NEW YORK, May 16, 2012 (GLOBE NEWSWIRE) -- Helios and Matheson Information Technology Inc. (Nasdaq:HMNY) ("HMNY" or the "Company"), a 30 year old IT services organization focused on banking, financial services and insurance sectors, reported a profit from operations of $102,000 and net income of $14,000 or $0.01 per diluted share and revenue of $2.7 million for Q1 2012 compared to net loss of ($112,000) and ($117,000) or ($0.05) per diluted share for Q1 2011. Selling, general and administrative costs are $539,000 in the first quarter, a decrease of 26% from Q1 2011, as a result of the Company's ongoing cost management effort.
Management believes that the Company is continuing to gain financial strength. The Company closed the first quarter of 2012 with cash of approximately $1.94 million, up from $1.2 million at the end of first quarter of 2011. The Company continues to be debt free. The Company closed the first quarter of 2012 with current assets and security deposits at about $4.7 million.
| Three Months Ended | ||
| (In 000s except per share amounts) | 03/31/12 | 03/31/11 |
| (Unaudited) | (Unaudited) | |
| Revenue | $2,679 | $3,249 |
| Gross Profit | $640 | $619 |
| Income/(loss) from operations | $102 | $(112) |
| Net Income/(loss) | $14 | $(117) |
| EPS per basic share | $0.01 | $(0.05) |
| EPS per diluted share | $0.01 | $(0.05) |
About Helios and Matheson Information Technology Inc.
Helios and Matheson Information Technology Inc. is a 30 year old IT services organization focused on banking, financial services, insurance and healthcare sectors. Its common stock is traded on the Nasdaq Global Market under the ticker symbol "HMNY".
Forward Looking Statements
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in the Helios and Matheson Information Technology Inc. Annual Report on Form 10-K for the year ended December 31, 2012 and more recent reports and registration statements filed with the SEC. Helios and Matheson Information Technology Inc. is under no obligation (and expressly disclaims any such obligation) to update or alter such forward-looking statements, whether as a result of new information, future events or otherwise.
| HELIOS AND MATHESON INFORMATION TECHNOLOGY INC. | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| Three Months Ended | ||
| March 31, | ||
| 2012 | 2011 | |
| (unaudited) | (unaudited) | |
| Revenues | $ 2,679,131 | $ 3,249,012 |
| Cost of revenues | 2,038,635 | 2,629,825 |
| Gross profit | 640,496 | 619,187 |
| Operating expenses: | ||
| Selling, general & administrative | 533,910 | 724,652 |
| Depreciation & amortization | 5,018 | 6,818 |
| 538,928 | 731,470 | |
| Profit/(Loss) from operations | 101,568 | (112,283) |
| Other income(expense): | ||
| Early lease termination fee | (82,548) | -- |
| Interest income-net | 923 | 773 |
| (81,625) | 773 | |
| Profit/(Loss) before income taxes | 19,943 | (111,510) |
| Provision for income taxes | 6,000 | 5,500 |
| Net Profit/(Loss) | 13,943 | (117,010) |
| Other comprehensive Income/(loss) - foreign currency adjustment | 1,735 | (1,226) |
| Comprehensive Income/(loss) | $ 15,678 | $ (118,236) |
| Net profit/(loss) per share | ||
| Basic & Diluted | $ 0.01 | $ (0.05) |
| See accompanying notes to consolidated financial statements. | ||
| HELIOS AND MATHESON INFORMATION TECHNOLOGY INC. | ||
| CONSOLIDATED BALANCE SHEETS | ||
| March 31, | December 31, | |
| 2012 | 2011 | |
| ASSETS | (unaudited) | |
| Current Assets: | ||
| Cash and cash equivalents | $ 1,947,490 | $ 1,998,158 |
| Accounts receivable- less allowance for doubtful accounts of $78,495 at March 31, 2012, and $77,590 at December 31, 2011 | 1,418,097 | 1,665,553 |
| Unbilled receivables | 116,891 | 46,408 |
| Prepaid expenses and other current assets | 167,347 | 83,326 |
| Total current assets | 3,649,825 | 3,793,445 |
| Property and equipment, net | 16,591 | 20,685 |
| Security Deposit | 1,000,000 | 1,000,000 |
| Deposits and other assets | 104,743 | 142,673 |
| Total assets | $ 4,771,159 | $ 4,956,803 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable and accrued expenses | $ 903,415 | $ 1,104,736 |
| Total current liabilities | 903,415 | 1,104,736 |
| Shareholders' equity: | ||
| Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued and outstanding as of March 31, 2012, and December 31, 2011 | -- | -- |
| Common stock, $.01 par value; 30,000,000 shares authorized; 2,330,438 issued and outstanding as of March 31, 2012 and December 31, 2011 | 23,304 | 23,304 |
| Paid-in capital | 37,855,740 | 37,855,740 |
| Accumulated other comprehensive income (Loss) - foreign currency translation | (24,197) | (25,932) |
| Accumulated deficit | (33,987,103) | (34,001,045) |
| Total shareholders' equity | 3,867,744 | 3,852,067 |
| Total liabilities and shareholders' equity | $ 4,771,159 | $ 4,956,803 |
| See accompanying notes to consolidated financial statements. | ||