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Intrusion Inc. Reports Net Income of $1.8 Million for Second Quarter 2019
[August 12, 2019]

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


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 receivable2,705  1,967 
Prepaid expenses325  91 
Total current assets4,507  3,710 
      
Noncurrent Assets     
Property and equipment, net314  200 
Finance leases right-of-use asset, net89  121 
Operating leases right-of-use asset, net1,467   
Other assets38  38 
Total noncurrent assets1,908  359 
TOTAL ASSETS$6,415  $4,069 


LIABILITIES AND EQUITY (DEFICIT)   
Current Liabilities   
Accounts payable and accrued expenses$1,568  $1,596 
Dividends payable20  594 
Finance leases liability, current portion48  58 
Operating lease liability, current portion271   
Deferred revenue1,183  1,004 
Total current liabilities3,090  3,252 
    
Noncurrent Liabilities   
Loan payable to officer  1,815 
Finance leases liability, noncurrent portion43  64 
Operating lease liability, noncurrent portion1,460   
Total noncurrent liabilities1,503  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 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 – 13,539 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 capital56,785  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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