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Intrusion Inc. Reports Net Income of $474 Thousand for Second Quarter 2018

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RICHARDSON, Texas, Aug. 14, 2018 (GLOBE NEWSWIRE) -- Intrusion Inc. (OTCQB:INTZ), ("Intrusion") announced today financial results for the three and six months ended June 30, 2018.

Intrusion's net income was $474 thousand in the second quarter 2018, compared to a net loss of $438 thousand in the second quarter 2017 and net income of $346 thousand in the first quarter 2018.

Revenue for the second quarter 2018 was $2.4 million compared to $1.5 million in the second quarter 2017 and $2.3 million for the first quarter 2018.

Gross profit margin was 61 percent of revenue in the second quarter of 2018 compared to 59 percent in the second quarter 2017 and 62 percent in the first quarter 2018.

Intrusion's second quarter 2018 operating expenses were $0.9 million compared to $1.3 million in the second quarter 2017 and $1.0 million in the first quarter 2018. 

As of June 30, 2018, Intrusion reported cash and cash equivalents of $0.4 million, a working capital deficiency of $1.0 million and debt of $1.9 million. 

"We were able to reduce our debt to $1.9 million at the end of second quarter 2018 compared to $3.0 million at the end of second quarter 2017 and $3.0 million at end of first quarter 2018.  Orders for the second quarter 2018 totaled $2.0 million.  Also, we are announcing today the receipt of a $5.5 million order within the last several days," 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 21, 2018 by calling 1-855-859-2056.  At the replay prompt, enter conference identification number 6884139. 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."

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

       
INTRUSION INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except par value amounts)
       
  June 30,     December 31,  
  2018     2017  
ASSETS      
       
Current Assets:              
Cash and cash equivalents $ 376     $ 224  
Accounts receivable   1,068       962  
Inventories, net         15  
Prepaid expenses     418         89  
Total current assets   1,862       1,290  
               
Property and equipment, net   223       124  
Other assets    38          38  
TOTAL ASSETS $ 2,123     $ 1,452  
       
LIABILITIES AND STOCKHOLDERS' DEFICIT      
       
Current Liabilities:      
Accounts payable and accrued expenses $ 1,379     $   1,182  
Dividends payable   520       447  
Obligations under capital lease, current portion 56       44  
Deferred revenue 947     406  
Total current liabilities 2,902     2,079  
       
Loan payable to officer   1,815     2,865  
Obligations under capital lease, noncurrent portion 60     17  
       
Stockholders' Deficit:      
Preferred stock, $.01 par value:      
Authorized shares – 5,000      
Series 1 shares issued and outstanding – 200       
Liquidation preference of $1,188 in 2018 and $1,163 in 2017 707     707  
Series 2 shares issued and outstanding – 460          
Liquidation preference of $1,356 in 2018 and $1,328 in 2017 724     724  
Series 3 shares issued and outstanding – 289           
Liquidation preference of $744 in 2018 and $728 in 2017 412
    412   
Common stock, $.01 par value:      
Authorized shares – 80,000      
Issued shares – 13,027 in 2018 and 12,808 in 2017          
Outstanding shares – 13,017 in 2018 and 12,798 in 2017    130     128  
Common stock held in treasury, at cost – 10 shares (362 )     (362 )
Additional paid-in capital 56,551     56,518  
Accumulated deficit (60,709 )   (61,529 )
Accumulated other comprehensive loss (107 )     (107 )
Total stockholders' deficit (2,654 )     (3,509 )
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $   2,123     $   1,452  


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

 
  Three Months Ended
June 30,
  Six Months Ended
June 30,
 
     2018   2017   2018   2017  
Revenue   $ 2,369   $ 1,543   $ 4,632   $ 3,102  
Cost of revenue   926   632   1,778   1,215  
                   
Gross profit   1,443   911   2,854   1,887  
                   
Operating expenses:                  
Sales and marketing   431   415   845   776  
Research and development   200   594   503   1,179  
General and administrative   290   282   585   613  
                   
Operating income (loss)   522   (380 ) 921   (681 )
                   
Interest expense, net   (48 ) (58 (101 ) (108
                   
Income (loss) before income taxes   474   (438 ) 820   (789 )
                   
Income tax provision          
                   
Net income (loss)   $ 474   $ (438 ) $ 820   $ (789 )
                   
Preferred stock dividends accrued   (35 ) (35 ) (69 ) (69
Net income (loss) attributable to common stockholders   $ 439   $ (473 ) $ 751   $ (858 )
                   
Net income (loss) per share attributable to common stockholders:                          
Basic   $ 0.03   $ (0.04 ) $ 0.06   $ (0.07 )
Diluted   $ 0.03   $ (0.04 $ 0.05   $ (0.07
                   
Weighted average common shares outstanding:                  
Basic   13,017   12,798   12,982   12,772  
Diluted   14,791   12,798   14,756   12,772  

 

 

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