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Intrusion Inc. Reports First Quarter 2020 Financial Results

RICHARDSON, Texas, May 14, 2020 (GLOBE NEWSWIRE) -- Intrusion Inc. (INTZ), (“Intrusion”) today announced financial results for the quarter ended March 31, 2020.

Intrusion had a net loss of $465 thousand in the first quarter 2020, compared to a net income of $947 thousand for the first quarter 2019 and net income of $296 thousand for the fourth quarter 2019.  

Revenue for the first quarter 2020 was $1.8 million, compared to $3.2 million for the first quarter 2019 and $2.6 million for the fourth quarter 2019.   

Gross profit margin was 58% of revenue in the first quarter 2020, compared to 60% for the first quarter 2019 and 61% for the fourth quarter 2019. 

Intrusion’s first quarter 2020 operating expenses were $1.5 million, compared to $0.9 million for the first quarter 2019 and $1.3 million for the fourth quarter 2019.

As of March 31, 2020, Intrusion reported cash and cash equivalents of $3.2 million and working capital of $2.7 million.

“Order delays in the fourth quarter 2019 have continued in the first quarter 2020.  The global pause in business due to Covid-19 has contributed to the delays.  We continue to have positive customer response and look forward to future opportunities.  The state of Texas is allowing companies to reopen during the month of May, and we look forward to our government customers doing the same,” stated Michael L. Paxton, Interim President 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 1-833-360-0880 (if outside the United States, 1-973-500-2152).  For those unable to participate in the live conference call, a replay will be accessible beginning today at 7:00 P.M., CDT until May 21, 2020 by calling 1-855-859-2056 (if outside the United States, 1-404-537-3406).  At the replay prompt, enter conference identification number 7278964.  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, 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)

  March 31,   December 31,
  2020   2019
ASSETS              
Current Assets              
Cash and cash equivalents $ 3,217     $ 3,334  
Accounts receivable   1,032       1,566  
Prepaid expenses   169       152  
Total current assets   4,418       5,052  
 

Noncurrent Assets
             
Property and equipment, net   333       335  
Finance leases right-of-use asset, net   52       62  
Operating leases right-of-use asset, net   1,285       1,348  
Other assets   38       38  
Total noncurrent assets   1,708       1,783  
TOTAL ASSETS $ 6,126     $ 6,835  


LIABILITIES AND EQUITY              
Current Liabilities              
Accounts payable and accrued expenses $ 1,051     $ 1,080  
Dividends payable   53       20  
Finance leases liability, current portion   43       43  
Operating leases liability, current portion   288       284  
Deferred revenue   284       516  
Total current liabilities   1,719       1,943  
               
Noncurrent Liabilities              
Finance leases liability, noncurrent portion   11       21  
Operating leases liability, noncurrent portion   1,244       1,315  
Total noncurrent liabilities   1,255       1,336  
               
Shareholders' Equity:              
Preferred stock, $.01 par value:              
Authorized shares – 5,000              
Series 1 shares issued and outstanding – 200              
Liquidation preference of $1,025 in 2020 and $1,013 in 2019   707       707  
Series 2 shares issued and outstanding – 420 in 2020 and 460 in 2019
Liquidation preference of $1,068 in 2020 and $1,155 in 2019
  661       724  
Series 3 shares issued and outstanding – 266 in 2020 and 289 in 2019 
Liquidation preference of $590 in 2020 and $634 in 2019
  379       412  
               
Common stock, $.01 par value:              
Authorized shares – 80,000              
Issued shares – 13,788 in 2020 and 13,552 in 2019 
Outstanding shares – 13,778 in 2020 and 13,542 in 2019
  138       136  
Common stock held in treasury, at cost – 10 shares   (362 )     (362 )
Additional paid-in capital   56,914       56,759  
Accumulated deficit   (55,242 )     (54,777 )
Accumulated other comprehensive loss   (43 )     (43 )
Total shareholder' equity   3,152       3,556  
TOTAL LIABILITIES AND EQUITY $ 6,126     $ 6,835  
               



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

  Quarter ended   Quarter ended  
  March 31,   March 31,  
  2020   2019  
         
Revenue $ 1,795   $ 3,191  
Cost of revenue 747   1,284  
         
Gross profit 1,048   1,907  
         
Operating expenses:        
Sales and marketing 510   412  
Research and development 753   182  
General and administrative 256   331  
         
Operating income (loss) (471 ) 982  
         
Interest expense (1 ) (35 )
Interest income 7    
         
Net income (loss) (465 ) 947  
         
Preferred stock dividends accrued (33 ) (34 )
Net income (loss) attributable to common stockholders $ (498 ) $ 913  
         
Net income (loss) per share attributable to common stockholders:         
  Basic $ (0.04 ) $ 0.07  
  Diluted $ (0.04 ) $ 0.06  
Weighted average shares outstanding:        
  Basic 13,703   13,408  
  Diluted 13,703   15,323  


Contact
Michael L. Paxton
972.301.3658, mpaxton@intrusion.com