Exhibit 99.1 For additional information contact: Richard S. DeRose (703) 293-7901
For release: March 30, 2011
Information Analysis Inc. Reports Profitable Results for 2010
FAIRFAX, VIRGINIA – Information Analysis Inc. (IAIC:OTCBB) today reported results for the year ended December 31, 2010. Revenues were $6,860,000, compared to revenues of $6,711,000 for the same period in 2009. The information technology services company reported net income of $146,000, or $0.01 per share basic and diluted, compared to net income of $164,000, or $0.01 per share basic and diluted, reported for the comparable 2009 period.
“The Company reported essentially the same revenue and profit for 2010 in comparison to 2009’s results. In order to grow the business, we have added some initiatives in new areas, such as cyber security and more generalized user applications using Adobe products for our solutions sets,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “We expect to turn this effort into better results during the latter part of 2011.
“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-K for the fiscal year ended December 31, 2010 and in other filings with the Securities and Exchange Commission.
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| Information Analysis Reports Profitable Results for 2010 | ||||||||||
| March 30, 2011 | ||||||||||
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| Information Analysis Incorporated | ||||||||||
| Statements of Operations | ||||||||||
| Year ended December 31, | ||||||||||
| (in thousands, except per share data; audited) | 2010 | 2009 | ||||||||
| Revenue: | ||||||||||
| Professional fees | $ | 4,856 | $ | 4,938 | ||||||
| Software sales | 2,004 | 1,773 | ||||||||
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| Total revenue | 6,860 | 6,711 | ||||||||
| Cost of goods sold and services provided: | ||||||||||
| Cost of professional fees | 2,763 | 3,102 | ||||||||
| Cost of software sales | 1,711 | 1,453 | ||||||||
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| Total cost of sales | 4,474 | 4,555 | ||||||||
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| Gross margin | 2,386 | 2,156 | ||||||||
| Selling, general and administrative expense | 2,249 | 2,002 | ||||||||
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| Income from operations | 137 | 154 | ||||||||
| Other income, net | 9 | 10 | ||||||||
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| Income before income taxes | 146 | 164 | ||||||||
| Provision for income taxes | -- | -- | ||||||||
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| Net income | $ | 146 | $ | 164 | ||||||
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| Earnings per 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 | 11,211,024 | 11,207,905 | ||||||||
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| Information Analysis Reports Profitable Results for 2010 | ||||||||||||
| March 30, 2011 | ||||||||||||
| Page 3 of 3 | ||||||||||||
| Information Analysis Incorporated | ||||||||||||
| Balance Sheets | ||||||||||||
| As of | As of | |||||||||||
| December 31, 2010 | <December 31, 2009 | |||||||||||
| (in thousands) | (audited) | (audited) | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 1,968 | $ | 1,479 | ||||||||
| Accounts receivable, net | 772 | 940 | ||||||||||
| Prepaid expenses | 571 | 689 | ||||||||||
| Note receivable, current | 6 | - | ||||||||||
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| Total current assets | 3,317 | 3,108 | ||||||||||
| Fixed assets, net | 36 | 36 | ||||||||||
| Note receivable, long-term | 11 | -- | ||||||||||
| Other assets | 6 | 6 | ||||||||||
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| Total assets | $ | 3,370 | $ | 3,150 | ||||||||
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| LIABILITIES & STOCKHOLDERS' EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 76 | $ | 89 | ||||||||
| Deferred revenues | 653 | 779 | ||||||||||
| Commissions payable | 447 | 222 | ||||||||||
| Accrued payroll and related liabilities | 245 | 255 | ||||||||||
| Other accrued liabilities | 69 | 85 | ||||||||||
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| Total liabilities | 1,490 | 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 | 14,568 | 14,554 | ||||||||||
| Accumulated deficit | (11,886) | (12,032) | ||||||||||
| Less treasury stock; 1,642,616 shares at cost | (930) | (930) | ||||||||||
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| Total stockholders' equity | 1,880 | 1,720 | ||||||||||
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| Total liabilities and stockholders' equity | $ | 3,370 | $ | 3,150 | ||||||||
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