Intrusion Inc. Reports Revenue Of $1.6 Million In The Third Quarter Of 2016

RICHARDSON, Texas, Nov. 14, 2016 (GLOBE NEWSWIRE) -- Intrusion Inc. (OTCQB:INTZ), ("Intrusion") announced today financial results for the three and nine months ended September 30, 2016.

Intrusion's net loss was $280 thousand in the third quarter 2016 compared to a net loss of $432 thousand in the third quarter 2015.

Intrusion's revenue for the third quarter 2016 was $1.6 million compared to $1.6 million in the third quarter 2015.

Gross profit was $1.0 million or 62 percent of revenue in the third quarter of 2016 compared to $1.0 million or 63 percent of revenue in the third quarter 2015.

Intrusion's third quarter 2016 operating expenses were $1.2 million compared to $1.4 million in the third quarter 2015. 

As of September 30, 2016, Intrusion reported cash and cash equivalents of $0.2 million, a working capital deficiency of $1.0 million and debt of $2.5 million. 

"Orders booked in the third quarter 2016 were $1.2 million.  An order for $1.0 million was delayed in our customer's purchasing department; however, $625,000 of the delayed order has been booked in October with the balance expected in November," 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., CST today.  Interested investors can access the call at 1-877-258-4925 (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., CST until November 21, 2016 by calling 1-855-859-2056 (if outside the United States, 1-404-537-3406).  At the replay prompt, enter conference identification number 18411485.  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, forecasted future sales opportunities with potential new customers, 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)
   
  September 30,   December 31,
    2016       2015  
ASSETS          
           
Current Assets:          
Cash and cash equivalents $   210     $   102  
Accounts receivable   588       580  
Inventories, net   52       45  
Prepaid expenses   41       69  
Total current assets   891       796  
           
Property and equipment, net   314       486  
Other assets   41       43  
TOTAL ASSETS $   1,246     $   1,325  
           
LIABILITIES AND STOCKHOLDERS' DEFICIT  
   
Current Liabilities:    
Accounts payable and accrued expenses $   714     $   840  
Dividends payable   267       160  
Obligations under capital lease, current portion   142       197  
Deferred revenue   784       386  
Total current liabilities   1,907       1,583  
           
Loan payable to officer   2,335       1,530  
Obligations under capital lease, noncurrent portion   51       139  
     
Stockholders' Deficit:    
Preferred stock, $.01 par value:    
Authorized shares - 5,000    
Series 1 shares issued and outstanding-200 in 2016 and 2015      
  Liquidation preference of $1,100 in 2016 and $1,063 in 2015   707       707  
Series 2 shares issued and outstanding-460 in 2016 and 2015    
  Liquidation preference of $1,256 in 2016 and $1,212 in 2015   724       724  
Series 3 shares issued and outstanding-289 in 2016 and 2015    
  Liquidation preference of $689 in 2016 and $665 in 2015   412       412  
     
Common stock, $.01 par value:    
Authorized shares - 80,000    
Issued shares - 12,758 in 2016 and 12,622 in 2015    
Outstanding shares - 12,748 in 2016 and 12,612 in 2015   128       126  
Common stock held in treasury, at cost - 10 shares   (362 )     (362 )
Additional paid-in capital   56,609       56,520  
Accumulated deficit   (61,158 )     (59,947 )
Accumulated other comprehensive loss   (107 )     (107 )
Total stockholders' deficit   (3,047 )     (1,927 )
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $   1,246     $   1,325  
               

   
INTRUSION INC.  
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(In thousands except per share amounts)  
   
    Three Months Ended September 30,       Nine Months Ended   September 30,  
     2016     2015     2016     2015  
Revenue   $ 1,595     $ 1,552     $ 4,693     $ 5,336  
Cost of revenue   610     570     1,677     1,984  
                         
Gross profit   985     982     3,016     3,352  
                         
Operating expenses:                        
Sales and marketing   428     490     1,276     1,432  
Research and development   508     592     1,908     1,641  
General and administrative   293     305     941     946  
                         
Operating income (loss)   (244 )   (405 )   (1,109 )   (667 )
                         
Interest expense, net   (36 )   (27 )   (102 )   (79 )
                         
Net income (loss)   $ (280 )   $ (432 )   $ (1,211 )   $ (746 )
                         
Preferred stock dividends accrued   (35 )   (35 )   (104 )   (104 )
Net income (loss) attributable to common stockholders   $ (315 )   $ (467 )   $ (1,315 )   $ (850 )
                         
Net income (loss) per share attributable to common stockholders:                        
Basic   $ (0.02 )   $ (0.04 )   $ (0.10 )   $ (0.07 )
Diluted   $ (0.02 )   $ (0.04 )   $ (0.10 )   $ (0.07 )
                         
Weighted average common shares outstanding:                        
Basic   12,748     12,612     12,733     12,593  
Diluted   12,748     12,612     12,733     12,593  

Financial ContactMichael L. Paxton, VP, CFO972.301.3658, mpaxton@intrusion.com