Information Analysis Inc. Reports Second Quarter Results
FAIRFAX, Va.--(BUSINESS WIRE)--
Information Analysis Inc. (OTCBB: IAIC) reported results for the second quarter ended June 30, 2007. Revenues were $2,557,000 compared to $2,569,000 reported in 2006's second quarter. The Company reported net income of $17,000, or $0.00 per share, compared to net income of $154,000, or $0.01 per share in 2006's second quarter. IAI reported revenue of $5,162,000 for six months ending June 30, 2007, compared to $4,883,000 reported for the same period in 2006. Net income for the first six months of 2007 was $112,000, or $0.01 per share, versus net income of $239,000, or $0.02 per share, in the comparable 2006 period.
"Although revenues have increased year-to-date, profitability this quarter was lower than expected," said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. "The Company experienced lower profitability than last year because of an increase of operating expenses, some of which were additional infrastructure support to meet public reporting requirements, increased recruiting costs for cleared people, and additional stock incentives for key employees. However, I don't believe that second quarter profitability is indicative of the rest of the year. Based on business already signed, there should be significant improvement in third and fourth quarters. The Company is continuing the active pursuit of the conversion and system modernization business in addition to developing business opportunities in the area of Web applications. We now are working on a number of bid opportunities for new business and additional add-on business to existing contracts, which are expected to be awarded and started during the later part of the year.
"We continue to pursue merger and acquisition opportunities to expand our business base."
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. These include the failure to obtain sufficient contracts, and to profitably complete those contracts. 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 Income Statements
Three months ended June 30,
(in thousands, except per share data;
unaudited) 2007 2006
------------ --------------
Sales:
Professional fees $ 1,777 $ 2,299
Software sales 780 270
------------ --------------
Total sales 2,557 2,569
Cost of goods sold and services provided:
Cost of professional fees 1,363 1,703
Cost of software sales 641 225
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Total cost of sales 2,004 1,928
------------ --------------
Gross margin 553 641
Operating expenses:
Selling, general and administrative 542 489
------------ --------------
Operating income 11 152
Other income 6 2
------------ --------------
Income before income taxes 17 154
Provision for income taxes -- --
------------ --------------
Net income $ 17 $ 154
============ ==============
Comprehensive Income $ 17 $ 154
============ ==============
Net income per share:
Basic and diluted $ 0.00 $ 0.01
============ ==============
Shares used in calculating earnings per
share:
Basic 11,196,760 11,035,507
Diluted 11,398,487 11,504,714
Information Analysis Incorporated
Condensed Income Statements
Six months ended June 30,
(in thousands, except per share data;
unaudited) 2007 2006
------------ ------------
Sales:
Professional fees $ 3,677 $ 4,495
Software sales 1,485 388
------------ ------------
Total sales 5,162 4,883
Cost of goods sold and services provided:
Cost of professional fees 2,821 3,454
Cost of software sales 1,182 295
------------ ------------
Total cost of sales 4,003 3,749
------------ ------------
Gross margin 1,159 1,134
Operating expenses:
Selling, general and administrative 1,059 898
------------ ------------
Operating income 100 236
Other income 12 3
------------ ------------
Income before income taxes 112 239
Provision for income taxes -- --
------------ ------------
Net income $ 112 $ 239
============ ============
Comprehensive Income $ 112 $ 239
============ ============
Net income per share:
Basic and diluted $ 0.01 $ 0.02
============ ============
Shares used in calculating earnings per
share:
Basic 11,196,760 10,890,164
Diluted 11,401,905 11,399,119
Information Analysis Incorporated
Condensed Balance Sheets
As of As of
June 30, 2007 December 31, 2006
(unaudited) (audited)
-------------- -----------------
ASSETS
Current assets:
Cash and cash equivalents $ 921 $ 808
Accounts receivable, net 1,843 1,758
Prepaid expenses 319 382
Note receivable 116 116
Other assets 4 4
Other receivables 4 6
------------- ----------------
Total current assets 3,207 3,074
Fixed assets, net 69 67
Other assets 9 9
------------- ----------------
Total assets $ 3,285 $ 3,150
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LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 668 $ 644
Deferred revenues 356 513
Accrued payroll and related
liabilities 293 265
Other accrued liabilities 151 53
------------- ----------------
Total liabilities 1,468 1,475
------------- ----------------
Common stock, par value $0.01,
30,000,000 shares authorized;
12,839,376 shares issued, 11,196,760
outstanding at June 30, 2007, and at
December 31, 2006 128 128
Additional paid in capital 14,516 14,486
Accumulated deficit (11,897) (12,009)
Less treasury stock; 1,642,616 shares
at cost at June 30, 2007, and at
December 31, 2006 (930) (930)
------------- ----------------
Total stockholders' equity 1,817 1,675
------------- ----------------
Total liabilities and stockholders'
equity $ 3,285 $ 3,150
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Source: Information Analysis Inc.
Released August 13, 2007
