Information Analysis, Inc. Reports First Quarter Results
FAIRFAX, Va.--(BUSINESS WIRE)-- Information Analysis, Inc. (OTCBB: IAIC) today reported results for the first fiscal quarter ended March 31, 2011. Revenues were $1,424,000 compared to $2,015,000 reported in 2010's first quarter. The Company reported a net loss of $9,000 or $0.00 per share, compared to net income of $104,000, or $0.01 per share, in the first quarter 2010.
"The Company's revenue and profits were down in the first quarter in comparison to the first quarter of 2010," Sandor Rosenberg, Chairman and Chief Executive Officer of IAI said. "This was due, in large part, to the delay in government budget approvals. We expect to achieve a higher revenue level in the second quarter now that funding has been approved for the remainder of the government fiscal year. We are actively pursuing the system modernization business where we have observed an increase in opportunities in both the government and commercial marketplace.
"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. Investors should read and understand the risk factors detailed in the Company's 10-KSB for the fiscal year ended December 31, 2010 and in other filings with the Securities and Exchange Commission.
Information Analysis Incorporated
Condensed Income Statements
Three months ended March 31,
(in thousands, except per share data; 2011 2010
unaudited)
Net revenue:
Professional fees $ 1,103 $ 1,513
Software sales 321 502
Total revenue 1,424 2,015
Cost of goods sold and services provided:
Cost of professional fees 593 790
Cost of software sales 276 422
Total cost of sales 869 1,212
Gross margin 555 803
Operating expenses:
Selling, general and administrative 566 701
Operating (loss) income (11 ) 102
Other income 2 2
(Loss) income before income taxes (9 ) 104
Provision for income taxes -- --
Net (loss) income $ (9 ) $ 104
Net (loss) income per share:
Basic $ 0.00 $ 0.01
Diluted $ 0.00 $ 0.01
Shares used in calculating earnings per share:
Basic 11,196,760 11,196,760
Diluted 11,196,760 11,202,893
Information Analysis Incorporated
Balance Sheets
As of: As of:
March 31, 2011 December 31, 2010
(in thousands, unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 1,852 $ 1,968
Accounts receivable, net 999 772
Prepaid expenses 434 571
Notes receivable (current portion) 7 6
Total current assets 3,292 3,317
Fixed assets, net 31 36
Notes receivable (long term portion) 9 11
Other assets 6 6
Total assets $ 3,338 $ 3,370
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 47 $ 76
Deferred revenue 550 653
Commissions payable 503 447
Other accrued liabilities 119 69
Accrued payroll and related liabilities 245 245
Total liabilities 1,464 1,490
Common stock, par value $0.01, 30,000,000
shares authorized;
12,839,376 shares issued, 11,196,760 128 128
outstanding
Additional paid-in capital 14,571 14,568
Accumulated deficit (11,895 ) (11,886 )
Less treasury stock; 1,642,616 shares at (930 ) (930 )
cost
Total stockholders' equity 1,874 1,880
Total liabilities and stockholders' $ 3,338 $ 3,370
equity
Source: Information Analysis, Inc.
Released May 12, 2011
