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Helios and Matheson Reports $143,000 Net Income for Q3 2012

NEW YORK, Nov. 5, 2012 (GLOBE NEWSWIRE) -- Helios and Matheson Information Technology Inc (the "Company") (Nasdaq:HMNY), a 30 year old IT services organization focused on the banking, financial services and insurance sectors, reported a net income of $143,000 or $0.06 per diluted share (EPS) for the third quarter of 2012 compared to net income of $64,000 or $0.03 per diluted share for Q3 2011, an increase of 123% in Net Income and 100% in EPS.

Net Income during the third quarter grew by 42% while EPS increased by 50% Q on Q. The Company reported revenue of $3.4 million for the third quarter, as compared to $3 million in the second quarter, an increase of 15% Q on Q.

Management believes that the operations of the Company are gathering momentum and that the Company is continuing to gain financial strength, both of which are reflected in the increases in revenue and profit. The Company closed the third quarter of 2012 with cash of approximately $2 million, up from $1.8 million at the end of the third quarter of 2011. The Company continues to be debt free. The Company closed the third quarter of 2012 with current assets and security deposits at about $5.3 million.

Three Months Ended Nine Months Ended
(In 000s except per share amounts) 09/30/12 09/30/11 6/31/2012 09/30/12 09/30/11
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenue $ 3,404 $ 3,135 $ 2,960 $ 9,044 $ 9,374
Gross Profit $ 750 $ 629 $ 701 $ 2,091 $ 1,795
Income/(loss) from operations $ 146 $ 66 $ 102 $ 350 $ (24)
Net Income/(loss) $ 143 $ 64 $ 101 $ 258 $ (36)
EPS per basic share $ 0.06 $ 0.03 $ 0.04 $ 0.11 $ (0.02)
EPS per diluted share $ 0.06 $ 0.03 $ 0.04 $ 0.11 $ (0.02)

About Helios and Matheson Information Technology Inc

Helios and Matheson Information Technology Inc is a 30 year old IT services organization focused on the 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
Nine Months Ended Three Months Ended
September 30, September 30,
2012 2011 2012 2011
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues $ 9,043,693 $ 9,374,390 $ 3,404,099 $ 3,135,315
Cost of revenues 6,952,427 7,579,402 2,654,423 2,506,027
Gross profit 2,091,266 1,794,988 749,676 629,288
Operating expenses:
Selling, general & administrative 1,729,155 1,800,669 600,618 557,554
Depreciation & amortization 12,022 18,495 2,703 5,330
1,741,177 1,819,164 603,321 562,884
Income/(loss) from operations 350,089 (24,176) 146,355 66,404
Other income(expense):
Early lease termination fee (82,548) -- -- --
Interest income-net 8,510 2,712 2,414 1,031
(74,038) 2,712 2,414 1,031
Income/(loss) before income taxes 276,051 (21,464) 148,769 67,435
Provision for income taxes 18,000 14,500 6,000 3,000
Net income/(loss) 258,051 (35,964) 142,769 64,435
Other comprehensive loss - foreign currency adjustment (2,264) (8,563) 5,526 (5,051)
Comprehensive income/(loss) $ 255,787 $ (44,527) $ 148,295 $ 59,384
Net income/(loss) per share
Basic $ 0.11 $ (0.02) $ 0.06 $ 0.03
Diluted $ 0.11 $ (0.02) $ 0.06 $ 0.03
See accompanying notes to consolidated financial statements.
HELIOS AND MATHESON INFORMATION TECHNOLOGY INC.
CONSOLIDATED BALANCE SHEETS
September 30,
2012
December 31,
2011
ASSETS (unaudited)
Current Assets:
Cash and cash equivalents $ 2,015,986 $ 1,998,158
Accounts receivable- less allowance for doubtful accounts of $71,472 at September 30, 2012, and $77,590 at December 31, 2011 2,073,162 1,665,553
Unbilled receivables 34,400 46,408
Prepaid expenses and other current assets 173,210 83,326
Total current assets 4,296,758 3,793,445
Property and equipment, net 54,215 20,685
Security Deposit 1,000,000 1,000,000
Deposits and other assets 100,032 142,673
Total assets $ 5,451,005 $ 4,956,803
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 1,343,151 $ 1,104,736
Total current liabilities 1,343,151 1,104,736
Shareholders' equity:
Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued and outstanding as of September 30, 2012, and December 31, 2011 -- --
Common stock, $.01 par value; 30,000,000 shares authorized; 2,330,438 issued and outstanding as of September 30, 2012, and December 31, 2011 23,304 23,304
Paid-in capital 37,855,740 37,855,740
Accumulated other comprehensive Loss - foreign currency translation (28,196) (25,932)
Accumulated deficit (33,742,994) (34,001,045)
Total shareholders' equity 4,107,854 3,852,067
Total liabilities and shareholders' equity $ 5,451,005 $ 4,956,803
See accompanying notes to consolidated financial statements.
HELIOS AND MATHESON INFORMATION TECHNOLOGY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30,
2012 2011
(unaudited) (unaudited)
Cash flows from operating activities:
Net profit/(loss) $ 258,051 $ (35,964)
Adjustments to reconcile net profit/(loss) to net cash provided/(used) in operating activities, net of acquired assets:
Depreciation and amortization 12,022 18,495
Provision for doubtful accounts (6,118) 103,579
Gain on sale of fixed asset (2,488) --
Changes in operating assets and liabilities:
Accounts receivable (401,491) 383,253
Deposits 42,641
Unbilled receivables 12,008 (77,713)
Prepaid expenses and other current assets (89,884) (48,457)
Accounts payable and accrued expenses 238,413 (130,655)
Deferred revenue -- (19,504)
Net cash provided by operating activities 63,154 193,033
Cash flows from investing activities:
Net Purchase of property and equipment (43,062)
Net cash used in investing activities (43,062) --
Effect of foreign currency exchange rate changes on cash and cash equivalents (2,264) (8,563)
Net increase in cash and cash equivalents 17,828 184,470
Cash and cash equivalents at beginning of period 1,998,158 1,656,456
Cash and cash equivalents at end of period $ 2,015,986 $ 1,840,926
Supplemental disclosure of cash flow information:
Cash paid during the period for interest $ -- $ --
Cash paid during the period for income taxes - net of refunds $ 5,936 $ 8,018
See accompanying notes to consolidated financial statements
CONTACT: Umesh Ahuja 703 691 0400 Ext 1046 uahuja@hmny.comSource:Helios and Matheson Information Technology Inc.