Information Analysis Inc. Reports Third Quarter Results
FAIRFAX, Va.--(BUSINESS WIRE)--
Information Analysis Inc. (OTCBB:IAIC) today reported results for its third fiscal quarter ended September 30, 2007. Revenues were $2,635,000, compared to $2,574,000 reported in the third quarter 2006. The information technology services company reported net income of $95,000, or $0.01 per share basic and diluted, compared to net income of $157,000 or $0.01 per share basic and diluted, in the third quarter 2006.
For the nine months ended September 30, 2007, IAI's revenues were $7,797,000, compared to revenues of $7,457,000 for the same period in 2006. The Company reported net income of $207,000, or $0.02 per share basic and diluted, compared to net income of $396,000, or $0.04 per share basic and $0.03 per share diluted, reported for the comparable 2006 period.
"We have begun to increase our investment in sales and marketing efforts starting in the fourth quarter to improve our rate of growth and profitability," said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. "We still have a number of bid opportunities outstanding for new business and additional add-on business to existing contracts, which are expected to materialize during future quarters.
"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, 2006 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;
unaudited) 2007 2006
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Revenue:
Professional fees $ 1,688 $ 2,180
Software sales 947 394
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Total revenue 2,635 2,574
Cost of goods sold and services provided:
Cost of professional fees 1,272 1,626
Cost of software sales 749 183
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Total cost of sales 2,021 1,809
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Gross margin 614 765
Selling, general and administrative expense 527 610
----------- -----------
Operating income 87 155
Other income (expense) 8 2
----------- -----------
Income before income taxes 95 157
Provision for income taxes -- --
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Net income $ 95 $ 157
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Earnings per share:
Basic $ 0.01 $ 0.01
Diluted $ 0.01 $ 0.01
Shares used in calculating earnings per share:
Basic 11,196,760 11,137,371
Diluted 11,414,922 11,478,082
Information Analysis Incorporated
Statements of Operations
Nine months ended
September 30,
(in thousands, except per share data;
unaudited) 2007 2006
----------- -----------
Revenue:
Professional fees $ 5,365 $ 6,675
Software sales 2,432 782
----------- -----------
Total revenue 7,797 7,457
Cost of goods sold and services provided:
Cost of professional fees 4,093 5,080
Cost of software sales 1,931 478
----------- -----------
Total cost of sales 6,024 5,558
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Gross margin 1,773 1,899
Selling, general and administrative expense 1,586 1,508
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Operating income 187 391
Other income, net 20 5
----------- -----------
Income before income taxes 207 396
Provision for income taxes -- --
----------- -----------
Net income $ 207 $ 396
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Earnings per share:
Basic $ 0.02 $ 0.04
Diluted $ 0.02 $ 0.03
Shares used in calculating earnings per share:
Basic 11,196,760 10,973,470
Diluted 11,408,401 11,436,461
Information Analysis Incorporated
Balance Sheets
As of As of
September 30, 2007 December 31, 2006
(in thousands) (unaudited) (audited)
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ASSETS
Current assets:
Cash and cash equivalents $ 1,263 $ 808
Accounts receivable, net 1,759 1,758
Prepaid expenses 349 382
Note receivable 116 116
Other assets 7 4
Other receivables 6 6
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Total current assets 3,500 3,074
Fixed assets, net 63 67
Other assets 6 9
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Total assets $ 3,569 $ 3,150
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LIABILITIES & STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 755 $ 644
Deferred revenues 482 513
Accrued payroll and related
liabilities 294 265
Other accrued liabilities 99 53
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Total liabilities 1,630 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 128 128
Additional paid in capital 14,543 14,486
Accumulated deficit (11,802) (12,009)
Less treasury stock; 1,642,616
shares at cost (930) (930)
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Total stockholders'
equity 1,939 1,675
------------------ -----------------
Total liabilities and
stockholders' equity $ 3,569 $ 3,150
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Source: Information Analysis Inc.
Released November 13, 2007
