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. RETURNS TO PROFITABILITY
IN SECOND QUARTER
Richardson, Texas — August 12, 2009 — Intrusion Inc. (OTCBB: INTZ), (“Intrusion”) announced today financial results for the three and six months ended June 30, 2009.
Intrusion returned to profitability in the second quarter of 2009 with net income of $50 thousand, compared to $41 thousand net income for the second quarter 2008.
Revenue for the second quarter 2009 was $1.3 million; the same as in the second quarter 2008.
Gross profit margin was 66 percent of revenue in the second quarter of 2009; the same as in the second quarter 2008.
Intrusion’s second quarter 2009 operating expenses were $0.8 million; the same as in the second quarter 2008.
As of June 30, 2009, Intrusion reported cash and cash equivalents of $0.1 million, a working capital deficiency of $1.6 million and debt of $0.8 million.
“We are pleased with our return to profitability in the second quarter 2009. In addition, as previously reported, we booked a new TraceCop™ order totaling $800,000 early in the third quarter. This new TraceCop order is expected to produce revenue over the next twelve months,” 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 1-800-399-2043 (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., CDT until August 19, 2009 by calling 1-800-642-1687 (if outside the United States, 1-706-645-9291). At the replay prompt, enter conference identification number 23890825. 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, data leak prevention, and data privacy protection and network intrusion prevention and detection products. Intrusion’s product families include TraceCop™ for entity identification, the Compliance Commander™ for regulated information compliance, data leak prevention 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-K, 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)
|
| June 30, |
| December 31, |
| ||
|
| 2009 |
| 2008 |
| ||
ASSETS |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current Assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 136 |
| $ | 554 |
|
Accounts receivable |
| 289 |
| 341 |
| ||
Inventories, net |
| 6 |
| 20 |
| ||
Prepaid expenses |
| 58 |
| 56 |
| ||
Total current assets |
| 489 |
| 971 |
| ||
|
|
|
|
|
| ||
Property and equipment, net |
| 134 |
| 169 |
| ||
Other assets |
| 39 |
| 39 |
| ||
TOTAL ASSETS |
| $ | 662 |
| $ | 1,179 |
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current Liabilities: |
|
|
|
|
| ||
Loan payable to officer |
| $ | 835 |
| $ | 480 |
|
Accounts payable and accrued expenses |
| 547 |
| 538 |
| ||
Deferred revenue |
| 416 |
| 1,090 |
| ||
Dividends payable |
| 276 |
| 187 |
| ||
Total current liabilities |
| 2,074 |
| 2,295 |
| ||
|
|
|
|
|
| ||
Commitments and contingencies |
|
|
|
|
| ||
|
|
|
|
|
| ||
Stockholders’ Deficit: |
|
|
|
|
| ||
Preferred stock, $.01 par value: |
|
|
|
|
| ||
Authorized shares – 5,000 |
|
|
|
|
| ||
Series 1 shares issued and outstanding – 220 in 2009 and 260 in 2008 |
|
|
|
|
| ||
Liquidation preference of $1,212 as of June 30, 2009 |
| 778 |
| 918 |
| ||
Series 2 shares issued and outstanding – 460 |
|
|
|
|
| ||
Liquidation preference of $1,241 as of June 30, 2009 |
| 724 |
| 724 |
| ||
Series 3 shares issued and outstanding – 354 |
|
|
|
|
| ||
Liquidation preference of $834 as of June 30, 2009 |
| 504 |
| 504 |
| ||
|
|
|
|
|
| ||
Common stock, $.01 par value: |
|
|
|
|
| ||
Authorized shares – 80,000 |
|
|
|
|
| ||
Issued shares – 11,715 in 2009 and 11,648 in 2008 |
|
|
|
|
| ||
Outstanding shares – 11,705 in 2009 and 11,638 in 2008 |
| 117 |
| 116 |
| ||
Common stock held in treasury, at cost – 10 shares |
| (362 | ) | (362 | ) | ||
Additional paid-in capital |
| 55,558 |
| 55,443 |
| ||
Accumulated deficit |
| (58,552 | ) | (58,280 | ) | ||
Accumulated other comprehensive loss |
| (179 | ) | (179 | ) | ||
Total stockholders’ deficit |
| (1,412 | ) | (1,116 | ) | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT |
| $ | 662 |
| $ | 1,179 |
|
3
INTRUSION INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)
|
| Three Months Ended |
| Six Months Ended |
| ||||||||
|
| June 30, |
| June 30, |
| ||||||||
|
| 2009 |
| 2008 |
| 2009 |
| 2008 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Revenue |
| $ | 1,292 |
| $ | 1,283 |
| $ | 2,148 |
| $ | 1,746 |
|
Cost of revenue |
| 433 |
| 440 |
| 710 |
| 620 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Gross profit |
| 859 |
| 843 |
| 1,438 |
| 1,126 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating expenses: |
|
|
|
|
|
|
|
|
| ||||
Sales and marketing |
| 270 |
| 361 |
| 534 |
| 732 |
| ||||
Research and development |
| 251 |
| 195 |
| 617 |
| 710 |
| ||||
General and administrative |
| 273 |
| 230 |
| 532 |
| 496 |
| ||||
Operating income (loss) |
| 65 |
| 57 |
| (245 | ) | (812 | ) | ||||
Interest expense, net |
| (15 | ) | (16 | ) | (26 | ) | (22 | ) | ||||
Income (loss) before income taxes |
| 50 |
| 41 |
| (271 | ) | (834 | ) | ||||
Income tax provision |
| — |
| — |
| — |
| — |
| ||||
Net income (loss) |
| 50 |
| 41 |
| (271 | ) | (834 | ) | ||||
Preferred stock dividends accrued |
| (39 | ) | (40 | ) | (78 | ) | (105 | ) | ||||
Net income (loss) attributable to common stockholders |
| $ | 11 |
| $ | 1 |
| $ | (349 | ) | $ | (939 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Net income (loss) per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
| ||||
Basic |
| $ | 0.00 |
| $ | 0.00 |
| $ | (0.03 | ) | $ | (0.08 | ) |
Diluted |
| $ | 0.00 |
| $ | 0.00 |
| $ | (0.03 | ) | $ | (0.08 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
| ||||
Basic |
| 11,664 |
| 11,638 |
| 11,652 |
| 11,638 |
| ||||
Diluted |
| 13,117 |
| 11,638 |
| 11,652 |
| 11,638 |
|
4