Intrusion Inc. Reports Net Income of $1.5 Million and Revenue of $3.9 Million in the Third Quarter of 2019


RICHARDSON, Texas, Nov. 11, 2019 (GLOBE NEWSWIRE) -- Intrusion Inc. (OTCQB: INTZ), (“Intrusion”) announced today financial results for the three and nine months ended September 30, 2019.

Intrusion’s net income was $1.5 million in the third quarter 2019 compared to a net income of $0.62 million in the third quarter 2018.

Intrusion’s revenue for the third quarter 2019 was $3.9 million compared to $2.7 million in the third quarter 2018.

Gross profit was $2.4 million or 62 percent of revenue in the third quarter of 2019 compared to $1.7 million or 64 percent of revenue in the third quarter 2018. 

Intrusion’s third quarter 2019 operating expenses were $0.9 million compared to $1.0 million for the third quarter 2018.

As of September 30, 2019, Intrusion reported cash and cash equivalents of $2.1 million and working capital of $2.9 million. 

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 18, 2019 by calling 1-855-859-2056 (if outside the United States, 1-404-537-3406).  At the replay prompt, enter conference identification number 2177277.  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, the difficulties in forecasting future sales caused by current economic and market conditions, the difficulties in producing timely renewals of contracts, 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.”

Financial Contact
Michael L. Paxton
972.301.3658, mpaxton@intrusion.com


INTRUSION INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except par value amounts)

 September 30, December 31,
 2019 2018
  ASSETS   
Current Assets   
  Cash and cash equivalents$2,111 $1,652
  Accounts receivable2,704 1,967
  Prepaid expenses  136   91
Total current assets4,951 3,710
 

Noncurrent Assets
   
  Property and equipment, net295 200
  Finance leases right-of-use assets, net73 121
  Operating leases right-of-use assets, net1,407 
  Other assets  38   38
Total noncurrent assets1,813 359
TOTAL ASSETS$6,764 $4,069


    
LIABILITIES AND EQUITY (DEFICIT)   
Current Liabilities   
  Accounts payable and accrued expenses$1,078 $  1,596
  Dividends payable32   594
  Finance leases liability, current portion43   58
  Operating lease liability, current portion277 
  Deferred revenue643 1,004
Total current liabilities2,073 3,252
    
Noncurrent Liabilities   
  Loan payable to officer  — 1,815
  Finance leases liability, noncurrent portion32 64
  Operating lease liability, noncurrent portion1,389 
Total noncurrent liabilities1,421 1,879
    
Stockholders' Equity (Deficit):   
  Preferred stock, $.01 par value:   
  Authorized shares – 5,000   
   Series 1 shares issued and outstanding – 200    
   Liquidation preference of $1,025 in 2019 and $1,213 in 2018707 707
   Series 2 shares issued and outstanding – 460
   Liquidation preference of $1,155 in 2019 and $1,385 in 2018


724
  

724
   Series 3 shares issued and outstanding – 289
   Liquidation preference of $633 in 2019 and $760 in 2018


412

  

412

 
  Common stock, $.01 par value:   
  Authorized shares – 80,000   
  Issued shares – 13,550 in 2019 and 13,259 in 2018
   Outstanding shares – 13,540 in 2019 and 13,249 in 2018
 

  135
  

133
  Common stock held in treasury, at cost – 10 shares(362)   (362)
  Additional paid-in capital56,770 56,609
  Accumulated deficit(55,073) (59,242)
  Accumulated other comprehensive loss(43)   (43)
Total stockholders' equity (deficit)3,270   (1,062)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)$  6,764 $  4,069


INTRUSION INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)


 
 Three Months Ended
September 30,
 Nine Months Ended
September 30,
 
   2019 2018 2019 2018 
Revenue $3,860 $2,665 $  11,071 $7,296 
Cost of revenue 1,465 967 4,339 2,744 
          
Gross profit 2,395 1,698 6,732 4,552 
          
Operating expenses:         
Sales and marketing 356 466 813 1,311 
Research and development 297 329 775 832 
General and administrative 277 243 930 828 
          
Operating income (loss) 1,465 660 4,214 1,581 
Interest expense, net (1)(43(45)  (144)
          
Net income (loss) $1,464 $617 $ 4,169 $1,437 
          
Preferred stock dividends accrued (35)(35)(104)(104
Net income (loss) attributable to common stockholders $1,429 $582 $ 4,065 $1,333 
          
Net income (loss) per share attributable to common stockholders:  Basic $0.11 $0.04 $ 0.30 $0.10 
Diluted $ 0.09 $ 0.04 $0.27 $0.09 
          
Weighted average common shares outstanding:            
Basic 13,523 13,062 13,466 13,009 
Diluted 15,371 14,955 15,314 14,901