EX-99.1 2 iaic_ex991.htm PRESS RELEASE Blueprint

 
For additional information contact:
Richard S. DeRose (703) 293-7901
For release:
August 14, 2017
 
Information Analysis Incorporated Reports Profitable Second Quarter Results
 
FAIRFAX, VIRGINIA – Information Analysis Incorporated (OTCBB:IAIC) (the “Company”) reported results for its second fiscal quarter ended June 30, 2017. Revenues for the three months ended June 30, 2017, were $4,056,000 compared to $1,823,000 reported in the same period in 2016. The Company reported net income of $89,000, or $0.01 per share, compared to a net loss of $146,000, or ($0.01) per share, in 2016.
Revenues for the six months ended June 30, 2017, were $5,538,000 compared to $3,291,000 reported in the same period in 2016. The Company reported net income of $57,000, or $0.00 per share, compared to a net loss of $356,000, or ($0.03) per share, in 2016.
“The Company’s professional services revenue has increased greater than 30% over last year, which is the most significant factor contributing to our increase in profitability,” Sandor Rosenberg, Chairman and Chief Executive Officer of IAI said. “We continue to aggressively pursue the modernization and forms businesses, and have been awarded a number of new contracts in the last quarter. We see an increase in business opportunities overall in the government space and expect to remain profitable during the second half of the year.
 “We continue to pursue merger and acquisitions opportunities.”
 
About Information Analysis Incorporated
Information Analysis Incorporated (www.infoa.com), headquartered in Fairfax, Virginia, is an information technology services company. The Company is an e-business, 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. These include the failure to obtain sufficient contracts, and to profitably complete these contracts. Investors should read and understand the risk factors detailed in the Company's 10-K for the fiscal year ended December 31, 2016 and in other filings with the Securities and Exchange Commission.
 
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Information Analysis Reports Profitable Second Quarter Results
August 14, 2017
Page 2 of 4
 
 
INFORMATION ANALYSIS INCORPORATED
STATEMENTS OF OPERATIONS
(Unaudited)
 
 
 
For the three months ended  
 
 
 
June 30,  
 
 
 
2017
 
 
2016
 
Revenues:
 
 
 
 
 
 
     Professional fees
 $1,271 
 $929
     Software sales
  2,785 
  894 
          Total revenues
  4,056 
  1,823
Cost of revenues:
    
    
     Cost of professional fees
  679 
  492 
     Cost of software sales
  2,740 
  805
          Total cost of revenues
  3,419 
  1,297
Gross margin
  637 
  526 
Operating xpenses:
    
    
Selling, general and administrative expenses
  550 
  674 
Income (loss) from operations
  87 
  (148)
Other income
  2 
  2 
Income (loss) before income taxes
  89 
  (146)
Provision for income taxes
  - 
  - 
Net income (loss)
 $89 
 $(146)
 
    
    
Net income (loss) per common share:
    
    
   Basic
 $0.01 
 $(0.01)
   Diluted
 $0.01 
 $(0.01)
 
    
    
Weighted average common shares outstanding:
    
    
   Basic
  11,201,760 
  11,201,760 
   Diluted
  11,544,756 
  11,201,760 
 
 
 
Information Analysis Reports Profitable Second Quarter Results
August 14, 2017
Page 3 of 4
 
 
INFORMATION ANALYSIS INCORPORATED
STATEMENTS OF OPERATIONS
(Unaudited)
 
 
 
For the six months ended  
 
 
 
June 30,  
 
(in thousands, except per share data; unaudited)
 
2017
 
 
2016
 
Revenues:
 
 
 
 
 
 
     Professional fees
 $2,292 
 $1,769 
     Software sales
  3,246 
  1,522 
          Total revenues
  5,538 
  3,291 
Cost of goods sold and services provided:
    
    
     Cost of professional fees
  1,214 
  1,041 
     Cost of software sales
  3,187 
  1,367 
          Total cost of revenues
  4,401 
  2,408 
Gross margin
  1,137 
  883 
Operating expenses:
    
    
Selling, general and administrative expenses
  1,084 
  1,244 
Income (loss) from operations
  53 
  (361)
Other income
  4 
  5 
Income (loss) before income taxes
  57 
  (356)
Provision for income taxes
  - 
  - 
Net income (loss)
 $57 
 $(356)
 
    
    
Net income (loss) per common share:
    
    
   Basic
 $0.01
 $(0.03)
   Diluted
 $0.00 
 $(0.03)
Weighted average common shares outstanding:
    
    
   Basic
  11,201,760 
  11,201,760 
   Diluted
  11,508,431 
  11,201,760 
 
 

Information Analysis Reports Profitable Second Quarter Results
August 14, 2017
Page 4 of 4
 
INFORMATION ANALYSIS INCORPORATED
BALANCE SHEETS
 
 
 
 June 30,
2017
 
 
 December 31,
2016
 
(in thousands, unaudited)
    
    
ASSETS
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
 $1,967 
 $1,895 
Accounts receivable, net
  736
  1,157 
Prepaid expenses
  228 
  664 
Notes receivable (current portion)
  3 
  3 
Total current assets
  2,934 
  3,719 
 
    
    
Fixed assets, net
  17 
  27 
Other assets
  6 
  6 
Total assets
 $2,957 
 $3,752 
 
    
    
LIABILITIES AND STOCKHOLDERS' EQUITY
    
    
Current liabilities:
    
    
Accounts payable
 $73 
 $48 
Commissions payable
  783 
  853 
Deferred revenue
  108
  615 
Accrued payroll and related liabilities
  255 
  207 
Other accrued liabilities
  49 
  396 
Total liabilities
  1,268 
  2,120 
 
    
    
Stockholders' equity:
    
    
Common stock, par value $0.01, 30,000,000 shares authorized;
    
    
12,844,376 shares issued, 11,201,760 shares outstanding
  128 
  128 
Additional paid-in capital
  14,631 
  14,631 
Accumulated deficit
  (12,140)
  (12,197)
Treasury stock, 1,642,616 shares at cost
  (930)
  (930)
Total stockholders' equity
  1,689 
  1,632 
Total liabilities and stockholders' equity
 $2,957 
 $3,752 
 
 
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