NEW YORK, New York, February 16, 2012 — Helios and Matheson Information Technology Inc (“HMNY” or the “Company”), a 30 year old IT services organization focused on banking, financial services and insurance sectors, is providing the following information regarding the results of its operations for the fourth quarter of the year ended December 31, 2011: For 2011, the Company expects to report a profit of $203,000 or $0.09 per diluted share and revenue of $12.2 million. Management believes that the Company is continuing to gain financial strength. The Company expects to end 2011 with cash of approximately $2 million, up from $1.7 million at the onset of the year. The Company is debt free. The Company expects to end 2011 with a strong balance sheet, with current assets and Security deposits at about $4.8 million.

Helios and Matheson expects to report net earnings of $239,000 or $0.10 per diluted share for the fourth quarter compared to $64,000 or $0.03 per diluted share for the third quarter in 2011 and a net loss of ($161,000) or ($0.07) per diluted share for Q4 2010.  The Company expects to report revenue of $2.8 million for the fourth quarter, as against third quarter revenue of $3.1 million, and 2010 fourth quarter level of $3.4 million.
The Company’s expects that gross margin will increase from 20 percent in the third quarter to 25.8 percent for the fourth quarter of 2011. The Company expects gross margin for 2011 to be 20.7 percent, approximately the same as for 2010. Selling, general and administrative costs are expected to be $495,000 in the fourth quarter, which would be a decrease of 12 percent from the previous quarter level in 2011 and a decrease of 36 percent from the fourth quarter of 2010, as a result of the Company’s ongoing cost management effort.

Contact:
Umesh Ahuja
703 691 0400 Ext 1046
uahuja@hmna.com