EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm

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. REPORTS REVENUE OF $1.6 MILLION IN THE THIRD QUARTER OF 2016

 

  

Richardson, Texas – November 14, 2016 – Intrusion Inc. (OTCQB: INTZ), (“Intrusion”) announced today financial results for the three and nine months ended September 30, 2016.

 

Intrusion’s net loss was $280 thousand in the third quarter 2016 compared to a net loss of $432 thousand in the third quarter 2015.

 

Intrusion’s revenue for the third quarter 2016 was $1.6 million compared to $1.6 million in the third quarter 2015.

 

Gross profit was $1.0 million or 62 percent of revenue in the third quarter of 2016 compared to $1.0 million or 63 percent of revenue in the third quarter 2015.

 

Intrusion’s third quarter 2016 operating expenses were $1.2 million compared to $1.4 million in the third quarter 2015.

 

As of September 30, 2016, Intrusion reported cash and cash equivalents of $0.2 million, a working capital deficiency of $1.0 million and debt of $2.5 million.

 

“Orders booked in the third quarter 2016 were $1.2 million. An order for $1.0 million was delayed in our customer’s purchasing department; however, $625,000 of the delayed order has been booked in October with the balance expected in November,” stated G. Ward Paxton, President and CEO of Intrusion.

 

 
 

 

 

Intrusion

Third Quarter 2016 Results

Page 2 of 4

 

 

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 1-877-258-4925 (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., CST until November 21, 2016 by calling 1-855-859-2056 (if outside the United States, 1-404-537-3406). At the replay prompt, enter conference identification number 18411485. 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. Intrusion’s product families include TraceCop™ for identity discovery and disclosure, and Savant™ for network data mining and advanced persistent threat 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, forecasted future sales opportunities with potential new customers, 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.”

 

 
 

 

 

Intrusion

Third Quarter 2016 Results

Page 3 of 4

INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands except par value amounts)

 

   

September 30,

   

December 31,

 
   

2016

   

2015

 

ASSETS

               
                 

Current Assets:

               

Cash and cash equivalents

  $ 210     $ 102  

Accounts receivable

    588       580  

Inventories, net

    52       45  

Prepaid expenses

    41       69  

Total current assets

    891       796  
                 

Property and equipment, net

    314       486  

Other assets

    41       43  

TOTAL ASSETS

  $ 1,246     $ 1,325  
                 
LIABILITIES AND STOCKHOLDERS’ DEFICIT                
                 

Current Liabilities:

               

Accounts payable and accrued expenses

  $ 714     $ 840  

Dividends payable

    267       160  

Obligations under capital lease, current portion

    142       197  

Deferred revenue

    784       386  

Total current liabilities

    1,907       1,583  
                 

Loan payable to officer

    2,335       1,530  

Obligations under capital lease, noncurrent portion

    51       139  
                 

Stockholders' Deficit:

               

Preferred stock, $.01 par value:

               

Authorized shares – 5,000

               

Series 1 shares issued and outstanding–200 in 2016 and 2015

               

Liquidation preference of $1,100 in 2016 and $1,063 in 2015

    707       707  

Series 2 shares issued and outstanding–460 in 2016 and 2015

    724       724  
Liquidation preference of $1,256 in 2016 and $1,212 in 2015                

Series 3 shares issued and outstanding–289 in 2016 and 2015

    412       412  
Liquidation preference of $689 in 2016 and $665 in 2015                
                 

Common stock, $.01 par value:

               

Authorized shares – 80,000

               

Issued shares – 12,758 in 2016 and 12,622 in 2015

    128       126  
Outstanding shares – 12,748 in 2016 and 12,612 in 2015                

Common stock held in treasury, at cost – 10 shares

    (362 )     (362 )

Additional paid-in capital

    56,609       56,520  

Accumulated deficit

    (61,158 )     (59,947 )

Accumulated other comprehensive loss

    (107 )     (107 )

Total stockholders' deficit

    (3,047 )     (1,927 )

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

  $ 1,246     $ 1,325  

 

 
 

 

 

Intrusion

Third Quarter 2016 Results

Page 4 of 4

 

INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share amounts)

 

 

 

   

Three Months Ended

September 30,

   

Nine Months Ended

September 30,

 
   

2016

   

2015

   

2016

   

2015

 

Revenue

  $ 1,595     $ 1,552     $ 4,693     $ 5,336  

Cost of revenue

    610       570       1,677       1,984  
                                 

Gross profit

    985       982       3,016       3,352  
                                 

Operating expenses:

                               

Sales and marketing

    428       490       1,276       1,432  

Research and development

    508       592       1,908       1,641  

General and administrative

    293       305       941       946  
                                 

Operating income (loss)

    (244

)

    (405

)

    (1,109

)

    (667

)

                                 

Interest expense, net

    (36

)

    (27

)

    (102

)

    (79

)

                                 

Net income (loss)

  $ (280

)

  $ (432

)

  $ (1,211

)

  $ (746

)

                                 

Preferred stock dividends accrued

    (35

)

    (35

)

    (104

)

    (104

)

Net income (loss) attributable to common stockholders

  $ (315 )   $ (467

)

  $ (1,315

)

  $ (850

)

                                 
Net income (loss) per share attributable to common stockholders:                                
Basic   $ (0.02

)

  $ (0.04

)

  $ (0.10

)

  $ (0.07

)

Diluted

  $ (0.02

)

  $ (0.04

)

  $ (0.10

)

  $ (0.07

)

                                 

Weighted average common shares outstanding:

                               

                            Basic

    12,748       12,612       12,733       12,593  

Diluted

    12,748       12,612       12,733       12,593