Information Analysis Incorporated Returns to Profitability with Momentum

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FAIRFAX, Va., Nov. 16, 2020 (GLOBE NEWSWIRE) -- Information Analysis Incorporated (IAIC:OTC MARKETS) today reported results for the three months and nine months ended September 30, 2020. 

The information technology services company’s 2020 third quarter revenues were $3,923,000, an increase of 23% over its 2019 third quarter revenues of $3,183,000. IAI’s net income was $215,000 versus a net loss of ($179,000) for the same period in 2019. Basic and diluted earnings per share were $0.02 for the quarter versus basic and diluted net loss per share of ($0.02) in 2019.

For the nine months ended September 30, 2020, revenues were $10,804,000, an increase of $2,738,000, or 34%, over its 2019 nine months revenues of $8,066,000. IAI produced net income of $54,000 in 2020 versus a net loss of ($579,000) in 2019. Basic and diluted earnings per share were $0.00 for the nine months versus basic and diluted net loss per share of ($0.05) in 2019.

Sandor Rosenberg, President and Chief Executive Officer of IAI, credits Stan Reese, Senior Vice President and Chief Operating Officer, for the 2020 turnaround due to the new contracts he has won and the excellent team he has assembled.

“In the third quarter we completely reversed our losses from the first half of the year,” Reese said. “Since May, we have increased our billable workforce by over 80% under new long-term, large-scale contracts. We anticipate that these contracts will provide a solid foundation of revenue and profitability for the foreseeable future. This has allowed us to shift our focus from maintaining operations to meaningful growth for 2021 and beyond.

“Our capabilities when it comes to modernizing legacy systems such as COBOL-based systems, no matter how large, we believe are second to none. We now turn our attention to investments in corporate infrastructure and business development. Pursuit of strategic partnerships with synergistic emerging technology companies, as well as merger & acquisition opportunities, are also part of our plans.”

Reese further commented, “While COBOL-related legacy system modernization is expected to remain a core competency, we recognize that expanding our service and product offerings is necessary to carry us through the new decade. We believe that our extensive roster of satisfied clients could prove appealing to prospective partners in high-growth fields such as cloud services and cyber security. We remain excited about the Company’s future for the long-term benefit of our shareholders.”

About Information Analysis Incorporated
Information Analysis Incorporated (www.infoa.com), headquartered in Fairfax, Virginia, is an information technology product and services company. The Company is a software conversion specialist, modernizing legacy systems and extending their reach to the cloud and more modern platforms.

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, 2019 and in other filings with the Securities and Exchange Commission.

For additional information contact:
  Matt Sands
  (703) 293-7925


Information Analysis Incorporated
Statements of Operations
   
  Three Months Ended September 30,
(in thousands, except per share data; unaudited)   2020       2019  
Revenues:        
Professional fees $ 1,581     $ 889  
Software sales   2,342       2,294  
Total revenues   3,923       3,183  
         
Cost of revenues        
Cost of professional fees   1,051       564  
Cost of software sales   2,258       2,235  
Total cost of revenues   3,309       2,799  
         
Gross Profit   614       384  
         
Selling, general and administrative expense   343       468  
Commission expense   56       98  
         
Income (loss) from operations   215       (182 )
         
Other Income, net   -       3  
         
Income before provision for income taxes   215       (179 )
         
Net income (loss) $ 215     $ (179 )
         
Net income (loss) per share:        
Basic $ 0.02     $ (0.02 )
Diluted $ 0.02     $ (0.02 )
         
Weighted Average Common Shares Outstanding:        
Basic   11,211,760       11,211,760  
Diluted   11,837,427       11,211,760  




Information Analysis Incorporated
Statements of Operations
   
  Nine Months Ended September 30,
(in thousands, except per share data; unaudited)   2020       2019  
Revenues:        
Professional fees $ 3,354     $ 2,412  
Software sales   7,450       5,654  
Total revenues   10,804       8,066  
         
Cost of revenues        
Cost of professional fees   2,233       1,445  
Cost of software sales   7,289       5,557  
Total cost revenues   9,522       7,002  
         
Gross Profit   1,282       1,064  
         
Selling, general and administrative expense   1,050       1,482  
Commission expense   179       169  
         
Income (loss) from operations   53       (587 )
         
Other income   1       8  
         
Income (loss) before income taxes   54       (579 )
         
Net Income (loss) $ 54     $ (579 )
         
Net income (loss) per share:        
Basic $ 0.00     $ (0.05 )
Diluted $ 0.00     $ (0.05 )
         
Weighted average common shares outstanding:        
Basic   11,211,760       11,207,145  
Diluted   11,810,392       11,207,145  




Information Analysis Incorporated
Balance Sheets
       
  As of   As of
  September 30, 2020   December 31, 2019
(in thousands)
 (unaudited)   (unaudited)
ASSETS      
Current Assets:      
Cash and cash equivalents $ 1,469     $ 1,039  
Accounts receivable, net   1,600       669  
Prepaid expenses   39       500  
Total current assets   3,108       2,208  
       
Contract assets   89       -  
Right-of-use operating lease asset   77       150  
Fixed assets, net   62       10  
Other assets   6       6  
Total assets $ 3,342     $ 2,374  
       
LIABILITIES & STOCKHOLDERS' EQUITY      
Current liabilities:      
Accounts payable $ 533     $ 216  
Contract liabilities   332       464  
Accrued payroll and related liabilities   316       220  
Other accrued liabilities   296       54  
Commission payable   119       108  
Operating lease liability - current   73       104  
Note payable- current   37       -  
Total current liabilities   1,706       1,166  
       
Note payable - non-current   413       -  
Operating lease liability - non-current   -       46  
Total liabilities   2,119       1,212  
       
       
Common stock, par value $0.01, 30,000,000 shares authorized;              
12,854,376 shares issued, 11,211,760 shares outstanding      
as of September 30, 2020, and December 31, 2019   128       128  
Additional paid-in capital   14,690       14,683  
Accumulated deficit   (12,665 )     (12,719 )
Less: treasury stock (1,642,616 shares at cost)   (930 )     (930 )
Total stockholders' equity   1,223       1,162  
Total liabilities and stockholders' equity $ 3,342     $ 2,374  




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Source: Information Analysis Incorporated

Released November 16, 2020