EX-99.1 2 a08-21568_1ex99d1.htm EX-99.1

Exhibit 99.1

 

NEWS RELEASE

 

 

 

1101 East Arapaho Road

 

Suite 200

 

Richardson TX 75081 USA

 

(972) 234-6400 main

 

Financial Contact

Michael L. Paxton, VP, CFO
972.301.3658, mpaxton@intrusion.com

 

INTRUSION INC. ACHIEVES PROFITABILITY
IN SECOND QUARTER

 

Richardson, Texas – August 13, 2008 – Intrusion Inc. (OTCBB: INTZ), (“Intrusion”) announced today financial results for the three and six months ended June 30, 2008.

 

Intrusion’s net income was $41 thousand in the second quarter 2008 compared to a $0.5 million net loss for the second quarter 2007.

 

Revenue for the second quarter 2008 was $1.3 million compared to $1.0 million for the second quarter 2007.

 

Gross profit margin was 66 percent of revenue in the second quarter of 2008 compared to 61 percent of revenue in the second quarter of 2007.

 

Intrusion’s second quarter 2008 operating expenses were $0.8 million, compared to $1.1 million for the second quarter 2007.

 

As of June 30, 2008, Intrusion reported cash and cash equivalents of $0.2 million, working capital of $(1.3) million and debt of $1.2 million.

 

 “Revenue increased 28%, gross profit margin increased from 61% to 66% and operating expenses decreased 31% in the second quarter of 2008 compared to the second quarter of 2007.  These positive achievements resulted in net income for the second quarter of 2008,” stated G. Ward Paxton, Chairman, President and CEO of Intrusion.  “The growth in revenue and profit in the second quarter was primarily driven by the $2.5 million of orders booked in the first half of the year.  We entered the third quarter with a backlog of $1.0 million,” 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., CDT today.  Interested investors can access the call at 1-800-399-2043 (if outside the United States, 1-706-634-5518).  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 20, 2008 by calling 1-800-642-1687 (if outside the United States, 1-706-645-9291).  At the replay prompt, enter conference identification number 58845317.  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 regulated information compliance, entity identification systems, data privacy protection products, and network intrusion prevention and detection solutions.  In addition, Intrusion offers deployment technologies along with security services for the information-driven economy.  Intrusion’s product families include the Compliance CommanderÔ for regulated information compliance, data privacy protection and identity theft prevention, TraceCop™ identification and location service, Intrusion SpySnareÔ for real-time inline blocking of spyware and unwanted P2P applications, and Intrusion SecureNetÔ 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, other than historical information, may include forward-looking statements regarding future events or the future financial performance of the Company.  Such statements include, without limitations, statements regarding future revenue growth and profitability, 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, including but not limited to the following: the difficulties in forecasting future sales caused by current economic and market conditions, the effect of military actions on government and corporate spending on information security products, spending patterns of, and appropriations to, U.S. government departments, the impact of our cost reduction programs and our refocused product line, the difficulties and uncertainties in successfully developing and introducing new products in emerging markets, market acceptance of our products, the impact of our sustained losses on our ability to successfully operate and grow our business, our stock price and the recent loss of our Nasdaq listing, our ability to generate sufficient cash flow or obtain additional financing on acceptable terms in order to fund ongoing liquidity needs, the highly competitive market for our products, the effects of sales and implementation cycles for our products on our quarterly results, difficulties in accurately estimating market growth, the consolidation of the information security industry, the impact of changing economic conditions, business conditions in the information security industry, our ability to manage acquisitions effectively, the impact of market peers and their products as well as risks concerning future technology and others identified in our Annual Report on Form 10-KSB, as amended, and other Securities and Exchange Commission filings. These filings can be obtained by contacting Intrusion Investor Relations.

 

2



 

INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands except par value amounts)

 

 

 

June 30,

 

December 31,

 

 

 

2008

 

2007

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

212

 

$

362

 

Accounts receivable, net of allowance for doubtful accounts of $40 in 2008 and 2007

 

554

 

110

 

Inventories, net

 

83

 

146

 

Prepaid expenses

 

64

 

75

 

Total current assets

 

913

 

693

 

 

 

 

 

 

 

Property and equipment, net

 

121

 

144

 

Other assets

 

39

 

39

 

TOTAL ASSETS

 

$

1,073

 

$

876

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Line of credit

 

$

 

$

100

 

Loan payable to officer

 

1,180

 

 

Accounts payable and accrued expenses

 

736

 

688

 

Deferred revenue

 

266

 

312

 

Total current liabilities

 

2,182

 

1,100

 

 

 

 

 

 

 

Stockholders’ Deficit:

 

 

 

 

 

Preferred stock, $.01 par value:

 

 

 

 

 

Authorized shares – 5,000

 

 

 

 

 

Series 1 shares issued and outstanding – 260

 

 

 

 

 

Liquidation preference of $1,347 as of June 30, 2008

 

918

 

918

 

Series 2 shares issued and outstanding – 460

 

 

 

 

 

Liquidation preference of $1,184 as of June 30, 2008

 

724

 

724

 

Series 3 shares issued and outstanding – 354 in 2008

 

 

 

 

 

Liquidation preference of $795 as of June 30, 2008

 

504

 

504

 

 

 

 

 

 

 

Common stock, $.01 par value:

 

 

 

 

 

Authorized shares – 80,000

 

 

 

 

 

Issued shares – 11,648

 

 

 

 

 

Outstanding shares – 11,638

 

116

 

116

 

Common stock held in treasury, at cost – 10 shares

 

(362

)

(362

)

Additional paid-in capital

 

55,475

 

55,527

 

Accumulated deficit

 

(58,305

)

(57,472

)

Accumulated other comprehensive loss

 

(179

)

(179

)

Total stockholders’ deficit

 

(1,109

)

(224

)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$

1,073

 

$

876

 

 

3



 

INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share amounts)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,283

 

$

1,003

 

$

1,746

 

$

2,095

 

Cost of revenue

 

440

 

393

 

620

 

814

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

843

 

610

 

1,126

 

1,281

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

361

 

504

 

732

 

1,019

 

Research and development

 

195

 

388

 

710

 

811

 

General and administrative

 

230

 

248

 

496

 

475

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

57

 

(530

)

(812

)

(1,024

)

 

 

 

 

 

 

 

 

 

 

Interest income (expense), net

 

(16

)

(1

)

(22

)

1

 

Other income

 

 

1

 

 

1

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

41

 

(530

)

(834

)

(1,022

)

Income tax provision

 

 

 

 

 

Net income (loss)

 

41

 

(530

)

(834

)

(1,022

)

Preferred stock dividends accrued

 

(40

)

(43

)

(105

)

(86

)

Net income (loss) attributable to common stockholders

 

$

1

 

$

(573

)

$

(939

)

$

(1,108

)

Net income (loss) per share attributable to common stockholders
(basic and diluted)

 

$

0.00

 

$

(0.06

)

$

(0.08

)

$

(0.12

)

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

- Basic and Diluted

 

11,638

 

9,271

 

11,638

 

8,873

 

 

4