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Exhibit 99.1 |
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For additional information contact: Richard S. DeRose (703) 293-7901 For release: August 13, 2008 at 9:00 a.m. |
Information Analysis Inc. Reports Second Quarter Results
FAIRFAX, VIRGINIA – Information Analysis, Inc. (OTCBB:IAIC) today reported results for the second fiscal quarter ended June 30, 2008. Revenues were $1,697,000, from the $2,557,000 reported in 2007’s second quarter. The Company reported a net loss of $80,000, or $(0.01) per share, compared to net income of $17,000, or $0.00 per share, in the second quarter 2007. IAI reported revenue of $3,446,000 for six months ending June 30, 2008, compared to $5,162,000 reported for the same period in 2007. Net loss for the first six months of 2008 was $198,000, or ($0.01) per share, versus net income of $112,000, or $0.01 per share, in the comparable 2007 period.
“The Company’s revenue and earnings were down in the second quarter in comparison to the second quarter of 2007,” Sandor Rosenberg, Chairman and Chief Executive Officer of IAI said. “However, we reduced our loss from the first quarter 2008. During the second quarter we started work on some new tasks which should show improvement in the third and fourth quarters. The company is continuing the active pursuit of the conversion and system modernization business in addition to developing new business partnerships in the growth markets of security and virtualization.
“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, 2007 and in other filings with the Securities and Exchange Commission.
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| Information Analysis Reports Second Quarter Results | ||||||||
| August 13, 2008 | ||||||||
| Page 2 of 4 | ||||||||
| Information Analysis Incorporated | ||||||||
| Condensed Income Statements | ||||||||
| Three months ended June 30, | ||||||||
| (in thousands, except per share data; unaudited) | 2008 | 2007 | ||||||
| Sales: | ||||||||
| Professional fees | $ | 1,345 | $ | 1,777 | ||||
| Software sales | 352 | 780 | ||||||
| Total revenue | 1,697 | 2,557 | ||||||
| Cost of goods sold and services provided: | ||||||||
| Cost of professional fees | 1,035 | 1,363 | ||||||
| Cost of software sales | 263 | 641 | ||||||
| Total cost of sales | 1,298 | 2,004 | ||||||
| Gross margin | 399 | 553 | ||||||
| Operating expenses: | ||||||||
| Selling general & administrative | 483 | 542 | ||||||
| Operating (loss) income | (84) | 11 | ||||||
| Other income | 4 | 6 | ||||||
| (Loss) income before income taxes | (80) | 17 | ||||||
| Provision for income taxes | -- | -- | ||||||
| Net (loss) income | $ | (80) | $ | 17 | ||||
| Comprehensive income | $ | (80) | $ | 17 | ||||
| Net (loss) income per share: | ||||||||
| Basic and diluted | $ | (0.01) | $ | 0.01 | ||||
| Shares used in calculating earnings per share: | ||||||||
| Basic | 11,196,760 | 11,196,760 | ||||||
| Diluted | 11,196,760 | 11,398,487 | ||||||
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| Information Analysis Reports Second Quarter Results | ||||||||
| August 13, 2008 | ||||||||
| Page 3 of 4 | ||||||||
| Information Analysis Incorporated | ||||||||
| Condensed Income Statements | ||||||||
| Six months ended June 30, | ||||||||
| (in thousands, except per share data; unaudited) | 2008 | 2007 | ||||||
| Sales: | ||||||||
| Professional fees | $ | 2,832 | $ | 3,677 | ||||
| Software sales | 614 | 1,485 | ||||||
| Total revenue | 3,446 | 5,162 | ||||||
| Cost of goods sold and services provided: | ||||||||
| Cost of professional fees | 2,157 | 2,821 | ||||||
| Cost of software sales | 446 | 1,182 | ||||||
| Total cost of sales | 2,603 | 4,003 | ||||||
| Gross margin | 843 | 1,159 | ||||||
| Operating expenses: | ||||||||
| Selling general & administrative | 1,051 | 1,059 | ||||||
| Operating (loss) income | (208) | 100 | ||||||
| Other income | 10 | 12 | ||||||
| (Loss) income before income taxes | (198) | 112 | ||||||
| Provision for income taxes | -- | -- | ||||||
| Net (loss) income | $ | (198) | $ | 112 | ||||
| Comprehensive income | $ | (198) | $ | 112 | ||||
| Net (loss) income per share: | ||||||||
| Basic and diluted | $ | (0.01) | $ | 0.01 | ||||
| Shares used in calculating earnings per share: | ||||||||
| Basic | 11,196,760 | 11,196,760 | ||||||
| Diluted | 11,196,760 | 11,401,905 | ||||||
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| Information Analysis Reports Second Quarter Results | ||||||||
| August 13, 2008 | ||||||||
| Page 4 of 4 | ||||||||
| Information Analysis Incorporated | ||||||||
| Balance Sheets | ||||||||
| As of | As of | |||||||
| (in thousands) | June 30, 2008 | December 31, 2007 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,061 | $ | 1,223 | ||||
| Accounts receivable, net | 1,468 | 1,560 | ||||||
| Prepaid expenses | 381 | 462 | ||||||
| Other assets | 4 | 4 | ||||||
| Other receivables | -- | 3 | ||||||
| Total current assets | 2,914 | 3,252 | ||||||
| Fixed assets, net | 68 | 79 | ||||||
| Other assets | 9 | 9 | ||||||
| Total assets | $ | 2,991 | $ | 3,340 | ||||
| LIABILITIES & STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 493 | $ | 721 | ||||
| Deferred revenue | 482 | 394 | ||||||
| Accrued payroll and related liabilities | 252 | 258 | ||||||
| Other accrued liabilities | 38 | 45 | ||||||
| Income taxes payable | 3 | 3 | ||||||
| Total liabilities | 1,268 | 1,421 | ||||||
| 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 | 14,548 | 14,546 | ||||||
| Accumulated deficit | (12,023) | (11,825) | ||||||
| Less treasury stock; 1,642,616 shares at cost | (930) | (930) | ||||||
| Total stockholders' equity | 1,723 | 1,919 | ||||||
| Total liabilities and stockholders' equity | $ | 2,991 | $ | 3,340 | ||||
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