EX-99.1 2 a10-20962_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 SIXTH CONSECUTIVE PROFITABLE QUARTER IN THE THIRD QUARTER OF 2010

 

Richardson, Texas — November 10, 2010 — Intrusion Inc. (OTCBB: INTZ), (“Intrusion”) announced today financial results for the three and nine months ended September 30, 2010.

 

Intrusion’s net income was $203 thousand in the third quarter 2010 compared to $79 thousand net income for the third quarter 2009.  Intrusion achieved net income for the sixth consecutive quarter in the third quarter 2010.

 

Revenue for the third quarter 2010 was $1.6 million compared to $1.3 million in the third quarter 2009.

 

Gross profit margin was 62 percent of revenue in the third quarter of 2010 compared to 65 percent in the third quarter 2009.

 

Intrusion’s third quarter 2010 operating expenses were $0.8 million compared to $0.7 million in the third quarter 2009.

 

As of September 30, 2010, Intrusion reported cash and cash equivalents of $0.3 million, a working capital deficiency of $0.6 million and debt of $0.7 million.

 

“Our sixth 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 third quarter were $1.8 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., 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 November 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 23921753.  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)

 

 

 

September 30,

 

December 31,

 

 

 

2010

 

2009

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

298

 

$

519

 

Accounts receivable

 

466

 

351

 

Inventories, net

 

29

 

7

 

Prepaid expenses

 

32

 

68

 

Total current assets

 

825

 

945

 

 

 

 

 

 

 

Property and equipment, net

 

135

 

146

 

Other assets

 

39

 

39

 

TOTAL ASSETS

 

$

999

 

$

1,130

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Loan payable to officer

 

$

670

 

$

 

Accounts payable and accrued expenses

 

639

 

674

 

Dividends payable

 

35

 

360

 

Deferred revenue

 

107

 

93

 

Total current liabilities

 

1,451

 

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 $1,128 as of September 30, 2010

 

778

 

778

 

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

 

724

 

724

 

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

 

504

 

504

 

Common stock, $.01 par value:

 

 

 

 

 

Authorized shares — 80,000

 

 

 

 

 

Issued shares — 11,786 in 2010 and 11,715 in 2009 Outstanding shares — 11,776 in 2010 and 11,705 in 2009

 

118

 

117

 

Common stock held in treasury, at cost — 10 shares

 

(362

)

(362

)

Additional paid-in capital

 

55,578

 

55,545

 

Accumulated deficit

 

(57,566

)

(58,094

)

Accumulated other comprehensive loss

 

(226

)

(179

)

Total stockholders’ deficit

 

(452

)

(967

)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$

999

 

$

1,130

 

 

3



 

INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share amounts)

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2010

 

2009

 

2010

 

2009

 

Revenue

 

1,577

 

1,253

 

4,650

 

3,401

 

Cost of revenue

 

594

 

435

 

1,696

 

1,145

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

983

 

818

 

2,954

 

2,256

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

179

 

198

 

639

 

733

 

Research and development

 

379

 

288

 

1,024

 

904

 

General and administrative

 

262

 

235

 

778

 

768

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

163

 

97

 

513

 

(149

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(7

)

(18

)

(32

)

(44

)

Other income

 

47

 

 

47

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

203

 

79

 

528

 

(193

)

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

203

 

$

79

 

$

528

 

$

(193

)

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends accrued

 

(38

)

(38

)

(113

)

(116

)

Net income (loss) attributable to common stockholders

 

$

165

 

$

41

 

$

415

 

$

(309

)

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.01

 

$

0.00

 

$

0.04

 

$

(0.03

)

Diluted

 

$

0.01

 

$

0.00

 

$

0.03

 

$

(0.03

)

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

11,744

 

11,704

 

11,728

 

11,669

 

Diluted

 

14,126

 

13,529

 

13,898

 

11,669

 

 

4