FAIRFAX, Va., March 29, 2018 (GLOBE NEWSWIRE) -- Information Analysis Incorporated. (IAIC:OTCBB) today reported results for the year ended December 31, 2017. Revenues were up 58% to $10,641,000, compared to revenues of $6,729,000 for the same period in 2016. The information technology services company reported net income of $246,000, or $0.02 per share basic and diluted, compared to a net loss of $554,000, or $(0.05) per share basic and diluted, reported for the comparable 2016 period.
“In 2017, the Company continued its effort to focus on legacy system modernization,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “This has driven a 48 per cent increase in professional services revenue. In addition, we are making investments in marketing and sales in both the commercial market as well as in the government sector. We have been aggressively pursuing new business opportunities through the bidding process for prime contracts and teaming with our partners. Recently, a federal government customer elected to proceed with a needed modernization effort that we have been pursuing for years with a key partner, and we have once again proven ourselves to be able to engineer substantial modernization efforts on time and within budget. We expect that effort to expand into other opportunities.
“In recent months, several large companies have approached IAI to be part of their modernization teams due to IAI’s unique knowledge of legacy systems and unique tools to efficiently and cost-effectively modernize them.
“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 product and services company. The Company is a web application and e-business solutions provider, as well as a software conversion specialist, modernizing legacy systems and extending their reach to the internet and more modern platforms.
*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, 2016 and in other filings with the Securities and Exchange Commission.
*Information Analysis Incorporated*
*Statements of Operations*
Year ended December 31,
(in thousands, except per share data) 2017 2016
(unaudited) (audited)
Revenues:
Professional fees $ 5,004 $ 3,392
Software sales 5,637 3,337
Total revenues 10,641 6,729
Cost of revenues:
Cost of professional fees 2,723 1,895
Cost of software sales 5,502 3,011
Total cost revenues 8,225 4,906
Gross profit 2,416 1,823
Selling, general and administrative expense 1,674 1,879
Commissions expense 504 507
Income (loss) from operations 238 (563)
Other income 8 9
Income (loss) before income taxes 246 (554)
Net income (loss) $ 246 $ (554)
Net income (loss) per share:
Basic $ 0.02 $ (0.05)
Diluted $ 0.02 $ (0.05)
Weighted average common shares outstanding:
Basic 11,201,760 11,201,760
Diluted 11,583,578 11,201,760
*Information Analysis Incorporated*
*Balance Sheets*
As of As of
December 31, 2017 December 31, 2016
(in thousands) (unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 2,731 $ 1,895
Accounts receivable, net 616 1,157
Prepaid expenses 369 664
Note receivable, current 2 3
Total current assets 3,718 3,719
Fixed assets, net 11 27
Other assets 6 6
Total assets $ 3,735 $ 3,752
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 48 $ 49
Commissions payable 713 853
Other accrued liabilities 411 396
Deferred revenues 387 615
Accrued payroll and related liabilities 276 207
Franchise taxes payable 6 -
Total liabilities 1,841 2,120
Common stock, par value $0.01, 30,000,000 shares authorized; 12,844,376 shares issued, 11,201,760 shares outstanding as of December 31, 2017 and 2016 128 128
Additional paid in capital 14,646 14,631
Accumulated deficit (11,950) (12,197)
Less treasury stock; 1,642,616 shares at cost (930) (930)
Total stockholders' equity 1,894 1,632
Total liabilities and stockholders' equity $ 3,735 $ 3,752
For additional information contact:
Richard S. DeRose
(703) 293-7901
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