Information Analysis Inc. Reports Third Quarter Results
FAIRFAX, Va.--(BUSINESS WIRE)-- Information Analysis Inc. (IAIC:OTCBB) today reported results for its third fiscal quarter ended September 30, 2008. Revenues were $1,596,000, compared to $2,635,000 reported in the third quarter 2007. The information technology services company reported a net loss of $71,000, or $(0.01) per share basic and diluted, compared to net income of $95,000 or $0.01 per share basic and diluted, in the third quarter 2007.
For the nine months ended September 30, 2008, IAI's revenues were $5,042,000, compared to revenues of $7,797,000 for the same period in 2007. The Company reported a net loss of $269,000, or ($0.02) per share basic and diluted, compared to net income of $207,000, or $0.02 per share basic and diluted, reported for the comparable 2007 period.
"In spite of this year's downturn, we believe the company is financially healthy and can recover in this difficult national economic environment. Our investment in sales and marketing continues in order to improve our rate of growth and profitability," said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. "There are still a number of bid opportunities outstanding for new business and we have been adding strategic partners to improve our bid pipeline."
"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-KSB for the fiscal year ended December 31, 2007 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; 2008 2007
unaudited)
Revenue:
Professional fees $ 1,261 $ 1,688
Software sales 335 947
Total revenue 1,596 2,635
Cost of goods sold and services
provided:
Cost of professional fees 870 1,272
Cost of software sales 235 749
Total cost of sales 1,105 2,021
Gross margin 491 614
Selling, general and administrative 568 527
expense
(Loss) income from operations (77 ) 87
Other income, net 6 8
(Loss) income before income taxes (71 ) 95
Provision for income taxes -- --
Net (loss) income $ (71 ) $ 95
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 11,196,760 11,414,922
Information Analysis Incorporated
Statements of Operations
Nine months ended September 30,
(in thousands, except per share data; 2008 2007
unaudited)
Revenue:
Professional fees $ 4,093 $ 5,365
Software sales 949 2,432
Total revenue 5,042 7,797
Cost of goods sold and services
provided:
Cost of professional fees 3,027 4,093
Cost of software sales 681 1,931
Total cost of sales 3,708 6,024
Gross margin 1,334 1,773
Selling, general and administrative 1,618 1,586
expense
(Loss) income from operations (284 ) 187
Other income, net 15 20
(Loss) income before income taxes (269 ) 207
Provision for income taxes -- --
Net (loss) income $ (269 ) $ 207
Earnings per share:
Basic $ (0.02 ) $ 0.02
Diluted $ (0.02 ) $ 0.02
Shares used in calculating earnings
per share:
Basic 11,196,760 11,196,760
Diluted 11,196,760 11,408,401
Information Analysis Incorporated
Balance Sheets
As of As of
September 30, 2008 December 31, 2007
(in thousands) (unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 1,101 $ 1,223
Accounts receivable, net 1,154 1,560
Prepaid expenses 520 463
Other assets 4 4
Other receivables 1 3
Total current assets 2,780 3,253
Fixed assets, net 63 79
Other assets 9 9
Total assets $ 2,852 $ 3,341
LIABILITIES & STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 519 $ 721
Deferred revenues 438 394
Accrued payroll and related 213 258
liabilities
Other accrued liabilities 25 46
Income taxes payable 3 3
Total liabilities 1,198 1,422
Common stock, par value $0.01,
30,000,000 shares authorized; 128 128
12,839,376 shares issued,
11,196,760 outstanding
Additional paid in capital 14,549 14,546
Accumulated deficit (12,093 ) (11,825 )
Less treasury stock; 1,642,616 (930 ) (930 )
shares at cost
Total stockholders' equity 1,654 1,919
Total liabilities and $ 2,852 $ 3,341
stockholders' equity
Source: Information Analysis Inc.
Released November 14, 2008
