Information Analysis, Inc. Reports Increased Sales and Profits for First Quarter
FAIRFAX, Va.--(BUSINESS WIRE)-- Information Analysis, Inc. (OTCBB:IAIC) today reported results for the first fiscal quarter ended March 31, 2010. Revenues were $2,016,000, compared to $1,394,000 reported in 2009's first quarter. The Company reported net income of $104,000, or $0.01 per share, compared to a net loss of $62,000, or $(0.01) per share, in the first quarter 2009.
"The Company's revenue and profits have improved in the first quarter in comparison to the first quarter of 2009," 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. 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 March 31,
(in thousands, except per share data; unaudited) 2010 2009
Net revenue:
Professional fees $ 1,513 $ 1,101
Software sales 502 293
Total revenue 2,015 1,394
Cost of goods sold and services provided:
Cost of professional fees 790 796
Cost of software sales 422 198
Total cost of sales 1,212 994
Gross margin 803 400
Operating expenses:
Selling, general and administrative 701 466
Operating income (loss) 102 (66)
Other income 2 4
Income loss before income taxes 104 (62)
Provision for income taxes -- --
Net income (loss) $ 104 $ (62)
Net income (loss) per share:
Basic $ 0.01 $ (0.01)
Diluted $ 0.01 $ (0.01)
Shares used in calculating earnings per share:
Basic 11,196,760 11,196,760
Diluted 11,202,893 11,196,760
Information Analysis Incorporated
Balance Sheets
As of: As of:
March 31, 2010 December 31, 2009
(in thousands, unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 1,379 $ 1,479
Accounts receivable, net 1,794 940
Prepaid expenses 939 689
Total current assets 4,112 3,108
Fixed assets, net 36 36
Other assets 6 6
Total assets $ 4,154 $ 3,150
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 505 $ 89
Deferred revenue 1,114 779
Other accrued liabilities 448 307
Accrued payroll and related liabilities 257 255
Total liabilities 2,324 1,430
Common stock, par value $0.01, 30,000,000
shares authorized; 12,839,376 shares issued, 128 128
11,196,760 outstanding
Additional paid-in capital 14,560 14,554
Accumulated deficit (11,928) (12,032)
Less treasury stock; 1,642,616 shares at cost (930) (930)
Total stockholders' equity 1,830 1,720
Total liabilities and stockholders' equity $ 4,154 $ 3,150
Source: Information Analysis Incorporated (IAI)
Released May 13, 2010
