Information Analysis Inc. Announces Fourth Quarter Results
FAIRFAX, Va.--(BUSINESS WIRE)--
Information Analysis Inc. (OTCBB:IAIC) today reported results for the fourth quarter and full year ended December 31, 2007. Revenues were $2,156,000, compared to $2,002,000 reported in the fourth quarter 2006. The Information Technology services company reported a net loss of $23,000 or $0.00 per share basic and diluted, compared to net income of $106,000 or $0.01 per share basic and diluted in the comparable period in 2006.
For the year ended December 31, 2007, IAI posted revenue of $9,953,000 and net income of $184,000, or $0.02 per share basic and diluted. The Company reported revenue of $9,459,000 and net income of $502,000 or $0.05 per share basic and $0.04 diluted for the year ended December 31, 2006.
"Although we experienced an increase of revenues in 2007 and continued our trend of profitable operations," said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI, "we are not satisfied with our rate of growth, or profitability. Therefore, we are investing more aggressively than normal in the sales and marketing areas to build a larger pipeline of business. This has required us to add more resources to our business development and support staff, which will result in lower profitability in the first half of 2008, but should allow us to realize an increase in business during the latter part of 2008 and beyond.
"We are continuing to pursue merger/acquisition opportunities with other organizations."
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, 2006, and in other filings with the Securities and Exchange Commission.
Information Analysis Incorporated
Condensed Statements of Operations
Three months ended
December 31,
(in thousands, except per share data) 2007 2006
------------ -----------
Sales:
Professional fees $ 1,677 $ 1,809
Software sales 479 193
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Total sales 2,156 2,002
Cost of goods sold and services provided:
Cost of professional fees 1,268 1,322
Cost of software sales 369 143
------------ -----------
Total cost of sales 1,637 1,465
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Gross profit 519 537
Operating expenses:
Selling, general and administrative 514 421
------------ -----------
Income from operations 5 116
Other expenses, net 24 9
------------ -----------
(Loss) income before provision for income
taxes (19) 107
Provision for income taxes 4 1
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Net (loss) income $ (23) $ 106
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Earnings per Common Share: Basic and Diluted
Basic net income $ 0.00 $ 0.01
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Diluted net income $ 0.00 $ 0.01
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Shares used in calculating earnings per
share:
Basic 11,196,760 11,151,394
Diluted 11,383,584 11,366,653
Twelve months ended
December 31,
(in thousands, except per share data) 2007 2006
------------ -----------
Sales:
Professional fees $ 7,042 $ 8,484
Software sales 2,911 975
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Total revenue 9,953 9,459
Cost of goods sold and services provided:
Cost of professional fees 5,361 6,402
Cost of software sales 2,300 621
------------ -----------
Total cost of sales 7,661 7,023
------------ -----------
Gross profit 2,292 2,436
Operating expenses:
Selling, general and administrative 2,100 1,929
------------ -----------
Income from operations 192 507
Other expenses, net 4 4
------------ -----------
Income before provision for income taxes 188 503
Provision for income taxes 4 1
------------ -----------
Net income $ 184 $ 502
============ ===========
Earnings per Common Share:
Basic net income $ 0.02 $ 0.05
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Diluted net income $ 0.02 $ 0.04
============ ===========
Shares used in calculating earnings per
share:
Basic 11,196,760 11,018,317
Diluted 11,398,180 11,342,072
Information Analysis Incorporated
Balance Sheets
As of As of
(in thousands) December December
31, 2007 31, 2006
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ASSETS
Current assets:
Cash and cash equivalents $ 1,223 $ 808
Accounts receivable, net 1,560 1,758
Prepaid expenses 463 382
Other assets 4 4
Other receivables 2 6
Note receivable -- 116
--------- ----------
Total current assets 3,252 3,074
Fixed assets, net 79 67
Other assets 9 9
--------- ----------
Total assets $ 3,340 $ 3,150
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LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 721 $ 644
Deferred revenue 394 513
Accrued payroll and related liabilities 258 265
Other accrued liabilities 45 53
Income taxes payable 3 --
Revolving line of credit -- --
--------- ----------
Total current liabilities 1,421 1,475
--------- ----------
Total liabilities 1,421 1,475
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Common stock, par value $0.01, 30,000,000 shares
authorized;
12,839,376 shares issued, 11,196,760 outstanding
at December 31, 2007, and 2006 128 128
Additional paid in capital 14,546 14,486
Accumulated deficit (11,825) (12,009)
Less treasury stock; 1,642,616 shares at cost at
December 31, 2007 and 2006 (930) (930)
--------- ----------
Total stockholders' equity 1,919 1,675
--------- ----------
Total liabilities and stockholders' equity $ 3,340 $ 3,150
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Source: Information Analysis Inc.
Released April 21, 2008
