EX-99.1 2 a10-15711_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 FIFTH CONSECUTIVE PROFITABLE

QUARTER IN THE SECOND QUARTER OF 2010

 

Richardson, Texas — August 12, 2010 — Intrusion Inc. (OTCBB: INTZ), (“Intrusion”) announced today financial results for the three and six months ended June 30, 2010.

 

Intrusion’s net income was $121 thousand in the second quarter 2010 compared to $50 thousand net income for the second quarter 2009.  Intrusion achieved net income for the fifth consecutive quarter in the second quarter 2010.

 

Revenue for the second quarter 2010 was $1.5 million compared to $1.3 million in the second quarter 2009.

 

Gross profit margin was 64 percent of revenue in the second quarter of 2010 compared to 66 percent in the second quarter 2009.

 

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

 

As of June 30, 2010, Intrusion reported cash and cash equivalents of $0.4 million, a working capital deficiency of $0.8 million and debt of $0.5 million.

 

“Our fifth consecutive profitable quarter is outstanding and is the result of good gross profit margins and continued operating expense control.  Our total orders booked in the second quarter were $1.1 million,” 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 August 19, 2010 by calling 1-800-642-1687 (if outside the United States, 1-706-645-9291).  At the replay prompt, enter conference identification number 93746268.  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 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.”

 

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INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands except par value amounts)

 

 

 

June 30,

 

December 31,

 

 

 

2010

 

2009

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

391

 

$

519

 

Accounts receivable

 

296

 

351

 

Inventories, net

 

26

 

7

 

Prepaid expenses

 

55

 

68

 

Total current assets

 

768

 

945

 

 

 

 

 

 

 

Property and equipment, net

 

155

 

146

 

Other assets

 

39

 

39

 

TOTAL ASSETS

 

$

962

 

$

1,130

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Loan payable to officer

 

$

470

 

$

 

Accounts payable and accrued expenses

 

683

 

674

 

Dividends payable

 

22

 

360

 

Deferred revenue

 

405

 

93

 

Total current liabilities

 

1,580

 

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 $1,114 as of June 30, 2010

 

778

 

778

 

Series 2 shares issued and outstanding — 460
Liquidation preference of $1,155 as of June 30, 2010

 

724

 

724

 

Series 3 shares issued and outstanding — 354
Liquidation preference of $775 as of June 30, 2010

 

504

 

504

 

 

 

 

 

 

 

Common stock, $.01 par value:

 

 

 

 

 

Authorized shares — 80,000

 

 

 

 

 

Issued shares — 11,746 in 2010 and 11,715 in 2009
Outstanding shares — 11,736 in 2010 and 11,705 in 2009

 

117

 

117

 

Common stock held in treasury, at cost — 10 shares

 

(362

)

(362

)

Additional paid-in capital

 

55,569

 

55,545

 

Accumulated deficit

 

(57,769

)

(58,094

)

Accumulated other comprehensive loss

 

(179

)

(179

)

Total stockholders’ deficit

 

(618

)

(967

)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$

962

 

$

1,130

 

 

3



 

INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share amounts)

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2010

 

2009

 

2010

 

2009

 

Revenue

 

1,538

 

1,292

 

3,073

 

2,148

 

Cost of revenue

 

548

 

433

 

1,102

 

710

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

990

 

859

 

1,971

 

1,438

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

258

 

270

 

460

 

534

 

Research and development

 

343

 

251

 

645

 

617

 

General and administrative

 

256

 

273

 

516

 

532

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

133

 

65

 

350

 

(245

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(12

)

(15

)

(25

)

(26

)

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

121

 

50

 

325

 

(271

)

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

121

 

$

50

 

$

325

 

$

(271

)

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends accrued

 

(38

)

(39

)

(75

)

(78

)

Net income (loss) attributable to common stockholders

 

$

83

 

$

11

 

$

250

 

$

(349

)

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

$

0.01

 

$

0.00

 

$

0.02

 

$

(0.03

)

Diluted

 

$

0.01

 

$

0.00

 

$

0.02

 

$

(0.03

)

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

11,734

 

11,664

 

11,719

 

11,652

 

Diluted

 

13,957

 

13,117

 

13,784

 

11,652

 

 

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