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 15, 2017
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 | ||||||
(Registrant’s 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:
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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 15, 2017, Intrusion Inc. issued a press release announcing its financial results for the first quarter ended March 31, 2017. 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 15, 2017.
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 15, 2017 |
By: |
/s/ MICHAEL L. PAXTON |
|
Michael L. Paxton | |||
Chief Financial Officer |
EXHIBIT INDEX
Exhibit |
Description of Exhibit | |
99.1 |
Press release issued by Intrusion Inc. on May 15, 2017. |
3
Exhibit 99.1
NEWS RELEASE |
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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 $1.6 MILLION IN THE FIRST QUARTER OF 2017
Richardson, Texas – May 15, 2017 – Intrusion Inc. (OTCQB: INTZ), (“Intrusion”) today announced financial results for the quarter ended March 31, 2017.
Intrusion’s net loss was $351 thousand in the first quarter 2017, compared to net loss of $544 thousand for the first quarter 2016.
Revenue for the first quarter 2017 was $1.56 million, compared to $1.51 million for the first quarter 2016.
Gross profit margin was 63% of revenue in the first quarter 2017; compared to 64% in the first quarter 2016.
Intrusion’s first quarter 2017 operating expenses were $1.28 million; compared to $1.48 million in the first quarter 2016.
As of March 31, 2017, Intrusion reported cash and cash equivalents of $0.2 million, a working capital deficiency of $0.6 million and debt of $3.6 million.
“We booked $2.3 million of orders in the first four months of 2017 consistent with the $2.3 million of orders in the first four months of 2016. Gross profit as a percent of revenue was 63% in the first quarter of 2017, slightly below our goal of 65%, due to product mix. Our top priority in 2017 is to increase sales. We have significantly increased our sales pipeline from new potential customers. At this time, our pipeline of TraceCop business includes fourteen new customers and five existing customers. Our pipeline of Savant business includes nine new customers and two existing customers,” 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., 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 22, 2017 by calling 1-855-859-2056 (if outside the United States, 1-404-537-3406). At the replay prompt, enter conference identification number 21215585. Additionally, a live and archived audio webcast of the conference call will be available at www.intrusion.com.
Intrusion
First Quarter 2017 Results
Page 2 of 4
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, 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. 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 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.”
Intrusion
First Quarter 2017 Results
Page 3 of 4
INTRUSION INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except par value amounts)
March 31, |
December 31, |
|||||||
2017 |
2016 |
|||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ | 193 | $ | 64 | ||||
Accounts receivable |
523 | 745 | ||||||
Inventories, net |
45 | 45 | ||||||
Prepaid expenses |
118 | 75 | ||||||
Total current assets |
879 | 929 | ||||||
Property and equipment, net |
262 | 308 | ||||||
Other assets |
39 | 40 | ||||||
TOTAL ASSETS |
$ | 1,180 | $ | 1,277 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
||||||||
Current Liabilities: |
||||||||
Accounts payable and accrued expenses |
$ | 911 | $ | 896 | ||||
Dividends payable |
338 | 303 | ||||||
Obligations under capital lease, current portion |
119 | 139 | ||||||
Deferred revenue |
67 | 395 | ||||||
Total current liabilities |
1,435 | 1,733 | ||||||
Loan payable to officer |
3,465 | 2,885 | ||||||
Obligations under capital lease, noncurrent portion |
45 | 61 | ||||||
Stockholders' Deficit: |
||||||||
Preferred stock, $.01 par value: |
||||||||
Authorized shares – 5,000 |
||||||||
Series 1 shares issued and outstanding – 200 | ||||||||
Liquidation preference of $1,125 in 2017 and $1,075 in 2016 |
707 | 707 | ||||||
Series 2 shares issued and outstanding – 460 |
||||||||
Liquidation preference of $1,284 in 2017 and $1,227 in 2016 |
724 | 724 | ||||||
Series 3 shares issued and outstanding – 289 |
||||||||
Liquidation preference of $704 in 2017 and $673 in 2016 |
412 | 412 | ||||||
Common stock, $.01 par value: |
||||||||
Authorized shares – 80,000 |
||||||||
Issued shares – 12,808 in 2017 and 12,758 in 2016 |
||||||||
Outstanding shares – 12,798 in 2017 and 12,748 in 2016 |
128 | 128 | ||||||
Common stock held in treasury, at cost – 10 shares |
(362 | ) | (362 | ) | ||||
Additional paid-in capital |
56,583 | 56,595 | ||||||
Accumulated deficit |
(61,850 | ) | (61,499 | ) | ||||
Accumulated other comprehensive loss |
(107 | ) | (107 | ) | ||||
Total stockholders' deficit |
(3,765 | ) | (3,402 | ) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT |
$ | 1,180 | $ | 1,277 |
Intrusion
First Quarter 2017 Results
Page 4 of 4
INTRUSION INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)
Quarter ended |
Quarter ended |
|||||||
March 31, |
March 31, |
|||||||
2017 |
2016 |
|||||||
Revenue |
$ | 1,559 | $ | 1,511 | ||||
Cost of revenue |
583 | 539 | ||||||
Gross profit |
976 | 972 | ||||||
Operating expenses: |
||||||||
Sales and marketing |
361 | 428 | ||||||
Research and development |
585 | 730 | ||||||
General and administrative |
331 | 327 | ||||||
Operating loss |
(301 |
) |
(513 |
) | ||||
Interest expense, net |
(50 |
) |
(31 |
) | ||||
Net loss |
(351 |
) |
(544 |
) | ||||
Preferred stock dividends accrued |
(35 |
) |
(35 |
) | ||||
Net loss attributable to common stockholders |
$ | (386 |
) |
$ | (579 |
) | ||
Net loss per share attributable to common stockholders: |
||||||||
Basic |
$ | (0.03 |
) |
$ | (0.05 |
) | ||
Diluted |
$ | (0.03 |
) |
$ | (0.05 |
) | ||
Weighted average shares outstanding: |
||||||||
Basic |
12,748 | 12,703 | ||||||
Diluted |
12,748 | 12,703 |