Information Analysis, Inc. Reports First Quarter Profit
FAIRFAX, Va.--(BUSINESS WIRE)--
Information Analysis, Inc. (OTCBB:IAIC) today reported results for the first fiscal quarter ended March 31, 2007. Revenues were $2,606,000, up 13% from the $2,315,000 reported in 2006's first quarter. The Company reported net income of $95,000, or $0.01 per share, compared to net income of $86,000, or $0.01 per share, in the first quarter 2006.
"The Company increased revenue and gross margin in the first quarter in comparison to the first quarter of 2006," Sandor Rosenberg, Chairman and Chief Executive Officer of IAI said. "First quarter performance is in line with previous year's first quarter results. Some orders that we expected to work on in the first quarter were recently awarded and will be performed during subsequent quarters of this year. We expect our profitability to improve during the year as a result of this.
"We are actively pursuing the conversion and system modernization business through our business partners and sales prospects. Business opportunities in the area of Adobe and Web applications remain strong. We continue to build our pipeline opportunities which should increase revenue for subsequent quarters and 2007.
"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 Reports First Quarter Results
Condensed Consolidated Income Statements
Three months ended March 31,
(in thousands, except per share data;
unaudited) 2007 2006
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Net revenue:
Professional fees $ 1,901 $ 2,196
Software sales 705 119
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Total revenue 2,606 2,315
Cost of goods sold and services provided:
Cost of professional fees 1,458 1,751
Cost of software sales 542 70
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Total cost of sales 2,000 1,821
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Gross margin 606 494
Operating expenses:
Selling, general and administrative 517 409
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Operating income 89 85
Other income 6 1
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Income before income taxes 95 86
Provision for income taxes -- --
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Net income $ 95 $ 86
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Net income per share:
Basic $ 0.01 $ 0.01
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Diluted $ 0.01 $ 0.01
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Shares used in calculating earnings per
share:
Basic 10,196,760 10,743,204
Diluted 11,421,394 11,616,698
Information Analysis Incorporated and Subsidiaries
Consolidated Balance Sheets
As of: As of:
March 31, 2007 December 31, 2006
(in thousands) (unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $ 537 $ 808
Accounts receivable, net 2,394 1,758
Prepaid expenses 365 382
Note receivable 116 116
Other assets 4 4
Other receivables 2 6
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Total current assets 3,418 3,074
Fixed assets, net 65 67
Other assets 9 9
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Total assets $ 3,492 $ 3,150
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LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 895 $ 644
Deferred revenue 373 513
Accrued payroll and related
liabilities 276 265
Other accrued liabilities 175 53
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Total liabilities 1,719 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 14,489 14,486
Accumulated deficit (11,914) (12,009)
Less treasury stock; 1,642,616
shares at cost (930) (930)
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Total stockholders'
equity 1,773 1,675
----------------- -----------------
Total liabilities and
stockholders' equity $ 3,492 $ 3,150
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Source: Information Analysis, Inc.
Released May 10, 2007
