Exhibit 99.1
For additional information contact:Richard S. DeRose (703) 293-7901
For release:
April 21, 2008 at 12:00 p.m.
Information Analysis Inc. Announces Fourth Quarter Results
FAIRFAX, VIRGINIA - Information Analysis Inc. (IAIC:OTCBB) 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, 2007, and in other filings with the Securities and Exchange Commission.
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Information Analysis Incorporated |
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Condensed Statements of Operations |
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Three months ended December 31, |
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(in thousands, except per share data) |
2007 |
2006 |
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Sales: |
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Professional fees |
$ |
1,677 |
$ |
1,809 |
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Software sales |
479 |
193 |
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Total sales |
2,156 |
2,002 |
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Cost of goods sold and services provided: |
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Cost of professional fees |
1,268 |
1,322 |
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Cost of software sales |
369 |
143 |
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Total cost of sales |
1,637 |
1,465 |
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Gross profit |
519 |
537 |
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Operating expenses: |
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Selling general & administrative expense |
514 |
421 |
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Income from operations |
5 |
116 |
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Other expenses, net |
24 |
9 |
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(Loss) income before provision for income taxes |
(19) |
107 |
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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 |
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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: |
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Basic |
11,196,760 |
11,151,394 |
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Diluted |
11,383,584 |
11,366,653 |
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Twelve months ended December 31, |
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(in thousands, except per share data) |
2007 |
2006 |
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Sales: |
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Professional fees |
$ |
7,042 |
$ |
8,484 |
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Software sales |
2,911 |
975 |
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Total revenue |
9,953 |
9,459 |
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Cost of goods sold and services provided: |
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Cost of professional fees |
5,361 |
6,402 |
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Cost of software sales |
2,300 |
621 |
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Total cost of sales |
7,661 |
7,023 |
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Gross profit |
2,292 |
2,436 |
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Operating expenses: |
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Selling general & administrative expense |
2,100 |
1,929 |
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Income from operations |
192 |
507 |
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Other expenses, net |
4 |
4 |
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Income before provision for income taxes |
188 |
503 |
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Provision for income taxes |
4 |
1 |
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Net income |
$ |
184 |
$ |
502 |
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Earnings per Common Share: |
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Basic net income |
$ |
0.02 |
$ |
0.05 |
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Diluted net income |
$ |
0.02 |
$ |
0.04 |
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Shares used in calculating earnings per share: |
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Basic |
11,196,760 |
11,018,317 |
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Diluted |
11,398,180 |
11,342,072 |
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Information Analysis Incorporated |
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Balance Sheets |
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As of |
As of |
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(in thousands) |
December 31, 2007 |
December 31, 2006 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ |
1,223 |
$ |
808 |
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Accounts receivable, net |
1,560 |
1,758 |
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Prepaid expenses |
4 |
382 |
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Other assets |
4 |
4 |
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Other receivables |
2 |
6 |
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Note receivable |
-- |
116 |
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Total current assets |
3,252 |
3,074 |
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Fixed assets, net |
79 |
67 |
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Other assets |
9 |
9 |
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Total assets |
$ |
3,340 |
$ |
3,150 |
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LIABILITIES & STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
$ |
721 |
$ |
644 |
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Deferred revenue |
394 |
513 |
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Accrued payroll and related liabilities |
258 |
265 |
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Other accrued liabilities |
45 |
53 |
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Income taxes payable |
3 |
-- |
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Revolving line of credit |
-- |
-- |
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Total current liabilities |
1,421 |
1,475 |
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Total liabilities |
1,421 |
1,475 |
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Common stock, par value $0.01, 30,000,000 shares authorized; |
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12,839,376 shares issued, 11,196,760 outstanding at |
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December 31, 2007, and 2006 |
128 |
128 |
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Additional paid in capital |
14,546 |
14,486 |
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Accumulated deficit |
(11,825) |
(12,009) |
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Less treasury stock; 1,642,616 shares at |
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cost at December 31, 2007 and 2006 |
(930) |
(930) |
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Total stockholders' equity |
1,919 |
1,675 |
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Total liabilities and stockholders' equity |
$ |
3,340 |
$ |
3,150 |