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Information Analysis Incorporated Reports Profitable Third Quarter Results
[November 13, 2017]

Information Analysis Incorporated Reports Profitable Third Quarter Results


FAIRFAX, Va. , Nov. 13, 2017 (GLOBE NEWSWIRE) -- Information Analysis Incorporated (OTCBB:IAIC) reported results for its third fiscal quarter ended September 30, 2017.  Revenues for the three months ended September 30, 2017, were $ 2,732,000 compared to $2,032,000 reported in the same period in 2016.  The Company reported net income of $110,000, or $0.01 per share, compared to a net loss of $57,000, or ($0.01) per share, in 2016.

Revenues for the nine months ended September 30, 2017, were $8,270,000 compared to $5,323,000 reported in the same period in 2016, representing a 55% increase in revenue.  The Company reported net income of $167,000, or $0.01 per share, compared to a net loss of $413,000, or ($0.04) per share, in 2016.

“The Company has made a dedicated effort to renew our focus on legacy system modernization – one of our core competencies,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI, “which has in turn driven an increase in professional services revenue of greater than 35%, and a return to sustainable profitability.  In recent months, several large companies have approached IAI to be part of their modernization teams due to IAI’s unique knowledge of legacy systems and unique tools to efficiently and cost-effectively modernize them. We also continue to pursue merger and acquisition opportunities.”

With the introduction of recent bipartisan supported federal legislation for IT modernization, the government is expected to be in a position to support and fund programs designed to reduce expenditures for maintaining old and out-of-date legacy systems. Federal agency Chief Information Officers anticipate being empowered to move forward with long-overdue projects that will streamline agency operations and materially reduce costs. Management believes that IAI is well positioned individually and in conjunction with its technology solution partners to take advantage of such modernization initiatives for the foreseeable future.

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 Incorporated
Condensed Statements of Operations
         
  Three months ended September 30,
(in thousands, except per share data; unaudited) 2017
 2016
Revenue:        
Professional fees $1,385  $886 
Software sales  1,347   1,146 
Total revenue  2,732   2,032 
Cost of goods sold and services provided:        
Cost of professional fees  776   469 
Cost of software sales  1,320   1,007 
Total cost of sales  2,096   1,476 
Gross profit  636   556 
Selling, general and administrative  528   616 
Operating income (loss)  108   (60)
Other income  2   3 
Income (loss) before income taxes 110   (57)
Provision for income taxes  --   -- 
Net income (loss) $110  $(57)
        
Net income (loss) per share:       
Basic $0.01  $(0.01)
Diluted $0.01  $(0.01)
Shares used in calculating earnings per share:        
Basic  11,201,760   11,201,760 
Diluted  11,510,711   11,201,760 
        

 

Information Analysis Incorporated
Condensed Statements of Operations
         
  Nine months ended September 30,
(in thousands, except per share data; unaudited) 2017
 2016
Revenue:        
Professional fees $3,677  $2,655 
Software sales  4,593   2,668 
Total revenue  8,270   5,323 
Cost of goods sold and services provided:        
Cost of professional fees  1,991   1,509 
Cost of software sales  4,506   2,374 
Total cost of sales  6,497   3,883 
Gross profit  1,773   1,440 
Selling, general and administrative  1,612   1,860 
Income (loss) from operations  161   (420)
Other income  6   7 
Income (loss) before income taxes  167   (413)
Provision for income taxes  --   -- 
Net income (loss) $167  $(413)
         
Net income (loss) per share:        
Basic $0.01  $(0.04)
Diluted $0.01  $(0.04)
Shares used in calculating earnings per share:        
Basic  11,201,760   11,201,760 
Diluted  11,509,202   11,201,760 
         

 


Information Analysis Incorporated 
Balance Sheets
  As of: As of:
  September 30, 2017 December 31, 2016
(in thousands, unaudited)        
ASSETS        
Current assets:        
Cash and cash equivalents $2,551  $1,895 
Accounts receivable, net  1,809   1,157 
Prepaid expenses  494   664 
Notes receivable  2   3 
Total current assets  4,856   3,719 
         
Fixed assets, net  14   27 
Other assets  6   6 
Total assets $4,876  $3,752 
         
LIABILITIES & STOCKHOLDERS' EQUITY        
Current liabilities:        
Accounts payable $958  $49 
Commissions payable  758   853 
Other accrued liabilities  635   396 
Deferred revenue  449   615 
Accrued payroll and related liabilities  269   207 
Total liabilities  3,069   2,120 
         
Common stock, par value $0.01, 30,000,000 shares authorized;        
12,844,376 shares issued, 11,201,760 outstanding  128   128 
Additional paid-in capital  14,638   14,631 
Accumulated deficit  (12,029)  (12,197)
Less treasury stock; 1,642,616 shares at cost  (930)  (930)
Total stockholders' equity  1,807   1,632 
Total liabilities and stockholders' equity $4,876  $3,752 
         

For additional information contact:
Richard S. DeRose (703) 293-7901


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