For additional information contact:
Richard S. DeRose (703) 293-7901
For release:
August 14, 2017
Information Analysis Incorporated Reports Profitable Second Quarter Results
FAIRFAX, VIRGINIA – Information Analysis Incorporated (OTCBB:IAIC) (the “Company”) reported results for its second fiscal quarter ended June 30, 2017. Revenues for the three months ended June 30, 2017, were $4,056,000 compared to $1,823,000 reported in the same period in 2016. The Company reported net income of $89,000, or $0.01 per share, compared to a net loss of $146,000, or ($0.01) per share, in 2016.
Revenues for the six months ended June 30, 2017, were $5,538,000 compared to $3,291,000 reported in the same period in 2016. The Company reported net income of $57,000, or $0.00 per share, compared to a net loss of $356,000, or ($0.03) per share, in 2016.
“The Company’s professional services revenue has increased greater than 30% over last year, which is the most significant factor contributing to our increase in profitability,” Sandor Rosenberg, Chairman and Chief Executive Officer of IAI said. “We continue to aggressively pursue the modernization and forms businesses, and have been awarded a number of new contracts in the last quarter. We see an increase in business opportunities overall in the government space and expect to remain profitable during the second half of the year.
“We continue to pursue merger and acquisitions opportunities.”
About Information Analysis Incorporated
Information Analysis Incorporated (www.infoa.com), headquartered in Fairfax, Virginia, is an information technology services company. The Company is an e-business, 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. These include the failure to obtain sufficient contracts, and to profitably complete these contracts. Investors should read and understand the risk factors detailed in the Company's 10-K for the fiscal year ended December 31, 2016 and in other filings with the Securities and Exchange Commission.
Information Analysis Reports Profitable Second Quarter Results
August 14, 2017
Page 2 of 4
INFORMATION ANALYSIS INCORPORATED
STATEMENTS OF OPERATIONS
(Unaudited)
| | For the three months ended |
| | |
| | | |
| Revenues: | | |
| Professional fees | $1,271 | $929
|
| Software sales | 2,785 | 894 |
| Total revenues | 4,056 | 1,823
|
| Cost of revenues: | | |
| Cost of professional fees | 679 | 492 |
| Cost of software sales | 2,740 | 805
|
| Total cost of revenues | 3,419 | 1,297
|
Gross margin
| 637 | 526 |
Operating xpenses:
| | |
| Selling, general and administrative expenses | 550 | 674 |
| Income (loss) from operations | 87 | (148) |
| Other income | 2 | 2 |
| Income (loss) before income taxes | 89 | (146) |
| Provision for income taxes | - | - |
| Net income (loss) | $89 | $(146) |
| | | |
| Net income (loss) per common share: | | |
| Basic | $0.01 | $(0.01) |
| Diluted | $0.01 | $(0.01) |
| | | |
| Weighted average common shares outstanding: | | |
| Basic | 11,201,760 | 11,201,760 |
| Diluted | 11,544,756 | 11,201,760 |
Information Analysis Reports Profitable Second Quarter Results
August 14, 2017
Page 3 of 4
INFORMATION ANALYSIS INCORPORATED
STATEMENTS OF OPERATIONS
(Unaudited)
| | |
| | |
(in thousands, except per share data; unaudited)
| | |
| Revenues: | | |
| Professional fees | $2,292 | $1,769 |
| Software sales | 3,246 | 1,522 |
| Total revenues | 5,538 | 3,291 |
| Cost of goods sold and services provided: | | |
| Cost of professional fees | 1,214 | 1,041 |
| Cost of software sales | 3,187 | 1,367 |
| Total cost of revenues | 4,401 | 2,408 |
| Gross margin | 1,137 | 883 |
Operating expenses:
| | |
| Selling, general and administrative expenses | 1,084 | 1,244 |
| Income (loss) from operations | 53 | (361) |
| Other income | 4 | 5 |
| Income (loss) before income taxes | 57 | (356) |
| Provision for income taxes | - | - |
| Net income (loss) | $57 | $(356) |
| | | |
| Net income (loss) per common share: | | |
| Basic | $0.01
| $(0.03) |
| Diluted | $0.00 | $(0.03) |
| Weighted average common shares outstanding: | | |
| Basic | 11,201,760 | 11,201,760 |
| Diluted | 11,508,431 | 11,201,760 |
Information Analysis Reports Profitable Second Quarter Results
August 14, 2017
Page 4 of 4
INFORMATION ANALYSIS INCORPORATED
BALANCE SHEETS
| | | |
(in thousands, unaudited)
| | |
| ASSETS | | |
| Current assets: | | |
| Cash and cash equivalents | $1,967 | $1,895 |
| Accounts receivable, net | 736
| 1,157 |
Prepaid expenses
| 228 | 664 |
Notes receivable (current portion)
| 3 | 3 |
| Total current assets | 2,934 | 3,719 |
| | | |
| Fixed assets, net | 17 | 27 |
| Other assets | 6 | 6 |
| Total assets | $2,957 | $3,752 |
| | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | |
| Current liabilities: | | |
| Accounts payable | $73 | $48 |
| Commissions payable | 783 | 853 |
Deferred revenue
| 108
| 615 |
| Accrued payroll and related liabilities | 255 | 207 |
| Other accrued liabilities | 49 | 396 |
| Total liabilities | 1,268 | 2,120 |
| | | |
| Stockholders' equity: | | |
| Common stock, par value $0.01, 30,000,000 shares authorized; | | |
12,844,376 shares issued, 11,201,760 shares outstanding
| 128 | 128 |
| Additional paid-in capital | 14,631 | 14,631 |
| Accumulated deficit | (12,140) | (12,197) |
| Treasury stock, 1,642,616 shares at cost | (930) | (930) |
| Total stockholders' equity | 1,689 | 1,632 |
| Total liabilities and stockholders' equity | $2,957 | $3,752 |
