Information Analysis Incorporated Reports Profitable Third Quarter Results

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Wednesday, November 15th, 2017

FAIRFAX, Va. , Nov. 13, 2017 (GLOBE NEWSWIRE/Korea IT Times) -- 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is expected to be in a position to support and fund programs designed to reduce expenditures for maintaining old and out-of-date legacy systems.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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