Information Analysis Inc Releases 2020 Results

Rhea-AI Summary

Information Analysis Incorporated (OTCQB: IAIC) reported strong financial results for 2020, with revenues increasing by 37% to $13.9 million, up from $10.2 million in 2019. The company turned a profit with a net income of $413,000 compared to a loss of $717,000 the previous year. Fourth-quarter revenue rose 48% to $3.1 million, and net income for that quarter improved to $360,000 from a loss of $139,000 in Q4 2019. The outlook for 2021 is positive, with projected net income between $1.1 million and $1.2 million, driven by growth in federal government demand for modernization services.

Positive

• 2020 revenues increased by 37% to $13.9 million.
• Net income for 2020 was $413,000, a turnaround from a loss of $717,000 in 2019.
• Fourth-quarter revenues grew by 48% to $3.1 million.
• 2021 net income projected between $1.1 million and $1.2 million.

Negative

• None.

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

FAQ

What were IAIC's total revenues for the year ended December 31, 2020?

IAIC reported total revenues of $13.9 million for the year ended December 31, 2020.

How much did IAIC's net income improve in 2020 compared to 2019?

IAIC's net income improved by $1.13 million, from a loss of $717,000 in 2019 to a profit of $413,000 in 2020.

What was the projected net income for IAIC in 2021?

IAIC is projecting a net income of between $1.1 million and $1.2 million for 2021.

How did IAIC perform in the fourth quarter of 2020?

In the fourth quarter of 2020, IAIC's revenues were $3.1 million, an increase of 48% compared to the same quarter in 2019.

What are the main growth areas for IAIC moving forward?

IAIC is focusing on high-growth fields such as cyber security and cloud services, alongside modernization services for the federal government.