FAIRFAX, Va., Feb. 17, 2021 (GLOBE NEWSWIRE) -- Information Analysis Incorporated (OTCQB: IAIC) today released its results for its fourth quarter and year ended December 31, 2020.
For the year ended December 31, 2020, revenues were $13,903,000, an increase of $3,738,000, or 37%, over its 2019 revenues of $10,165,000. Net income was $413,000 in 2020 versus a net loss of ($717,000) in 2019, a difference of $1,130,000. Basic and diluted earnings per share were $0.04 and $0.03, respectively, for 2020, versus basic and diluted net loss per share of ($0.06) in 2019.
The improvement in 2020 was primarily attributable to our performance in the fourth quarter of 2020. Fourth quarter 2020 revenues were $3,099,000, an increase of $1,000,000, or 48%, over its 2019 fourth quarter revenues of $2,099,000. Net income was $360,000 versus a net loss of ($139,000) for the same period in 2019, a difference of $499,000.
“We significantly accelerated our business in 2020, delivering our highest annual revenues since the mid-1990’s, while expanding gross margin and increasing net income,” said Stan Reese, IAI’s CEO. “Our 2021 financial outlook highlights the strength of our services and product portfolios and robust demand for modernizing mainframe applications, particularly in the federal government. We are excited about the opportunities ahead and very confident in our long-term strategy as we continue executing our vision for both the services and products roadmaps.”
“Our earnings and cash flow are solid, we are upgrading and updating our business development processes, and we are bringing much-needed communication, value and, in light of being traded on the OTCQB Market, greater liquidity to our shareholders. Without losing focus on our core competencies and strategic relationships, we are actively making strides towards such targeted high-growth fields such as cyber security and cloud services.”
With consideration for the investments IAI is making in progressing toward its business plan, and making allowances for unknowns such as the effects of COVID-19, IAI is projecting net income for 2021 of between $1.1 million and $1.2 million.
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 software conversion specialist, modernizing legacy systems and extending their reach to the cloud 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.
For additional information contact:
Matt Sands, CFO
msands@infoa.com
(703) 293-7925
| Information Analysis Incorporated | |||||||||||||
| Statements of Operations | |||||||||||||
| (unaudited, except where indicated) | |||||||||||||
| Three months ended December 31, | Year ended December 31, | ||||||||||||
| (in thousands, except per share data) | 2020 | 2019 | 2020 | 2019 | |||||||||
| (audited) | |||||||||||||
| Revenues | |||||||||||||
| Professional fees | $ | 2,174 | $ | 831 | $ | 5,527 | $ | 3,244 | |||||
| Software sales | 925 | 1,268 | 8,376 | 6,921 | |||||||||
| Total revenues | 3,099 | 2,099 | 13,903 | 10,165 | |||||||||
| Cost of revenues | |||||||||||||
| Cost of professional fees | 1,334 | 536 | 3,566 | 1,981 | |||||||||
| Cost of software sales | 838 | 1,227 | 8,128 | 6,784 | |||||||||
| Total cost of revenues | 2,172 | 1,763 | 11,694 | 8,765 | |||||||||
| Gross profit | 927 | 336 | 2,209 | 1,400 | |||||||||
| Selling, general, and administrative expenses | 454 | 394 | 1,504 | 1,875 | |||||||||
| Commission expense | 114 | 83 | 293 | 253 | |||||||||
| Income (loss) from operations | 359 | (141 | ) | 412 | (728 | ) | |||||||
| Other income, net | 1 | 2 | 1 | 11 | |||||||||
| Income before provision for | |||||||||||||
| Income taxes | $ | 360 | $ | (139 | ) | $ | 413 | $ | (717 | ) | |||
| Net income (loss) | $ | 360 | $ | (139 | ) | $ | 413 | $ | (717 | ) | |||
| Net income (loss) per share: | |||||||||||||
| Basic | $ | 0.03 | $ | (0.01 | ) | $ | 0.04 | $ | (0.06 | ) | |||
| Diluted | $ | 0.03 | $ | (0.01 | ) | $ | 0.03 | $ | (0.06 | ) | |||
| Weighted average common shares | |||||||||||||
| Outstanding: | |||||||||||||
| Basic | 11,255,782 | 11,211,760 | 11,222,826 | 11,208,308 | |||||||||
| Diluted | 12,161,763 | 11,211,760 | 12,049,322 | 11,208,308 | |||||||||
| Information Analysis Incorporated | |||||||
| Balance Sheets | |||||||
| As of: | |||||||
| December 31, | |||||||
| 2020 | 2019 | ||||||
| (in thousands, except per share data) | (unaudited) | (audited) | |||||
| ASSETS: | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 1,858 | $ | 1.039 | |||
| Accounts receivable | 1,442 | 669 | |||||
| Prepaid expenses and other current assets | 143 | 500 | |||||
| Total current assets | 3,443 | 2.208 | |||||
| Contract assets | 211 | - | |||||
| Property and equipment, net | 62 | 10 | |||||
| Right-of-use operating lease asset | 51 | 150 | |||||
| Other assets | 6 | 6 | |||||
| Total assets | $ | 3,773 | $ | 2.374 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 104 | $ | 216 | |||
| Contract liabilities | 947 | 464 | |||||
| Accrued payroll and related liabilities | 375 | 220 | |||||
| Commissions payable | 182 | 108 | |||||
| Other accrued liabilities | 57 | 54 | |||||
| Operating lease liability current portion | 45 | 104 | |||||
| Total current liabilities | 1,710 | 1,166 | |||||
| Note payable | 450 | - | |||||
| Operating lease liability non-current portion | - | 46 | |||||
| Total liabilities | 2,160 | 1,212 | |||||
| Stockholders’ equity | |||||||
| Common stock, $0.01 par value, 30,000,000 shares | |||||||
| authorized, 12,904,376 and 12,854,376 shares | |||||||
| issued, 11,261,760 and 11,211,760 shares outstanding | |||||||
| as of December 31, 2020, and 2019, respectively | 129 | 128 | |||||
| Additional paid-in capital | 14,720 | 14,683 | |||||
| Accumulated deficit | (12,306 | ) | (12,719 | ) | |||
| Treasury stock, 1,642,616 shares at cost at | |||||||
| December 31, 2020 and 2019 | (930 | ) | (930 | ) | |||
| Total stockholders’ equity | 1,613 | 1,162 | |||||
| Total liabilities and stockholders’ equity | $ | 3,773 | $ | 2,374 | |||