Information Systems Associates Releases Its Results for the Year Ended December 31, 2010
Full Year 2010 Revenues Were $1.07 Million, an Increase of 37% Over Full Year 2009 Revenues
PALM CITY, Fla., March 31, 2011 (GLOBE NEWSWIRE) -- Information Systems Associates, Inc. (OTCQB:IOSA) recently released its 10-K and financial results for the fiscal year ended December 31, 2010. Revenues for full year 2010 were $1,070,704, an increase of 37% over full year 2009 revenues.
Operating expenses for full year 2010 were $1,790,546, representing only a 2% increase relative to full year 2009 operating expenses. Overall, the Company has kept operating expenses constant, thereby allowing all increases in revenue to decrease the net loss.
The Company reported a net loss of $808,773 for full year 2010, representing a 20% decrease compared with a net loss of $1,009,195 during full year 2009. Full year 2010 cash flows used in operations were $135,030, a decrease of $48,615 or 26.5% from $183,645 used in operations for the full year 2009.
Financial Highlights for 2010
- Year-over-year revenue increase of 37%
- Net loss decreased by 20% as compared to 2009
- Cash used in operations decreased by 26.5% compared to 2009
Looking Forward for 2011
In January, the Company announced the hiring of Dom Lesme, the former VP and General Manager of Rackwise, as President and Chief Operating Officer of Information Systems Associates, Inc. Mr. Lesme is currently in the process of developing and implementing a comprehensive business development strategy to drive revenue growth and open up additional sales channels. These efforts include:
- Establishing an internal sales team;
- Creating all of the necessary marketing collateral to support sales efforts;
- Implementing a Value Added Reseller (VAR) program to offer ISA's products and services;
- Securing relationship for ISA to become a VAR of complementary datacenter solutions to open up additional revenue channels; and
- Expanding ISA's proprietary product offerings to appeal to a wider range of customers.
Joe Coschera, Information Systems Associates' CEO, said, "We are pleased with our growth from 2009 to 2010 and we are excited about the prospects for 2011. Historically, ISA's business was driven by software vendors that utilized our experience in data collection, software implementation and training. We expect that the addition of Mr. Lesme and his efforts to establish a platform to directly reach customers will accelerate revenue growth in the second half of 2011 and beyond. Mr. Lesme has an outstanding track record of successfully building sales teams and products which will enable ISA to have more control over its destiny and significantly increase our menu of products and services to capture additional sales opportunities."
Mr. Lesme is working diligently to build a pipeline of business. These efforts are expected to have a significant impact in the second half of 2011 due to the typical three to six months month sales cycle in the industry.
About Information Systems Associates
Information Systems Associates, Inc. (OTCQB:IOSA) based in Palm City, FL. is a leading provider of data center and facilities management solutions. ISA offers Data Collection Services for the Data Center and the On Site Physical Inventory® OSPI® v2 System. The OSPI® v2 System is a Mobile Data Center Asset Management product, putting a data center management solution in the hand of the data center manager. The OSPI® v2 System is based on ISA's patented data center asset inventory technology.
For more information visit our website http://www.isa-inc.net
Safe Harbor Statement
Certain statements in this press release that are not historical, but are forward-looking, are subject to known and unknown risks and uncertainties which may cause the Company's actual results in future periods to be materially different from any future performance that may be suggested in this press release. Such risks and uncertainties may include, but are not limited to, the Company's need to raise equity capital and its ability to obtain equity financing on acceptable terms, if at all, regulatory limitations on the medical industry in general, working capital constraints, fluctuations in customer demand and commitments, fluctuation in quarterly results, introduction of new services and products, commercial acceptance and viability of new services and products, pricing and competition, reliance upon subcontractors and vendors, the timing of new technology and product introductions, the risk of early obsolescence of our products and the other factors listed under "Risks and Uncertainties" in our annual report on Form 10-K for the fiscal year ended December 31st, 2010, and our other filings with the Securities and Exchange Commission. We assume no obligation to update the information contained in this news release.
| INFORMATION SYSTEMS ASSOCIATES, INC. | |||
| BALANCE SHEETS | |||
| ASSETS | |||
| As of December 31, | |||
| 2010 | 2009 | ||
| Current Assets | |||
| Cash and cash equivalents | $ 70,326 | $ 21,047 | |
| Accounts receivable | 92,893 | 34,809 | |
| Prepaid consulting | 109,187 | 190,500 | |
| Prepaid expenses | 7,622 | 7,689 | |
| Total Current Assets | 280,028 | 254,045 | |
| Property and Equipment (net) | 19,684 | 174,288 | |
| Other Assets | |||
| Investments | -- | 60,559 | |
| TOTAL ASSETS | $ 299,712 | $ 488,892 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Current Liabilities | |||
| Note payable - line of credit | $ 36,141 | $ 20,055 | |
| Note payable - insurance | 3,204 | 3,276 | |
| Accounts payable | 68,568 | 66,910 | |
| Accrued expenses and other liabilities | 2,405 | 21,196 | |
| Deferred revenue | 3,192 | 1,879 | |
| Total Current Liabilities | 113,510 | 113,316 | |
| Stockholders' Equity | |||
| Common stock--$.001 par value, 50,000,000 shares authorized, 22,266,084 and 18,266,084 issued and outstanding for 2010 and 2009, respectively | 22,266 | 18,266 | |
| Additional paid in capital | 2,781,213 | 2,179,213 | |
| Accumulated deficit | (2,617,277) | (1,808,504) | |
| Accumulated other comprehensive (loss) | -- | (13,399) | |
| Total Stockholders' Equity | 186,202 | 375,576 | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 299,712 | $ 488,892 | |
| The accompanying notes are an integral part of these financial statements. | |||
| INFORMATION SYSTEMS ASSOCIATES, INC. | ||
| STATEMENTS OF OPERATIONS | ||
| FOR THE YEARS ENDED DECEMBER 31, | ||
| 2010 | 2009 | |
| Revenue | $ 1,070,704 | $ 780,244 |
| Cost of Sales | 31,397 | 37,567 |
| Gross Profit | 1,039,307 | 742,677 |
| Operating Expenses | ||
| Administrative and general | 543,044 | 308,437 |
| Salaries and employee benefits | 282,408 | 224,206 |
| Professional | 965,094 | 1,218,790 |
| Total Operating Expenses | 1,790,546 | 1,751,433 |
| (Loss) Before Other Income (Expense) | (751,239) | (1,008,756) |
| Other Income (Expense) | ||
| Interest income | -- | 191 |
| Miscellaneous income | 30 | -- |
| Interest expense | (10,217) | -- |
| Loss on sale of investments | (47,347) | -- |
| Loss on sale of property and equipment | -- | (630) |
| Total Other Income (Expense) | (57,534) | (439) |
| (Loss) From Operations Before | ||
| Income Taxes | (808,773) | (1,009,195) |
| Provision for Income Taxes | -- | -- |
| Net (Loss) | (808,773) | (1,009,195) |
| Other Comprehensive (Loss) | ||
| Unrealized gain/(loss) on securities: | ||
| Arising during the year | 13,399 | (13,399) |
| Reclassification to net income | -- | -- |
| Total other comprehensive (loss) | 13,399 | (13,399) |
| Comprehensive (Loss) | $ (795,374) | $ (1,022,594) |
| Basic and Fully Diluted (Loss) per Share: | ||
| Basic and fully diluted | $ (0.04) | $ (0.06) |
| Weighted average common shares outstanding | 20,536,920 | 17,187,439 |
| The accompanying notes are an integral part of these financial statements. | ||
| INFORMATION SYSTEMS ASSOCIATES, INC. | ||
| STATEMENTS OF CASH FLOWS | ||
| FOR THE YEARS ENDED DECEMBER 31, | ||
| 2010 | 2009 | |
| Cash Flows from Operating Activities | ||
| Net (Loss) | $ (808,773) | $ (1,009,195) |
| Adjustments to reconcile net (loss) to net cash provided from operating activities: | ||
| Depreciation and amortization | 156,309 | 19,657 |
| Bad debt expense | 2,625 | -- |
| Common stock for services | 527,313 | 671,438 |
| Loss on sale of security | 47,347 | -- |
| (Loss) on abandonment of fixed assets | -- | 630 |
| (Increase) decrease in: | ||
| Accounts receivable | (60,709) | 59,312 |
| Prepaid expenses | 67 | (7,689) |
| Increase (decrease) in: | ||
| Accounts payable | 1,658 | 82,626 |
| Accrued expenses and other liabilities | (2,180) | (803) |
| Deferred revenue | 1,313 | 379 |
| Net Cash (Used in) Operating Activities | (135,030) | (183,645) |
| Cash Flows from Investing Activities | ||
| Computer software development costs | -- | (159,203) |
| Purchase of property and equipment | (1,705) | (14,204) |
| Proceeds from sale of investment | 10,000 | -- |
| Net Cash (Used In) Investing Activities | 8,295 | (173,407) |
| Cash Flows from Financing Activities | ||
| Proceeds from line of credit | 19,000 | 20,055 |
| Payments made on line of credit | (2,914) | -- |
| Borrowings from note payable | 7,559 | 9,615 |
| Payments made on note payable | (7,631) | (6,339) |
| Proceeds from issuance of stock | 160,000 | 150,000 |
| Net Cash Provided by Financing Activities | 176,014 | 173,331 |
| Net Change in Cash and Cash Equivalents | 49,279 | (183,721) |
| Cash and Cash Equivalents at Beginning of period | 21,047 | 204,768 |
| End of Period | $ 70,326 | $ 21,047 |
| The accompanying notes are an integral part of these financial statements. | ||
CONTACT: Individual Investor Relations Contact:
Gerald Kieft
Wall Street Resources, Inc.
772-219-7525
ir@thewsrgroup.com
http://www.wallstreetresources.net
Source: Information Systems Associates, Inc.
Released March 31, 2011