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, 2006. Revenues were $2,002,000, compared to $2,950,000 reported in the fourth quarter 2005. The Information Technology services company reported net income of $106,000 or $0.01 per share basic and diluted, compared to net income of $261,000 or $0.02 per share basic and diluted in the comparable period in 2005.
For the year ended December 31, 2006, IAI posted revenue of $9,459,000 and net income of $502,000, or $0.05 per share basic and $0.04 diluted. The Company reported revenue of $10,772,000 and net income of $732,000 or $0.07 per share basic and diluted for the year ended December 31, 2005.
"We experienced a downturn of revenues in 2006 as a result of delays in the government ordering process," said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. "During the past few years we were able to reach financial stability, which has allowed us to plan for future growth. We have been working diligently on building a larger pipeline. This is expected to add additional revenue during 2007 and future years. We continue to see more opportunities through our Adobe relationship that should enhance our future business.
"We are continuing too 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) 2006 2005
----------- -----------
Sales:
Professional fees $ 1,809 $ 2,187
Software sales 193 763
----------- -----------
Total sales 2,002 2,950
Cost of goods sold and services provided:
Cost of professional fees 1,322 1,689
Cost of software sales 143 534
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Total cost of sales 1,465 2,223
----------- -----------
Gross profit 537 727
Operating expenses:
Selling, general and administrative (421) (462)
----------- -----------
Income from operations 116 265
Other expenses, net (9) 1
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Income before provision for income taxes 107 266
Provision for income taxes 1 5
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Net income $ 106 $ 261
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Earnings per Common Share: Basic and Diluted
Basic net income $ 0.01 $ 0.02
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Diluted net income $ 0.01 $ 0.02
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Shares used in calculating earnings per
share:
Basic 11,151,394 10,620,570
Diluted 11,366,653 11,388,849
Twelve months ended
December 31,
(in thousands, except per share data) 2006 2005
----------- -----------
Sales:
Professional fees $ 8,484 $ 9,045
Software sales 975 1,727
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Total revenue 9,459 10,772
Cost of goods sold and services provided:
Cost of professional fees 6,402 6,960
Cost of software sales 621 1,348
------------ ------------
Total cost of sales 7,023 8,308
------------ ------------
Gross profit 2,436 2,464
Operating expenses:
Selling, general and administrative (1,929) (1,715)
------------ ------------
Income from operations 507 749
Other expenses, net (4) (12)
------------ ------------
Income before provision for income taxes 503 737
Provision for income taxes 1 5
------------ ------------
Net income $ 502 $ 732
============ ============
Earnings per Common Share: Basic and Diluted
Basic net income $ 0.05 $ 0.07
============ ============
Diluted net income $ 0.04 $ 0.07
============ ============
Shares used in calculating earnings per
share:
Basic 11,018,317 10,376,247
Diluted 11,342,072 10,968,026
Information Analysis Incorporated
Balance Sheets
As of As of
December 31, December 31,
(in thousands) 2006 2005
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ASSETS
Current assets:
Cash and cash equivalents $ 808 $ 452
Accounts receivable, net 1,758 1,994
Prepaid expenses 382 183
Note receivable 116 85
Other receivables 6 15
Other assets 4 --
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Total current assets 3,074 2,729
Fixed assets, net 67 57
Other assets 9 9
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Total assets $ 3,150 $ 2,795
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LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 644 $ 1,175
Deferred revenue 513 214
Accrued payroll and related
liabilities 265 321
Other accrued liabilities 53 125
Income taxes payable -- 4
Revolving line of credit -- --
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Total current liabilities 1,475 1,839
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Total liabilities 1,475 1,839
------------- -------------
Common stock, par value $0.01, 30,000,000
shares authorized; 12,839,376 shares
issued, 11,196,760 outstanding at December
31, 2006, and 12,127,626 shares issued,
10,623,015 outstanding at December 31,
2005, 128 121
Additional paid in capital 14,486 14,212
Accumulated deficit (12,009) (12,511)
Other comprehensive income -- (12)
Less treasury stock; 1,642,616 and
1,504,611 shares at cost at December 31,
2006 and 2005, respectively (930) (854)
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Total stockholders' equity 1,675 956
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Total liabilities and stockholders' equity $ 3,150 $ 2,795
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Source: Information Analysis Inc.
Released March 29, 2007
