EX-99.1 2 a08-25617_2ex99d1.htm EX-99.1

Exhibit 99.1

 

NEWS RELEASE

 

 

 

 

 

 

1101 East Arapaho Road

 

 

Suite 200

 

 

Richardson TX 75081 USA

 

 

(972) 234-6400 main

 

Financial Contact

Michael L. Paxton, VP, CFO

972.301.3658, mpaxton@intrusion.com

 

INTRUSION INC. CONTINUES PROFITABILITY
IN THIRD QUARTER

 

Richardson, Texas – November 12, 2008 – Intrusion Inc. (OTCBB: INTZ), (“Intrusion”) today announced financial results for the three months ended September 30, 2008.  Intrusion achieved a net profit for the second consecutive quarter in the third quarter of 2008.

 

Intrusion’s net income was $17 thousand in the third quarter 2008 compared to a $600 thousand net loss for the third quarter 2007.

 

Revenue for the third quarter 2008 was $1.2 million compared to $0.9 million for the third quarter 2007.

 

Gross profit margin was 69 percent of revenue in the third quarter of 2008 compared to 60 percent of revenue in the third quarter of 2007.

 

Intrusion’s third quarter 2008 operating expenses were $0.8 million compared to $1.1 million for the third quarter 2007.

 

As of September 30, 2008, Intrusion reported cash and cash equivalents of $0.1 million, a working capital deficiency of ($1.1) million and debt of $1.3 million.

 

“Our second consecutive profitable quarter is outstanding and is the result of continued good gross profit margin and operating expense control,” stated G. Ward Paxton, Chairman, President and CEO of Intrusion.  “The $2.4 million of new TraceCop orders announced earlier today get us off to a good start for the fourth quarter and next year,” Paxton concluded.

 



 

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 1-800-399-2043 (if outside the United States, 1-706-634-5518).  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 19, 2008 by calling 1-800-642-1687 (if outside the United States, 1-706-645-9291).  At the replay prompt, enter conference identification number 72786290.  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 systems, regulated information compliance, and data privacy protection and network intrusion prevention and detection products.  Intrusion’s product families include TraceCop™ for identity identification, the Compliance Commander™ for regulated information and data privacy protection, and Intrusion SecureNet for network intrusion prevention and 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, other than historical information, may include forward-looking statements regarding future events or the future financial performance of the Company.  Such statements include, without limitations, statements regarding future revenue growth and profitability, 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, including but not limited to the following: the difficulties in forecasting future sales caused by current economic and market conditions, the effect of military actions on government and corporate spending on information security products, spending patterns of, and appropriations to, U.S. government departments, the impact of our cost reduction programs and our refocused product line, the difficulties and uncertainties in successfully developing and introducing new products in emerging markets, market acceptance of our products, the impact of our sustained losses on our ability to successfully operate and grow our business, our stock price and the recent loss of our Nasdaq listing, our ability to generate sufficient cash flow or obtain additional financing on acceptable terms in order to fund ongoing liquidity needs, the highly competitive market for our products, the effects of sales and implementation cycles for our products on our quarterly results, difficulties in accurately estimating market growth, the consolidation of the information security industry, the impact of changing economic conditions, business conditions in the information security industry, our ability to manage acquisitions effectively, the impact of market peers and their products as well as risks concerning future technology and others identified in our Annual Report on Form 10-KSB, as amended, and other Securities and Exchange Commission filings. These filings can be obtained by contacting Intrusion Investor Relations.

 

2



 

INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands except par value amounts)

 

 

 

September 30,

 

December 31,

 

 

 

2008

 

2007

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

96

 

$

362

 

Accounts receivable, net of allowance for doubtful accounts of $40 in 2008 and 2007

 

761

 

110

 

Inventories, net

 

61

 

146

 

Prepaid expenses

 

32

 

75

 

Total current assets

 

950

 

693

 

 

 

 

 

 

 

Property and equipment, net

 

168

 

144

 

Other assets

 

39

 

39

 

TOTAL ASSETS

 

$

1,157

 

$

876

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Line of credit

 

$

130

 

$

100

 

Loan payable to officer

 

1,180

 

 

Accounts payable and accrued expenses

 

747

 

688

 

Deferred revenue

 

205

 

312

 

Total current liabilities

 

2,262

 

1,100

 

 

 

 

 

 

 

Stockholders’ Deficit:

 

 

 

 

 

Preferred stock, $.01 par value:

 

 

 

 

 

Authorized shares – 5,000

 

 

 

 

 

Series 1 shares issued and outstanding – 260
Liquidation preference of $1,364 as of September 30, 2008

 

918

 

918

 

Series 2 shares issued and outstanding – 460
Liquidation preference of $1,198 as of September 30, 2008

 

724

 

724

 

Series 3 shares issued and outstanding – 354 in 2008
Liquidation preference of $805 as of September 30, 2008

 

504

 

504

 

 

 

 

 

 

 

Common stock, $.01 par value:

 

 

 

 

 

Authorized shares – 80,000

 

 

 

 

 

Issued shares – 11,648

 

 

 

 

 

Outstanding shares – 11,638

 

116

 

116

 

Common stock held in treasury, at cost – 10 shares

 

(362

)

(362

)

Additional paid-in capital

 

55,463

 

55,527

 

Accumulated deficit

 

(58,289

)

(57,472

)

Accumulated other comprehensive loss

 

(179

)

(179

)

Total stockholders’ deficit

 

(1,105

)

(224

)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$

1,157

 

$

876

 

 

3



 

INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share amounts)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,216

 

$

919

 

$

2,961

 

$

3,014

 

Cost of revenue

 

374

 

370

 

993

 

1,184

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

842

 

549

 

1,968

 

1,830

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

349

 

499

 

1,081

 

1,518

 

Research and development

 

210

 

358

 

920

 

1,169

 

General and administrative

 

244

 

255

 

739

 

730

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

39

 

(563

)

(772

)

(1,587

)

 

 

 

 

 

 

 

 

 

 

Interest income (expense), net

 

(22

)

1

 

(45

)

2

 

Other income (expense), net

 

 

 

 

1

 

Income (loss) before income taxes

 

17

 

(562

)

(817

)

(1,584

)

Income tax provision

 

 

 

 

 

Net income (loss)

 

17

 

(562

)

(817

)

(1,584

)

Preferred stock dividends accrued

 

(41

)

(44

)

(121

)

(130

)

Net loss attributable to common stockholders

 

$

(24

)

$

(606

)

$

(938

)

$

(1,714

)

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders (basic and diluted)

 

$

(0.00

)

$

(0.06

)

$

(0.08

)

$

(0.18

)

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

- Basic and Diluted

 

11,638

 

10,397

 

11,638

 

9,387

 

 

4