EX-99.1 2 rrd271344_31635.htm PRESS RELEASE DATED MARCH 30, 2010 DC8602.pdf -- Converted by SEC Publisher 4.2, created by BCL Technologies Inc., for SEC Filing

Exhibit 99.1

For additional information contact:
Richard S. DeRose
(703) 293-7901

For release: March 30, 2010

Information Analysis Inc. Reports Profitable Results for 2009

FAIRFAX, VIRGINIA – Information Analysis Inc. (IAIC:OTCBB) today reported results for its fourth fiscal quarter ended December 31, 2009. Revenues were $1,924,000, compared to $1,651,000 reported in the fourth quarter 2008. The information technology services company reported net income of $98,000, or $0.01 per share basic and diluted, compared to a net loss of $102,000 or ($0.01) per share basic and diluted, in the fourth quarter 2008.

     For the year ended December 31, 2009, IAI’s revenues were $6,711,000, compared to revenues of $6,693,000 for the same period in 2008. The Company reported net income of $164,000, or $0.01 per share basic and diluted, compared to a net loss of $372,000, or ($0.03) per share basic and diluted, reported for the comparable 2008 period.

     “The Company increased revenue and profit in the fourth quarter and for the year in comparison to last year’s results. Additionally, as a result of increased sales efforts, our proposal volume has been steadily climbing,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “We expect to turn this effort into better results for 2010.” “We continue to pursue merger and acquisition 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-K for the fiscal year ended December 31, 2009 and in other filings with the Securities and Exchange Commission.

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Information Analysis Reports Profitable Results for 2009                 
March 30, 2010                 
Page 2 of 4                 
 
Information Analysis Incorporated                 
Statements of Operations                 
 
        Three months ended December 31,     
(in thousands, except per share data; unaudited)        2009        2008 
Revenue:                 
                 Professional fees    $    1,337    $    857 
                 Software sales        587        794 



 
                 Total revenue        1,924        1,651 
Cost of goods sold and services provided:                 
                 Cost of professional fees        806        642 
                 Cost of software sales        523        667 



 
                 Total cost of sales        1,329        1,309 



 
Gross margin        595        342 
Selling, general and administrative expense        499        450 



 
Income (loss) from operations        96        (108) 
Other income, net        2        6 



 
Income (loss) before income taxes        98        (102) 
Provision for income taxes        --        -- 



 
Net income (loss)    $    98    $    (102) 



Earnings (loss) per common share:                 
                 Basic    $    0.01    $    (0.01) 
                 Diluted    $    0.01    $    (0.01) 
 
Shares used in calculating earnings per share:                 
                 Basic        11,196,760        11,196,760 
                 Diluted        11,209,026        11,196,760 

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Information Analysis Reports Profitable Results for 2009                 
March 30, 2010                 
Page 3 of 4                 
 
Information Analysis Incorporated                 
Statements of Operations                 
 
        Year ended December 31,     
(in thousands, except per share data; audited)        2009        2008 
Revenue:                 
                 Professional fees    $    4,938    $    4,950 
                 Software sales        1,773        1,743 



 
                 Total revenue        6,711        6,693 
Cost of goods sold and services provided:                 
                 Cost of professional fees        3,102        3,669 
                 Cost of software sales        1,453        1,348 



 
                 Total cost of sales        4,555        5,017 



 
Gross margin        2,156        1,676 
Selling, general and administrative expense        2,002        2,069 



 
Income (loss) from operations        154        (393) 
Other income, net        10        21 



 
Income (loss) before income taxes        164        (372) 
Provision for income taxes        --        -- 



 
Net income (loss)    $    164    $    (372) 


 
 
Earnings per share:                 
                 Basic    $    0.01    $    (0.03) 
                 Diluted    $    0.01    $    (0.03) 
 
 
Shares used in calculating earnings per share:                 
                 Basic        11,196,760        11,196,760 
                 Diluted        11,207,905        11,196,760 

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Information Analysis Reports Profitable Results for 2009                 
March 30, 2010                 
Page 4 of 4                 
 
Information Analysis Incorporated                 
Balance Sheets                 
        As of        As of 
    December 31, 2009    December 31, 2008 
(in thousands)        (audited)        (audited) 
ASSETS                 
Current assets:                 
       Cash and cash equivalents    $    1,479    $    1,549 
       Accounts receivable, net        940        1,122 
       Prepaid expenses        689        470 
       Other assets        -        1 


 
                     Total current assets        3,108        3,142 
 
Fixed assets, net        36        56 
Other assets        6        6 


 
                     Total assets    $    3,150    $    3,204 


 
LIABILITIES & STOCKHOLDERS' EQUITY                 
Current liabilities:                 
       Accounts payable    $    89    $    802 
       Deferred revenues        779        603 
       Other accrued liabilities        307        31 
       Accrued payroll and related liabilities        255        214 
       Income taxes payable        --        2 


 
                     Total liabilities        1,430        1,652 


 
 
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        14,554        14,550 
Accumulated deficit        (12,032)        (12,196) 
Less treasury stock; 1,642,616 shares at cost        (930)        (930) 


 
                     Total stockholders' equity        1,720        1,552 


 
                     Total liabilities and stockholders' equity    $    3,150    $    3,204 




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