Information Analysis Inc. Reports Profitable Second Quarter Results

FAIRFAX, Va.--(BUSINESS WIRE)-- Information Analysis Inc. (OTCBB: IAIC) reported results for the second quarter ended June 30, 2012. Revenues were $2,435,000 compared to $1,620,000 reported in 2011’s second quarter. The Company reported net income of $51,000, or $0.00 per share, compared to net income of $47,000, or $0.00 per share in 2011’s second quarter. IAI had revenue of $3,949,000 compared to $3,044,000 reported for six months ending June 30, 2011. Net income for the first six months of fiscal 2012 was $29,000, or $0.00 per share, versus net income of $38,000, or $0.00 per share, in the comparable 2011 period.

“The Company has shown substantially increased revenues over last quarter,” Sandor Rosenberg, Chairman and Chief Executive Officer of IAI said. “We continue to aggressively pursue the modernization and forms business, and have been awarded a number of new contracts in the last quarter. 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, 2011 and in other filings with the Securities and Exchange Commission.

 

Information Analysis Incorporated

Condensed Income Statements

   
Three months ended June 30,

(in thousands, except per share data; unaudited)

2012

2011

Sales:
Professional fees $ 1,363 $ 1,148
Software sales   1,072   472
Total sales 2,435 1,620
Cost of goods sold and services provided:
Cost of professional fees 699 692
Cost of software sales   1,019   366
Total cost of sales   1,718   1,058
Gross margin 717 562
Operating expenses:
Selling, general and administrative   667   517
Operating income 50 45
Other income 1 2
Income before income taxes 51 47
Provision for income taxes   --   --
Net income $ 51 $ 47
Comprehensive Income $ 51 $ 47
 
Net income per share:
Basic and diluted $ 0.00 $ 0.00
 
Shares used in calculating earnings per share:
Basic 11,199,782 11,196,760
Diluted 11,211,582 11,213,466
 
 

Information Analysis Incorporated

Condensed Income Statements

 
  Six months ended June 30,

(in thousands, except per share data; unaudited)

2012

 

2011

Sales:
Professional fees $ 2,528 $ 2,251
Software sales   1,421   793
Total sales 3,949 3,044
Cost of goods sold and services provided:
Cost of professional fees 1,376 1,285
Cost of software sales   1,323   642
Total cost of sales   2,699   1,927
Gross margin 1,250 1,117
Operating expenses:
Selling, general and administrative   1,224   1,083
Operating income 26 34
Other income 3 4
Income before income taxes 29 38
Provision for income taxes   --   --
Net income $ 29 $ 38
Comprehensive Income $ 29 $ 38
 
Net income per share:
Basic and diluted $ 0.00 $ 0.00
 
Shares used in calculating earnings per share:
Basic 11,198,271 11,196,760
Diluted 11,215,117 11,209,229
 
 

Information Analysis Incorporated

Condensed Balance Sheets

  As of   As of
June 30, 2012 December 31, 2011

(unaudited)

(audited)

 
ASSETS
Current assets:
Cash and cash equivalents $ 2,269 $ 1,281
Accounts receivable, net 1,057 2,890
Prepaid expenses 446 787
Notes receivable (current portion)   17   7  
Total current assets 3,789 4,965
 
Fixed assets, net 39 40
Notes receivable (long term portion) 1 4
Other assets 6   6  
Total assets $ 3,835   $ 5,015  
 
 
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 206 $ 998
Commissions payable 782 679
Deferred revenues 443 940
Accrued payroll and related liabilities 275 248
Other accrued liabilities 56 107
Income taxes payable   --   3  
Total liabilities 1,762 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 June 30, 2012, and
December 31, 2011, respectively 128 128
Additional paid in capital 14,578 14,574
Accumulated deficit (11,703 ) (11,732 )
Less treasury stock; 1,642,616 shares at cost   (930 )   (930 )
Total stockholders' equity   2,073     2,040  
Total liabilities and stockholders' equity $ 3,835   $ 5,015  

Information Analysis Inc.
Richard S. DeRose, 703-293-7901

Source: Information Analysis Inc.