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): May 10, 2016
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 May 10, 2016, Intrusion Inc. issued a press release announcing its financial results for the first quarter ended March 31, 2016. 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 May 10, 2016.
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: May 10, 2016 |
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
Contact
Michael L. Paxton, VP, CFO
972.301.3658, mpaxton@intrusion.com
INTRUSION INC. RECORDS REVENUE OF $1.5 MILLION IN THE FIRST QUARTER OF 2016
Richardson, Texas May 10, 2016 Intrusion Inc. (OTCQB: INTZ), (Intrusion) today announced financial results for the quarter ended March 31, 2016.
Intrusions net loss was $544 thousand in the first quarter 2016, compared to net loss of $310 thousand for the first quarter 2015.
Revenue for the first quarter 2016 was $1.51 million, compared to $1.71 million for the first quarter 2015.
Gross profit margin was 64% of revenue in the first quarter 2016; compared to 63% in the first quarter 2015.
Intrusions first quarter 2016 operating expenses were $1.48 million; compared to $1.37 million in the first quarter 2015.
As of March 31, 2016, Intrusion reported cash and cash equivalents of $0.2 million, a working capital deficiency of $0.7 million and debt of $2.7 million.
We booked $1.9 million of orders in the first quarter 2016 compared to $1.7 million of orders in the first quarter 2015. Gross profit as a percent of revenue was 64% in the first quarter of 2016, slightly below our goal of 65%. Our top priority in 2016 is to increase sales and the 12% increase in orders in the first quarter is a step in the right direction, stated G. Ward Paxton, President and CEO of Intrusion.
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 May 17, 2016 by calling 1-855-859-2056 (if outside the United States, 1-404-537-3406). At the replay prompt, enter conference identification number 9365800. 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, high speed data mining, cybercrime and advanced persistent threat detection products. Intrusions product families include TraceCop for identity discovery and disclosure, Savant for network data mining and advanced persistent threat 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. We develop, market and support a family of entity identification, high speed data mining, cybercrime and advanced persistent threat detection products.
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)
|
|
March 31, |
|
December 31, |
| ||
|
|
2016 |
|
2015 |
| ||
ASSETS |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current Assets: |
|
|
|
|
| ||
Cash and cash equivalents |
|
$ |
246 |
|
$ |
102 |
|
Accounts receivable |
|
743 |
|
580 |
| ||
Inventories, net |
|
45 |
|
45 |
| ||
Prepaid expenses |
|
101 |
|
69 |
| ||
Total current assets |
|
1,135 |
|
796 |
| ||
|
|
|
|
|
| ||
Property and equipment, net |
|
412 |
|
486 |
| ||
Other assets |
|
42 |
|
43 |
| ||
TOTAL ASSETS |
|
$ |
1,589 |
|
$ |
1,325 |
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS DEFICIT |
|
|
|
|
| ||
Current Liabilities: |
|
|
|
|
| ||
Accounts payable and accrued expenses |
|
$ |
931 |
|
$ |
840 |
|
Dividends payable |
|
195 |
|
160 |
| ||
Line of credit payable |
|
364 |
|
|
| ||
Obligations under capital lease, current portion |
|
178 |
|
197 |
| ||
Deferred revenue |
|
119 |
|
386 |
| ||
Total current liabilities |
|
1,787 |
|
1,583 |
| ||
|
|
|
|
|
| ||
Loan payable to officer |
|
2,055 |
|
1,530 |
| ||
Obligations under capital lease, noncurrent portion |
|
108 |
|
139 |
| ||
|
|
|
|
|
| ||
Stockholders Deficit: |
|
|
|
|
| ||
Preferred stock, $.01 par value: |
|
|
|
|
| ||
Authorized shares 5,000 |
|
|
|
|
| ||
Series 1 shares issued and outstanding 200 Liquidation preference of $1,075 in 2016 and $1,063 in 2015 |
|
707 |
|
707 |
| ||
Series 2 shares issued and outstanding 460 Liquidation preference of $1,227 in 2016 and $1,212 in 2015 |
|
724 |
|
724 |
| ||
Series 3 shares issued and outstanding 289 Liquidation preference of $673 in 2016 and $665 in 2015 |
|
412 |
|
412 |
| ||
Common stock, $.01 par value: |
|
|
|
|
| ||
Authorized shares 80,000 |
|
|
|
|
| ||
Issued shares 12,758 in 2016 and 12,622 in 2015 Outstanding shares 12,748 in 2016 and 12,612 in 2015 |
|
127 |
|
126 |
| ||
Common stock held in treasury, at cost 10 shares |
|
(362 |
) |
(362 |
) | ||
Additional paid-in capital |
|
56,629 |
|
56,520 |
| ||
Accumulated deficit |
|
(60,491 |
) |
(59,947 |
) | ||
Accumulated other comprehensive loss |
|
(107 |
) |
(107 |
) | ||
Total stockholders deficit |
|
(2,361 |
) |
(1,927 |
) | ||
TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT |
|
$ |
1,589 |
|
$ |
1,325 |
|
INTRUSION INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)
|
|
Quarter ended |
|
Quarter ended |
| ||
|
|
March 31, |
|
March 31, |
| ||
|
|
2016 |
|
2015 |
| ||
|
|
|
|
|
| ||
Revenue |
|
$ |
1,511 |
|
$ |
1,714 |
|
Cost of revenue |
|
539 |
|
632 |
| ||
Gross profit |
|
972 |
|
1,082 |
| ||
Operating expenses: |
|
|
|
|
| ||
Sales and marketing |
|
428 |
|
498 |
| ||
Research and development |
|
730 |
|
538 |
| ||
General and administrative |
|
327 |
|
331 |
| ||
Operating loss |
|
(513 |
) |
(285 |
) | ||
Interest expense, net |
|
(31 |
) |
(25 |
) | ||
Net loss |
|
(544 |
) |
(310 |
) | ||
Preferred stock dividends accrued |
|
(35 |
) |
(34 |
) | ||
Net loss attributable to common stockholders |
|
$ |
(579 |
) |
$ |
(344 |
) |
|
|
|
|
|
| ||
Net loss per share attributable to common stockholders: |
|
|
|
|
| ||
Basic |
|
$ |
(0.05 |
) |
$ |
(0.03 |
) |
Diluted |
|
$ |
(0.05 |
) |
$ |
(0.03 |
) |
Weighted average shares outstanding: |
|
|
|
|
| ||
Basic |
|
12,703 |
|
12,555 |
| ||
Diluted |
|
12,703 |
|
12,555 |
|