Information Analysis Inc. Reports Profitable Results for 2009
FAIRFAX, Va.--(BUSINESS WIRE)-- Information Analysis Inc. (IAIC:OTCBB) today reported results for its fourth fiscal quarter ended December 31, 2009. Revenues were $1,924,000, compared to $1,651,000 reported in the fourth quarter 2008. The information technology services company reported net income of $98,000, or $0.01 per share basic and diluted, compared to a net loss of $102,000 or ($0.01) per share basic and diluted, in the fourth quarter 2008.
For the year ended December 31, 2009, IAI's revenues were $6,711,000, compared to revenues of $6,693,000 for the same period in 2008. The Company reported net income of $164,000, or $0.01 per share basic and diluted, compared to a net loss of $372,000, or ($0.03) per share basic and diluted, reported for the comparable 2008 period.
"The Company increased revenue and profit in the fourth quarter and for the year in comparison to last year's results. Additionally, as a result of increased sales efforts, our proposal volume has been steadily climbing," said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. "We expect to turn this effort into better results for 2010."
"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 December 31,
(in thousands, except per share data; 2009 2008
unaudited)
Revenue:
Professional fees $ 1,337 $ 857
Software sales 587 794
Total revenue 1,924 1,651
Cost of goods sold and services provided:
Cost of professional fees 806 642
Cost of software sales 523 667
Total cost of sales 1,329 1,309
Gross margin 595 342
Selling, general and administrative expense 499 450
Income (loss) from operations 96 (108 )
Other income, net 2 6
Income (loss) before income taxes 98 (102 )
Provision for income taxes -- --
Net income (loss) $ 98 $ (102 )
Earnings (loss) per common 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 11,209,026 11,196,760
Information Analysis Incorporated
Statements of Operations
Year ended December 31,
(in thousands, except per share data; audited) 2009 2008
Revenue:
Professional fees $ 4,938 $ 4,950
Software sales 1,773 1,743
Total revenue 6,711 6,693
Cost of goods sold and services provided:
Cost of professional fees 3,102 3,669
Cost of software sales 1,453 1,348
Total cost of sales 4,555 5,017
Gross margin 2,156 1,676
Selling, general and administrative expense 2,002 2,069
Income (loss) from operations 154 (393 )
Other income, net 10 21
Income (loss) before income taxes 164 (372 )
Provision for income taxes -- --
Net income (loss) $ 164 $ (372 )
Earnings per share:
Basic $ 0.01 $ (0.03 )
Diluted $ 0.01 $ (0.03 )
Shares used in calculating earnings per share:
Basic 11,196,760 11,196,760
Diluted 11,207,905 11,196,760
Information Analysis Incorporated
Balance Sheets
As of As of
December 31, 2008 December 31, 2009
(in thousands) (audited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 1,479 $ 1,549
Accounts receivable, net 940 1,122
Prepaid expenses 689 470
Other assets - 1
Total current assets 3,108 3,142
Fixed assets, net 36 56
Other assets 6 6
Total assets $ 3,150 $ 3,204
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 89 $ 802
Deferred revenues 779 603
Other accrued liabilities 307 31
Accrued payroll and related liabilities 255 214
Income taxes payable -- 2
Total liabilities 1,430 1,652
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 14,554 14,550
Accumulated deficit (12,032 ) (12,196 )
Less treasury stock; 1,642,616 shares at (930 ) (930 )
cost
Total stockholders' equity 1,720 1,552
Total liabilities and stockholders' equity $ 3,150 $ 3,204
Source: Information Analysis Incorporated
Released March 30, 2010
