InferX Corp Announces Financial Results for Second Quarter of Fiscal Year 2011
- Gross Profit: Up 96 percent to $284.5K; Up 209 percent in the first half
- Operating Income: Up 1 percent; Up 33 percent in the first half
- Net Income (excl. derivative liability adj.): Up 18 percent; Up 39 percent in the first half
- New Customer Contract Revenue Earned: Up 237% to $66,439
- EPS: Up 51 percent in the first half comparison over first 6 months last year
STERLING, Va., Aug. 15, 2011 /PRNewswire/ -- InferX Corporation (OTCQB: NFRX), a market leader in next generation Predictive Analytics products and solutions for the defense, healthcare and intelligence communities, today announced financial results for the second quarter of fiscal year 2011, which ended June 30, 2011.
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"It has been an exciting first half; we started to see acceleration in the growth of our company, our products, and our profitability. The team has achieved many firsts during this period: a significant new billion dollar customer; the addition of David Croslin, former Chief Technologist of Hewlett Packard, as Chief Technology Advisor to assist in launching our new products worldwide; engaging a business development firm to expand our government penetration; new enhancements to our technology; hiring a seasoned sales executive; making significant strides in penetrating the healthcare sector for InferX software products through specific teaming arrangements with major systems integrators; and the roll out of a new product in the multi-billion dollar healthcare market. We believe that these significant accomplishments have us poised to launch the company to exciting levels of revenue and profitability," said Vijay Suri, President and CEO.
Summary Operating Results
Through aggressive efforts, the Company's gross profit increased $284,507, an increase of 96 percent ($139,571) from the same quarter in 2010. The gross profit for the first half of 2011 was $640,916, an increase of 209 percent ($433,287) from the same half year in 2010. This increase was made possible by the Company's continued efforts to maximize revenue from direct labor employees rather than higher costing subcontractors and the reduction of low margin business.
Due to the nature of the Company's fundraising instruments, when the Company's common stock price rises, it results in an increase in the 'derivative liability' (shown on the 'Balance Sheet') and vice versa. The derivative liability increase from period to period is shown as an expense on the 'Statement of Operations' (Other Income). This expense is strictly non-cash and does not mean that the Company owes anything other than shares of stock that are currently trading at a higher price than before. Therefore, to accurately gauge the Company's profitability one can omit this non-cash expense.
The Company reduced loss by 18 percent ($17,301) in the quarter and by 39 percent ($387,061) in the first half of the year as compared to the same periods in 2010 when you exclude the 'fair value adjustment of derivative liability' expense shown on the 'Statement of Operations'.
Product enhancement and software development worth $22,519 took place in the second quarter and will continue in the future. The Company is upgrading its product suite in response to several major potential customers' specifications and overall market needs.
New customer revenue increased by 237 percent or $66,439 from the same quarter in 2010. This increase is from new commercial clients and demonstrates the management team's effectiveness in shifting the Company's focus from the federal government public sector to the more profitable and less restrictive commercial sector.
Management's focus to consolidate and repay its outstanding debt while at the same time not incurring new debt can be seen by the reduction in accounts payable by 11 percent ($153,248) from June 30, 2010. The Company's current outstanding accounts payable is $1,232,458.
Earnings (Loss) per share for the first half of 2011 were $(0.07), a 57 percent improvement as compared to the same period in 2010 ($0.16).
InferX's growth going forward is based upon an aggressive sales development plan; a comprehensive communications and marketing initiative; hiring of additional sales representatives and the expansion of our external business development functions. InferX believes that these combined efforts will significantly improve its revenue and bottom line in upcoming quarters.
For more information contact Stan Altschuler, (212) 838-1510, Investor Relations, Strategic Universal Advisors.
About InferX Corporation
InferX is the market leader in next generation distributed Predictive Analytics and Business Intelligence Products and Solutions. InferX has pioneered and commercialized a powerful, patented suite of advanced data analytical solutions that improve corporate performance across the enterprise in the healthcare, financial services, and government markets. InferX is uniquely capable of delivering secure, real-time, and privacy preserving intelligence and decision support — all without the need to move data. InferX is headquartered in Sterling, VA. Additional information can be found at www.inferx.com.
Certain statements above, in press releases and oral statements by InferX officials are "Forward-Looking Statements" (FLS) according to the Private Securities Litigation Reform Act of 1995 (the "Act"). FLS include statements predictive in nature, depending upon or referring to future events / conditions, including words like "believes," "anticipates," "intends," "plans," "expects," and similar expressions. Statements concerning future financial performance (revenues, earnings, and growth rates), ongoing business strategies / prospects, and future actions, which may be provided by management, are also FLS as defined by the Act. The actual and any future results, performance or achievements of the Company, expressed or implied, may be materially different and vary significantly for different reporting periods due to FLS that involve known and unknown risks and other factors. See InferX's 10-K for 12/31/10 for a discussion of those risks. Management believes that the assumptions made and expectations reflected in the FLS are reasonable. There is no assurance that the underlying assumptions will prove to be correct and the actual future results may be different from expectations expressed above. These statements are not guarantees of future performance. InferX has no specific intention to update these statements.
©2011 InferX Corporation. All rights reserved. All trademarks and company names mentioned are the property of their respective owners.
SOURCE InferX Corporation
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