RICHARDSON, Texas, Aug. 14, 2018 (GLOBE NEWSWIRE) -- Intrusion Inc. (OTCQB: INTZ), (“Intrusion”) announced today
financial results for the three and six months ended June 30, 2018.
Intrusion’s net income was $474 thousand in the second quarter 2018, compared to a net loss of $438 thousand in
the second quarter 2017 and net income of $346 thousand in the first quarter 2018.
Revenue for the second quarter 2018 was $2.4 million compared to $1.5 million in the second quarter 2017 and
$2.3 million for the first quarter 2018.
Gross profit margin was 61 percent of revenue in the second quarter of 2018 compared to 59 percent in the second
quarter 2017 and 62 percent in the first quarter 2018.
Intrusion’s second quarter 2018 operating expenses were $0.9 million compared to $1.3 million in the second
quarter 2017 and $1.0 million in the first quarter 2018.
As of June 30, 2018, Intrusion reported cash and cash equivalents of $0.4 million, a working capital deficiency
of $1.0 million and debt of $1.9 million.
“We were able to reduce our debt to $1.9 million at the end of second quarter 2018 compared to $3.0 million at
the end of second quarter 2017 and $3.0 million at end of first quarter 2018. Orders for the second quarter 2018 totaled $2.0
million. Also, we are announcing today the receipt of a $5.5 million order within the last several days,” stated G. Ward
Paxton, President and CEO of Intrusion.
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., CDT today. Interested investors can access the call at 1-877-258-4925.
For those unable to participate in the live conference call, a replay will be accessible beginning today at 7:00 P.M., CDT until
August 21, 2018 by calling 1-855-859-2056. At the replay prompt, enter conference identification number 6884139.
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, high speed data mining, cybercrime and advanced
persistent threat detection products. Intrusion’s product families include TraceCop™ for identity discovery and disclosure,
and Savant™ for network data mining and advanced persistent threat 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. We develop, market and support a family of entity identification, high speed
data mining, cybercrime and advanced persistent threat detection products.
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) |
| |
|
|
|
| |
June 30, |
|
|
December 31, |
|
| |
2018 |
|
|
2017 |
|
| ASSETS |
|
|
|
| |
|
|
|
| Current Assets: |
|
|
|
|
|
|
|
| Cash and cash equivalents |
$ |
376 |
|
|
$ |
224 |
|
| Accounts receivable |
|
1,068 |
|
|
|
962 |
|
| Inventories, net |
|
— |
|
|
|
15 |
|
| Prepaid expenses |
|
418 |
|
|
|
89 |
|
| Total current assets |
|
1,862 |
|
|
|
1,290 |
|
| |
|
|
|
|
|
|
|
| Property and equipment, net |
|
223 |
|
|
|
124 |
|
| Other assets |
|
38 |
|
|
|
38 |
|
| TOTAL ASSETS |
$ |
2,123 |
|
|
$ |
1,452 |
|
| |
|
|
|
| LIABILITIES AND STOCKHOLDERS’
DEFICIT |
|
|
|
| |
|
|
|
| Current Liabilities: |
|
|
|
| Accounts payable and accrued expenses |
$ |
1,379 |
|
|
$ |
1,182 |
|
| Dividends payable |
520 |
|
|
447 |
|
| Obligations under capital lease, current portion |
56 |
|
|
44 |
|
| Deferred revenue |
947 |
|
|
406 |
|
| Total current liabilities |
2,902 |
|
|
2,079 |
|
| |
|
|
|
| Loan payable to officer |
1,815 |
|
|
2,865 |
|
| Obligations under capital lease, noncurrent portion |
60 |
|
|
17 |
|
| |
|
|
|
| Stockholders' Deficit: |
|
|
|
| Preferred stock, $.01 par value: |
|
|
|
| Authorized shares – 5,000 |
|
|
|
| Series 1 shares issued and outstanding – 200 |
|
|
|
| Liquidation preference of $1,188 in 2018 and $1,163 in
2017 |
707 |
|
|
707 |
|
| Series 2 shares issued and outstanding – 460 |
|
|
|
|
|
| Liquidation preference of $1,356 in 2018 and $1,328 in
2017 |
724 |
|
|
724 |
|
| Series 3 shares issued and outstanding – 289 |
|
|
|
|
|
| Liquidation preference of $744 in 2018 and $728 in
2017 |
412
|
|
|
412 |
|
| Common stock, $.01 par value: |
|
|
|
| Authorized shares – 80,000 |
|
|
|
| Issued shares – 13,027 in 2018 and 12,808 in 2017 |
|
|
|
|
|
| Outstanding shares – 13,017 in 2018 and 12,798 in
2017 |
130 |
|
|
128 |
|
| Common stock held in treasury, at cost – 10 shares |
(362 |
) |
|
(362 |
) |
| Additional paid-in capital |
56,551 |
|
|
56,518 |
|
| Accumulated deficit |
(60,709 |
) |
|
(61,529 |
) |
| Accumulated other comprehensive loss |
(107 |
) |
|
(107 |
) |
| Total stockholders' deficit |
(2,654 |
) |
|
(3,509 |
) |
| TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT |
$ |
2,123 |
|
|
$ |
1,452 |
|
| |
|
|
|
|
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INTRUSION INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts) |
| |
|
|
|
|
|
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|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
| |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
| Revenue |
|
$ |
2,369 |
|
$ |
1,543 |
|
$ |
4,632 |
|
$ |
3,102 |
|
| Cost of revenue |
|
926 |
|
632 |
|
1,778 |
|
1,215 |
|
| |
|
|
|
|
|
|
|
|
|
| Gross profit |
|
1,443 |
|
911 |
|
2,854 |
|
1,887 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
| Sales and marketing |
|
431 |
|
415 |
|
845 |
|
776 |
|
| Research and development |
|
200 |
|
594 |
|
503 |
|
1,179 |
|
| General and administrative |
|
290 |
|
282 |
|
585 |
|
613 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating income (loss) |
|
522 |
|
(380 |
) |
921 |
|
(681 |
) |
| |
|
|
|
|
|
|
|
|
|
| Interest expense, net |
|
(48 |
) |
(58 |
) |
(101 |
) |
(108 |
) |
| |
|
|
|
|
|
|
|
|
|
| Income (loss) before income taxes |
|
474 |
|
(438 |
) |
820 |
|
(789 |
) |
| |
|
|
|
|
|
|
|
|
|
| Income tax provision |
|
— |
|
— |
|
— |
|
— |
|
| |
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
474 |
|
$ |
(438 |
) |
$ |
820 |
|
$ |
(789 |
) |
| |
|
|
|
|
|
|
|
|
|
| Preferred stock dividends accrued |
|
(35 |
) |
(35 |
) |
(69 |
) |
(69 |
) |
| Net income (loss) attributable to common stockholders |
|
$ |
439 |
|
$ |
(473 |
) |
$ |
751 |
|
$ |
(858 |
) |
| |
|
|
|
|
|
|
|
|
|
| Net income (loss) per share attributable to common
stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.03 |
|
$ |
(0.04 |
) |
$ |
0.06 |
|
$ |
(0.07 |
) |
| Diluted |
|
$ |
0.03 |
|
$ |
(0.04 |
) |
$ |
0.05 |
|
$ |
(0.07 |
) |
| |
|
|
|
|
|
|
|
|
|
| Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
| Basic |
|
13,017 |
|
12,798 |
|
12,982 |
|
12,772 |
|
| Diluted |
|
14,791 |
|
12,798 |
|
14,756 |
|
12,772 |
|
