EX-99.1 2 a10-10090_1ex99d1.htm EX-99.1

Exhibit 99.1

 

NEWS RELEASE

 

 

 

 

 

 

1101 East Arapaho Road

 

 

Suite 200

 

 

Richardson TX 75081 USA

 

 

(972) 234-6400 main

 

Contact

Michael L. Paxton, VP, CFO

972.301.3658, mpaxton@intrusion.com

 

INTRUSION INC. ANNOUNCES FIRST QUARTER RESULTS AND PROFITABILITY FOR FOUR CONSECUTIVE QUARTERS

 

Richardson, Texas — May 13, 2010 — Intrusion Inc. (OTCBB: INTZ), (“Intrusion”) today announced financial results for the quarter ended March 31, 2010.

 

Intrusion’s net income was $0.2 million in the first quarter 2010, compared to a loss of $0.3 million for the first quarter 2009.  Intrusion achieved net income for the fourth consecutive quarter in the first quarter 2010.

 

Revenue for the first quarter 2010 was $1.5 million, compared to $0.9 million for the first quarter 2009.

 

Gross profit margin was 64% of revenue in the first quarter 2010; compared to 68% in the first quarter 2009.

 

Intrusion’s first quarter 2010 operating expenses were $0.8 million; compared to $0.9 in the first quarter 2009.

 

As of March 31, 2010, Intrusion reported cash and cash equivalents of $0.4 million, a working capital deficiency of $0.9 million and debt of $1.0 million.

 

“During the first quarter, we booked a total of $1,205,000 of new orders.  These new orders are expected to produce revenue over 2010 and through the first quarter of 2011,” 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 1-800-399-2043 (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 May 20, 2010 by calling 1-800-642-1687 (if outside the United States, 1-706-645-9291).  At the replay prompt, enter conference identification number 74291816.  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, 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 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.”

 

2



 

INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands except par value amounts)

 

 

 

March 31,

 

December 31,

 

 

 

2010

 

2009

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

365

 

$

519

 

Accounts receivable

 

437

 

35

 

Inventories, net

 

34

 

7

 

Prepaid expenses

 

80

 

68

 

Total current assets

 

916

 

945

 

 

 

 

 

 

 

Property and equipment, net

 

152

 

146

 

Other assets

 

39

 

39

 

TOTAL ASSETS

 

$

1,107

 

$

1,130

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Loan payable to officer

 

$

970

 

$

 

Accounts payable and accrued expenses

 

731

 

674

 

Dividends payable

 

36

 

360

 

Deferred revenue

 

113

 

93

 

Total current liabilities

 

1,850

 

1,127

 

 

 

 

 

 

 

Loan payable to officer

 

 

970

 

 

 

 

 

 

 

Stockholders’ Deficit:

 

 

 

 

 

Preferred stock, $.01 par value:

 

 

 

 

 

Authorized shares — 5,000

 

 

 

 

 

Series 1 shares issued and outstanding — 220
Liquidation preference of $1,127 as of March 31, 2010

 

778

 

778

 

Series 2 shares issued and outstanding — 460
Liquidation preference of $1,155 as of March 31, 2010

 

724

 

724

 

Series 3 shares issued and outstanding — 354
Liquidation preference of $776 as of March 31, 2010

 

504

 

504

 

 

 

 

 

 

 

Common stock, $.01 par value:

 

 

 

 

 

Authorized shares — 80,000

 

 

 

 

 

Issued shares — 11,715

 

 

 

 

 

Outstanding shares — 11,705

 

117

 

117

 

Common stock held in treasury, at cost — 10 shares

 

(362

)

(362

)

Additional paid-in capital

 

55,565

 

55,545

 

Accumulated deficit

 

(57,890

)

(58,094

)

Accumulated other comprehensive loss

 

(179

)

(179

)

Total stockholders’ deficit

 

(743

)

(967

)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$

1,107

 

$

1,130

 

 

3



 

INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share amounts)

 

 

 

Quarter ended

 

Quarter ended

 

 

 

March 31,

 

March 31,

 

 

 

2010

 

2009

 

 

 

 

 

 

 

Revenue

 

$

1,535

 

$

856

 

Cost of revenue

 

554

 

276

 

Gross profit

 

981

 

580

 

Operating expenses:

 

 

 

 

 

Sales and marketing

 

203

 

264

 

Research and development

 

301

 

366

 

General and administrative

 

260

 

260

 

Operating income (loss)

 

217

 

(310

)

Interest expense, net

 

(13

)

(12

)

Income (loss) before income taxes

 

204

 

(322

)

Income tax provision

 

 

 

Net income (loss)

 

204

 

(322

)

Preferred stock dividends accrued

 

(37

)

(40

)

Net income (loss) attributable to common stockholders

 

$

167

 

$

(362

)

 

 

 

 

 

 

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

 

 

 

 

 

Basic

 

$

0.01

 

$

(0.03

)

Diluted

 

$

0.01

 

$

(0.03

)

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

11,705

 

11,638

 

Diluted

 

13,611

 

11,638

 

 

4