INTRUSION Reports Third Quarter 2021 Results
Shield revenue represents 13% of total consolidated revenue up from 7% in the prior quarter
PLANO, Texas, Nov. 11, 2021 (GLOBE NEWSWIRE) -- INTRUSION, Inc. (NASDAQ: INTZ), a provider of cyberattack prevention solutions, including zero-days, announced today financial results for the third quarter ended September 30, 2021.
Recent Financial & Business Highlights
Third quarter revenue of $1.8 million was up 14% over the prior year
Shield revenue represented 13% of total revenue in the quarter, up from 7% in the prior quarter
Top Shield customer, Lippert Components, accelerated deployment across its global workforce
Added five new Shield customers during the quarter varying in size
Received further validation of Shield’s efficacy to protect against contemporary cyberattacks from three separate cybersecurity evaluation firms
Third Quarter Financial Results
Revenue for the third quarter 2021 was $1.8 million, compared to $2.0 million for the second quarter 2021 and $1.6 million for the third quarter 2020.
Gross profit margin was 62% of revenue in the third quarter 2021, compared to 63% for the second quarter 2021 and 59% for the third quarter 2020.
Operating expenses in the third quarter 2021 were $7.2 million, compared to $6.9 million for the second quarter 2021 and $2.3 million for the third quarter 2020.
The third quarter 2021 net loss was $6.1 million, or ($0.34) per share, compared to a net loss of $5.0 million, or ($0.28) per share, for the second quarter 2021 and a net loss of $1.4 million, or ($0.10) per share, for the third quarter 2020.
As of September 30, 2021, cash and cash equivalents were $7.2 million and working capital was $4.9 million.
Conference Call
INTRUSION’s management will host a conference call today at 4:00 P.M., CST. Interested investors can access the live call by dialing 1-888-330-2041, or 1-646-960-0151 for international callers, and providing the following access code: 6774917. For those unable to participate in the live conference call, a replay will be accessible beginning tonight at 7:00 P.M. CST until November 18, 2021, by dialing 1-800-770-2030, or 1-647-362-9199 for international callers, and entering the following access code: 6774917. Additionally, a live and archived audio webcast of the conference call will be available at www.intrusion.com.
About INTRUSION, Inc.
INTRUSION, Inc. (NASDAQ: INTZ) protects any-sized company by leveraging advanced threat intelligence with real-time artificial intelligence to kill cyberattacks as they occur – including zero-days. INTRUSION’s solution families include INTRUSION Shield, an advanced cyber-defense solution that kills cyberattacks in real-time using artificial intelligence (AI) and advanced cloud threat intelligence; INTRUSION TraceCop™ for identity discovery and disclosure; and INTRUSION Savant™ for network data mining and advanced persistent threat detection. For more information, please visit www.intrusion.com.
Cautionary Statement Regarding Forward Looking Information
This release may contain certain forward-looking statements, including, without limitations, statements about the performance of protections provided by our Shield products, the effect of the recent additions to our board and executive management team, the anticipated recovery of our governmental customers and an expanded need for them and an increasing customer base to address cybersecurity risks, leading to expected growth in our sales performance for this year, as well as any other statements which reflect management's expectations regarding future events and operating performance. These forward-looking statements speak only as of the date hereof and involve a number of risks and uncertainties, including, the risk that the Company does not benefit as anticipated from sales of our current solutions, including the INTRUSION Shield solution, the performance of our expanded management team, and that customers will address and mitigate their perceived cybersecurity risks through the purchase of our products and solutions. 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, risks that we have detailed in the Company's most recent reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.”
INTRUSION INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except par value amounts)
September 30, | December 31, | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 7,153 | $ | 16,704 | ||||
Accounts receivable | 1,048 | 1,233 | ||||||
Prepaid expenses | 617 | 370 | ||||||
Other current assets | 19 | – | ||||||
Total current assets | 8,837 | 18,307 | ||||||
Non-Current Assets: | ||||||||
Property and Equipment: | ||||||||
Equipment | 2,502 | 1,453 | ||||||
Furniture and fixtures | 43 | 43 | ||||||
Leasehold improvements | 67 | 67 | ||||||
Property, plant and equipment, gross | 2,612 | 1,563 | ||||||
Accumulated depreciation and amortization | (1,417 | ) | (1,097 | ) | ||||
Property and equipment, net | 1,195 | 466 | ||||||
Finance leases, right-of-use assets, net | 1,696 | 20 | ||||||
Operating leases, right-of-use assets, net | 882 | 1,010 | ||||||
Other assets | 167 | 79 | ||||||
Total non-current assets | 3,940 | 1,575 | ||||||
TOTAL ASSETS | $ | 12,777 | $ | 19,882 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable, trade | $ | 747 | $ | 408 | ||||
Accrued expenses | 957 | 628 | ||||||
Finance lease liabilities, current portion | 582 | 21 | ||||||
Operating lease liabilities, current portion | 860 | 487 | ||||||
PPP loan payable, current portion | – | 421 | ||||||
Deferred revenue | 822 | 177 | ||||||
Total current liabilities | 3,968 | 2,142 | ||||||
Non-Current Liabilities: | ||||||||
PPP loan payable, noncurrent portion | – | 212 | ||||||
Finance lease liabilities, noncurrent portion | 620 | – | ||||||
Operating lease liabilities, noncurrent portion | 1,412 | 1,867 | ||||||
Total non-current liabilities | 2,032 | 2,079 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Common stock $0.01 par value: | ||||||||
Authorized shares — 80,000 | 188 | 174 | ||||||
Common stock held in treasury, at cost – 10 shares | (362 | ) | (362 | ) | ||||
Additional paid-in capital | 83,240 | 77,187 | ||||||
Accumulated deficit | (76,246 | ) | (61,295 | ) | ||||
Accumulated other comprehensive loss | (43 | ) | (43 | ) | ||||
Total stockholders’ equity | 6,777 | 15,661 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 12,777 | $ | 19,882 | ||||
INTRUSION INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
Revenue | $ | 1,819 | $ | 1,588 | $ | 5,632 | $ | 5,039 | ||||||||
Cost of revenue | 690 | 652 | 2,048 | 2,050 | ||||||||||||
Gross profit | 1,129 | 936 | 3,584 | 2,989 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 3,782 | 885 | 10,123 | 1,880 | ||||||||||||
Research and development | 1,863 | 1,081 | 4,862 | 2,741 | ||||||||||||
General and administrative | 1,592 | 377 | 4,261 | 962 | ||||||||||||
Operating loss | (6,108 | ) | (1,407 | ) | (15,662 | ) | (2,594 | ) | ||||||||
Interest and other income | 19 | – | 87 | 8 | ||||||||||||
Interest expense | (8 | ) | (2 | ) | (11 | ) | (4 | ) | ||||||||
Gain on the extinguishment of debt | – | – | 635 | – | ||||||||||||
Net loss | $ | (6,097 | ) | $ | (1,409 | ) | $ | (14,951 | ) | $ | (2,590 | ) | ||||
Preferred stock dividends accrued | – | (13 | ) | – | (79 | ) | ||||||||||
Net loss attributable to common stockholders | $ | (6,097 | ) | $ | (1,422 | ) | $ | (14,951 | ) | $ | (2,669 | ) | ||||
Net loss per share attributable to common stockholders: | ||||||||||||||||
Basic | $ | (0.34 | ) | $ | (0.10 | ) | $ | (0.85 | ) | $ | (0.19 | ) | ||||
Diluted | $ | (0.34 | ) | $ | (0.10 | ) | $ | (0.85 | ) | $ | (0.19 | ) | ||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 17,909 | 14,450 | 17,692 | 13,981 | ||||||||||||
Diluted | 17,909 | 14,450 | 17,692 | 13,981 | ||||||||||||
Investor Relations Contact
Joel Achramowicz
sheltonir@sheltongroup.com
P: (415) 845-9964
