SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to
Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 8, 2013
INTRUSION INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware |
|
000-20191 |
|
75-1911917 |
(State or Other Jurisdiction |
|
(Commission |
|
(IRS Employer |
1101 East Arapaho Road, Sutie 200, Richardson, Texas |
|
75081 |
(Address of Principal Executive Offices) |
|
(Zip Code) |
(972) 234-6400
(Registrants Telephone Number, Including Area Code)
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
The following information is furnished pursuant to Item 2.02, Disclosure of Results of Operations and Financial Condition.
On August 8, 2013, Intrusion Inc. issued a press release announcing its financial results for the second quarter ended June 30, 2013. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
99.1 Press release issued by Intrusion Inc. on August 8, 2013.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
INTRUSION INC. | |
|
| |
Dated: August 8, 2013 |
By: |
/s/ MICHAEL L. PAXTON |
|
|
Michael L. Paxton |
|
|
Chief Financial Officer |
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. PRODUCES $0.2 MILLION OF NET
INCOME IN THE SECOND QUARTER 2013 ON
REVENUE OF $2.1 MILLION
Richardson, Texas August 8, 2013 Intrusion Inc. (OTCQB: INTZ), (Intrusion) announced today financial results for the three and six months ended June 30, 2013.
Intrusions net income was $0.2 million in the second quarter 2013, which was approximately the same as the second quarter 2012.
Revenue for the second quarter 2013 was $2.1 million compared to $1.9 million in the second quarter 2012.
Gross profit margin was 65 percent of revenue in the second quarter of 2013 compared to 60 percent in the second quarter 2012.
Intrusions second quarter 2013 operating expenses were $1.1 million compared to $0.9 million in the second quarter 2012.
As of June 30, 2013, Intrusion reported cash and cash equivalents of $0.5 million, a working capital deficiency of $1.5 million and debt of $1.7 million.
We are pleased to report, that our new Savant-TraceCop product generated $0.6 million of revenue in the second quarter 2013, stated G. Ward Paxton, President and CEO of Intrusion. Also, we booked $1.7 million of orders in the second quarter and have already booked $2.1 million of orders in the third quarter 2013, Paxton concluded.
Intrusions management will host its regularly scheduled quarterly conference call to discuss the Companys 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 15, 2013 by calling 1-855-859-2056 (if outside the United States, 1-404-537-3406). At the replay prompt, enter conference identification number 29125100. 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. Intrusions 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. Intrusions 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 managements 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 Companys most recent reports on Form 10-K and Form 10-Q, particularly under the heading Risk Factors.
INTRUSION INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except par value amounts)
|
|
June 30, |
|
December 31, |
| ||
|
|
2013 |
|
2012 |
| ||
ASSETS |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current Assets: |
|
|
|
|
| ||
Cash and cash equivalents |
|
$ |
545 |
|
$ |
52 |
|
Accounts receivable |
|
1,171 |
|
946 |
| ||
Inventories, net |
|
24 |
|
5 |
| ||
Prepaid expenses |
|
42 |
|
48 |
| ||
Total current assets |
|
1,782 |
|
1,051 |
| ||
|
|
|
|
|
| ||
Property and equipment, net |
|
252 |
|
260 |
| ||
Other assets |
|
53 |
|
48 |
| ||
TOTAL ASSETS |
|
$ |
2,087 |
|
$ |
1,359 |
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS DEFICIT |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current Liabilities: |
|
|
|
|
| ||
Accounts payable and accrued expenses |
|
$ |
1,123 |
|
$ |
707 |
|
Dividends payable |
|
357 |
|
279 |
| ||
Line of credit payable |
|
|
|
130 |
| ||
Obligations under capital lease, current portion |
|
92 |
|
96 |
| ||
Deferred revenue |
|
133 |
|
52 |
| ||
Loan payable to officer |
|
1,530 |
|
|
| ||
Total current liabilities |
|
3,235 |
|
1,264 |
| ||
|
|
|
|
|
| ||
Loan payable to officer |
|
|
|
1,530 |
| ||
Obligations under capital lease, noncurrent portion |
|
95 |
|
116 |
| ||
|
|
|
|
|
| ||
Stockholders Deficit: |
|
|
|
|
| ||
Preferred stock, $.01 par value: |
|
|
|
|
| ||
Authorized shares 5,000 |
|
|
|
|
| ||
Series 1 shares issued and outstanding 220 |
|
|
|
|
| ||
Liquidation preference of $1,224 as of June 30, 2013 |
|
778 |
|
778 |
| ||
Series 2 shares issued and outstanding 460 |
|
|
|
|
| ||
Liquidation preference of $1,284 as of June 30, 2013 |
|
724 |
|
724 |
| ||
Series 3 shares issued and outstanding 354 |
|
|
|
|
| ||
Liquidation preference of $862 as of June 30, 2013 |
|
504 |
|
504 |
| ||
Common stock, $.01 par value: |
|
|
|
|
| ||
Authorized shares 80,000 |
|
|
|
|
| ||
Issued shares 12,182 |
|
|
|
|
| ||
Outstanding shares 12,172 |
|
122 |
|
122 |
| ||
Common stock held in treasury, at cost 10 shares |
|
(362 |
) |
(362 |
) | ||
Additional paid-in capital |
|
55,884 |
|
55,837 |
| ||
Accumulated deficit |
|
(58,786 |
) |
(59,047 |
) | ||
Accumulated other comprehensive loss |
|
(107 |
) |
(107 |
) | ||
Total stockholders deficit |
|
(1,243 |
) |
(1,551 |
) | ||
TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT |
|
$ |
2,087 |
|
$ |
1,359 |
|
INTRUSION INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
| ||||
Revenue |
|
$ |
2,073 |
|
$ |
1,949 |
|
$ |
3,850 |
|
$ |
3,347 |
|
Cost of revenue |
|
726 |
|
788 |
|
1,361 |
|
1,403 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Gross profit |
|
1,347 |
|
1,161 |
|
2,489 |
|
1,944 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating expenses: |
|
|
|
|
|
|
|
|
| ||||
Sales and marketing |
|
435 |
|
299 |
|
747 |
|
699 |
| ||||
Research and development |
|
378 |
|
314 |
|
777 |
|
711 |
| ||||
General and administrative |
|
297 |
|
310 |
|
640 |
|
621 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating income (loss) |
|
237 |
|
238 |
|
325 |
|
(87 |
) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Interest expense, net |
|
(32 |
) |
(26 |
) |
(63 |
) |
(53 |
) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Income (loss) before income taxes |
|
205 |
|
212 |
|
262 |
|
(140 |
) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Income tax provision |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net income (loss) |
|
$ |
205 |
|
$ |
212 |
|
$ |
262 |
|
$ |
(140 |
) |
|
|
|
|
|
|
|
|
|
| ||||
Preferred stock dividends accrued |
|
(38 |
) |
(38 |
) |
(78 |
) |
(75 |
) | ||||
Net income (loss) attributable to common stockholders |
|
$ |
167 |
|
$ |
174 |
|
$ |
184 |
|
$ |
(215 |
) |
|
|
|
|
|
|
|
|
|
| ||||
Net income (loss) per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
| ||||
Basic |
|
$ |
0.01 |
|
$ |
0.01 |
|
$ |
0.02 |
|
$ |
(0.02 |
) |
Diluted |
|
$ |
0.01 |
|
$ |
0.01 |
|
$ |
0.01 |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
| ||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
| ||||
Basic |
|
12,172 |
|
12,007 |
|
12,172 |
|
11,980 |
| ||||
Diluted |
|
13,893 |
|
13,962 |
|
13,893 |
|
11,980 |
|