Information Analysis Inc. Reports Profitable Results for 2012

Information Analysis Inc. Reports Profitable Results for 2012

FAIRFAX, Va.--(BUSINESS WIRE)-- Information Analysis Inc. (OTCBB: IAIC) today reported results for the year ended December 31, 2012. Revenues were $7,058,000, compared to revenues of $7,821,000 for the same period in 2011. The information technology services company reported net income of $100,000, or $0.01 per share basic and diluted, compared to net income of $154,000, or $0.01 per share basic and diluted, reported for the comparable 2011 period.

"In 2012, the Company remained profitable in spite of government budget cuts. We are adding initiatives in new areas, such as cyber security, incident management, mobile applications, and more generalized user applications using Adobe products for our solutions sets in order to increase our business base," said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. "In addition, we are making investments in marketing and sales in both the commercial market as well as in the government sector. Although sequestration has had some impact on operations, we feel that our business will improve as the government budget becomes stable."


"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, 2012 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; audited)

2012

2011

Revenue:

Professional fees

$

5,027

$

4,701

Software sales

2,031

3,120

Total revenue

7,058

7,821

Cost of goods sold and services provided:

Cost of professional fees

2,899

2,714

Cost of software sales

1,748

2,665

Total cost of sales

4,647

5,379

Gross margin

2,411

2,442

Selling, general and administrative expense

2,317

2,293

Income from operations

94

149

Other income, net

6

8

Income before income taxes

100

157

Provision for income taxes

--

3

Net income

$

100

$

154

Earnings per share:

Basic

$

0.01

$

0.01

Diluted

$

0.01

$

0.01

Shares used in calculating earnings per share:

Basic

11,200,025

11,196,760

Diluted

11,210,939

11,224,410

Information Analysis Incorporated

Balance Sheets

As of

As of

December 31, 2012

December 31, 2011

(in thousands)

(audited)

(audited)

ASSETS

Current assets:

Cash and cash equivalents

$

2,623

$

1,281

Accounts receivable, net

738

2,890

Prepaid expenses

192

787

Note receivable, current

2

7

Total current assets

3,555

4,965

Fixed assets, net

39

41

Note receivable, long-term

4

4

Other assets

6

6

Total assets

$

3,604

$

5,016

LIABILITIES & STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

112

$

998

Commissions payable

806

679

Accrued payroll and related liabilities

270

248

Deferred revenues

220

940

Other accrued liabilities

48

107

Taxes payable

-

3

Total liabilities

1,456

2,975

Common stock, par value $0.01, 30,000,000 shares authorized;

12,844,376 and 12,839,376 shares issued, 11,201,760 and

11,196,760 shares outstanding as of December 31, 2012 and

December 31, 2011, respectively

128

128

Additional paid in capital

14,582

14,574

Accumulated deficit

(11,632)

(11,732)

Less treasury stock; 1,642,616 shares at cost

(930)

(930)

Total stockholders' equity

2,148

2,040

Total liabilities and stockholders' equity

$

3,604

$

5,015



Information Analysis Inc.
Richard S. DeRose, 703-293-7901

KEYWORDS: United States North America Virginia

INDUSTRY KEYWORDS:

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