Helios and Matheson Reports Preliminary Unaudited Results - Expects to Report $422,000 Profit for FY 2012

Helios and Matheson Reports Preliminary Unaudited Results - Expects to Report
$422,000 Profit for FY 2012

NEW YORK, Jan. 25, 2013 (GLOBE NEWSWIRE) -- Helios and Matheson Information
Technology Inc (Nasdaq:HMNY) (or the "Company"), a 30 year old IT services
organization focused on banking, financial services, insurance, automotive and
healthcare sectors, is providing the following preliminary (unaudited)
information regarding the results of its operations for the fourth quarter of
the year ended December 31, 2012:

For 2012, the Company expects to report a profit of $422,000 or $0.18 per
diluted share as compared to $203,000 or $0.09 per diluted share for 2011.
This represents a 108% increase in profits. The Company expects to close 2012
with profits for each quarter during the year ended December 31, 2012.

The Company expects to end 2012 with cash of approximately $2.9 million, up
from $2 million at the onset of the year. The Company is debt free. The
Company expects to end 2012 with a strong balance sheet, with current assets
and security deposits at about $5.3 million.

The table below represents a summary of the consolidated statements of
Operations for the periods indicated:


                    Three Months Ended                  Twelve Months Ended
(In 000s except per  12/31/12    12/31/11    09/30/12    12/31/12    12/31/11
share amounts)
                    (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Revenue              $3,325    $2,830    $3,404    $12,369   $12,204
Gross Profit         $695      $731      $750      $2,787    $2,526
Income from          $156      $236      $146      $506      $211
operations
Net Income           $164      $239      $143      $422      $203
EPS per basic share  $0.07     $0.10     $0.06     $0.18     $0.09
EPS per diluted      $0.07     $0.10     $0.06     $0.18     $0.09
share

Helios and Mathesonexpects to report net earnings of $164,000 or $0.07 per
diluted share for the fourth quarter compared to $143,000 or $0.06 per diluted
share for the third quarter in 2012.The Company expects to report revenue of
$3.3 million for the fourth quarter, as compared to third quarter revenue of
$3.4 million.

The Company expects that gross margin will be stable in the range of 21-22%
for the fourth quarter of 2012. Selling, general and administrative costs are
expected to be $540,000 in the fourth quarter, which would be a decrease of
11% from the previous quarter level in 2012 and an increase of 9% from the
fourth quarter of 2011, as a result of the Company's ongoing cost management
efforts.

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, automotive
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, 2011 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 AND COMPREHENSIVE INCOME
PRELIMINARY AND UNAUDITED
                                                               
                                                  Year Ended December 31,
                                                  2012          2011
                                                  (unaudited)   
                                                               
Revenues                                           $12,368,920 $12,203,990
Cost of revenues                                   9,582,191    9,677,939
Gross profit                                       2,786,729    2,526,051
Operating expenses:                                             
Selling, general and administrative                2,266,666    2,290,646
Depreciation and amortization                      14,092       23,928
                                                  2,280,758    2,314,574
Profit from operations                             505,971      211,477
Other income (expense):                                         
Early lease termination fee                        (82,548)     --
Interest income                                    9,425        3,669
                                                  (73,123)     3,669
Profit before income taxes                         $432,848    $215,146
Provision for income taxes                         11,155       12,243
Net Profit                                         421,693      202,903
Other comprehensive (loss)/income - foreign        (20,978)     (16,070)
currency adjustment
Comprehensive income                               $400,715    $186,833
                                                               
                                                               
Basic and diluted profit per share                $0.18       $0.09
                                                               


HELIOS AND MATHESON INFORMATION TECHNOLOGY INC.
CONSOLIDATED BALANCE SHEETS
PRELIMINARY AND UNAUDITED
                                                               
                                                  December 31,  December 31,
                                                   2012          2011
                                                  (unaudited)   
ASSETS                                                          
Current Assets:                                                 
Cash and cash equivalents                          $2,861,733  $1,998,158
Accounts receivable- less allowance for doubtful
accounts of $32,421 at December 31, 2012,          1,257,488    1,665,553
and$77,590 at December 31, 2011
Unbilled receivables                               21,490       46,408
Prepaid expenses and other current assets          130,571      83,326
Total current assets                              4,271,282    3,793,445
Property and equipment, net                        52,717       20,685
Security Deposit                                   1,000,000    1,000,000
Deposits and other assets                          100,032      142,673
Total assets                                      $5,424,031  $4,956,803
                                                               
LIABILITIES AND SHAREHOLDERS' EQUITY                             
Current Liabilities:                                            
Accounts payable and accrued expenses              $1,171,249  $1,104,736
                                                               
Total current liabilities                         1,171,249     1,104,736
                                                               
Shareholders' equity:                                           
Preferred stock, $.01 par value; 2,000,000 shares
authorized; no shares issued and outstanding as of --          --
December 31, 2012, and December 31, 2011
Common stock, $.01 par value; 30,000,000 shares
authorized; 2,330,438 issued and outstanding as of 23,304       23,304
December 31, 2012 and as of December 31, 2011
Paid-in capital                                    37,855,740   37,855,740
Accumulated other comprehensive (loss)/income -    (46,910)     (25,932)
foreign currency translation
Accumulated deficit                                (33,579,352) (34,001,045)
Total shareholders' equity                         4,252,782    3,852,067
Total liabilities and shareholders' equity         $5,424,031  $4,956,803



HELIOS AND MATHESON INFORMATION TECHNOLOGY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
PRELIMINARY AND UNAUDITED
                                                                
                                                    Year Ended December 31,
                                                    2012         2011
                                                    (unaudited)  
Cash flows from operating activities:                            
Net profit                                           $421,693   $202,903
Depreciation and amortization                        14,092      23,928
Provision for doubtful accounts                      (45,169)    (135,034)
Gain on Sale of Fixed Assets                         (2,488)     --
Changes in operating assets and liabilities:                     
Accounts receivable                                  453,234     692,933
Unbilled receivables                                 24,918      (46,408)
Prepaid expenses and other current assets            (47,245)    (13,680)
Deposits                                             42,641      (2,970)
Accounts payable and accrued expenses                66,513      (344,396)
Deferred revenue                                     --         (19,504)
Net cash provided by operating activities            928,189     357,772
                                                                
Cash flows from investing activities:                            
Net Purchase of property and equipment               (43,636)    
Net cash used in investing activities                (43,636)    --
Effect of foreign currency exchange rate changes on  (20,978)    (16,070)
cash and cash equivalents
Net increase in cash and cash equivalents            863,575     341,702
Cash and cash equivalents at beginning of period     1,998,158   1,656,456
Cash and cash equivalents at end of period           $2,861,733 $1,998,158
                                                                
Supplemental disclosure of cash flow information:                
Cash paid during the period for interest             $--        $--
Cash paid during the period for income taxes, net of $5,936     $5,350
refunds

CONTACT: Umesh Ahuja
         703 691 0400 Ext 1046
         uahuja@hmny.com
 
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