InferX Corp Announces Financial Results Third Quarter of Fiscal Year 2011

- Gross Profit Margin: Up 113 percent; Up 241 percent in the first nine months

- Gross Profit: Up 75 percent; Up 150 percent in the first nine months

- Operating Income: Up 20 percent in the first nine months

- Net Income: Up 252 percent; Up 27 percent in the first nine months

- Contract Backlog: Up 79 percent to $10.4 M from December 31, 2011

- EPS: Up 209 percent [undiluted] 150 percent [diluted]; Up 63 percent [undiluted & diluted] in the first nine months.

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InferX Corporation

Nov 21, 2011, 05:45 ET

STERLING, Va., Nov. 21, 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 third quarter of fiscal year 2011, which ended September 30, 2011.

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"It has been a tremendous year so far; 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 for implementing a budgeting and financial analysis solution; a new Director of Sales; the continuation of our government business expansion; new enhancements to our technology; significant strides in penetrating the healthcare sector through expected teaming arrangements with major systems integrators; and the preparation for 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 an exciting and higher level of revenues and profitability" said Vijay Suri, President and CEO.

Summary Operating Results

Through aggressive efforts, the Company's gross profit was $283,806, an increase of 75% or $121,257 from the same quarter in 2010. This increase in gross profit created a gross profit margin of 31%, an increase of 113% from the same quarter in 2010.

The gross profit for the first nine months of 2011 was $924,721, an increase of 150% or $554,543 from the same nine months in 2010. This increase in gross profit created a gross profit margin of 33%, an increase of 241% from the same nine month period in 2010. These increases to both gross profit and gross profit margin were 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.

The Company enjoyed a net income of $339,548, an increase of 252% from the net loss in the same quarter 2010. Likewise the Company was able to reduce loss by 27% in the first nine months of 2011 when compared to the same period in 2010. Product enhancement and software development worth $39,519 took place in the third quarter and will continue in the future. The Company is continuing to upgrade its product suite in response to several major potential customers' specifications and overall market needs.

Earnings (Loss) per share for the quarter was $0.02, a 209% improvement from the same period in 2010 and a 129% improvement from June 30, 2011. 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 continue to 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.

Web site: http://www.inferx.com

SOURCE InferX Corporation