Message #1 From:
NewsBot Date: August 10, 2005 02:00:00 AM
IAIC News Information Analysis Inc. Reports Second Quarter Results
FAIRFAX, Va.--(BUSINESS WIRE)--Aug. 10, 2005--Information Analysis Inc. (OTCBB:IAIC) reported results for the second quarter ended June 30, 2005. Revenues were $3,006,000 up 39% from the $2,158,000 reported in 2004's second quarter. The Company reported net income of $148,000, or $0.01 per share, compared to net income of $59,000, or $0.01 per share in 2004's second quarter. For the six months ended June 30, 2005, IAI had revenue of $5,193,000, up from the $4,274,000 reported for six months ending June 30, 2004. Net income for the first six months of fiscal 2005 was $220,000, or $0.02 per share, versus net income of $112,000, or $0.01 per share, in the comparable 2004 period.
"The Company attributes the improvement in the second quarter in comparison to the second quarter of 2004 to increased sales success. We also experienced an increase in revenue and profit in the second quarter compared to the first quarter of this year," said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI.
"The Company is continuing the active pursuit of the conversion and system modernization business in addition to developing business opportunities in the area of Web applications. Our alliances with a number of software product companies are beginning to pay off as evidenced by recent revenue increases. We now are able to work on a greater number of opportunities in the area of legacy modernization which should continue to build our pipeline for the second half of the year and forward. Significantly, several of our new accounts are in the commercial sector.
"We continue to pursue merger and acquisition discussions with a number of firms."
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.
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 those contracts. Investors should read and understand the risk factors detailed in the Company's 10-KSB for the fiscal year ended December 31, 2004 and in other filings with the Securities and Exchange Commission.
Information Analysis Incorporated
Condensed Income Statements
Three months ended June 30,
(in thousands, except per share data;
unaudited) 2005 2004
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Sales:
Professional fees $ 2,371 $ 2,069
Software sales 635 89
------------ --------------
Total sales 3,006 2,158
Cost of goods sold and services provided:
Cost of professional fees 1,837 1,661
Cost of software sales 564 72
------------ --------------
Total cost of sales 2,401 1,733
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Gross margin 605 425
Operating expenses:
Selling, general and administrative 452 353
------------ --------------
Operating income 153 72
Other expense (5) (13)
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Income before income taxes 148 59
Provision for income taxes -- --
Net income $ 148 $ 59
============ ==============
Comprehensive Income $ 148 $ 59
============ ==============
Net income per share:
Basic:
Net income $ 0.01 $ 0.01
============ ==============
Diluted:
Net income $ 0.01 $ 0.01
============ ==============
Shares used in calculating earnings per
share:
Basic 10,296,527 10,283,515
Diluted 11,279,095 11,073,148
Information Analysis Incorporated
Condensed Income Statements
Six months ended June 30,
(in thousands, except per share data;
unaudited) 2005 2004
----------- ------------
Sales:
Professional fees $ 4,486 $ 4,060
Software sales 707 214
------------ ------------
Total sales 5,193 4,274
Cost of goods sold and services provided:
Cost of professional fees 3,519 3,322
Cost of software sales 605 138
------------ ------------
Total cost of sales 4,124 3,460
------------ ------------
Gross margin 1,069 814
Operating expenses:
Selling, general and administrative 841 681
------------ ------------
Operating income 229 133
Other expense (9) (21)
------------ ------------
Income before income taxes 220 112
Provision for income taxes -- --
------------ ------------
Net income $ 220 $ 112
============ ============
Comprehensive Income $ 220 $ 112
============ ============
Net income per share:
Basic:
Net income $ 0.02 $ 0.01
============ ============
Diluted:
Net income $ 0.02 $ 0.01
============ ============
Shares used in calculating earnings per
share:
Basic 10,290,057 10,283,515
Diluted 11,144,494 11,021,141
Information Analysis Incorporated
Condensed Balance Sheets
As of As of
June 30, 2005 December 31, 2004
(unaudited) (audited)
------------------ ------------------
ASSETS
Current assets:
Cash and cash equivalents $ 81 $ 116
Accounts receivable, net 2,507 2,170
Prepaid expenses 168 47
Note receivable 85 85
Other receivables 4 7
------------------ ------------------
Total current assets 2,845 2,425
Fixed assets, net 46 35
Other assets 7 7
Investments 3 3
------------------ ------------------
Total assets $ 2,901 $ 2,470
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LIABILITIES & STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 1,671 $ 1,567
Accrued payroll and related
liabilities 342 277
Other accrued liabilities 197 65
Deferred revenues 169 84
Notes Payable 125 125
Revolving line of credit 34 219
------------------ ------------------
Total liabilities 2,538 2,337
------------------ ------------------
Common stock, par value $0.01,
30,000,000 shares authorized;
11,788,126 shares issued,
10,283,515 outstanding at June
30, 2005 and December 31, 2004 118 118
Additional paid in capital 14,131 14,122
Accumulated deficit (13,023) (13,244)
Accumulated other comprehensive
income (9) (9)
Less treasury stock; 1,504,611
shares at cost (854) (854)
------------------ ------------------
Total stockholders'
equity 363 133
------------------ ------------------
Total liabilities and
stockholders' equity $ 2,901 $ 2,470
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