Information Analysis Inc. Reports Third Quarter Profitable Results
FAIRFAX, Va.--(BUSINESS WIRE)-- Information Analysis Inc. (IAIC:OTCBB) today reported results for its third fiscal quarter ended September 30, 2010. Revenues were $1,952,000 compared to $1,988,000 reported in the third quarter 2009. The information technology services company reported net income of $42,000, or $0.00 per share basic and diluted, compared to net income of $122,000 or $0.01 per share basic and diluted, in the third quarter 2009.
For the nine months ended September 30, 2010, IAI's revenues were $5,655,000 compared to revenues of $4,787,000 for the same period in 2009. The Company reported net income of $225,000 or $0.02 per share basic and diluted, compared to net income of $66,000, or $0.01 per share basic and diluted, reported for the comparable 2009 period.
"The year to date revenue and profit in comparison to last year increased significantly. Additionally, as a result of our continuing investment in sales and marketing, we have been awarded a number of new contracts in the past few months worth in excess of 2 million dollars," said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. "There are still a number of bid opportunities outstanding for new business, which should allow our profitability to continue to grow."
"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, 2009 and in other filings with the Securities and Exchange Commission.
Information Analysis Incorporated
Statements of Operations
Three months ended September 30,
(in thousands, except per share data; 2010 2009
unaudited)
Revenue:
Professional fees $ 1,293 $ 1,302
Software sales 659 686
Total revenue 1,952 1,988
Cost of goods sold and services provided:
Cost of professional fees 723 751
Cost of software sales 593 580
Total cost of sales 1,316 1,331
Gross margin 636 657
Selling, general and administrative expense 596 536
Income from operations 40 121
Other income, net 2 1
Income before income taxes 42 122
Provision for income taxes -- --
Net income $ 42 $ 122
Earnings per common 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 11,224,521 11,208,403
Information Analysis Incorporated
Statements of Operations
Nine months ended September 30,
(in thousands, except per share data; 2010 2009
unaudited)
Revenue:
Professional fees $ 3,921 $ 3,601
Software sales 1,734 1,186
Total revenue 5,655 4,787
Cost of goods sold and services provided:
Cost of professional fees 2,178 2,295
Cost of software sales 1,475 931
Total cost of sales 3,653 3,226
Gross margin 2,002 1,561
Selling, general and administrative expense 1,784 1,503
Income from operations 218 58
Other income, net 7 8
Income before income taxes 225 66
Provision for income taxes -- --
Net income $ 225 $ 66
Earnings per share:
Basic $ 0.02 $ 0.01
Diluted $ 0.02 $ 0.01
Shares used in calculating earnings per share:
Basic 11,196,760 11,196,760
Diluted 11,216,833 11,207,820
Information Analysis Incorporated
Balance Sheets
As of As of
September 30, 2010 December 31, 2009
(in thousands) (unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 1,877 $ 1,479
Accounts receivable, net 1,667 940
Prepaid expenses 761 689
Note receivable 6 --
Total current assets 4,311 3,108
Fixed assets, net 35 42
Note receivable 13 --
Other assets 6 6
Total assets $ 4,365 $ 3,150
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 732 $ 89
Accrued payroll and related liabilities 252 255
Other accrued liabilities 621 307
Deferred revenues 805 779
Total current liabilities 2,410 1,430
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 14,564 14,554
Accumulated deficit (11,807 ) (12,032 )
Less treasury stock; 1,642,616 shares at (930 ) (930 )
cost
Total stockholders' equity 1,955 1,720
Total liabilities and stockholders' $ 4,365 $ 3,150
equity
Source: Information Analysis Inc.
Released November 11, 2010
