Integrated Information Systems, the Tempe-based information technology consulting firm that barely survived the dot-com meltdown, has announced its second consecutive quarterly profit.
IIS officials said the second straight quarter in the black indicates the company has turned around.
Net income for the fourth quarter ended Dec. 31 was $427,000, or 12 cents a share, compared with a profit of $900,000 in the previous quarter and a loss of $12.4 million in the same quarter the previous year.
Revenue was $3.4 million, down from $6 million in the same quarter of 2001. For the year, the company lost $11.8 million, or $3.53 a share, on revenue of $23.3 million.
Before the third quarter of last year, the company had not had a profitable quarter since the third quarter of 1999.
Despite the improved performance, IIS was relegated Thursday to the Over the Counter stock market from the NASDAQ Small Cap market because it failed to meet the minimum equity requirement for listing among the NASDAQ small caps.
Senior vice president and chief financial officer Don Megrath said the move to the Over the Counter market is not likely to have a major effect on the company.
"The OTC market is a great market, and it makes sense for a company our size," he said. "We will continue to do the block and tackle work of running the company, serving our customers and finding new customers. We will later apply to get back on the NASDAQ market once it’s warranted."
IIS announced a financial restructuring program in October that allowed the firm to greatly reduce its costs without having to file for protection from creditors under the federal bankruptcy code.
Chief executive Jim Garvey said revenue will be flat to down in the near term, but he added "we . . . feel confident that we now have the right expense structure to weather this environment while building for the future."
IIS helps midsize companies and organizations perform a variety of information technology tasks such as server consolidation, moving desktop and server operating systems and security assessments and implementation. The company has about 110 employees and contractors.