EX-99.1 2 ex_199297.htm EXHIBIT 99.1 ex_199297.htm

Exhibit 99.1 

NEWS RELEASE

 

Financial Contact

Michael L. Paxton, VP, CFO
972.301.3658, mpaxton@intrusion.com

 

INTRUSION INC. REPORTS SECOND QUARTER 2020 RESULTS

 

Richardson, Texas – August 13, 2020 – INTRUSION Inc. (OTCQB: INTZ), (“Intrusion”) announced today financial results for the three and six months ended June 30, 2020.

 

INTRUSION’s net loss was $715 thousand in the second quarter 2020, compared to a net income of $1.8 million in the second quarter 2019 and net loss of $465 thousand in the first quarter 2020.

 

Revenue for the second quarter 2020 was $1.7 million compared to $4.0 million in the second quarter 2019 and $1.8 million for the first quarter 2020.

 

Gross profit margin was 61 percent of revenue in the second quarter of 2020 compared to 60 percent in the second quarter 2019 and 58 percent in the first quarter 2020.

 

INTRUSION’s second quarter 2020 operating expenses were $1.7 million compared to $0.7 million in the second quarter 2019 and $1.5 million in the first quarter 2020.

 

As of June 30, 2020, INTRUSION reported cash and cash equivalents of $2.9 million, working capital of $2.4 million and debt of $630 thousand.

 

“Order delays have continued into the second quarter of 2020 due to COVID-19. We continue to have positive customer response and look forward to future opportunities.  With reduced government staffing, reporting tasks have been greatly reduced. Government renewal business has experienced some delays; however, contract starts have experienced more significant delays due to the pandemic’s effect on government operations. We anticipate customer orders will pick up in the second half of 2020 provided that government employees continue to return to work,” stated Jack B. Blount, President and CEO of Intrusion. “Thankfully, the commercial cybersecurity market is expected to grow in 2020. This has escalated an already impressive response to our newest solution offering, INTRUSION Shield.”

 

“Shield has experienced positive progress during Alpha testing and we have identified twelve companies for the Beta release anticipated to begin in September. The configuration of hardware is a single Dell network appliance installed inline inside of the customer’s firewall. The size of the network appliance will vary depending on the number of workstations and the size of the customer’s internet connection be that 1Gb, 10Gb or 100 Gb,” concluded Blount.

 

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 Thursday. Interested investors can access the call at 1-833-360-0880. 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 20, 2020 by calling 1-855-859-2056. At the replay prompt, enter conference identification number 9435598. Additionally, a live and archived audio webcast of the conference call will be available at www.intrusion.com.

 

 

 

INTRUSION

Second Quarter 2020 Results

Page 2 of 4

 

 

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

Second Quarter 2020 Results

Page 3 of 4

INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands except par value amounts)

 

   

June 30,

   

December 31,

 
   

2020

   

2019

 

ASSETS

               

Current Assets

               

Cash and cash equivalents

  $ 2,872     $ 3,334  

Accounts receivable

    1,067       1,566  

Prepaid expenses

    388       152  

Total current assets

    4,327       5,052  

 

Noncurrent Assets

               

Property and equipment, net

    311       335  

Finance leases right-of-use asset, net

    41       62  

Operating leases right-of-use asset, net

    1,223       1,348  

Other assets

    36       38  

Total noncurrent assets

    1,611       1,783  

TOTAL ASSETS

  $ 5,938     $ 6,835  
                 
LIABILITIES AND EQUITY                

Current Liabilities

               

Accounts payable and accrued expenses

  $ 1,152     $ 1,080  

Dividends payable

    19       20  

Finance leases liability, current portion

    38       43  

Operating leases liability, current portion

    291       284  

PPP loan payable, current portion

    285        

Deferred revenue

    164       516  

Total current liabilities

    1,949       1,943  
                 

Noncurrent Liabilities

               

Finance leases liability, noncurrent portion

    5       21  

PPP loan payable, noncurrent portion

    345        

Operating lease liability, noncurrent portion

    1,170       1,315  

Total noncurrent liabilities

    1,520       1,336  
                 

Stockholders' Equity:

               

Preferred stock, $.01 par value:

               

Authorized shares – 5,000

               

Series 1 shares issued and outstanding – 200

               

Liquidation preference of $1,012 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 $1,054 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 $583 in 2020 and $634 in 2019

    379       412  

Common stock, $.01 par value:

               

Authorized shares – 80,000

               

Issued shares – 13,802 in 2020 and 13,552 in 2019 Outstanding shares – 13,792 in 2020 and 13,542 in 2019

    138       136  

Common stock held in treasury, at cost – 10 shares

    (362 )     (362 )

Additional paid-in capital

    56,946       56,759  

Accumulated deficit

    (55,957 )     (54,777 )

Accumulated other comprehensive loss

    (43 )     (43 )

Total stockholders' equity

    2,469       3,556  

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

  $ 5,938     $ 6,835  

 

 

 

INTRUSION

Second Quarter 2020 Results

Page 4 of 4

 

INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share amounts)

 

   

Three Months Ended

June 30,

   

Six Months Ended

June 30,

 
   

2020

   

2019

   

2020

   

2019

 

Revenue

  $ 1,655     $ 4,020     $ 3,450     $ 7,211  

Cost of revenue

    651       1,590       1,398       2,874  
                                 

Gross profit

    1,004       2,430       2,052       4,337  
                                 

Operating expenses:

                               

Sales and marketing

    485       46       995       458  

Research and development

    907       296       1,660       477  

General and administrative

    326       321       582       652  
                                 

Operating income (loss)

    (714

)

    1,767       (1,185

)

    2,750  
                                 

Interest income

    1             7        

Interest expense

    (2

)

    (9

)

    (2

)

    (44

)

                                 

Net income (loss)

  $ (715

)

  $ 1,758     $ (1,180

)

  $ 2,706  
                                 

Preferred stock dividends accrued

    (33

)

    (35

)

    (66

)

    (69

)

Net income (loss) attributable to common stockholders

  $ (748

)

  $ 1,723     $ (1,246

)

  $ 2,637  
                                 
Net income (loss) per share attributable to common stockholders:                                

Basic

  $ (0.05

)

  $ 0.13     $ (0.09

)

  $ 0.20  

Diluted

  $ (0.05

)

  $ 0.11     $ (0.09

)

  $ 0.17  
                                 
Weighted average common shares outstanding:                                

Basic

    13,784       13,523       13,743       13,466  

Diluted

    13,784       15,371       13,743       15,314