Exhibit 99.1
For additional information contact:
Richard S. DeRose (703) 293-7901
For release: November 14, 2008
Information Analysis Inc. Reports Third Quarter Results
FAIRFAX, VIRGINIA - Information Analysis Inc. (IAIC:OTCBB) today reported results for its third fiscal quarter ended September 30, 2008. Revenues were $1,596,000, compared to $2,635,000 reported in the third quarter 2007. The information technology services company reported a net loss of $71,000, or $(0.01) per share basic and diluted, compared to net income of $95,000 or $0.01 per share basic and diluted, in the third quarter 2007.
For the nine months ended September 30, 2008, IAI's revenues were $5,042,000, compared to revenues of $7,797,000 for the same period in 2007. The Company reported a net loss of $269,000, or ($0.02) per share basic and diluted, compared to net income of $207,000, or $0.02 per share basic and diluted, reported for the comparable 2007 period.
"In spite of this year's downturn, we believe the company is financially healthy and can recover in this difficult national economic environment. Our investment in sales and marketing continues in order to improve our rate of growth and profitability," said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. "There are still a number of bid opportunities outstanding for new business and we have been adding strategic partners to improve our bid pipeline."
"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, 2007and in other filings with the Securities and Exchange Commission.
|
Information Analysis Incorporated |
|||||
|
Statements of Operations |
|||||
|
Three months ended September 30, |
|||||
|
(in thousands, except per share data; unaudited) |
2008 |
2007 |
|||
|
Revenue: |
|||||
|
Professional fees |
$ |
1,261 |
$ |
1,688 |
|
|
Software sales |
335 |
947 |
|||
|
Total revenue |
1,596 |
2,635 |
|||
|
Cost of goods sold and services provided: |
|||||
|
Cost of professional fees |
870 |
1,272 |
|||
|
Cost of software sales |
235 |
749 |
|||
|
Total cost of sales |
1,105 |
2,021 |
|||
|
Gross margin |
491 |
614 |
|||
|
Selling general & administrative expense |
568 |
527 |
|||
|
(Loss) income from operations |
(77) |
87 |
|||
|
Other income, net |
6 |
8 |
|||
|
(Loss) income before income taxes |
(71) |
95 |
|||
|
Provision for income taxes |
-- |
-- |
|||
|
Net (loss) income |
$ |
(71 ) |
$ |
95 |
|
|
Earnings (loss) per common share: |
|||||
|
Basic |
$ |
(0.01 ) |
$ |
0.01 |
|
|
Diluted |
$ |
(0.01 ) |
$ |
0.01 |
|
|
Shares used in calculating earnings per share: |
|||||
|
Basic |
11,196,760 |
11,196,760 |
|||
|
Diluted |
11,196,760 |
11,414,922 |
|||
|
Information Analysis Incorporated |
|||||
|
Statements of Operations |
|||||
|
Nine months ended September 30, |
|||||
|
(in thousands, except per share data; unaudited) |
2008 |
2007 |
|||
|
Revenue: |
|||||
|
Professional fees |
$ |
4,093 |
$ |
5,365 |
|
|
Software sales |
949 |
2,432 |
|||
|
Total revenue |
5,042 |
7,797 |
|||
|
Cost of goods sold and services provided: |
|||||
|
Cost of professional fees |
3,027 |
4,093 |
|||
|
Cost of software sales |
681 |
1,931 |
|||
|
Total cost of sales |
3,708 |
6,024 |
|||
|
Gross margin |
1,334 |
1,773 |
|||
|
Selling general & administrative expense |
1,618 |
1,586 |
|||
|
(Loss) income from operations |
(284) |
187 |
|||
|
Other income, net |
15 |
20 |
|||
|
(Loss) income before income taxes |
(269) |
207 |
|||
|
Provision for income taxes |
-- |
-- |
|||
|
Net (loss) income |
$ |
(269 ) |
$ |
207 |
|
|
Earnings (loss) income per common share: |
|||||
|
Basic |
$ |
(0.02 ) |
$ |
0.02 |
|
|
Diluted |
$ |
(0.02 ) |
$ |
0.02 |
|
|
Shares used in calculating earnings per share: |
|||||
|
Basic |
11,196,760 |
11,196,760 |
|||
|
Diluted |
11,196,760 |
11,408,401 |
|||
|
Information Analysis Incorporated |
||||
|
Balance Sheets |
||||
|
As of |
As of |
|||
|
(in thousands; unaudited) |
September 30, 2008 |
December 31, 2007 |
||
|
ASSETS |
||||
|
Current assets: |
||||
|
Cash and cash equivalents |
$ |
1,101 |
$ |
1,223 |
|
Accounts receivable, net |
1,154 |
1,560 |
||
|
Prepaid expenses |
520 |
463 |
||
|
Other assets |
4 |
4 |
||
|
Other receivables |
1 |
3 |
||
|
Total current assets |
2,780 |
3,253 |
||
|
Fixed assets, net |
63 |
79 |
||
|
Other assets |
9 |
9 |
||
|
Total assets |
$ |
2,852 |
$ |
3,341 |
|
LIABILITIES & STOCKHOLDERS' EQUITY |
||||
|
Current liabilities: |
||||
|
Accounts payable |
$ |
519 |
$ |
721 |
|
Deferred revenues |
438 |
394 |
||
|
Accrued payroll and related liabilities |
213 |
258 |
||
|
Other accrued liabilities |
25 |
46 |
||
|
Income taxes payable |
3 |
3 |
||
|
Total liabilities |
1,198 |
1,422 |
||
|
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 |
14,549 |
14,546 |
||
|
Accumulated deficit |
(12,093) |
(11,825) |
||
|
Less treasury stock; 1,642,616 shares at cost |
(930) |
(930) |
||
|
Total stockholders' equity |
1,654 |
1,919 |
||
|
Total liabilities and stockholders' equity |
$ |
2,852 |
$ |
3,341 |