FAIRFAX, Va., March 29, 2018 (GLOBE NEWSWIRE) -- Information Analysis Incorporated. (IAIC:OTCBB) today reported results for the year ended December 31, 2017. Revenues were up 58% to $10,641,000, compared to revenues of $6,729,000 for the same period in 2016. The information technology services company reported net income of $246,000, or $0.02 per share basic and diluted, compared to a net loss of $554,000, or $(0.05) per share basic and diluted, reported for the comparable 2016 period.
“In 2017, the Company continued its effort to focus on legacy system modernization,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “This has driven a 48 per cent increase in professional services revenue. In addition, we are making investments in marketing and sales in both the commercial market as well as in the government sector. We have been aggressively pursuing new business opportunities through the bidding process for prime contracts and teaming with our partners. Recently, a federal government customer elected to proceed with a needed modernization effort that we have been pursuing for years with a key partner, and we have once again proven ourselves to be able to engineer substantial modernization efforts on time and within budget. We expect that effort to expand into other opportunities.
“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 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 product and services company. The Company is a web application and e-business solutions provider, as well as a software conversion specialist, modernizing legacy systems and extending their reach to the internet and more modern platforms.
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, 2016 and in other filings with the Securities and Exchange Commission.
| Information Analysis Incorporated | |||||||
| Statements of Operations | |||||||
| Year ended December 31, | |||||||
| (in thousands, except per share data) | 2017 | 2016 | |||||
| (unaudited) | (audited) | ||||||
| Revenues: | |||||||
| Professional fees | $ | 5,004 | $ | 3,392 | |||
| Software sales | 5,637 | 3,337 | |||||
| Total revenues | 10,641 | 6,729 | |||||
| Cost of revenues: | |||||||
| Cost of professional fees | 2,723 | 1,895 | |||||
| Cost of software sales | 5,502 | 3,011 | |||||
| Total cost revenues | 8,225 | 4,906 | |||||
| Gross profit | 2,416 | 1,823 | |||||
| Selling, general and administrative expense | 1,674 | 1,879 | |||||
| Commissions expense | 504 | 507 | |||||
| Income (loss) from operations | 238 | (563) | |||||
| Other income | 8 | 9 | |||||
| Income (loss) before income taxes | 246 | (554) | |||||
| Net income (loss) | $ | 246 | $ | (554) | |||
| Net income (loss) per share: | |||||||
| Basic | $ | 0.02 | $ | (0.05) | |||
| Diluted | $ | 0.02 | $ | (0.05) | |||
| Weighted average common shares outstanding: | |||||||
| Basic | 11,201,760 | 11,201,760 | |||||
| Diluted | 11,583,578 | 11,201,760 | |||||
| Information Analysis Incorporated | |||||||
| Balance Sheets | |||||||
| As of | As of | ||||||
| December 31, 2017 | December 31, 2016 | ||||||
| (in thousands) | (unaudited) | (audited) | |||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 2,731 | $ | 1,895 | |||
| Accounts receivable, net | 616 | 1,157 | |||||
| Prepaid expenses | 369 | 664 | |||||
| Note receivable, current | 2 | 3 | |||||
| Total current assets | 3,718 | 3,719 | |||||
| Fixed assets, net | 11 | 27 | |||||
| Other assets | 6 | 6 | |||||
| Total assets | $ | 3,735 | $ | 3,752 | |||
| LIABILITIES & STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 48 | $ | 49 | |||
| Commissions payable | 713 | 853 | |||||
| Other accrued liabilities | 411 | 396 | |||||
| Deferred revenues | 387 | 615 | |||||
| Accrued payroll and related liabilities | 276 | 207 | |||||
| Franchise taxes payable | 6 | - | |||||
| Total liabilities | 1,841 | 2,120 | |||||
| Common stock, par value $0.01, 30,000,000 shares authorized; 12,844,376 shares issued, 11,201,760 shares outstanding as of December 31, 2017 and 2016 | 128 | 128 | |||||
| Additional paid in capital | 14,646 | 14,631 | |||||
| Accumulated deficit | (11,950) | (12,197) | |||||
| Less treasury stock; 1,642,616 shares at cost | (930) | (930) | |||||
| Total stockholders' equity | 1,894 | 1,632 | |||||
| Total liabilities and stockholders' equity | $ | 3,735 | $ | 3,752 | |||
For additional information contact:
Richard S. DeRose
(703) 293-7901