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CST: 16/09/2019 23:50:43   

Intrusion Inc. Reports Net Income of $1.8 Million for Second Quarter 2019

35 Days ago

RICHARDSON, Texas, Aug. 12, 2019 (GLOBE NEWSWIRE) -- Intrusion Inc. (OTCQB: INTZ), (“Intrusion”) announced today financial results for the three and six months ended June 30, 2019.

Intrusion’s net income was $1.8 million in the second quarter 2019, compared to a net income of $474 thousand in the second quarter 2018 and net income of $947 thousand in the first quarter 2019.

Revenue for the second quarter 2019 was $4.0 million compared to $2.4 million in the second quarter 2018 and $3.2 million for the first quarter 2019.

Gross profit margin was 60 percent of revenue in the second quarter of 2019 compared to 61 percent in the second quarter 2018 and 60 percent in the first quarter 2019.

Intrusion’s second quarter 2019 operating expenses were $0.7 million compared to $0.9 million in the second quarter 2018 and $0.9 million in the first quarter 2019.  Operating expenses benefited from a $200 thousand reduction in second quarter sales and marketing expense due to a reimbursement of a prior period expense from a customer.  Operating expenses also benefited from reduced sales and marketing expenses associated with shifting expenses to cost of sales for current projects.  It is expected that sales and marketing expense will return to more traditional levels in the third quarter 2019.   

As of June 30, 2019, Intrusion reported cash and cash equivalents of $1.5 million, working capital of $1.4 million and debt of $91 thousand. 

“Our balance sheet continues to improve with loan payable to officer paid in full, compared to a balance of $1.8 million at year end 2018, and a cash balance of $1.5 million at June 30, 2019.  Orders for the second quarter 2019 totaled $2.9 million, all from 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.  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 19, 2019 by calling 1-855-859-2056 or 1-800-585-8367.  At the replay prompt, enter conference identification number 6866927. 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. 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 INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except par value amounts)

  June 30,   December 31,
  2019   2018
ASSETS      
Current Assets      
Cash and cash equivalents $ 1,477     $ 1,652  
Accounts receivable 2,705     1,967  
Prepaid expenses 325     91  
Total current assets 4,507     3,710  
           
Noncurrent Assets          
Property and equipment, net 314     200  
Finance leases right-of-use asset, net 89     121  
Operating leases right-of-use asset, net 1,467      
Other assets 38     38  
Total noncurrent assets 1,908     359  
TOTAL ASSETS $ 6,415     $ 4,069  


LIABILITIES AND EQUITY (DEFICIT)      
Current Liabilities      
Accounts payable and accrued expenses $ 1,568     $ 1,596  
Dividends payable 20     594  
Finance leases liability, current portion 48     58  
Operating lease liability, current portion 271      
Deferred revenue 1,183     1,004  
Total current liabilities 3,090     3,252  
       
Noncurrent Liabilities      
Loan payable to officer     1,815  
Finance leases liability, noncurrent portion 43     64  
Operating lease liability, noncurrent portion 1,460      
Total noncurrent liabilities 1,503     1,879  
       
Stockholders' Equity (Deficit):      
Preferred stock, $.01 par value:      
Authorized shares – 5,000      
Series 1 shares issued and outstanding – 200      
Liquidation preference of $1,012 in 2019 and $1,213 in 2018 707     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 – 13,539 in 2019 and 13,259 in 2018
Outstanding shares – 13,529 in 2019 and 13,249 in 2018
135     133  
Common stock held in treasury, at cost – 10 shares (362 )   (362 )
Additional paid-in capital 56,785     56,609  
Accumulated deficit (56,536 )   (59,242 )
Accumulated other comprehensive loss (43 )   (43 )
Total stockholders' equity (deficit) 1,822     (1,062 )
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) $ 6,415     $ 4,069  
               



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


 
  Three Months Ended
June 30,
  Six Months Ended
June 30,
 
     2019    2018   2019   2018  
Revenue   $ 4,020   $ 2,369   $ 7,211   $ 4,632  
Cost of revenue   1,590   926   2,874   1,778  
                   
Gross profit   2,430   1,443   4,337   2,854  
                   
Operating expenses:                  
Sales and marketing   46   431   458   845  
Research and development   296   200   477   503  
General and administrative   321   290   652   585  
                   
Operating income   1,767   522   2,750   921  
 

Interest expense, net
  (9 ) (48 (44 ) (101
                   
Income before income taxes   1,758   474   2,706   820  
                   
Income tax provision          
                   
Net income   $ 1,758   $ 474   $ 2,706   $ 820  
                   
Preferred stock dividends accrued   (35 ) (35 ) (69 ) (69
Net income attributable to common stockholders   $ 1,723   $ 439   $ 2,637   $ 751  
                   
Net income per share attributable to common stockholders:                  
Basic   $ 0.13   $ 0.03   $ 0.20   $ 0.06  
Diluted   $ 0.11   $ 0.03   $ 0.17   $ 0.05  
                   
Weighted average common shares outstanding:                     
Basic   13,523   13,017   13,466   12,982  
Diluted   15,371   14,791   15,314   14,756  
                   

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

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