Infodata Announces Profitable Second Quarter and First Half 2003; Company Continues Earnings Trend with Improved Margins.Business Editors/High-Tech Writers HERNDON Herndon, town (1990 pop. 16,139), Fairfax co., N Va., inc. 1874, rechartered 1938. A suburb of Washington, D.C., Herndon has a mix of light and high-tech industries. , Va.--(BUSINESS WIRE)--Aug. 12, 2003 Infodata Infodata Corporation was a software development and database manufacturer based in Falls Church, Virginia. Infodata developed a database system from the early 1970s to the late 1990s. Systems Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :INFD INFD Infeed ), a leading content management solutions company, today announced financial results for the three and six months periods ended June June: see month. 30, 2003. The Company reported net income for the quarter of $48,000, or $.01 per share, a decrease of $95,000 from net income of $143,000, or $.03 per share, for the year earlier quarter. For the six months ended June 30, 2003, net income was $222,000, or $.04 per share, compared to net income of $5,000, or $0.00 per share, for the same period in 2002. The quarterly decrease in net income was largely due to an increase in research and development (R&D) and sales and marketing costs, as the Company continued to invest in the development and enhancement of proprietary solutions and sales and marketing infrastructure. Revenue for the quarter ended June 30, 2003, was $1,958,000 compared to revenue of $2,459,000 for the year earlier quarter. Revenue for the six months ended June 30, 2003 was $4,224,000, compared to revenue of $5,407,000 for the prior year period. The decrease in revenue for the three and six month periods was primarily the result of lower commercial services revenue, reflecting the completion of several projects during the quarter; lower Intel services revenue as a result of last year's contract termination Defense procurement: the cessation or cancellation, in whole or in part, of work under a prime contract or a subcontract thereunder for the convenience of, or at the option of, the government, or due to failure of the contractor to perform in accordance with the terms of the contract (default). ; combined with the transition away from low margin business to higher margin proprietary solutions and services. Gross profit for the quarter ended June 30, 2003, was $975,000, an increase of $35,000, or 3.7%, over $940,000 for the quarter ended June 30, 2002. Gross margin for the current quarter was 49.8%, compared to 38.2% for the year earlier quarter, a 30.4% increase. Gross profit for the six months ended June 30, 2003 was $2,160,000, or 51.1%, compared to $1,676,000, or 31.0%, for the six months ended June 30, 2002. The current year's trend of higher gross margins is primarily the result of increased sales of proprietary solutions. At June 30, 2003, cash and equivalents amounted to $1,359,000, working capital was $1,780,000, and the line of credit remained fully paid down. For the six months ended June 30, 2003, cash and equivalents grew by $61,000, and working capital increased by $217,000, primarily the result of the increase in net income for the six-month period. For the six months ended June 30, 2003, R&D expenses increased by $202,000 to $560,000, and Selling, General and Administrative expenses increased by $85,000 to $1,383,000 in the current six-month period. These increases reflect the Company's previously announced decision to invest in the development and enhancement of proprietary solutions and sales and marketing infrastructure to position for future growth. Edwin Edwin or Eadwin (both: ĕd`wĭn), 585?–632, king of Northumbria (616–32), The son and heir of Ælla, king of Deira, he was kept from his inheritance by Æthelfrith. Miller, president and chief executive officer (CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. ) of Infodata, said, "We are pleased to report our fifth consecutive quarter of profitability. Management anticipated that achieving profitability in the second quarter of 2003 would be challenging, given our previously announced plans to rebuild our sales pipeline and contract backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. . Consequently, during the second half of 2003, we are increasing our emphasis on selling and delivering solutions to government and Intel customers, where we are having renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. success. As indicated in our previous press releases and conference calls, profitability for 2003 may be lower than 2002, as a result of continued re-investment by the Company for profitable growth in 2004 and beyond." Postponement and Rescheduling of Second Quarter Results Conference Call As a result of an unforeseen scheduling conflict, Infodata announced yesterday that it is postponing its investor conference call, originally scheduled for 4:30 p.m. today. The rescheduled date and time will be announced in the near future. About Infodata Systems Inc. Infodata (www.infodata.com) is a market leader in delivering automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. content management solutions around regulated reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and compliance activities from within the Enterprise Content Management (ECM (1) (Enterprise Change Management) See version control and configuration management. (2) (Error Correcting Mode) A Group 3 fax capability that can test for errors within a row of pixels and request retransmission. ) environment. We empower empower verb To encourage or provide a person with the means or information to become involved in solving his/her own problems companies to create a new world of efficiency by manipulating their content in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with their business processes that drive compliance. Operating within ECM systems, our enterprise software and integration solutions solve the day-to-day day-to-day adj. 1. Occurring on a routine or daily basis: the day-to-day movements of the stock market. 2. problems specific to Content Review, Content Assembly and Publishing, Content Security and Content Relationships. Delivering solutions for 35 years, Infodata has proven, demonstrable de·mon·stra·ble adj. 1. Capable of being demonstrated or proved: demonstrable truths. 2. Obvious or apparent: demonstrable lies. experience in accelerating all facets of content management lifecycle processes. Infodata is based in Herndon, Virginia Herndon is a town in Fairfax County, Virginia, United States. The population was 21,655 at the 2000 census, which makes it the largest of three towns in the county.[1] History . Except for the historical information contained herein, this press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risk or uncertainties. Future operating results of Infodata may differ from the results discussed or forecasted in the forward-looking statements due to factors that include, but are not limited to, risks associated with customer relations, such as the availability of Infodata's products and services, customer implementation of products and services, relationships with customers, third-party vendors and systems integrators An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. , concentration of revenue in a relatively small number of customers, existence of errors or defects in products, ability to successfully manage growth, significant current and expected additional competition and the need to continue to expand product distribution and services offerings. Further information on potential factors that could affect the financial results of Infodata are included in Infodata's Annual Report on Form 10-KSB, Quarterly Reports on Form 10-QSB and its other filings with the Securities and Exchange Commission, which are available at http://www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . Infodata assumes no obligation to update the information in this press release.
INFODATA SYSTEMS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Amounts In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended
June 30,
2003 2002
-------- --------
Revenues $ 1,958 $ 2,459
Cost of revenues 983 1,519
-------- --------
Gross profit 975 940
Operating expenses:
Research and development 288 212
Selling, general and administrative 642 571
-------- --------
930 783
-------- --------
Operating income 45 157
Interest income 3 -
Interest expense - (14)
-------- --------
Net income before income taxes $ 48 $ 143
Provision for income taxes - -
-------- --------
Net income $ 48 $ 143
======== ========
Basic net income per share $ 0.01 $ 0.03
======== ========
Weighted average basic shares outstanding 5,027 4,792
======== ========
Diluted net income per share $ 0.01 $ 0.03
======== ========
Weighted average diluted shares outstanding 5,404 4,792
======== ========
INFODATA SYSTEMS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Amounts In Thousands, Except Per Share Data)
(Unaudited)
Six Months Ended
June 30,
2003 2002
-------- --------
Revenues $ 4,224 $ 5,407
Cost of revenues 2,064 3,731
-------- --------
Gross profit 2,160 1,676
Operating expenses:
Research and development 560 358
Selling, general and administrative 1,383 1,298
-------- --------
1,943 1,656
-------- --------
Operating income 217 20
Interest income 6 9
Interest expense (1) (24)
-------- --------
Net income before income taxes $ 222 $ 5
Provision for income taxes - -
-------- --------
Net income $ 222 $ 5
======== ========
Basic net income per share $ 0.04 $ 0.00
======== ========
Weighted average basic shares outstanding 5,012 4,791
======== ========
Diluted net income per share $ 0.04 $ 0.00
======== ========
Weighted average diluted shares outstanding 5,413 4,791
======== ========
INFODATA SYSTEMS INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Dollar Amounts in Thousands)
(Unaudited)
December
June 30, 31,
2003 2002
-------- --------
Assets
------
Current assets:
Cash and cash equivalents $ 1,359 $ 1,298
Certificates of deposit 100 100
Accounts receivable, net of allowance of $38
in 2003 and $39 in 2002 1,469 1,806
Notes Receivable 17 -
Prepaid expenses and other current assets 108 64
-------- --------
Total current assets 3,053 3,268
-------- --------
Property and equipment, net 91 79
Other assets 20 20
-------- --------
Total assets $ 3,164 $ 3,367
======== ========
Liabilities and Shareholders' Equity
------------------------------------
Current Liabilities:
Line of credit $ - $ 55
Accounts payable 38 91
Accrued expenses 754 806
Deferred revenue 481 753
-------- --------
Total current liabilities 1,273 1,705
-------- --------
Commitments and contingencies - -
Shareholders' equity:
Common stock 149 148
Additional paid-in capital 20,250 20,243
Accumulated deficit (18,508) (18,729)
-------- --------
Total shareholders' equity 1,891 1,662
-------- --------
Total liabilities and shareholders' equity $ 3,164 $ 3,367
======== ========
INFODATA SYSTEMS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Dollar Amounts in Thousands)
(Unaudited)
Six Months Ended
June 30,
2003 2002
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 222 $ 5
Adjustments to reconcile net income to cash
provided by (used in) operating activities:
Stock based compensation expense 6 -
Depreciation and amortization 44 79
Provision for doubtful accounts - 4
Changes in operating assets and liabilities:
Accounts receivable 337 1,354
Notes receivable (17) -
Prepaid expenses and other current assets (45) 163
Accounts payable (53) (875)
Accrued expenses (53) (153)
Deferred revenue (272) (65)
-------- --------
Net cash provided by operating activities 169 512
-------- --------
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchases of property and equipment (56) (9)
-------- --------
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Net repayments under short-term debt (55) (616)
Issuance of common stock 3 1
-------- --------
Net cash used in financing activities (52) (615)
-------- --------
Net increase (decrease) in cash and cash
equivalents 61 (112)
Cash and cash equivalents at beginning of
period 1,298 1,002
-------- --------
Cash and cash equivalents at end of period $ 1,359 $ 890
======== ========
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