Information Analysis Inc. Reports Stronger Sales and Profits for the Second Quarter
FAIRFAX, Va.--(BUSINESS WIRE)-- Information Analysis Inc. (OTCBB: IAIC) reported results for the second quarter ended June 30, 2010. Revenues were $1,688,000 compared to $1,404,000 reported in 2009's second quarter. The Company reported net income of $78,000, or $0.01 per share, compared to net income of $6,000, or $0.00 per share in 2009's second quarter. IAI had revenue of $3,703000, compared to $2,799,000 reported for six months ending June 30, 2009. Net income for the first six months of fiscal 2010 was $182,000, or $0.02 per share, versus a net loss of $56,000, or ($0.01) per share, in the comparable 2009 period.
"The Company's revenue and profits continue to show profitable improvement over last year's results," Sandor Rosenberg, Chairman and Chief Executive Officer of IAI said. "We have been aggressively pursuing new business opportunities to increase our order backlog, which should improve revenue results, not only for this year but for future years.
"We are actively pursuing the conversion and system modernization business as well as Adobe and Web applications."
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-KSB for the fiscal year ended December 31, 2009 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; 2010 2009
unaudited)
Sales:
Professional fees $ 1,115 $ 1,198
Software sales 573 206
Total sales 1,668 1,404
Cost of goods sold and services provided:
Cost of professional fees 665 748
Cost of software sales 460 152
Total cost of sales 1,125 900
Gross margin 563 504
Operating expenses:
Selling, general and administrative 487 500
Operating income 76 4
Other income (expense) 2 2
Income before income taxes 78 6
Provision for income taxes -- --
Net income $ 78 $ 6
Comprehensive Income $ 78 $ 6
Net income per share:
Basic and diluted $ 0.01 $ 0.00
Shares used in calculating earnings per share:
Basic 11,196,760 11,196,760
Diluted 11,222,863 11,207,620
Information Analysis Incorporated
Condensed Income Statements
Six months ended June 30,
(in thousands, except per share data; unaudited) 2010 2009
Sales:
Professional fees $ 2,628 $ 2,299
Software sales 1,075 500
Total sales 3,703 2,799
Cost of goods sold and services provided:
Cost of professional fees 1,456 1,544
Cost of software sales 882 351
Total cost of sales 2,338 1,895
Gross margin 1,365 904
Operating expenses:
Selling, general and administrative 1,188 967
Operating income 177 (63 )
Other income (expense) 5 7
Income before income taxes 182 (56 )
Provision for income taxes -- --
Net income $ 182 $ (56 )
Comprehensive Income $ 182 $ (56 )
Net income per share:
Basic and diluted $ 0.02 $ (0.01 )
Shares used in calculating earnings per share:
Basic 11,196,760 11,196,760
Diluted 11,215,187 11,196,760
Information Analysis Incorporated
Condensed Balance Sheets
As of As of
June 30, 2010 December 31, 2009
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 1,932 $ 1,479
Accounts receivable, net 850 940
Prepaid expenses 540 689
Total current assets 3,322 3,108
Fixed assets, net 38 36
Other assets 6 6
Total assets $ 3,366 $ 3,150
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 63 $ 89
Deferred revenues 680 779
Accrued payroll and related liabilities 246 255
Other accrued liabilities 467 307
Total liabilities 1,456 1,430
Common stock, par value $0.01, 30,000,000
shares authorized;
12,839,376 shares issued, 11,196,760
outstanding at
June 30, 2010, and at December 31, 2009 128 128
Additional paid in capital 14,562 14,554
Accumulated deficit (11,850 ) (12,032 )
Accumulated other comprehensive loss -- --
Less treasury stock; 1,642,616 shares at
cost at
June 30, 2010, and at December 31, 2009 (930 ) (930 )
Total stockholders' equity 1,910 1,720
Total liabilities and stockholders' equity $ 3,366 $ 3,150
Source: Information Analysis Inc.
Released August 11, 2010
