RICHARDSON, Texas, Nov. 13, 2014 /PRNewswire/ -- Intrusion Inc. (OTCQB: INTZ), ("Intrusion") announced today financial results for the three and nine months ended September 30, 2014.
Intrusion's net income was $147 thousand in the third quarter 2014 compared to a net income of $173 thousand in the third quarter 2013.
Intrusion's revenue for the third quarter 2014 was $2.0 million compared to $2.0 million in the third quarter 2013.
Gross profit was $1.3 million or 65 percent of revenue in the third quarter of 2014 compared to $1.2 million or 60% of revenue in the third quarter 2013.
Intrusion's third quarter 2014 operating expenses were $1.2 million compared to $1.0 million in the third quarter 2013.
As of September 30, 2014, Intrusion reported cash and cash equivalents of $1.4 million, a working capital deficiency of $1.1 million and debt of $1.8 million.
"During the third quarter of 2014, we booked a total of $3.3 million of orders covering 10 different projects," stated G. Ward Paxton, President and CEO of Intrusion. "Included in the orders was $0.7 million of our new Savant product. Revenue for Savant was $0.5 million in the quarter. Savant is focused in the newest security area, Advanced Persistent Threats (APT)," Paxton concluded.
Intrusion's management will host its regularly scheduled quarterly conference call to discuss the Company's financial and operational progress at 4:00 P.M., CST today. Interested investors can access the call at 1-877-258-4925 (if outside the United States, 1-973-500-2152). For those unable to participate in the live conference call, a replay will be accessible beginning today at 7:00 P.M., CST until November 20, 2014 by calling 1-855-859-2056 (if outside the United States, 1-404-537-3406). At the replay prompt, enter conference identification number 31791974. Additionally, a live and archived audio webcast of the conference call will be available at www.intrusion.com.
About Intrusion Inc.
Intrusion Inc. is a global provider of entity identification systems, advanced persistent threat identification, high speed data mining, regulated information compliance, data leak prevention and data privacy protection, and network intrusion prevention and detection products. Intrusion's product families include TraceCop™ for entity identification, Savant™ for advanced persistent threats and network data mining, Compliance Commander™ for regulated information compliance, data leak prevention and data privacy protection, and Intrusion SecureNet for network intrusion prevention and detection. Intrusion's products help protect critical information assets by quickly detecting, protecting, analyzing and reporting attacks or misuse of classified, private and regulated information for government and enterprise networks. For more information, please visit www.intrusion.com.
This release may contain certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. Such statements include, without limitations, statements regarding future revenue growth and profitability, the difficulties in forecasting future sales caused by current economic and market conditions, the effects of sales and implementation cycles for our products on our quarterly results and difficulties in accurately estimating market growth, the effect of military actions on government and corporate spending on information security products, spending patterns of, and appropriations to, U.S. government departments, as well as other statements. These statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements. The factors that could cause actual results to differ materially from expectations are detailed in the Company's most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors."
Financial Contact
Michael L. Paxton, VP, CFO
972.301.3658, mpaxton@intrusion.com
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INTRUSION INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except par value amounts)
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
2014
|
|
2013
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
Cash and cash equivalents
|
$
|
1,376
|
|
$
|
1,139
|
|
Accounts receivable
|
1,015
|
|
816
|
|
Inventories, net
|
12
|
|
19
|
|
Prepaid expenses
|
142
|
|
95
|
|
Total current assets
|
2,545
|
|
2,069
|
|
|
|
|
|
Property and equipment, net
|
396
|
|
297
|
|
Other assets
|
63
|
|
51
|
|
TOTAL ASSETS
|
$
|
3,004
|
|
$
|
2,417
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
Accounts payable and accrued expenses
|
$
|
966
|
|
$
|
998
|
|
Dividends payable
|
32
|
|
437
|
|
Obligations under capital lease, current portion
|
145
|
|
106
|
|
Deferred revenue
|
966
|
|
139
|
|
Loan payable to officer
|
1,530
|
|
—
|
|
Total current liabilities
|
3,639
|
|
1,680
|
|
|
|
|
|
Loan payable to officer
|
—
|
|
1,530
|
|
Obligations under capital lease, noncurrent portion
|
126
|
|
67
|
|
|
|
|
|
Stockholders' Deficit:
|
|
|
|
|
Preferred stock, $.01 par value:
|
|
|
|
|
Authorized shares – 5,000
|
|
|
|
|
Series 1 shares issued and outstanding–200 in 2014 and 220 in 2013
|
|
|
|
|
Liquidation preference of $1,025 as of September 30, 2014
|
708
|
|
778
|
|
Series 2 shares issued and outstanding–460 in 2014 and 2013
Liquidation preference of $1,155 as of September 30, 2014
|
724
|
|
724
|
|
Series 3 shares issued and outstanding–289 in 2014 and 354 in 2013
Liquidation preference of $633 as of September 30, 2014
|
411
|
|
504
|
|
|
|
|
|
Common stock, $.01 par value:
|
|
|
|
|
Authorized shares – 80,000
|
|
|
|
|
Issued shares – 12,436 in 2014 and 12,182 in 2013
Outstanding shares – 12,426 in 2014 and 12,172 in 2013
|
124
|
|
122
|
|
Common stock held in treasury, at cost – 10 shares
|
(362)
|
|
(362)
|
|
Additional paid-in capital
|
56,310
|
|
55,905
|
|
Accumulated deficit
|
(58,569)
|
|
(58,424)
|
|
Accumulated other comprehensive loss
|
(107)
|
|
(107)
|
|
Total stockholders' deficit
|
(761)
|
|
(860)
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
|
$
|
3,004
|
|
$
|
2,417
|
|
INTRUSION INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Revenue
|
|
$
|
2,030
|
|
$
|
1,975
|
|
$
|
5,429
|
|
$
|
5,825
|
|
Cost of revenue
|
|
707
|
|
790
|
|
1,899
|
|
2,151
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
1,323
|
|
1,185
|
|
3,530
|
|
3,674
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
470
|
|
336
|
|
1,245
|
|
1,083
|
|
Research and development
|
|
443
|
|
361
|
|
1,442
|
|
1,138
|
|
General and administrative
|
|
293
|
|
281
|
|
959
|
|
921
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
117
|
|
207
|
|
(116)
|
|
532
|
|
Interest expense, net
|
|
(24)
|
|
(34)
|
|
(83)
|
|
(97
|
|
Other income
|
|
54
|
|
—
|
|
54
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
147
|
|
173
|
|
(145)
|
|
435
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
147
|
|
$
|
173
|
|
$
|
(145)
|
|
$
|
435
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends accrued
|
|
(35)
|
|
(38)
|
|
(106)
|
|
(113
|
|
Net income (loss) attributable to common stockholders
|
|
$
|
112
|
|
$
|
135
|
|
$
|
(251)
|
|
$
|
322
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share attributable to
common stockholders: Basic
|
|
$
|
0.01
|
|
$
|
0.01
|
|
$
|
(0.02)
|
|
$
|
0.03
|
|
Diluted
|
|
$
|
0.01
|
|
$
|
0.01
|
|
$
|
(0.02)
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
Basic
|
|
12,426
|
|
12,172
|
|
12,379
|
|
12,172
|
|
Diluted
|
|
15,485
|
|
14,532
|
|
12,379
|
|
14,532
|
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SOURCE Intrusion Inc.