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Exhibit 99 |
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For additional information contact: Richard S. DeRose (703) 293-7901 For release: May 13, 2010 at 9:00 a.m. |
Information Analysis, Inc. Reports Increased Sales and Profits for First Quarter
FAIRFAX, VIRGINIA – Information Analysis, Inc. (OTCBB:IAIC) today reported results for the first fiscal quarter ended March 31, 2010. Revenues were $2,016,000, compared to $1,394,000 reported in 2009’s first quarter. The Company reported net income of $104,000, or $0.01 per share, compared to a net loss of $62,000, or $(0.01) per share, in the first quarter 2009.
“The Company’s revenue and profits have improved in the first quarter in comparison to the first quarter of 2009,” Sandor Rosenberg, Chairman and Chief Executive Officer of IAI said. “We have been aggressively pursuing new business opportunities to increase our order backlog, which should improve revenue results, not only for this year but for future years. “We are actively pursuing the conversion and system modernization business as well as Adobe and Web applications.”
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, 2009 and in other filings with the Securities and Exchange Commission.
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| Information Analysis Reports First Quarter Results | ||||||||
| May 13, 2010 | ||||||||
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| Information Analysis Incorporated | ||||||||
| Condensed Income Statements | ||||||||
| Three months ended March 31, | ||||||||
| (in thousands, except per share data; unaudited) | 2010 | 2009 | ||||||
| Net revenue: | ||||||||
| Professional fees | $ | 1,513 | $ | 1,101 | ||||
| Software sales | 502 | 293 | ||||||
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| Total revenue | 2,015 | 1,394 | ||||||
| Cost of goods sold and services provided: | ||||||||
| Cost of professional fees | 790 | 796 | ||||||
| Cost of software sales | 422 | 198 | ||||||
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| Total cost of sales | 1,212 | 994 | ||||||
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| Gross margin | 803 | 400 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 701 | 466 | ||||||
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| Operating income (loss) | 102 | (66) | ||||||
| Other income | 2 | 4 | ||||||
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| Income loss before income taxes | 104 | (62) | ||||||
| Provision for income taxes | -- | -- | ||||||
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| Net income (loss) | $ | 104 | $ | (62) | ||||
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| Net income (loss) per share: | ||||||||
| Basic | $ | 0.01 | $ (0.01) | |||||
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| Diluted | $ | 0.01 | $ (0.01) | |||||
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| Shares used in calculating earnings per share: | ||||||||
| Basic | 11,196,760 | 11,196,760 | ||||||
| Diluted | 11,202,893 | 11,196,760 | ||||||
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| Information Analysis Reports First Quarter Results | ||||||||||
| May 13, 2010 | ||||||||||
| Page 3 of 3 | ||||||||||
| Information Analysis Incorporated | ||||||||||
| Balance Sheets | ||||||||||
| As of: | As of: | |||||||||
| March 31, 2010 | December 31, 2009 | |||||||||
| (in thousands, unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 1,379 | $ | 1,479 | ||||||
| Accounts receivable, net | 1,794 | 940 | ||||||||
| Prepaid expenses | 939 | 689 | ||||||||
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| Total current assets | 4,112 | 3,108 | ||||||||
| Fixed assets, net | 36 | 36 | ||||||||
| Other assets | 6 | 6 | ||||||||
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| Total assets | $ | 4,154 | $ | 3,150 | ||||||
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| LIABILITIES & STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 505 | $ | 89 | ||||||
| Deferred revenue | 1,114 | 779 | ||||||||
| Other accrued liabilities | 448 | 307 | ||||||||
| Accrued payroll and related liabilities | 257 | 255 | ||||||||
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| Total liabilities | 2,324 | 1,430 | ||||||||
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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 | 14,560 | 14,554 | ||||||||
| Accumulated deficit | (11,928) | (12,032) | ||||||||
| Less treasury stock; 1,642,616 shares at cost | (930) | (930) | ||||||||
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| Total stockholders' equity | 1,830 | 1,720 | ||||||||
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| Total liabilities and stockholders' equity | $ | 4,154 | $ | 3,150 | ||||||
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