SOURCE: Information Analysis, Inc.

Information Analysis, Inc.

November 12, 2014 11:40 ET

Information Analysis Inc. Reports New Contracts in the Third Quarter

FAIRFAX, VA--(Marketwired - Nov 12, 2014) - Information Analysis Inc. (OTCBB: IAIC) today reported results for its third fiscal quarter ended September 30, 2014. Revenues were $1,357,000 compared to $3,218,000 reported in the third quarter 2013. The information technology services company reported net income of $28,000, or $0.00 per share basic and diluted, compared to net income of $108,000 or $0.01 per share basic and diluted, in the third quarter 2013.

For the nine months ended September 30, 2014, IAI's revenues were $3,561,000 compared to revenues of $5,653,000 for the same period in 2013. The Company reported a net loss of $231,000 or ($0.02) per share basic and diluted, compared to a net loss of $80,000, or $ (0.01) per share basic and diluted, reported for the comparable 2013 period. 

"The company has been aggressively pursuing new business opportunities through the bidding process for prime contracts and teaming with our partners. During the third quarter of this year the company was profitable, and in addition, was awarded a number of larger contracts. If the government elects to exercise all option periods in these contracts, the total value could reach in excess of $16 million in new business. These contracts are expected to improve our profitability going forward in the fourth quarter and over the next year," said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI.

"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 services company. The Company is a 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. Investors should read and understand the risk factors detailed in the Company's 10-K for the fiscal year ended December 31, 2013 and in other filings with the Securities and Exchange Commission.

         
Information Analysis Incorporated    
Statements of Operations    
 
   Three months ended September 30,
(in thousands, except per share data; unaudited)   2014   2013
Revenue:            
  Professional fees   $ 944   $ 1,017
  Software sales     413     2,201
  Total revenue     1,357     3,218
Cost of goods sold and services provided:            
  Cost of professional fees     521     510
  Cost of software sales     232     1,952
  Total cost of sales     753     2,462
Gross margin     604     756
Selling, general and administrative expense     578     650
Income from operations     26     106
Other income, net     2     2
Income before income taxes     28     108
Provision for income taxes     --     --
Net income   $ 28   $ 108
             
Earnings per common share:            
  Basic   $ 0.00   $ 0.01
  Diluted   $ 0.00   $ 0.01
             
Shares used in calculating earnings per share:            
  Basic     11,201,760     11,201,760
  Diluted     11,347,107     11,211,501
             
             
             
Information Analysis Incorporated  
Statements of Operations  
             
   Nine months ended September 30, 
(in thousands, except per share data; unaudited)   2014     2013  
Revenue:                
  Professional fees   $ 2,608     $ 3,097  
  Software sales     953       2,556  
  Total revenue     3,561       5,653  
Cost of goods sold and services provided:                
  Cost of professional fees     1,498       1,724  
  Cost of software sales     687       2,257  
  Total cost of sales     2,185       3,981  
Gross margin     1,376       1,672  
Selling, general and administrative expense     1,615       1,758  
Loss from operations     (239 )     (86 )
Other income, net     8       6  
Loss before income taxes     (231 )     (80 )
Provision for income taxes     --       --  
Net loss   $ (231 )   $ (80 )
                 
Earnings per share:                
  Basic   $ (0.02 )   $ (0.01 )
  Diluted   $ (0.02 )   $ (0.01 )
                 
Shares used in calculating earnings per share:                
  Basic     11,201,760       11,201,760  
  Diluted     11,201,760       11,201,760  
                 
                 
                 
             
Information Analysis Incorporated
Balance Sheets
 
   
    As of     As of  
    September 30, 2014     December 31, 2013  
(in thousands)   (unaudited)     (audited)  
ASSETS                
Current assets:                
  Cash and cash equivalents   $ 2,067     $ 2,360  
  Accounts receivable, net     862       1,438  
  Prepaid expenses     285       535  
  Note receivable     4       6  
    Total current assets     3,218       4,339  
                 
Fixed assets, net     50       53  
Note receivable     6       8  
Other assets     6       6  
    Total assets   $ 3,280     $ 4,406  
                 
                 
LIABILITIES & STOCKHOLDERS' EQUITY                
Current liabilities:                
  Accounts payable   $ 93     $ 612  
  Deferred revenues     260       503  
  Commissions payable     770       903  
  Accrued payroll and related liabilities     220       221  
  Other accrued liabilities     50       61  
    Total current liabilities     1,393       2,300  
                 
Common stock, par value $0.01, 30,000,000 shares authorized; 12,844,376 shares issued, 11,196,760 outstanding as of September 30, 2014 and December 31, 2013     128       128  
Additional paid in capital     14,612       14,600  
Accumulated deficit     (11,923 )     (11,692 )
Less treasury stock; 1,642,616 shares at cost     (930 )     (930 )
    Total stockholders' equity     1,887       2,106  
    Total liabilities and stockholders' equity   $ 3,280     $ 4,406  
                     

Contact Information

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