RICHARDSON, Texas, Nov. 12, 2018 (GLOBE NEWSWIRE) -- Intrusion Inc. (OTCQB: INTZ), (“Intrusion”) announced today financial results for the three and nine months ended September 30, 2018.

Intrusion’s net income was $0.62 million in the third quarter 2018 compared to a net income of $0.57 million in the third quarter 2017.

Intrusion’s revenue for the third quarter 2018 was $2.7 million compared to $1.7 million in the third quarter 2017.

Gross profit was $1.7 million or 64 percent of revenue in the third quarter of 2018 compared to $0.9 million or 56 percent of revenue in the third quarter 2017.  The increase of gross profit percentage is primarily due to favorable margin on current project mix.

Intrusion’s third quarter 2018 operating expenses were $1.0 million compared to $1.3 million in the third quarter 2017.

As of September 30, 2018, Intrusion reported cash and cash equivalents of $0.9 million, a working capital deficiency of $0.4 million and debt of $1.9 million. 

“Orders booked in the third quarter 2018 totaled $6.5 million which included $5.5 million of new projects and $1.0 million of continuing projects.  The new project orders are expected to generate quarterly revenue of approximately $1.4 million over the next four quarters.  In addition, since October 1, 2018, orders booked from continuing projects totaled $3.6 million,” 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 19, 2018 by calling 1-855-859-2056 (if outside the United States, 1-404-537-3406).  At the replay prompt, enter conference identification number 8077575.  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, including significant expected future revenue from orders booked in fourth quarter of this year, 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,
 2018 2017
ASSETS   
    
Current Assets:   
Cash and cash equivalents$853  $224 
Accounts receivable1,117  962 
Inventories, net—  15 
Prepaid expenses209  89 
Total current assets2,179  1,290 
    
Property and equipment, net290  124 
Other assets38  38 
TOTAL ASSETS$2,507  $1,452 
    
LIABILITIES AND STOCKHOLDERS’ DEFICIT     
      
Current Liabilities:   
Accounts payable and accrued expenses$1,367  $1,182 
Dividends payable557  447 
Obligations under capital lease, current portion52  44 
Deferred revenue619  406 
Total current liabilities2,595  2,079 
    
Loan payable to officer1,815  2,865 
Obligations under capital lease, noncurrent portion47  17 
    
Stockholders' Deficit:   
Preferred stock, $.01 par value:   
Authorized shares – 5,000   
Series 1 shares issued and outstanding–200 in 2018 and 2017   
Liquidation preference of $1,200 in 2018 and $1,163 in 2017707  707 
Series 2 shares issued and outstanding–460 in 2018 and 2017   
Liquidation preference of $1,371 in 2018 and $1,328 in 2017724 724 
Series 3 shares issued and outstanding–289 in 2018 and 2017   
Liquidation preference of $752 in 2018 and $728 in 2017412 412 
   
Common stock, $.01 par value:   
Authorized shares – 80,000   
Issued shares – 13,130 in 2018 and 12,808 in 2017   
Outstanding shares – 13,120 in 2018 and 12,798 in 2017131 128 
Common stock held in treasury, at cost – 10 shares(362) (362)
Additional paid-in capital56,572  56,518 
Accumulated deficit(60,092) (61,529)
Accumulated other comprehensive loss(42) (107)
Total stockholders' deficit(1,950) (3,509)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT$2,507  $1,452 
        

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

  Three Months Ended
  Nine Months Ended
  September 30,  September 30,
  2018  2017   2018  2017  
Revenue $2,665 $1,678  $7,296 $4,780 
Cost of revenue 967 736  2,744 1,951 
               
Gross profit 1,698 942  4,552 2,829 
               
Operating expenses:              
Sales and marketing 466 394  1,311 1,169 
Research and development 329 617  832 1,797 
General and administrative 243 242  828 855 
               
Operating income (loss) 660 (311) 1,581 (992)
               
Other Income — 928  — 928 
           
Interest expense, net (43)(49) (144)(157)
               
Net income (loss) $617 $568  $1,437 $(221)
               
Preferred stock dividends accrued (35)(35
) (104)(104)
Net income (loss) attributable to common stockholders $582 $533  $1,333 $(325)
               
Net income (loss) per share attributable to common stockholders:              
Basic $0.04 $0.04  $0.10 $(0.03)
Diluted $0.04 $0.04  $0.09 $(0.03)
               
Weighted average common shares outstanding:          
Basic  13,062  12,798   13,009  12,781 
Diluted 14,955 14,076  14,901 12,781 
               

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