Information Analysis Inc Releases 2020 Results
02/17/2021 - 10:19 AM
Company continues profitable growth
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