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is expected to be in a position to support and fund programs designed to reduce expenditures for maintaining old and out-of-date legacy systems.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