Earnings per share: | |||||||
| Basic | $ | 0.01 | $ | 0.02 | |||
| Diluted | $ | 0.01 | $ | 0.02 | |||
| Shares used in calculating earnings per share: | |||||||
| Basic | 11,137,371 | 10,301,494 | |||||
| Diluted | 11,478,082 | 10,655,071 |
Information Analysis Reports Third Quarter Results
Information Analysis Incorporated
Statements of Operations
| Nine months ended September 30, | |||||||
| (in thousands, except per share data; unaudited) | 2006 | 2005 | |||||
| Revenue: | |||||||
| Professional fees | $ | 6,675 | $ | 6,858 | |||
| Software sales | 782 | 964 | |||||
| Total revenue | 7,457 | 7,822 | |||||
| Cost of goods sold and services provided: | |||||||
| Cost of professional fees | 5,080 | 5,272 | |||||
| Cost of software sales | 478 | 813 | |||||
| Total cost of sales | 5,558 | 6,085 | |||||
| Gross margin | 1,899 | 1,737 | |||||
| Selling, general and administrative expense | 1,508 | 1,253 | |||||
| Operating income | 391 | 484 | |||||
| Other income (expense) | 5 | (13 | ) | ||||
| Income before income taxes | 396 | 471 | |||||
| Provision for income taxes | |||||||
| Net income | $ | 396 | $ | 471 | |||
| Earnings per share: | |||||||
| Basic | $ | 0.04 | $ | 0.05 | |||
| Diluted | $ | 0.03 | $ | 0.04 | |||
| Shares used in calculating earnings per share: | |||||||
| Basic | 10,973,470 | 10,293,910 | |||||
| Diluted | 11,436,461 | 10,687,084 |
Information Analysis Reports Third Quarter Results
Information Analysis Incorporated
| As of September 30, 2006 | As of December 31, 2005 | |||||||
| (in thousands) | (unaudited) | (audited) | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 477 | $ | 452 | ||||
| Accounts receivable, net | 2,096 | 1,994 | ||||||
| Prepaid expenses | 422 | 183 | ||||||
| Notes receivable | 113 | 85 | ||||||
| Other assets | 12 | |||||||
| Other receivables | 6 | 15 | ||||||
| Total current assets | 3,126 | 2,729 | ||||||
| Fixed assets, net | 56 | 57 | ||||||
| Other assets | 2 | 9 | ||||||
| Total assets | $ | 3,184 | $ | 2,795 | ||||
| LIABILITIES & STOCKHOLDERS EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 944 | $ | 1,175 | ||||
| Deferred revenue | 371 | 214 | ||||||
| Accrued payroll and related payroll items | 249 | 321 | ||||||
| Other accrued liabilities | 72 | 125 | ||||||
| Income taxes payable | 4 | |||||||
| Total current liabilities | 1,636 | 1,839 | ||||||
| Total liabilities | 1,636 | 1,839 | ||||||
| Common stock, par value $0.01, 30,000,000 shares authorized; 12,779,987 shares issued, 11,137,371 outstanding at September 30, 2006, and 12,127,626 shares issued, 10,623,015 outstanding at December 31, 2005 | 128 | 121 | ||||||
| Additional paid in capital | 14,478 | 14,212 | ||||||
| Accumulated deficit | (12,115 | ) | (12,511 | ) | ||||
| Accumulated other comprehensive income | (12 | ) | (12 | ) | ||||
| Less treasury stock; 1,642,616 shares at cost at September 30, 2006, and 1,504,611 shares at cost at December 31, 2005 | (931 | ) | (854 | ) | ||||
| Total stockholders equity | 1,548 | 956 | ||||||
| Total liabilities and stockholders equity | $ | 3,184 | $ | 2,795 |