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release: March 29, 2018
Information Analysis Inc. Reports Profitable Results for
VIRGINIA Information Analysis Incorporated. (IAIC:OTCBB)
today reported results for the year ended December 31, 2017.
Revenues were up 58% to $10,641,000, compared to revenues of
$6,729,000 for the same period in 2016. The information technology
services company reported net income of $246,000, or $0.02 per
share basic and diluted, compared to a net loss of $554,000, or
$(0.05) per share basic and diluted, reported for the comparable
2017, the Company continued its effort to focus on legacy system
modernization, said Sandor Rosenberg, Chairman and Chief
Executive Officer of IAI. This has driven a 48 per cent
increase in professional services revenue. In addition, we are
making investments in marketing and sales in both the commercial
market as well as in the government sector. We have been
aggressively pursuing new business opportunities through the
bidding process for prime contracts and teaming with our partners.
Recently, a federal government customer elected to proceed with a
needed modernization effort that we have been pursuing for years
with a key partner, and we have once again proven ourselves to be
able to engineer substantial modernization efforts on time and
within budget. We expect that effort to expand into other
months, several large companies have approached IAI to be part of
their modernization teams due to IAI's unique knowledge of
legacy systems and unique tools to efficiently and cost-effectively
continue to pursue merger and acquisition
Information Analysis Incorporated
Analysis Incorporated (www.infoa.com), headquartered in Fairfax,
Virginia, is an information technology product and services
company. The Company is a web application and e-business solutions
provider, as well as a software conversion specialist, modernizing
legacy systems and extending their reach to the internet and more
information for investors
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, 2016 and in other filings with the Securities and Exchange
Analysis Incorporated
| For the years ended December 31, | ||
| (in thousands, except per share data) | 2017 | 2016 |
| (unaudited) | (audited) | |
| Revenues | ||
| Professional fees | $ 5,004 | $ 3,392 |
| Software sales | 5,637 | 3,337 |
| Total revenues | 10,641 | 6,729 |
| Cost of revenues | ||
| Cost of professional fees | 2,723 | 1,895 |
| Cost of software sales | 5,502 | 3,011 |
| Total cost of revenues | 8,225 | 4,906 |
| Gross profit | 2,416 | 1,823 |
| Selling, general and administrative expenses | 1,674 | 1,879 |
| Commissions expense | 504 | 507 |
| Income (loss) from operations | 238 | (563 ) |
| Other income | 8 | 9 |
| Income (loss) before income taxes | 246 | (554 ) |
| Net income (loss) | $ 246 | $ (554 ) |
| Net income (loss) per share: | ||
| Basic | $ 0.02 | $ (0.05 ) |
| Diluted | $ 0.02 | $ (0.05 ) |
| Weighted average common shares outstanding | ||
| Basic | 11,201,760 | 11,201,760 |
| Diluted | 11,583,578 | 11,201,760 |
Analysis Incorporated
| As of | As of | |
| December 31, 2017 | December 31, 2016 | |
| (in thousands) | (unaudited) | (audited) |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 2,731 | $ 1,895 |
| Accounts receivable, net | 616 | 1,157 |
| Prepaid expenses | 369 | 664 |
| Note recivable, current | 2 | 3 |
| Total current assets | 3,718 | 3,719 |
| Fixed assets, net | 11 | 27 |
| Other assets | 6 | 6 |
| Total assets | $ 3,735 | $ 3,752 |
| LIABILITIES & STOCKHOLDERS' EQUITY | ||
| Current liabilities | ||
| Accounts payable | $ 48 | $ 49 |
| Commissions payable | 713 | 853 |
| Other accrued liabilities | 411 | 396 |
| Deferred revenues | 387 | 615 |
| Accrued payroll and related liabilities | 276 | 207 |
| Franchise tax payable | 6 | - |
| Total liabilities | 1,841 | 2,120 |
| Common stock, par value $0.01, 30,000,000 shares authorized; | ||
| 12,844,376 shares issued, 11,201,760 shares outstanding | ||
| as of December 31, 2017 and 2016 | 128 | 128 |
| Additional paid-in capital | 14,646 | 14,631 |
| Accumulated deficit | (11,950 ) | (12,197 ) |
| Less treasury stock; 1,642,616 shares at cost | (930 ) | (930 ) |
| Total stockholders' equity | 1,894 | 1,632 |
| Total liabilities and stockholders' equity | $ 3,735 | $ 3,752 |