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CST: 17/10/2019 05:06:38   

Intrusion Inc. Reports Net Income of $0.9 Million and Revenue of $3.0 Million for Fourth Quarter 2018

247 Days ago

RICHARDSON, Texas, Feb. 11, 2019 (GLOBE NEWSWIRE) -- Intrusion Inc. (OTCQB: INTZ) (“Intrusion”) today announced financial results for the quarter and year ended December 31, 2018.

Intrusion’s net income for the fourth quarter 2018 was $0.9 million, compared to net income of $0.2 million for the fourth quarter 2017. Net income for the year 2018 was $2.3 million, compared to a net loss of $30 thousand for 2017.

Revenue for the fourth quarter 2018 was $3.0 million, compared to $2.1 million in the fourth quarter 2017.  Revenue for the year 2018 was $10.3 million, compared to $6.9 million in 2017. 

Gross profit margin was 63% of revenue in the fourth quarter of 2018, compared to 58% of revenue in the fourth quarter 2017.  For the year, the gross profit margin increased to 63%, compared to 59% in 2017. 

Intrusion’s fourth quarter 2018 operating expenses were $1.0 million, compared to $1.0 million in the fourth quarter 2017. For the year 2018, operating expenses were $4.0 million, compared to $4.8 million in 2017. 

As of December 31, 2018, Intrusion reported cash and cash equivalents of $1.7 million, working capital of $0.5 million, and debt of $1.9 million. Comparably, as of December 31, 2017, Intrusion reported cash and cash equivalents of $0.2 million, a working capital deficiency of $0.8 million and debt of $2.9 million. 

“Orders booked in the fourth quarter 2018 totaled $5.2 million consisting primarily from renewals of existing projects.  For the year 2018 orders totaled $14.4 million, compared to $9.8 million in 2017,” stated G. Ward Paxton, Chairman, 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., CST 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., CST until February 18, 2019 by calling 1-855-859-2056 or 1-404-537-3406.  At the replay prompt, enter conference identification number 1298823. 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 INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except par value amounts)

  December 31,
2018
  December 31,
2017
ASSETS              
               
Current Assets:              
Cash and cash equivalents $ 1,652     $ 224  
Accounts receivable   1,967       962  
Inventories, net         15  
Prepaid expenses   91       89  
Total current assets   3,710       1.290  
               
Property and equipment, net   321       124  
Other assets   38       38  
TOTAL ASSETS $ 4,069     $ 1,452  
       
LIABILITIES AND STOCKHOLDERS’ DEFICIT      
       
Current Liabilities:      
Accounts payable and accrued expenses $ 1,596     $   1,182  
Dividends payable 594     447  
Obligations under capital lease, current portion 58     44  
Deferred revenue 1,004     406  
Total current liabilities 3,252     2,079  
       
Loan payable to officer 1,815     2,865  
Obligations under capital lease, noncurrent portion 64     17  
       
Stockholders' Deficit:      
Preferred stock, $.01 par value:      
Authorized shares – 5,000      
Series 1 shares issued/outstanding–200      
Liquidation preference of $1,213 in 2018 and $1,163 in 2017 707     707  
Series 2 shares issued/outstanding–460          
Liquidation preference of $1,385 in 2018 and $1,328 in 2017 724     724  
Series 3 shares issued/outstanding–289          
Liquidation preference of $760 in 2018 and $728 in 2017 412     412  
Common stock, $.01 par value:      
Authorized shares – 80,000      
Issued shares – 13,259 in 2018 and 12,808 in 2017          
Outstanding shares – 13,249 in 2018 and 12,798 in 2017 133     128  
Common stock held in treasury, at cost – 10 shares (362 )   (362 )
Additional paid-in capital 56,609     56,518  
Accumulated deficit (59,242 )   (61,529 )
Accumulated other comprehensive loss (43 )   (107 )
Total stockholders' deficit (1,062 )   (3,509 )
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 4,069     $ 1,452  
               

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


 
Three Months Ended
December 31,
  Year Ended
December 31,
 
   2018   2017   2018   2017  
Revenue $ 2,979   $ 2,081   $ 10,276   $ 6,862  
Cost of revenue 1,102   872   3,847   2,824  
                 
Gross profit 1,877   1,209   6,429   4,038  
                 
Operating expenses:                
Sales and marketing 293   362   1,604   1,531  
Research and development 405   365   1,237   2,162  
General and administrative 283   239   1,112   1,094  
                 
Operating income (loss) 896   243   2,476   (749 )
                 
Interest expense, net (45 ) (52 ) (189 ) (209 )
Other income (expense)       928  
                 
Income (loss) before income taxes 851   191   2,287   (30 )
                 
Income tax provision        
                 
Net income (loss) $ 851   $ 191   $ 2,287   $ (30 )
                 
Preferred stock dividends accrued (35 ) (35 ) (139 ) (139 )
Net income (loss) attributable to common stockholders $ 816   $ 156   $ 2,148   $ (169 )
                 
Net income (loss) per share attributable to common stockholders:                        
Basic $ 0.06   $ 0.01   $ 0.16   $ (0.01 )
Diluted $ 0.05   $ 0.01   $ 0.14   $ (0.01 )
                 
Weighted average common shares outstanding:                
Basic 13,168   12,798   13,049   12,785  
Diluted 15,182   14,369   15,063   12,785  
                 

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

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