Information Analysis Inc. Reports Profitable Results for 2012
FAIRFAX, Va.--(BUSINESS WIRE)-- Information Analysis Inc. (OTCBB: IAIC) today reported results for the year ended December 31, 2012. Revenues were $7,058,000, compared to revenues of $7,821,000 for the same period in 2011. The information technology services company reported net income of $100,000, or $0.01 per share basic and diluted, compared to net income of $154,000, or $0.01 per share basic and diluted, reported for the comparable 2011 period.
“In 2012, the Company remained profitable in spite of government budget cuts. We are adding initiatives in new areas, such as cyber security, incident management, mobile applications, and more generalized user applications using Adobe products for our solutions sets in order to increase our business base,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “In addition, we are making investments in marketing and sales in both the commercial market as well as in the government sector. Although sequestration has had some impact on operations, we feel that our business will improve as the government budget becomes stable.”
“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, 2012 and in other filings with the Securities and Exchange Commission.
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Information Analysis Incorporated |
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Statements of Operations |
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Year ended December 31, |
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(in thousands, except per share data; audited) |
2012 |
2011 |
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| Revenue: | ||||||||
| Professional fees | $ | 5,027 | $ | 4,701 | ||||
| Software sales | 2,031 | 3,120 | ||||||
| Total revenue | 7,058 | 7,821 | ||||||
| Cost of goods sold and services provided: | ||||||||
| Cost of professional fees | 2,899 | 2,714 | ||||||
| Cost of software sales | 1,748 | 2,665 | ||||||
| Total cost of sales | 4,647 | 5,379 | ||||||
| Gross margin | 2,411 | 2,442 | ||||||
| Selling, general and administrative expense | 2,317 | 2,293 | ||||||
| Income from operations | 94 | 149 | ||||||
| Other income, net | 6 | 8 | ||||||
| Income before income taxes | 100 | 157 | ||||||
| Provision for income taxes | -- | 3 | ||||||
| Net income | $ | 100 | $ | 154 | ||||
| Earnings per share: | ||||||||
| Basic | $ | 0.01 | $ | 0.01 | ||||
| Diluted | $ | 0.01 | $ | 0.01 | ||||
| Shares used in calculating earnings per share: | ||||||||
| Basic | 11,200,025 | 11,196,760 | ||||||
| Diluted | 11,210,939 | 11,224,410 | ||||||
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Information Analysis Incorporated |
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Balance Sheets |
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| As of | As of | |||||||
| December 31, 2012 | December 31, 2011 | |||||||
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(in thousands) |
(audited) |
(audited) |
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| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,623 |
$ |
1,281 |
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| Accounts receivable, net | 738 | 2,890 | ||||||
| Prepaid expenses | 192 | 787 | ||||||
| Note receivable, current | 2 | 7 | ||||||
| Total current assets | 3,555 | 4,965 | ||||||
| Fixed assets, net | 39 | 41 | ||||||
| Note receivable, long-term | 4 | 4 | ||||||
| Other assets | 6 | 6 | ||||||
| Total assets | $ | 3,604 | $ | 5,016 | ||||
| LIABILITIES & STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 112 | $ | 998 | ||||
| Commissions payable | 806 | 679 | ||||||
| Accrued payroll and related liabilities | 270 | 248 | ||||||
| Deferred revenues | 220 | 940 | ||||||
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Other accrued liabilities |
48 | 107 | ||||||
| Taxes payable | - | 3 | ||||||
| Total liabilities | 1,456 | 2,975 | ||||||
| Common stock, par value $0.01, 30,000,000 shares authorized; | ||||||||
| 12,844,376 and 12,839,376 shares issued, 11,201,760 and | ||||||||
| 11,196,760 shares outstanding as of December 31, 2012 and | ||||||||
| December 31, 2011, respectively | 128 | 128 | ||||||
| Additional paid in capital | 14,582 | 14,574 | ||||||
| Accumulated deficit | (11,632) | (11,732) | ||||||
| Less treasury stock; 1,642,616 shares at cost | (930) | (930) | ||||||
| Total stockholders' equity | 2,148 | 2,040 | ||||||
| Total liabilities and stockholders' equity | $ | 3,604 | $ | 5,015 | ||||
Information Analysis Inc.
Richard S. DeRose, 703-293-7901
Source: Information Analysis Inc.
Released March 28, 2013
