Message #7 From:
NewsBot Date: November 9, 2006 06:00:00 AM
IAIC News Information Analysis Inc. Reports Third Quarter Results
FAIRFAX, Va.--(BUSINESS WIRE)--Information Analysis Inc. (OTCBB:IAIC) today reported results for its
third fiscal quarter ended September 30, 2006. Revenues were $2,574,000,
compared to $2,629,000 reported in the third quarter 2005. The
information technology services company reported net income of $157,000,
or $0.01 per share basic and diluted, compared to net income of $251,000
or $0.02 per share basic and diluted, in the third quarter 2005.
For the nine months ended September 30, 2006, IAI’s
revenues were $7,457,000, compared to revenues of $7,822,000 for the
same period in 2005. The Company reported net income of $396,000, or
$0.04 per share basic and $0.03 per share diluted, compared to net
income of $471,000, or $0.05 per share basic and $0.04 per share
diluted, reported for the comparable 2005 period.
“Our third quarter revenue was essentially the
same as this year’s second quarter. Some of
the business that we expected during this quarter came in late in the
quarter and we expect to derive revenue from these contracts during the
fourth quarter and into 2007,” said Sandor
Rosenberg, Chairman and Chief Executive Officer of IAI. “We
still have a number of bid opportunities outstanding for new business
and additional add-on business to existing contracts, which are expected
to materialize during the fourth quarter. This should give the company
impetus to increase revenue in 2007.
“Since we engaged an advisory firm in July,
our M&A activities have increased significantly.”
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, 2005 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)
2006
2005
Revenue:
Professional fees
$2,180
$2,371
Software sales
394
258
Total revenue
2,574
2,629
Cost of goods sold and services provided:
Cost of professional fees
1,626
1,753
Cost of software sales
183
208
Total cost of sales
1,809
1,961
Gross margin
765
668
Selling, general and administrative expense
610
413
Operating income
155
255
Other income (expense)
2
(4)
Income before income taxes
157
251
Provision for income taxes
--
--
Net income
$157
$251
Earnings per share:
Basic
$0.01
$0.02
Diluted
$0.01
$0.02
Shares used in calculating earnings per share:
Basic
11,137,371
10,301,494
Diluted
11,478,082
10,655,071
Information Analysis Incorporated
Statements of Operations
Nine months ended September 30,
(in thousands, except per share data; unaudited)
2006
2005
Revenue:
Professional fees
$6,675
$6,858
Software sales
782
964
Total revenue
7,457
7,822
Cost of goods sold and services provided:
Cost of professional fees
5,080
5,272
Cost of software sales
478
813
Total cost of sales
5,558
6,085
Gross margin
1,899
1,737
Selling, general and administrative expense
1,508
1,253
Operating income
391
484
Other income (expense)
5
(13)
Income before income taxes
396
471
Provision for income taxes
--
--
Net income
$396
$471
Earnings per share:
Basic
$0.04
$0.05
Diluted
$0.03
$0.04
Shares used in calculating earnings per share:
Basic
10,973,470
10,293,910
Diluted
11,436,461
10,687,084
Information Analysis Incorporated
Balance Sheets
As of
As of
September 30, 2006
December 31, 2005
(in thousands)
(unaudited)
(audited)
ASSETS
Current assets:
Cash and cash equivalents
$477
$452
Accounts receivable, net
2,096
1,994
Prepaid expenses
422
183
Notes receivable
113
85
Other assets
12
--
Other receivables
6
15
Total current assets
3,126
2,729
Fixed assets, net
56
57
Other assets
2
9
Total assets
$3,184
$2,795
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$944
$1,175
Deferred revenue
371
214
Accrued payroll and related payroll items
249
321
Other accrued liabilities
72
125
Income taxes payable
--
4
Total current liabilities
1,636
1,839
Total liabilities
1,636
1,839
Common stock, par value $0.01, 30,000,000 shares authorized;
12,779,987 shares issued, 11,137,371 outstanding at September 30,
2006, and 12,127,626 shares issued, 10,623,015 outstanding at
December 31, 2005
128
121
Additional paid in capital
14,478
14,212
Accumulated deficit
(12,115)
(12,511)
Accumulated other comprehensive income
(12)
(12)
Less treasury stock; 1,642,616 shares at cost at September 30,
2006, and 1,504,611 shares at cost at December 31, 2005
