FAIRFAX, Va.--(BUSINESS WIRE)--Information Analysis, Inc. (OTCBB: IAIC) today reported results for the first fiscal quarter ended March 31, 2011. Revenues were $1,424,000 compared to $2,015,000 reported in 2010’s first quarter. The Company reported a net loss of $9,000 or $0.00 per share, compared to net income of $104,000, or $0.01 per share, in the first quarter 2010.
“The Company’s revenue and profits were down in the first quarter in comparison to the first quarter of 2010,” Sandor Rosenberg, Chairman and Chief Executive Officer of IAI said. “This was due, in large part, to the delay in government budget approvals. We expect to achieve a higher revenue level in the second quarter now that funding has been approved for the remainder of the government fiscal year. We are actively pursuing the system modernization business where we have observed an increase in opportunities in both the government and commercial marketplace.
“We continue to pursue merger and acquisitions 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-KSB for the fiscal year ended December 31, 2010 and in other filings with the Securities and Exchange Commission.
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| Condensed Income Statements | |||||||||||
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Three months ended March 31, |
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(in thousands, except per share data; unaudited) |
2011 |
2010 |
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| Net revenue: | |||||||||||
| Professional fees | $ | 1,103 | $ | 1,513 | |||||||
| Software sales | 321 | 502 | |||||||||
| Total revenue | 1,424 | 2,015 | |||||||||
| Cost of goods sold and services provided: | |||||||||||
| Cost of professional fees | 593 | 790 | |||||||||
| Cost of software sales | 276 | 422 | |||||||||
| Total cost of sales | 869 | 1,212 | |||||||||
| Gross margin | 555 | 803 | |||||||||
| Operating expenses: | |||||||||||
| Selling, general and administrative | 566 | 701 | |||||||||
| Operating (loss) income | (11 | ) | 102 | ||||||||
| Other income | 2 | 2 | |||||||||
| (Loss) income before income taxes | (9 | ) | 104 | ||||||||
| Provision for income taxes | -- | -- | |||||||||
| Net (loss) income | $ | (9 | ) | $ | 104 | ||||||
| Net (loss) income per share: | |||||||||||
| Basic | $ | 0.00 | $ | 0.01 | |||||||
| Diluted | $ | 0.00 | $ | 0.01 | |||||||
| Shares used in calculating earnings per share: | |||||||||||
| Basic | 11,196,760 | 11,196,760 | |||||||||
| Diluted | 11,196,760 | 11,202,893 | |||||||||
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Information Analysis Incorporated |
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Balance Sheets |
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As of: |
As of: |
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March 31, 2011 |
December 31, 2010 |
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(in thousands, unaudited) |
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| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 1,852 | $ | 1,968 | ||||||||
| Accounts receivable, net | 999 | 772 | ||||||||||
| Prepaid expenses | 434 | 571 | ||||||||||
| Notes receivable (current portion) | 7 | 6 | ||||||||||
| Total current assets | 3,292 | 3,317 | ||||||||||
| Fixed assets, net | 31 | 36 | ||||||||||
| Notes receivable (long term portion) | 9 | 11 | ||||||||||
| Other assets | 6 | 6 | ||||||||||
| Total assets | $ | 3,338 | $ | 3,370 | ||||||||
| LIABILITIES & STOCKHOLDERS' EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 47 | $ | 76 | ||||||||
| Deferred revenue | 550 | 653 | ||||||||||
| Commissions payable | 503 | 447 | ||||||||||
| Other accrued liabilities | 119 | 69 | ||||||||||
| Accrued payroll and related liabilities | 245 | 245 | ||||||||||
| Total liabilities | 1,464 | 1,490 | ||||||||||
| Common stock, par value $0.01, 30,000,000 shares authorized; | ||||||||||||
| 12,839,376 shares issued, 11,196,760 outstanding | 128 | 128 | ||||||||||
| Additional paid-in capital | 14,571 | 14,568 | ||||||||||
| Accumulated deficit | (11,895 | ) | (11,886 | ) | ||||||||
| Less treasury stock; 1,642,616 shares at cost | (930 | ) | (930 | ) | ||||||||
| Total stockholders' equity | 1,874 | 1,880 | ||||||||||
| Total liabilities and stockholders' equity | $ | 3,338 | $ | 3,370 | ||||||||