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Exhibit 99.1 |
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For additional information contact: Richard S. DeRose (703) 293-7901 For release: March 30, 2010 |
Information Analysis Inc. Reports Profitable Results for 2009
FAIRFAX, VIRGINIA – Information Analysis Inc. (IAIC:OTCBB) today reported results for its fourth fiscal quarter ended December 31, 2009. Revenues were $1,924,000, compared to $1,651,000 reported in the fourth quarter 2008. The information technology services company reported net income of $98,000, or $0.01 per share basic and diluted, compared to a net loss of $102,000 or ($0.01) per share basic and diluted, in the fourth quarter 2008.
For the year ended December 31, 2009, IAI’s revenues were $6,711,000, compared to revenues of $6,693,000 for the same period in 2008. The Company reported net income of $164,000, or $0.01 per share basic and diluted, compared to a net loss of $372,000, or ($0.03) per share basic and diluted, reported for the comparable 2008 period.
“The Company increased revenue and profit in the fourth quarter and for the year in comparison to last year’s results. Additionally, as a result of increased sales efforts, our proposal volume has been steadily climbing,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “We expect to turn this effort into better results for 2010.” “We continue to pursue merger and acquisition opportunities.”
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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.
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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-K for the fiscal year ended December 31, 2009 and in other filings with the Securities and Exchange Commission.
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| Information Analysis Reports Profitable Results for 2009 | ||||||||
| March 30, 2010 | ||||||||
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| Information Analysis Incorporated | ||||||||
| Statements of Operations | ||||||||
| Three months ended December 31, | ||||||||
| (in thousands, except per share data; unaudited) | 2009 | 2008 | ||||||
| Revenue: | ||||||||
| Professional fees | $ | 1,337 | $ | 857 | ||||
| Software sales | 587 | 794 | ||||||
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| Total revenue | 1,924 | 1,651 | ||||||
| Cost of goods sold and services provided: | ||||||||
| Cost of professional fees | 806 | 642 | ||||||
| Cost of software sales | 523 | 667 | ||||||
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| Total cost of sales | 1,329 | 1,309 | ||||||
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| Gross margin | 595 | 342 | ||||||
| Selling, general and administrative expense | 499 | 450 | ||||||
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| Income (loss) from operations | 96 | (108) | ||||||
| Other income, net | 2 | 6 | ||||||
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| Income (loss) before income taxes | 98 | (102) | ||||||
| Provision for income taxes | -- | -- | ||||||
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| Net income (loss) | $ | 98 | $ | (102) | ||||
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| 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 | 11,209,026 | 11,196,760 | ||||||
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| Information Analysis Reports Profitable Results for 2009 | ||||||||
| March 30, 2010 | ||||||||
| Page 3 of 4 | ||||||||
| Information Analysis Incorporated | ||||||||
| Statements of Operations | ||||||||
| Year ended December 31, | ||||||||
| (in thousands, except per share data; audited) | 2009 | 2008 | ||||||
| Revenue: | ||||||||
| Professional fees | $ | 4,938 | $ | 4,950 | ||||
| Software sales | 1,773 | 1,743 | ||||||
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| Total revenue | 6,711 | 6,693 | ||||||
| Cost of goods sold and services provided: | ||||||||
| Cost of professional fees | 3,102 | 3,669 | ||||||
| Cost of software sales | 1,453 | 1,348 | ||||||
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| Total cost of sales | 4,555 | 5,017 | ||||||
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| Gross margin | 2,156 | 1,676 | ||||||
| Selling, general and administrative expense | 2,002 | 2,069 | ||||||
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| Income (loss) from operations | 154 | (393) | ||||||
| Other income, net | 10 | 21 | ||||||
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| Income (loss) before income taxes | 164 | (372) | ||||||
| Provision for income taxes | -- | -- | ||||||
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| Net income (loss) | $ | 164 | $ | (372) | ||||
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| Earnings per share: | ||||||||
| Basic | $ | 0.01 | $ | (0.03) | ||||
| Diluted | $ | 0.01 | $ | (0.03) | ||||
| Shares used in calculating earnings per share: | ||||||||
| Basic | 11,196,760 | 11,196,760 | ||||||
| Diluted | 11,207,905 | 11,196,760 | ||||||
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| Information Analysis Reports Profitable Results for 2009 | ||||||||
| March 30, 2010 | ||||||||
| Page 4 of 4 | ||||||||
| Information Analysis Incorporated | ||||||||
| Balance Sheets | ||||||||
| As of | As of | |||||||
| December 31, 2009 | December 31, 2008 | |||||||
| (in thousands) | (audited) | (audited) | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,479 | $ | 1,549 | ||||
| Accounts receivable, net | 940 | 1,122 | ||||||
| Prepaid expenses | 689 | 470 | ||||||
| Other assets | - | 1 | ||||||
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| Total current assets | 3,108 | 3,142 | ||||||
| Fixed assets, net | 36 | 56 | ||||||
| Other assets | 6 | 6 | ||||||
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| Total assets | $ | 3,150 | $ | 3,204 | ||||
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| LIABILITIES & STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 89 | $ | 802 | ||||
| Deferred revenues | 779 | 603 | ||||||
| Other accrued liabilities | 307 | 31 | ||||||
| Accrued payroll and related liabilities | 255 | 214 | ||||||
| Income taxes payable | -- | 2 | ||||||
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| Total liabilities | 1,430 | 1,652 | ||||||
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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 | 14,554 | 14,550 | ||||||
| Accumulated deficit | (12,032) | (12,196) | ||||||
| Less treasury stock; 1,642,616 shares at cost | (930) | (930) | ||||||
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| Total stockholders' equity | 1,720 | 1,552 | ||||||
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| Total liabilities and stockholders' equity | $ | 3,150 | $ | 3,204 | ||||
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