Exhibit 99.1
FOR IMMEDIATE RELEASE
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[GRAPHIC OMITTED][INFODATA LOGO] CONTACT:
Norman F. Welsch
Chief Financial Officer
703-218-1132
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Infodata Announces Profitable Fourth Quarter and 2002
Company Continues Earnings Trend With Third Consecutive Quarterly Profit
Fairfax, VA., April 2 - Infodata Systems Inc. (OTCBB:INFD), a leading content
management solutions company, today announced financial results for its fourth
quarter and the year ended December 31, 2002. The Company reported net income
for the year of $688,000, or $.14 per share, compared to a loss of $150,000, or
$.03 per share, for the prior year. For the quarter ended December 31, 2002, net
income was $284,000, or $.06 per share, compared to net income of $10,000, or
$0.00 per share, for the quarter ended December 31, 2001.
Revenue for the year ended December 31, 2002 was $9,802,000, a decrease of
$5,723,000, or 36.9%, from revenue of $15,525,000 for the prior year. For the
quarter ended December 31, 2002, revenue was $2,158,000, a decrease of
$1,583,000, or 42.3%, when compared to $3,741,000 for the year-earlier quarter.
The decline in fourth quarter and 2002 revenue was the combined result of the
termination for convenience of the Company's largest government contract, which
was partially offset by revenue from a new contract with the same customer;
lower revenue from the sale of third party products; and the completion of two
large commercial contracts in 2001.
Operating profit was $711,000 for the year ended December 31, 2002, compared to
an operating loss of $1,182,000 for the year earlier period. For the quarter
ended December 31, 2002, operating profit was $288,000, an increase of $240,000
when compared to an operating profit of $48,000 for the quarter ended December
31, 2001.
For the year ended December 31, 2002, gross margin was 37.8%, an increase of
16.3% when compared to 21.5% for the year ended December 31, 2001. Gross profit
increased by $368,000 for the year ended December 31, 2002. For the quarter
ended December 31, 2002, gross profit was nominally lower when compared to the
quarter ended December 31, 2001. The 2002 increase in gross profit and gross
margin, despite the decline in revenue, was primarily the result of reduced
revenue from the sale of low-margin third party products. Revenue from the sale
of third party products was $528,000 in 2002, compared to $1,756,000 in 2001, a
decrease of $1,228,000, or 69.9%.
Research and development (R&D) expenses increased to $731,000 for the year ended
December 31, 2002, an increase of $241,000 over the prior year. For the quarter
ended December 31, 2002, R&D expenses were $241,000, an increase of $184,000
when compared to the quarter ended December 31, 2001. The increase in R&D
reflects the Company's decision to further invest in the development and
enhancement of new and existing proprietary products.
*more*
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Infodata Announces Profitable Fourth Quarter and 2002
Company Continues Earnings Trend With Third Consecutive Quarterly Profit
Selling, general and administrative (SG&A) expenses were $2,267,000 for the year
ended December 31, 2002, a decrease of $1,769,000, or 43.8%, when compared to
$4,036,000 for 2001. For the quarter ended December 31, 2002, SG&A expenses were
$505,000, a decrease of $431,000, or 46.0%, when compared to the year-earlier
quarter.
For the year ended December 31, 2002, cash and short-term investments increased
$396,000, or 39.5%, and working capital increased $822,000, or 110.9%. These
increases were primarily the result of the Company's return to sustained
profitability beginning in the second quarter combined with the reduction and
control of operating expenses. At December 31, 2002, the Company had $1,398,000
in cash and short-term investments, working capital of $1,563,000, and an
outstanding balance of $55,000 on its credit facility. The Company reported cash
and equivalents of $1,002,000, working capital of $741,000, and an outstanding
balance of $616,000 on its line of credit as of December 31, 2001.
Edwin Miller, president and chief executive officer of Infodata, said, "The
Company has done a good job of eliminating unprofitable activities, managing its
costs and improving its margins in 2002. This year we are laying the groundwork
for growing the Company while delivering value to our loyal customers and
shareholders. With increased working capital and the new additions to the
management team in place, we are focused on expanding the Company's content
management solutions offerings. Specifically, we are expanding sales, marketing,
and product development initiatives to build for profitable revenue growth.
Although this investment in infrastructure in 2003 will lower our profit,
especially in the first three quarters of 2003, it is a vital step to remain
competitive, and is critical to enable future profitable revenue growth in 2004
and beyond."
Fourth Quarter and Fiscal Year 2002 Results Conference Call
Infodata has scheduled an investor conference call for Thursday, April 3, 2003,
at 4:30 p.m. EST (1:30 pm PST). Management will review financial results for the
2002 fourth quarter and year, and a question-and-answer session will follow to
discuss the results and the Company's 2003 operating plans.
Interested parties will be able to listen by calling toll free 1.888.346.5716 in
the U.S., or 1.404.260.5386 for international callers.
A replay will be available over the Internet beginning at approximately 7 p.m.
EST Thursday, April 3, 2003 through 7 p.m. EST Monday, April 7, 2003. To listen
to the replay, you can access it from Infodata's homepage
(http://www.infodata.com) by clicking on the link, Infodata Investor Conference
Call.
Page 2 of 7
About Infodata Systems Inc.
Infodata Systems Inc. has 35 years of content and document management experience
providing enterprise software and integration solutions that assist regulated
businesses and controlled government agencies in constructing or augmenting
Enterprise Content Management (ECM) solutions. Infodata has the demonstrated
knowledge and expertise to offer an array of solutions including Content Review,
Content Assembly and Publishing, Content Transformation, Content Security and
Content Analytics. The Company's solutions employ the best technology to solve
real business and organizational problems. Infodata's unique proprietary
products integrate with leading edge solution environments and are geared to
review, assemble and publish, secure and accelerate all facets of content
management lifecycle processes. For more information, contact Troy Hartless,
Vice President, Sales and Marketing, at 703-218-1129 or visit the Company's Web
site, www.infodata.com.
Except for the historical information contained herein, this press release
contains forward-looking statements that involve risk or uncertainties. Future
operating results of Infodata may differ from the results discussed or
forecasted in the forward-looking statements due to factors that include, but
are not limited to, risks associated with customer relations, such as the
availability of Infodata's products and services, customer implementation of
products and services, relationships with customers, third-party vendors and
systems integrators, concentration of revenue in a relatively small number of
customers, existence of errors or defects in products, ability to successfully
manage growth, significant current and expected additional competition and the
need to continue to expand product distribution and services offerings. Further
information on potential factors that could affect the financial results of
Infodata are included in Infodata's Annual Report on Form 10-KSB, Quarterly
Reports on Form 10-QSB and its other filings with the Securities and Exchange
Commission, which are available at http://www.sec.gov. Infodata assumes no
obligation to update the information in this press release.
Infodata is a trademark of Infodata Systems Inc. and may be registered in
certain jurisdictions.
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INFODATA SYSTEMS INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data)
Year Ended
December 31,
2002 2001
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Revenue $9,802 $15,525
Cost of revenue 6,093 12,184
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Gross profit.......................................... 3,709 3,341
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Operating expenses:
Research and development......................... 731 487
Selling, general and administrative.............. 2,267 4,036
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2,998 4,523
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Operating profit (loss)............................... 711 (1,182)
Gain on sale of investment..................................... - 1,068
Interest income................................................ 11 52
Interest expense............................................... (34) (88)
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Income (loss) before income taxes.............................. $688 $(150)
Provision for income taxes..................................... - -
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Net income (loss) ............................................. $688 $ (150)
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Net income (loss) per share - basic............................ $.14 $ (.03)
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Net income (loss) per share - diluted.......................... $.13 $ (.03)
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Weighted average shares outstanding - basic ................... 4,835 4,749
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Weighted average shares outstanding - diluted ................. 4,965 4,749
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INFODATA SYSTEMS INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended
December 31,
2002 2001
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Revenue $ 2,158 $ 3,741
Cost of revenue 1,124 2,700
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Gross Profit 1,034 1,041
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Operating expenses:
Research and development 241 57
Selling, general and administrative 505 936
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746 993
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Operating profit (loss) 288 48
Gain on sale of investment - -
Interest income 2 5
Interest expense (6) (43)
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Income (loss) before income taxes 284 10
Provision for income taxes - -
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Net income (loss) $ 284 $ 10
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Net income (loss) per share - basic $ 0.06 $ 0.00
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Net income (loss) per share - diluted $ 0.05 $ 0.00
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Weighted average share outstanding - basic 4,919 4,773
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Weighted average share outstanding - diluted 5,190 4,773
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INFODATA SYSTEMS INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share and per share data)
Assets
December 31,
2002 2001
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Current assets:
Cash and cash equivalents........................................ $1,298 $1,002
Certificates of deposit 100 -
Accounts receivable, net of allowance of $38 in 2002
and $35 in 2001................................................ 1,806 2,994
Prepaid expenses and other current assets........................ 64 447
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Total current assets.................................... 3,268 4,443
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Property and equipment, net 79 185
Other assets.............................................................. 20 20
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Total assets.............................................................. $ 3,367 $ 4,648
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Liabilities and Shareholders' Equity
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Current liabilities:
Line of credit................................................... $ 55 $ 616
Accounts payable................................................. 91 1,223
Accrued expenses................................................. 806 1,116
Deferred revenue................................................. 753 747
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Total current liabilities............................... 1,705 3,702
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Commitments and contingencies (Note 8)
Shareholders' equity:
Preferred stock, $1.00 par value, 340,000 shares
authorized, none issued and outstanding................................... - -
Common stock, $.03 par value, 12,000,000 shares
authorized; 4,986,572 and 4,794,140 shares issued and
outstanding in 2002 and 2001, respectively................................ 148 142
Additional paid-in capital....................................... 20,243 20,221
Accumulated deficit.............................................. (18,729) (19,417)
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Total shareholders' equity................................................ 1,662 946
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Total liabilities and shareholders' equity................................ $ 3,367 $ 4,648
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INFODATA SYSTEMS INC.
Consolidated Statements of Cash Flows
(In thousands)
Year Ended
December 31,
2002 2001
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Cash Flows From Operating Activities:
Net income (loss) .......................................................... $688 $(150)
Adjustments to reconcile net income (loss) to net cash used in operating
activities:
Stock based compensation expense.......................................... 17 -
Gain on sale of investment ............................................... - (1,068)
Depreciation and amortization............................................. 131 147
Goodwill and other intangible amortization................................ - 117
Accrued interest on line of credit........................................ - 7
Provision for doubtful accounts .......................................... (10) (11)
Payments received on related party receivable............................. - 289
Discount on related party receivable ..................................... - 13
Changes in operating assets and liabilities:
Accounts receivable....................................................... 1,198 (400)
Prepaid expenses and other assets......................................... 383 (345)
Accounts payable ......................................................... (1,132) 635
Accrued expenses.......................................................... (309) (207)
Deferred revenue.......................................................... 6 157
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Net cash provided (used) by operating activities...................... 972 (816)
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Cash Flows From Investing Activities:
Purchases of property and equipment....................................... (26) (28)
Purchases of short-term investments....................................... (100) (200)
Proceeds from sale of investment.......................................... - 1,092
Business acquisition costs................................................ - 5
Proceeds from maturity of short-term investments.......................... - 700
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Net cash provided (used) by investing activities...................... (126) 1,569
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Cash Flows From Financing Activities:
Net repayments under short-term debt (561) (113)
Issuance of common stock ................................................. 11 41
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Net cash used by financing activities................................. (550) (72)
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Net increase in cash and cash equivalents....................................... 296 681
Cash and cash equivalents at beginning of period................................ 1,002 321
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Cash and cash equivalents at end of period...................................... $1,298 $1,002
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