Full Press Release Details
Information Analysis Inc. Reports Third Quarter Profitable Results
FAIRFAX, VIRGINIA - Information Analysis Inc. (IAIC:OTCBB) today reported results for its third fiscal quarter ended September 30, 2011. Revenues were $1,662,000 compared to $1,952,000 reported in the third quarter 2010. The information technology services company reported net income of $63,000, or $0.01 per share basic and diluted, compared to net income of $42,000 or $0.00 per share basic and diluted, in the third quarter 2010.
For the nine months ended September 30, 2011, IAI's revenues were $4,707,000 compared to revenues of $5,655,000 for the same period in 2010. The Company reported net income of $101,000 or $0.01 per share basic and diluted, compared to net income of $225,000, or $0.02 per share basic and diluted, reported for the comparable 2010 period.
"There continues to be an increase in opportunities for the modernization business, and we have been aggressively pursuing these opportunities. We have been awarded a number of new contracts in the past few months worth in excess of 2.5 million dollars. These contracts are expected to improve our profitability over the next 12 months," said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI.
"We continue to pursue merger and acquisition 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. 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 Third Quarter Results
Information Analysis Incorporated
Statements of Operations
| Three months ended September 30, | ||||||||
| (in thousands, except per share data; unaudited) | 2011 | 2010 | ||||||
| Revenue: | ||||||||
| Professional fees | $ | 1,329 | $ | 1,293 | ||||
| Software sales | 333 | 659 | ||||||
| Total revenue | 1,662 | 1,952 | ||||||
| Cost of goods sold and services provided: | ||||||||
| Cost of professional fees | 702 | 723 | ||||||
| Cost of software sales | 278 | 593 | ||||||
| Total cost of sales | 980 | 1,316 | ||||||
| Gross margin | 682 | 636 | ||||||
| Selling, general and administrative expense | 621 | 596 | ||||||
| Income from operations | 61 | 40 | ||||||
| Other income, net | 2 | 2 | ||||||
| Income before income taxes | 63 | 42 | ||||||
| Provision for income taxes | -- | -- | ||||||
| Net income | $ | 63 | $ | 42 | ||||
| Earnings per common share: | ||||||||
| Basic | $ | 0.01 | $ | 0.00 | ||||
| Diluted | $ | 0.01 | $ | 0.00 | ||||
| Shares used in calculating earnings per share: | ||||||||
| Basic | 11,196,760 | 11,196,760 | ||||||
| Diluted | 11,233,313 | 11,224,521 |
Information Analysis Reports Third Quarter Results
Information Analysis Incorporated
Statements of Operations
| Nine months ended September 30, | ||||||||
| (in thousands, except per share data; unaudited) | 2011 | 2010 | ||||||
| Revenue: | ||||||||
| Professional fees | $ | 3,581 | $ | 3,921 | ||||
| Software sales | 1,126 | 1,734 | ||||||
| Total revenue | 4,707 | 5,655 | ||||||
| Cost of goods sold and services provided: | ||||||||
| Cost of professional fees | 1,987 | 2,178 | ||||||
| Cost of software sales | 920 | 1,475 | ||||||
| Total cost of sales | 2,907 | 3,653 | ||||||
| Gross margin | 1,800 | 2,002 | ||||||
| Selling, general and administrative expense | 1,705 | 1,784 | ||||||
| Income from operations | 95 | 218 | ||||||
| Other income, net | 6 | 7 | ||||||
| Income before income taxes | 101 | 225 | ||||||
| Provision for income taxes | -- | -- |
| Net income | $ | 101 | $ | 225 | ||||
| Earnings per share: | ||||||||
| Basic | $ | 0.01 | $ | 0.02 | ||||
| Diluted | $ | 0.01 | $ | 0.02 | ||||
| Shares used in calculating earnings per share: | ||||||||
| Basic | 11,196,760 | 11,196,760 | ||||||
| Diluted | 11,220,295 | 11,216,853 |
Information Analysis Reports Third Quarter Results
Information Analysis Incorporated
| As of | As of | |||||||
| September 30, 2011 | December 31, 2010 | |||||||
| (in thousands) | (unaudited) | (audited) | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,947 | $ | 1,968 | ||||
| Accounts receivable, net | 1,746 | 772 | ||||||
| Prepaid expenses | 756 | 571 | ||||||
| Note receivable | 6 | 6 | ||||||
| Total current assets | 4,455 | 3,317 | ||||||
| Fixed assets, net | 30 | 36 | ||||||
| Note receivable | 6 | 11 | ||||||
| Other assets | 6 | 6 | ||||||
| Total assets | $ | 4,497 | $ | 3,370 | ||||
| LIABILITIES & STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 781 | $ | 77 | ||||
| Deferred revenues | 827 | 653 | ||||||
| Commissions payable | 583 | 447 | ||||||
| Accrued payroll and related liabilities | 243 | 245 | ||||||
| Other accrued liabilities | 76 | 69 | ||||||
| Total current liabilities | 2,510 | 1,491 | ||||||
| Common stock, par value $0.01, 30,000,000 shares authorized; | ||||||||
| 12,839,376 shares issued, 11,196,760 outstanding | 128 | 128 | ||||||
| Additional paid in capital | 14,573 | 14,567 | ||||||
| Accumulated deficit | (11,784 | ) | (11,886 | ) | ||||
| Less treasury stock; 1,642,616 shares at cost | (930 | ) | (930 | ) | ||||
| Total stockholders' equity | 1,987 | 1,880 | ||||||
| Total liabilities and stockholders' equity | $ | 4,497 | $ | 3,370 |