Full Press Release Details
For additional information contact:
Richard S. DeRose (703) 293-7901
For release: August 11, 2011 at 9:00 a.m.
Information Analysis Inc. Reports Second Quarter Results
FAIRFAX, VIRGINIA - Information Analysis Inc. (OTCBB: IAIC) reported results for the second quarter ended June 30, 2011. Revenues were $1,620,000 compared to $1,688,000 reported in 2010's second quarter. The Company reported net income of $47,000, or $0.00 per share, compared to net income of $78,000, or $0.01 per share in 2010's second quarter. IAI had revenue of $3,044,000, compared to $3,703,000 reported for six months ending June 30, 2010. Net income for the first six months of fiscal 2011 was $38,000, or $0.00 per share, versus net income of $182,000, or $0.02 per share, in the comparable 2010 period.
"The Company's profits showed improvement over last quarter's results," Sandor Rosenberg, Chairman and Chief Executive Officer of IAI said. "There continues to be an increase in opportunities for the modernization business, and we have been aggressively pursuing these opportunities, which should improve revenue in the future. We expect to remain profitable during the second half of the year.
"We continue to pursue merger and acquisitions opportunities."
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. These include the failure to obtain sufficient contracts, and to profitably complete those contracts. Investors should read and understand the risk factors detailed in the Company's 10-K for the fiscal year ended December 31, 2010 and in other filings with the Securities and Exchange Commission.
Information Analysis Reports Second Quarter Results
Information Analysis Incorporated
Condensed Income Statements
| Three months ended June 30, | ||||||||
| (in thousands, except per share data; unaudited) | 2011 | 2010 | ||||||
| Sales: | ||||||||
| Professional fees | $ | 1,148 | $ | 1,115 | ||||
| Software sales | 472 | 573 | ||||||
| Total sales | 1,620 | 1,688 | ||||||
| Cost of goods sold and services provided: | ||||||||
| Cost of professional fees | 692 | 665 | ||||||
| Cost of software sales | 366 | 460 | ||||||
| Total cost of sales | 1,058 | 1,125 | ||||||
| Gross margin | 562 | 563 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 517 | 487 | ||||||
| Operating income | 45 | 76 | ||||||
| Other income | 2 | 2 | ||||||
| Income before income taxes | 47 | 78 | ||||||
| Provision for income taxes | - | - | ||||||
| Net income | $ | 47 | $ | 78 | ||||
| Comprehensive Income | $ | 47 | $ | 78 | ||||
| Net income per share: | ||||||||
| Basic and diluted | $ | 0.00 | $ | 0.01 | ||||
| Shares used in calculating earnings per share: | ||||||||
| Basic | 11,196,760 | 11,196,760 | ||||||
| Diluted | 11,213,466 | 11,222,863 |
Information Analysis Reports Second Quarter Results
Information Analysis Incorporated
Condensed Income Statements
| Six months ended June 30, | ||||||||
| (in thousands, except per share data; unaudited) | 2011 | 2010 | ||||||
| Sales: | ||||||||
| Professional fees | $ | 2,251 | $ | 2,628 | ||||
| Software sales | 793 | 1,075 | ||||||
| Total sales | 3,044 | 3,703 | ||||||
| Cost of goods sold and services provided: | ||||||||
| Cost of professional fees | 1,285 | 1,456 | ||||||
| Cost of software sales | 642 | 882 | ||||||
| Total cost of sales | 1,927 | 2,338 | ||||||
| Gross margin | 1,117 | 1,365 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 1,083 | 1,188 | ||||||
| Operating income | 34 | 177 | ||||||
| Other income | 4 | 5 | ||||||
| Income before income taxes | 38 | 182 | ||||||
| Provision for income taxes | - | - | ||||||
| Net income | $ | 38 | $ | 182 | ||||
| Comprehensive Income | $ | 38 | $ | 182 | ||||
| Net income per share: | ||||||||
| Basic and diluted | $ | 0.00 | $ | 0.02 | ||||
| Shares used in calculating earnings per share: | ||||||||
| Basic | 11,196,760 | 11,196,760 | ||||||
| Diluted | 11,209,229 | 11,215,187 |
Information Analysis Reports Second Quarter Results
Information Analysis Incorporated Condensed Balance Sheets
| As of | As of | |||||||
| June 30, 2011 | December 31, 2010 | |||||||
| (unaudited) | (audited) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,970 | $ | 1,968 | ||||
| Accounts receivable, net | 909 | 772 | ||||||
| Prepaid expenses | 300 | 571 | ||||||
| Notes receivable (current portion) | 7 | 6 | ||||||
| Total current assets | 3,186 | 3,317 | ||||||
| Fixed assets, net | 33 | 36 | ||||||
| Notes receivable (long term portion) | 7 | 11 | ||||||
| Other assets | 6 | 6 | ||||||
| Total assets | $ | 3,232 | $ | 3,370 | ||||
| LIABILITIES & STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 101 | $ | 76 | ||||
| Deferred revenues | 376 | 653 | ||||||
| Commissions payable | 516 | 447 | ||||||
| Accrued payroll and related liabilities | 250 | 245 | ||||||
| Other accrued liabilities | 66 | 69 | ||||||
| Total liabilities | 1,309 | 1,490 | ||||||
| Common stock, par value $0.01, 30,000,000 shares authorized; | ||||||||
| 12,839,376 shares issued, 11,196,760 outstanding at | ||||||||
| June 30, 2011, and at December 31, 2010 | 128 | 128 | ||||||
| Additional paid in capital | 14,572 | 14,568 | ||||||
| Accumulated deficit | (11,847 | ) | (11,886 | ) | ||||
| Less treasury stock; 1,642,616 shares at cost | (930 | ) | (930 | ) | ||||
| Total stockholders' equity | 1,923 | 1,880 | ||||||
| Total liabilities and stockholders' equity | $ | 3,232 | $ | 3,370 |