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INFORMATION AMERICA REPORTS THIRD QUARTER LOSS DUE TO TERMINATION OF PARAMOUNT TRANSACTION

 ATLANTA, Nov. 10 /PRNewswire/ -- Information America, Inc. (NASDAQ-NMS: INFO) today reported results for the third quarter and nine months ended Sept. 30.
 Revenues for the third quarter increased 44 percent to $6,734,000, compared with revenues of $4,667,000 reported for the same quarter of 1992. Due to a one-time charge in connection with the termination of an acquisition of certain units of Paramount Publishing, the company reported a net loss of $677,000, or a loss ($0.14) per share, vs. income (before extraordinary item) of $303,000, or $0.06 per share for the comparable quarter a year ago. Absent costs associated with the proposed acquisition amounting to approximately $1.3 million, Information America would have reported earnings of $0.03 per share for the quarter ended Sept. 30.
 Revenues for the nine-month period ended Sept. 30 amounted to $18,660,000, up 34 percent from the $13,940,000 in revenues reported for the same period a year ago. Also for the current nine-month period, the company reported a loss (before change in accounting principle) of $408,000, or ($0.08) per share, compared with income (before extraordinary item) of $821,000 or $0.15 per share a year ago. During the first quarter of 1993, the company changed its method of accounting for income taxes in accordance with SFAS No. 109 and recognized a benefit of $400,000, or $0.08 per share, which was reflected as a change in accounting principle.
 Commenting on the quarter, Mary A. Madden, president of Information America, said: "We are disappointed that the negotiations to acquire the information services and software units from Paramount Publishing terminated. It is important to note, however, that Information America is financially strong and fully capable of handling costs associated with previous negotiations," Madden continued: "During the quarter the company realized an increase in revenue from the corporate and government segments of its customer market, and, more recently, Information American secured a large account with a notable government agency. We have also begun releasing the first phase of a series of system-wide enhancements that touch our entire product line. Beginning with our Liaison desktop software released in September and continuing through January with major search enhancements, much of the system development work we have undertaken this year will reach the market."
 Commenting on the law area, Madden noted: "The company continues to experience softness in sales to existing customers and is exploring a number of approaches to address this market in 1994 without neglecting the significant growth opportunities outside of law."
 Information America provides attorneys, other legal professionals, banks, government entities and private investigative firms with online information designed to satisfy needs arising from commercial transactions and business litigation. The company's information products and services are used to search for background data about businesses, determine the existence of liens on real estate, locate assets of all kinds, obtain government records, and resolve many other transaction-related issues. The company serves 97 of the 100 largest law firms in the United States.
 INFORMATION AMERICA, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (In Thousands, Except Per Share Data)
 (Unaudited)
 3 mos. ended 9 mos. ended
 September 30, September 30,
 1993 1992 1993 1992
 Revenues $6,734 $4,667 $18,660 $13,940
 Costs and expenses:
 Direct costs (2,675) (1,507) (7,361) (4,689)
 Depreciation and amortization (1,117) (828) (3,180) (2,412)
 Selling, general and
 administrative expenses (2,644) (1,795) (7,154) (5,326)
 Unusual items (1,311) --- (1,561) ---
 Total (7,747) (4,130)(19,256)(12,427)
 Income (loss) from operations (1,013) 537 (596) 1,513
 Interest expense, net (62) (53) (52) (177)
 Income (loss) before provision
 for income taxes, extraordinary
 item, and change in
 accounting principle (1,075) 484 (648) 1,336
 Income tax (provision) benefit 398 (181) 240 (515)
 Income (loss) before extraordinary
 item and change in
 accounting principle (677) 303 (408) 821
 Extraordinary item, tax benefit
 from utilization of net
 operating loss carryforward --- 162 --- 478
 Income (loss) before cumulative
 change in accounting principle (677) 465 (408) 1,299
 Change in accounting principle,
 benefit from change in method
 of accounting for income taxes --- --- 400 ---
 Net income (loss) $(677) $465 $(8) $1,299
 Net income (loss) per common share
 Income (loss) before extraordinary
 item and change in
 accounting principle $(0.14) $0.06 $(0.08) $0.15
 Extraordinary item --- 0.03 --- 0.09
 Cumulative change in
 accounting principle --- --- 0.08 ---
 Net income (loss) per share $(0.14) $0.09 $ --- $0.24
 Weighted average number of
 common and common equivalent
 shares outstanding 4,917 5,305 4,877 5,376
 -0- 11/10/93
 /CONTACT: Mary A. Madden, president, Information America, 404-892-1800, or Janice J. Kuntz of A. Brown-Olmstead Associates, 404-659-0919, for Information America/
 (INFO)


CO: Information America, Inc. ST: Georgia IN: CPR SU: ERN

RA-TG -- AT002 -- 2565 11/10/93 08:04 EST
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Date:Nov 10, 1993
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