Information Analysis Inc. Reports Improving Results in its Second Quarter
FAIRFAX, Va., Aug. 18, 2020 (GLOBE NEWSWIRE) -- Information Analysis Incorporated (IAIC:OTC PINK) reported on Friday its results for the second quarter and first six months of 2020.
For the second quarter of 2020, revenues increased 30% to $4,819,000, compared to second quarter 2019 revenues of $3,704,000. The information technology services company reduced its net losses by $174,000, or 83%, and reported a net loss in the second quarter of 2020 of $35,000, or $0.00 per share basic and diluted, versus a net loss in the second quarter of 2019 of $209,000, or ($0.02) per share basic and diluted.
For the first six months of 2020, revenues increased 41% to $6,881,000, compared to second quarter 2019 revenues of $4,883,000. The company reduced its net losses by $238,000, or 60%, and reported a net loss in the six months ended June 30, 2020, of $161,000, or ($0.01) per share basic and diluted, versus a net loss in the six months ended June 30, 2019, of $399,000, or ($0.04) per share basic and diluted.
“There is no doubt about it - 2019 was a tough year,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “Contracts were expiring in normal course, but every material new contract and subcontract we won was delayed due to protests by companies competing for the business. Despite managing our offices and employees through ever-changing directives and regulations due to the COVID health emergency, we turned the corner during this second quarter, as the largest of these delayed subcontracts emerged from protest almost a year after it was originally won. In June we were able to commence a massive modernization effort at a federal agency that could be worth upwards of $25 million over the subcontract’s seven-year term. With the addition of this effort, we expect our third quarter to be profitable, and we should remain so for the foreseeable future.
“With our recent large-scale modernization successes, especially with regard to aging COBOL-based systems, we are poised to pursue and win opportunities with the federal government, as well as efforts to modernize and enhance state and local data systems and large-scale commercial systems. We make an excellent teammate when tackling multi-faceted modernization efforts.”
About Information Analysis Incorporated
Information Analysis Incorporated (), headquartered in Fairfax, Virginia, is an information technology product and services company. The Company is 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, 2019 and in other filings with the Securities and Exchange Commission.
Information Analysis Incorporated
Statements of Operations
| 3 Months ended June 30, | |||||||
| (in thousands, except per share data; unaudited) | 2020 | 2019 | |||||
| Revenues: | |||||||
| Professional fees | $ | 928 | $ | 762 | |||
| Software sales | 3,891 | 2,942 | |||||
| Total revenues | 4,819 | 3,704 | |||||
| Cost of revenues: | |||||||
| Cost of professional fees | 601 | 435 | |||||
| Cost of software sales | 3,829 | 2,912 | |||||
| Total cost revenues | 4,430 | 3,347 | |||||
| Gross profit | 389 | 357 | |||||
| Selling, general and administrative expense | 366 | 529 | |||||
| Commissions expense | 57 | 40 | |||||
| Loss from operations | (34 | ) | (212 | ) | |||
| Other (loss) income | (1 | ) | 3 | ||||
| Loss before income taxes | (35 | ) | (209 | ) | |||
| Net loss | $ | (35 | ) | $ | (209 | ) | |
| Net loss per share: | |||||||
| Basic | $ | 0.00 | $ | (0.02 | ) | ||
| Diluted | $ | 0.00 | $ | (0.02 | ) | ||
| Weighted average common shares outstanding: | |||||||
| Basic | 11,211,760 | 11,207,804 | |||||
| Diluted | 11,211,760 | 11,207,804 | |||||
Information Analysis Incorporated
Statements of Operations
| 6 Months ended June 30, | |||||||
| (in thousands, except per share data; unaudited) | 2020 | 2019 | |||||
| Revenues: | |||||||
| Professional fees | $ | 1,773 | $ | 1,524 | |||
| Software sales | 5,108 | 3,359 | |||||
| Total revenues | 6,881 | 4,883 | |||||
| Cost of revenues: | |||||||
| Cost of professional fees | 1,181 | 881 | |||||
| Cost of software sales | 5,032 | 3,322 | |||||
| Total cost revenues | 6,213 | 4,203 | |||||
| Gross profit | 668 | 680 | |||||
| Selling, general and administrative expense | 707 | 1,014 | |||||
| Commissions expense | 123 | 71 | |||||
| Loss from operations | (162 | ) | (405 | ) | |||
| Other income | 1 | 6 | |||||
| Loss before income taxes | (161 | ) | (399 | ) | |||
| Net loss | $ | (161 | ) | $ | (399 | ) | |
| Net loss per share: | |||||||
| Basic | $ | (0.01 | ) | $ | (0.04 | ) | |
| Diluted | $ | (0.01 | ) | $ | (0.04 | ) | |
| Weighted average common shares outstanding: | |||||||
| Basic | 11,211,760 | 11,204,799 | |||||
| Diluted | 11,211,760 | 11,204,799 | |||||
Information Analysis Incorporated
Balance Sheets
| (in thousands) | As of June 30, 2020 (unaudited) | As of December 31, 2019 (audited) | |||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 961 | $ | 1,039 | |||
| Accounts receivable, net | 968 | 669 | |||||
| Prepaid expenses | 88 | 500 | |||||
| Total current assets | 2,017 | 2,208 | |||||
| Right-of-use operating lease asset | 101 | 150 | |||||
| Fixed assets, net | 16 | 10 | |||||
| Contract assets | 14 | - | |||||
| Other assets | 6 | 6 | |||||
| Total assets | $ | 2,154 | $ | 2,374 | |||
| LIABILITIES & STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 176 | $ | 216 | |||
| Accrued payroll and related liabilities | 250 | 220 | |||||
| Note payable – current | 149 | - | |||||
| Commissions payable | 104 | 108 | |||||
| Operating lease liability – current | 99 | 104 | |||||
| Contract liabilities | 64 | 464 | |||||
| Other accrued liabilities | 8 | 54 | |||||
| Interest payable | 1 | - | |||||
| Total current liabilities | 851 | 1,166 | |||||
| Note payable – non-current | 301 | - | |||||
| Operating lease liability – non-current | - | 46 | |||||
| Total liabilities | 1,152 | 1,212 | |||||
| Common stock, par value $0.01, 30,000,000 shares authorized; | |||||||
| 12,854,376 shares issued, 11,211,760 shares outstanding as of June 30, 2020, and December 31, 2019 | 128 | 128 | |||||
| Additional paid in capital | 14,684 | 14,683 | |||||
| Accumulated deficit | (12,880 | ) | (12,719 | ) | |||
| Less treasury stock; 1,642,616 shares at cost | (930 | ) | (930 | ) | |||
| Total stockholders' equity | 1,002 | 1,162 | |||||
| Total liabilities and stockholders' equity | $ | 2,154 | $ | 2,374 | |||
For additional information contact:
Matt Sands
(703) 293-7925
