Attached files
| file | filename |
|---|---|
| 8-K - QUARTERLY REPORT - INFORMATION ANALYSIS INC | iaic_8k.htm |
|
Exhibit 99.1
|
For
additional information contact:
Richard
S. DeRose (703) 293-7901
For
release:
November
13, 2017
|
Information Analysis Incorporated Reports Profitable Third Quarter
Results
FAIRFAX,
VIRGINIA – 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expenditures for maintaining old and out-of-date legacy systems.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.
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Information Analysis Inc Reports Profitable Second Quarter
Results
November
13, 2017
Page
2 of
4
Information
Analysis Incorporated
Condensed
Statements of Operations
|
|
Three
months ended September 30,
|
|
|
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 Inc Reports Profitable Second Quarter
Results
November
13, 2017
Page
3 of
4
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 Inc Reports Profitable Second Quarter
Results
November
13, 2017
Page
4 of
4
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
|
-- end
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