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RICHARDSON, Texas, May 07, 2018 -- Intrusion Inc. (OTCQB:INTZ) (“Intrusion”) today announced financial results for the quarter ended March 31, 2018.
Intrusion’s net income was $346 thousand in the first quarter 2018, compared to a net loss of $351 thousand for the first quarter 2017 and net income of $194 thousand for the fourth quarter 2017.
Revenue for the first quarter 2018 was $2.3 million, compared to $1.6 million for the first quarter 2017 and $2.1 million for the fourth quarter 2017.
Gross profit margin was 62% of revenue in the first quarter 2018; compared to 63% for the first quarter 2017 and 58% for the fourth quarter 2017.
Intrusion’s first quarter 2018 operating expenses were $1.0 million; compared to $1.3 million for the first quarter 2017 and $1.0 million for the fourth quarter 2017.
As of March 31, 2018, Intrusion reported cash and cash equivalents of $0.1 million, a working capital deficiency of $0.3 million and debt of $3.0 million.
“Our orders pipeline as we entered 2018 included twenty-six customers, fifteen of which were existing customers and eleven new customers. Total bookings in the first quarter included five renewal orders from existing customers. Gross profit margin improved to 62% of revenue in the first quarter 2018. Gross profit margin should range from 58% to 65%, depending on product mix. We continue our increased sales efforts in the TraceCop business segment and expect this focus to result in growth in revenue and profit,” 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 1-877-258-4925 (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., CDT until May 14, 2018 by calling 1-855-859-2056 (if outside the United States, 1-404-537-3406). At the replay prompt, enter conference identification number 8979247. 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, 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. We develop, market and support a family of entity identification, high speed data mining, cybercrime and advanced persistent threat detection products.
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, | ||||
| 2018 | 2017 | ||||
| ASSETS | |||||
| Current Assets: | |||||
| Cash and cash equivalents | $ | 133 | $ | 224 | |
| Accounts receivable | 1,244 | 962 | |||
| Inventories, net | — | 15 | |||
| Prepaid expenses | 181 | 89 | |||
| Total current assets | 1,558 | 1,290 | |||
| Property and equipment, net | 169 | 124 | |||
| Other assets | 38 | 38 | |||
| TOTAL ASSETS | $ | 1,765 | $ | 1,452 | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT
| Current Liabilities: | ||||||||||
| Accounts payable and accrued expenses | $ | 1,269 | $ | 1,182 | ||||||
| Dividends payable | 483 | 447 | ||||||||
| Obligations under capital lease, current portion | 46 | 44 | ||||||||
| Deferred revenue | 76 | 406 | ||||||||
| Total current liabilities | 1,874 | 2,079 | ||||||||
| Loan payable to officer | 2,965 | 2,865 | ||||||||
| Obligations under capital lease, noncurrent portion | 38 | 17 | ||||||||
| Stockholders' Deficit: | ||||||||||
| Preferred stock, $.01 par value: | ||||||||||
| Authorized shares – 5,000 | ||||||||||
| Series 1 shares issued and outstanding – 200 | ||||||||||
| Liquidation preference of $1,175 in 2018 and $1,163 in 2017 | 707 | 707 | ||||||||
| Series 2 shares issued and outstanding – 460 | ||||||||||
| Liquidation preference of $1,342 in 2018 and $1,328 in 2017 | 724 | 724 | ||||||||
| Series 3 shares issued and outstanding – 289 | ||||||||||
| Liquidation preference of $736 in 2018 and $728 in 2017 | 412 | 412 | ||||||||
| Common stock, $.01 par value: | ||||||||||
| Authorized shares – 80,000 | ||||||||||
| Issued shares – 13,022 in 2018 and 12,808 in 2017 | ||||||||||
| Outstanding shares – 13,012 in 2018 and 12,798 in 2017 | 130 | 128 | ||||||||
| Common stock held in treasury, at cost – 10 shares | (362 | ) | (362 | ) | ||||||
| Additional paid-in capital | 56,567 | 56,518 | ||||||||
| Accumulated deficit | (61,183 | ) | (61,529 | ) | ||||||
| Accumulated other comprehensive loss | (107 | ) | (107 | ) | ||||||
| Total stockholders' deficit | (3,112 | ) | (3,509 | ) | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 1,765 | $ | 1,452 | ||||||
| INTRUSION INC. | ||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
| (In thousands except per share amounts) | ||||||
| Quarter ended | Quarter ended | |||||
| March 31, | March 31, | |||||
| 2018 | 2017 | |||||
| Revenue | $ | 2,263 | $ | 1,559 | ||
| Cost of revenue | 852 | 583 | ||||
| Gross profit | 1,411 | 976 | ||||
| Operating expenses: | ||||||
| Sales and marketing | 414 | 361 | ||||
| Research and development | 303 | 585 | ||||
| General and administrative | 295 | 331 | ||||
| Operating income (loss) | 399 | (301 | ) | |||
| Interest expense, net | (53 | ) | (50 | ) | ||
| Net income (loss) | 346 | (351 | ) | |||
| Preferred stock dividends accrued | (36 | ) | (35 | ) | ||
| Net income (loss) attributable to common stockholders | $ | 310 | $ | (386 | ) | |
| Net income (loss) per share attributable to common stockholders: | ||||||
| Basic | $ | 0.02 | $ | (0.03 | ) | |
| Diluted | $ | 0.02 | $ | (0.03 | ) | |
| Weighted average shares outstanding: | ||||||
| Basic | 12,946 | 12,748 | ||||
| Diluted | 14,730 | 12,748 | ||||
Contact
Michael L. Paxton, VP, CFO
972.301.3658, [email protected]
