EX-99.1 2 a10-3508_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. REACHES $0.4 MILLION NET INCOME IN FOURTH QUARTER, PROFITABLE FOR THE YEAR 2009

 

Richardson, Texas — February 10, 2010 — Intrusion Inc. (OTCBB: INTZ), (“Intrusion”) today announced financial results for the quarter and year ended December 31, 2009.  Intrusion achieved net income for the third consecutive quarter in the fourth quarter 2009 and achieved net income for the year 2009.

 

Intrusion’s net income was $0.4 million in the fourth quarter 2009, compared to a net income of $8 thousand for the fourth quarter 2008.   Net income was $0.2 million for the year 2009, compared to a net loss of $0.8 million for the year 2008.

 

Revenue for the fourth quarter 2009 was $1.5 million, compared to $1.2 million for the fourth quarter 2008.  Revenue for the year 2009 was $4.9 million, compared to $4.1 million in 2008.

 

Gross profit margin was 66% of revenue in the fourth quarter of 2009, compared to 68% of revenue in the fourth quarter 2008.   For the year 2009, the gross profit margin was 66%, compared to 67% in 2008.

 

Intrusion’s fourth quarter 2009 operating expenses were $0.6 million down from $0.8 million in the fourth quarter 2008.  For the year 2009, operating expenses were $3.0 million, down from $3.5 million in 2008.

 

As of December 31, 2009, Intrusion reported cash and cash equivalents of $0.5 million, a working capital deficiency of $0.2 million and debt of $1.0 million.

 

“2009 was a good year for Intrusion.  We returned to profitability for the year and achieved a profit for the third consecutive quarter as a result of increased revenue and reduced expenses,” stated G. Ward Paxton, Chairman, President and CEO of Intrusion.  “We are working hard to close more contracts and keep this positive trend going,” 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 1-800-399-2043 (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., CST until February 17, 2010 by calling 1-800-642-1687 (if outside the United States, 1-706-645-9291).  At the replay prompt, enter conference identification number 55916057.  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, 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, the 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, 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-K, 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)

 

 

 

December 31,

 

December 31,

 

 

 

2009

 

2008

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

519

 

$

554

 

Accounts receivable

 

351

 

341

 

Inventories, net

 

7

 

20

 

Prepaid expenses

 

68

 

56

 

Total current assets

 

945

 

971

 

 

 

 

 

 

 

Property and equipment, net

 

146

 

169

 

Other assets

 

39

 

39

 

TOTAL ASSETS

 

$

1,130

 

$

1,179

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable and accrued expenses

 

$

1,034

 

$

725

 

Loan payable to officer

 

 

480

 

Deferred revenue

 

93

 

1,090

 

Total current liabilities

 

1,127

 

2,295

 

 

 

 

 

 

 

Loan payable to officer

 

970

 

 

 

 

 

 

 

 

Stockholders’ Deficit:

 

 

 

 

 

Preferred stock, $.01 par value:

 

 

 

 

 

Authorized shares — 5,000

 

 

 

 

 

Series 1 shares issued and outstanding — 220 in 2009 and 260 in 2008

 

 

 

 

 

Liquidation preference of $1,240 as of December 31, 2009

 

778

 

918

 

Series 2 shares issued and outstanding — 460

 

 

 

 

 

Liquidation preference of $1,270 as of December 31, 2009

 

724

 

724

 

Series 3 shares issued and outstanding — 354

 

 

 

 

 

Liquidation preference of $853 as of December 31, 2009

 

504

 

504

 

 

 

 

 

 

 

Common stock, $.01 par value:

 

 

 

 

 

Authorized shares — 80,000

 

 

 

 

 

Issued shares — 11,715 in 2009 and 11,648 in 2008

 

 

 

 

 

Outstanding shares — 11,705 in 2009 and 11,638 in 2008

 

117

 

116

 

Common stock held in treasury, at cost — 10 shares

 

(362

)

(362

)

Additional paid-in capital

 

55,545

 

55,443

 

Accumulated deficit

 

(58,094

)

(58,280

)

Accumulated other comprehensive loss

 

(179

)

(179

)

Total stockholders’ deficit

 

(967

)

(1,116

)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$

1,130

 

$

1,179

 

 

3



 

INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share amounts)

 

 

 

Three Months Ended

 

Year Ended

 

 

 

December 31,

 

December 31,

 

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,519

 

$

1,178

 

$

4,920

 

$

4,140

 

Cost of revenue

 

517

 

382

 

1,662

 

1,375

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

1,002

 

796

 

3,258

 

2,765

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

189

 

326

 

922

 

1,407

 

Research and development

 

202

 

216

 

1,106

 

1,136

 

General and administrative

 

213

 

229

 

980

 

968

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

398

 

25

 

250

 

(746

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(19

)

(17

)

(64

)

(62

)

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

379

 

8

 

186

 

(808

)

Income tax provision

 

 

 

 

 

Net income (loss)

 

379

 

8

 

186

 

(808

)

Preferred stock dividends accrued

 

(38

)

(41

)

(154

)

(161

)

Net Income (loss) attributable to common stockholders

 

$

341

 

$

(33

)

$

32

 

$

(969

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to common stockholders: Basic

 

$

0.03

 

$

0.00

 

$

0.00

 

$

(0.08

)

Diluted

 

$

0.03

 

$

0.00

 

$

0.00

 

$

(0.08

)

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

11,705

 

11,638

 

11,678

 

11,638

 

Diluted

 

13,206

 

11,638

 

12,873

 

11,638

 

 

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