Message #6 From:
NewsBot Date: August 8, 2006 06:00:00 AM
IAIC News Information Analysis Inc. Reports Second Quarter Results
FAIRFAX, Va.--(BUSINESS WIRE)--Aug. 8, 2006--Information Analysis Inc. (OTCBB:IAIC) reported results for the second quarter ended June 30, 2006. Revenues were $2,569,000 compared to $3,006,000 reported in 2005's second quarter. The Company reported net income of $154,000, or $0.01 per share, compared to net income of $148,000, or $0.01 per share in 2005's second quarter. IAI had revenue of $4,883,000, compared to $5,193,000 reported for six months ending June 30, 2005. Net income for the first six months of fiscal 2006 was $239,000, or $0.02 per share, versus net income of $220,000, or $0.02 per share, in the comparable 2005 period.
"Our second quarter profit continued to improve over last year's results," 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. We now are working on a number of bid opportunities for new business and additional add-on business to existing contracts, which are expected to be awarded during the later part of the year.
"As our financial strength continues to grow, we expect more opportunities to expand our business through M&A activities."
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, 2005 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) 2006 2005
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Sales:
Professional fees $ 2,299 $ 2,372
Software sales 270 634
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Total sales 2,569 3,006
Cost of goods sold and services provided:
Cost of professional fees 1,703 1,837
Cost of software sales 225 564
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Total cost of sales 1,928 2,401
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Gross margin 641 605
Operating expenses:
Selling, general and administrative 489 452
----------- -----------
Operating income 152 153
Other income (expense) 2 (5)
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Income before income taxes 154 148
Provision for income taxes -- --
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Net income $ 154 $ 148
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Comprehensive Income $ 154 $ 148
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Net income per share:
Basic and diluted $ 0.01 $ 0.01
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Shares used in calculating earnings per share:
Basic 11,035,507 10,296,527
Diluted 11,504,714 11,292,107
Information Analysis Incorporated
Condensed Income Statements
Six months ended
June 30,
(in thousands, except per share data;
unaudited) 2006 2005
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Sales:
Professional fees $ 4,495 $ 4,486
Software sales 388 707
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Total sales 4,883 5,193
Cost of goods sold and services provided:
Cost of professional fees 3,454 3,519
Cost of software sales 295 605
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Total cost of sales 3,749 4,124
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Gross margin 1,134 1,069
Operating expenses:
Selling, general and administrative 898 840
----------- -----------
Operating income 236 229
Other income (expense) 3 (9)
----------- -----------
Income before income taxes 239 220
Provision for income taxes -- --
----------- -----------
Net income $ 239 $ 220
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Comprehensive Income $ 239 $ 220
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Net income per share:
Basic and diluted $ 0.02 $ 0.02
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Shares used in calculating earnings per share:
Basic 10,890,164 10,290,057
Diluted 11,399,119 11,151,036
Information Analysis Incorporated
Condensed Balance Sheets
As of As of
June 30, December 31,
2006 2005
(unaudited) (audited)
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ASSETS
Current assets:
Cash and cash equivalents $ 668 $ 452
Accounts receivable, net 2,233 1,994
Prepaid expenses 324 183
Note receivable 105 85
Other assets 12 --
Other receivables 4 15
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Total current assets 3,346 2,729
Fixed assets, net 58 57
Other assets
2 9
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Total assets $ 3,406 $ 2,795
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LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,137 $ 1,175
Deferred revenues 440 214
Accrued payroll and related liabilities 328 321
Other accrued liabilities 129 125
Income taxes payable -- 4
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Total liabilities 2,034 1,839
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Common stock, par value $0.01, 30,000,000
shares authorized; 12,779,987 shares issued,
11,137,371 outstanding at June 30, 2006, and
12,127,626 shares issued, 10,623,015
outstanding at December 31, 2005 128 121
Additional paid in capital 14,458 14,212
Accumulated deficit (12,272) (12,511)
Accumulated other comprehensive loss (12) (12)
Less treasury stock; 1,642,616 shares at cost
at June 30, 2006, and 1,504,611 shares at
cost at December 31, 2005 (930) (854)
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Total stockholders' equity 1,372 956
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Total liabilities and stockholders' equity $ 3,406 $ 2,795
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