Message #2 From:
NewsBot Date: November 10, 2005 05:14:00 AM
IAIC News Information Analysis Inc. Reports Third Quarter Results; Company reports earnings of 2 cents per share for quarter and 5 cents per share for 9 months
FAIRFAX, Va.--(BUSINESS WIRE)--Nov. 10, 2005--Information Analysis Inc. (OTCBB:IAIC) today reported results for its third fiscal quarter ended September 30, 2005. Revenues were $2,629,062, up from the $2,438,440 reported in third quarter 2004. The information technology services company reported a net income of $250,576, or $0.02 per share basic and diluted, compared to a net income of $354,092, or $0.03 per share basic and diluted, in third quarter 2004.
For the nine months ended September 30, 2005, IAI's revenues were $7,822,086, compared to revenues of $6,712,282 for the same period in 2004. The Company reported a net income of $471,073, or $0.05 per share basic and $0.04 per share diluted, compared to net income of $466,440, or $0.05 per share basic and $0.04 per share diluted, reported for the comparable 2004 period.
"I am encouraged by what we have accomplished during this quarter. Our third quarter profit was more than first and second quarter combined. The increase in net operating income in this quarter compared to the effective net operating income for third quarter 2004 also shows that the company is progressing according to our business plan. Third quarter profit in 2004 included a $290,000 recovery of previously owed money from prior years. Accordingly, our operating profit has substantially increased from third quarter 2004," said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. "We expect fourth quarter results to be comparable to or better than third quarter.
"We still are in merger and acquisition discussions with a number of firms and hope to complete a transaction in the future."
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. 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 Consolidated Statements of Operations
Three months ended
(in thousands, except per share data; September 30,
unaudited) 2005 2004
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Revenue:
Professional fees $ 2,371 $ 2,255
Software sales 258 183
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Total revenue 2,629 2,483
Cost of goods sold and services provided:
Cost of professional fees 1,753 1,776
Cost of software sales 208 176
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Total cost of sales 1,961 1,952
----------- -----------
Gross margin 668 486
Selling, general and administrative expense (413) (417)
Other operating income -- 290
----------- -----------
Operating income 255 359
Other expense (4) (5)
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Income before income taxes 251 354
Provision for income taxes -- --
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Net income $ 251 $ 354
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Earnings per common share:
Basic: Net income $ 0.02 $ 0.03
Diluted: Net income $ 0.02 $ 0.03
Shares used in calculating earnings per
share:
Basic 10,301,494 10,283,515
Diluted 10,655,071 11,019,408
Information Analysis Incorporated
Condensed Consolidated Statements of Operations
Nine months ended
(in thousands, except per share data; September 30,
unaudited) 2005 2004
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Revenue:
Professional fees $ 6,858 $ 6,314
Software sales 964 398
----------- -----------
Total revenue 7,822 6,712
Cost of goods sold and services provided:
Cost of professional fees 5,272 5,098
Cost of software sales 813 314
----------- -----------
Total cost of sales 6,085 5,412
----------- -----------
Gross margin 1,737 1,300
Selling, general and administrative expense (1,253) (1,098)
Other operating income -- 290
----------- -----------
Operating income 484 492
Other expense (13) (26)
----------- -----------
Income before income taxes 471 466
Provision for income taxes -- --
----------- -----------
Net income $ 471 $ 466
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Net loss per share:
Basic: Net income (loss) $ 0.05 $ 0.05
Diluted: Net income (loss) $ 0.04 $ 0.04
Shares used in calculating earnings per
share:
Basic 10,293,910 10,283,515
Diluted 10,687,084 11,009,825
Information Analysis Incorporated and Subsidiaries
Consolidated Balance Sheets
As of As of
September 30, December 31,
2005 2004
(in thousands) (unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 145 $ 116
Accounts receivable, net 2,426 2,170
Prepaid expenses 157 47
Note receivable 85 85
Other receivables 13 7
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Total current assets 2,826 2,425
Fixed assets, net 61 35
Other assets 9 7
Investments -- 3
----------- -----------
Total assets $ 2,896 $ 2,470
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LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,297 $ 1,567
Accrued payroll and related payroll
items 349 277
Other accrued liabilities 293 65
Deferred revenue 149 84
Revolving line of credit 114 219
Notes payable -- 125
----------- -----------
Total current liabilities 2,202 2,337
----------- -----------
Total liabilities 2,202 2,337
----------- -----------
Common stock, par value $0.01, 30,000,000
shares authorized; 12,122,626 shares
issued, 10,618,015 outstanding at
September 30, 2005, and 11,788,126
shares issued, 10,283,515 outstanding
at December 31, 2004 121 118
Additional paid in capital 14,211 14,122
Accumulated deficit (12,772) (13,244)
Accumulated other comprehensive income (12) (9)
Less treasury stock; 1,504,611 shares at
cost (854) (854)
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Total stockholders' equity 694 133
----------- -----------
Total liabilities and stockholders' equity $ 2,896 $ 2,470
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