EX-99.1 2 a12-18080_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. ACHIEVES PROFITABILITY

IN THE SECOND QUARTER OF 2012

REVENUE REACHES $1.9 MILLION

 

Richardson, Texas — August 13, 2012 — Intrusion Inc. (OTCBB: INTZ), (“Intrusion”) announced today financial results for the three and six months ended June 30, 2012.

 

Intrusion’s net income was $212 thousand in the second quarter 2012 compared to a $473 thousand net loss for the second quarter 2011.

 

Revenue for the second quarter 2012 was $1.95 million compared to $1.07 million in the second quarter 2011, an 82% increase.

 

Gross profit margin was 60 percent of revenue in the second quarter of 2012 compared to 62 percent in the second quarter 2011.

 

Intrusion’s second quarter 2012 operating expenses were $0.92 million compared to $1.12 million in the second quarter 2011.

 

As of June 30, 2012, Intrusion reported cash and cash equivalents of $0.1 million, a working capital deficiency of $1.7 million and debt of $1.8 million.

 

“We are pleased to report, that during the second quarter, we booked $2.66 million of orders covering four different projects.  Two of the projects were new and two were existing projects,” stated G. Ward Paxton, President and CEO of Intrusion.  “Backlog at June 30, 2012 was $2.17 million and it is expected to produce revenue over the next twelve months,” 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 1-877-258-4925 (if outside the United States, 1-973-500-2152).  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, 2012 by calling 1-855-859-2056 (if outside the United States, 1-404-537-3406).  At the replay prompt, enter conference identification number 13792913.  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,

 

 

 

2012

 

2011

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

149

 

$

308

 

Accounts receivable

 

1,034

 

480

 

Inventories, net

 

5

 

5

 

Prepaid expenses

 

83

 

90

 

Total current assets

 

1,271

 

883

 

 

 

 

 

 

 

Property and equipment, net

 

216

 

207

 

Other assets

 

43

 

40

 

TOTAL ASSETS

 

$

1,530

 

$

1,130

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable and accrued expenses

 

$

727

 

$

632

 

Dividends payable

 

199

 

123

 

Line of credit payable

 

66

 

80

 

Obligations under capital lease, current portion

 

87

 

74

 

Deferred revenue

 

351

 

97

 

Loan payable to officer

 

1,530

 

 

Total current liabilities

 

2,960

 

1,006

 

 

 

 

 

 

 

Loan payable to officer

 

 

1,530

 

Obligations under capital lease, noncurrent portion

 

69

 

53

 

 

 

 

 

 

 

Stockholders’ Deficit:

 

 

 

 

 

Preferred stock, $.01 par value:

 

 

 

 

 

Authorized shares — 5,000

 

 

 

 

 

Series 1 shares issued and outstanding — 220 Liquidation preference of $1,169 as of June 30, 2012

 

778

 

778

 

Series 2 shares issued and outstanding — 460 Liquidation preference of $1,227 as of June 30, 2012

 

724

 

724

 

Series 3 shares issued and outstanding — 354 Liquidation preference of $823 as of June 30, 2012

 

504

 

504

 

Common stock, $.01 par value:

 

 

 

 

 

Authorized shares — 80,000

 

 

 

 

 

Issued shares — 12,082 in 2012 and 11,952 in 2011 Outstanding shares — 12,072 in 2012 and 11,942 in 2011

 

121

 

119

 

Common stock held in treasury, at cost — 10 shares

 

(362

)

(362

)

Additional paid-in capital

 

55,784

 

55,686

 

Accumulated deficit

 

(58,941

)

(58,801

)

Accumulated other comprehensive loss

 

(107

)

(107

)

Total stockholders’ deficit

 

(1,499

)

(1,459

)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$

1,530

 

$

1,130

 

 

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INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share amounts)

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

Revenue

 

$

1,949

 

$

1,068

 

$

3,347

 

$

2,110

 

Cost of revenue

 

788

 

406

 

1,403

 

805

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

1,161

 

662

 

1,944

 

1,305

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

299

 

381

 

699

 

726

 

Research and development

 

314

 

440

 

711

 

836

 

General and administrative

 

310

 

302

 

621

 

602

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

238

 

(461

)

(87

)

(859

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(26

)

(12

)

(53

)

(16

)

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

212

 

(473

)

(140

)

(875

)

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

212

 

$

(473

)

$

(140

)

$

(875

)

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends accrued

 

(38

)

(38

)

(75

)

(75

)

Net income (loss) attributable to common stockholders

 

$

174

 

$

(511

)

$

(215

)

$

(950

)

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

$

0.01

 

$

(0.04

)

$

(0.02

)

$

(0.08

)

Diluted

 

$

0.01

 

$

(0.04

)

$

(0.02

)

$

(0.08

)

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

12,007

 

11,844

 

11,980

 

11,831

 

Diluted

 

13,962

 

11,844

 

11,980

 

11,831

 

 

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