Intrusion Inc. Achieves Profitability In The Third Quarter Of 2012 On Revenue Of $1.9 Million

From the Wires

Nov. 12, 2012 04:05 PM

RICHARDSON, Texas, Nov. 12, 2012 /PRNewswire/ -- Intrusion Inc. (OTCBB: INTZ), ("Intrusion") announced today financial results for the three and nine months ended September 30, 2012.

(Logo: http://photos.prnewswire.com/prnh/20030703/INTRUSIONLOGO)

Intrusion's net income was $48 thousand in the third quarter 2012 compared to $121 thousand in the third quarter 2011 and $212 thousand in the second quarter 2012.

Intrusion's revenue for the third quarter 2012 was $1.9 million compared to $1.8 million in the third quarter 2011 and $1.9 million for the second quarter 2012.

Gross profit was $1.1 million or 58 percent of revenue in the third quarter of 2012 compared to $1.1 million or 61% of revenue in the third quarter 2011 and $1.2 million or 63% of revenue in the second quarter 2012.

Intrusion's third quarter 2012 operating expenses were $1.0 million compared to $0.9 million in the third quarter 2011 and $0.9 million in the second quarter 2012.

As of September 30, 2012, Intrusion reported cash and cash equivalents of $0.5 million, a working capital deficiency of $1.6 million and debt of $1.8 million.

"During the third quarter of 2012, we booked a total of $1.7 million of orders covering ten different projects," 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, 2012 by calling 1-855-859-2056 (if outside the United States, 1-404-537-3406). At the replay prompt, enter conference identification number 64602378. 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 systems, high speed data mining, regulated information compliance, data leak prevention and data privacy protection, and network intrusion prevention and detection products. Intrusion's product families include TraceCop™ for entity identification, Savant™ for network data mining, Compliance Commander™ for regulated information compliance, data leak prevention and data privacy protection, and Intrusion SecureNet for network intrusion prevention and 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."

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

INTRUSION INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands except par value amounts)

	September 30,		December 31,
	2012		2011
ASSETS
Current Assets:
Cash and cash equivalents	$	475	$	308
Accounts receivable	601		480
Inventories, net	5		5
Prepaid expenses	45		90
Total current assets	1,126		883

Property and equipment, net	269		207
Other assets	45		40
TOTAL ASSETS	$	1,440	$	1,130

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Accounts payable and accrued expenses	$	790	$	632
Dividends payable	239		123
Line of credit payable	43		80
Obligations under capital lease, current portion	99		74
Deferred revenue	63		97
Loan payable to officer	1,530		—
Total current liabilities	2,764		1,006

Loan payable to officer	—		1,530
Obligations under capital lease, noncurrent portion	112		53

Stockholders' Deficit:
Preferred stock, $.01 par value:
Authorized shares – 5,000
Series 1 shares issued and outstanding – 220
Liquidation preference of $1,183 as of September 30, 2012	778		778
Series 2 shares issued and outstanding – 460 Liquidation preference of $1,241 as of September 30, 2012	724		724
Series 3 shares issued and outstanding – 354 Liquidation preference of $833 as of September 30, 2012	504		504
Common stock, $.01 par value:
Authorized shares – 80,000
Issued shares – 12,082 in 2012 and 11,952 in 2011 Outstanding shares – 12,072 in 2012 and 11,942 in 2011	121		119
Common stock held in treasury, at cost – 10 shares	(362)		(362)
Additional paid-in capital	55,799		55,686
Accumulated deficit	(58,893)		(58,801)
Accumulated other comprehensive loss	(107)		(107)
Total stockholders' deficit	(1,436)		(1,459)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	1,440	$	1,130

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Revenue	$	1,855	$	1,792	$	5,202	$	3,902
Cost of revenue	774		701		2,177		1,506

Gross profit	1,081		1,091		3,025		2,396

Operating expenses:
Sales and marketing	317		365		1,016		1,092
Research and development	414		313		1,125		1,149
General and administrative	270		268		891		869

Operating income (loss)	80		145		(7)		(714)
Interest expense, net	(32)		(24)		(85)		(41)
Other income	—		—		—		—

Income (loss) before income taxes	48		121		(92)		(755)

Income tax provision	—		—		—		—

Net income (loss)	$	$48	$	121	$	(92)	$	(755)

Preferred stock dividends accrued	(39)		(38)		(116)		(113)
Net income (loss) attributable to common stockholders	$	9	$	83	$	208)	$	(868)

Net income (loss) per share attributable to common stockholders: Basic	$	0.00	$	0.01	$	0.02	$	(0.07)
Diluted	$	0.00	$	0.01	$	.02	$	(0.07)

Weighted average common shares outstanding: Basic	12,072		11,902		12,011		11,855
Diluted	13,922		13,608		12,011		11,855

SOURCE Intrusion Inc.

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