Revenue Increased 55% From Second Quarter 2004 RICHARDSON, Texas,
Aug. 4 /PRNewswire-FirstCall/ -- Intrusion Inc. (NASDAQ:INTZ),
("Intrusion") today announced financial results for the three
months ended June 30, 2005. Revenue for the second quarter 2005 was
$1.7 million, compared to $1.2 million for the first quarter 2005
and $1.1 million for the second quarter 2004. Revenue increased 42%
sequentially from the first quarter 2005 and 55% from the second
quarter 2004. Three orders totaling $1.7 million from the U.S.
Government that were expected in the second quarter slipped. One of
the orders for $0.7 million has been received and the other two
orders totaling $1.0 million are anticipated in the third quarter.
Intrusion's net loss was $0.9 million in the second quarter 2005,
compared to $1.0 million in the first quarter 2005 and $1.5 million
in the second quarter 2004. Gross profit margin was 57% of revenue
in the second quarter of 2005 compared to 56% of revenue in the
first quarter of 2005 and 48% of revenue in the second quarter of
2004. Intrusion's second quarter 2005 operating expenses were $1.9
million, compared to $1.7 million for the first quarter 2005 and
$2.1 million for the second quarter 2004. As of June 30, 2005,
Intrusion reported cash, cash equivalents and short- term
investments of $3.6 million, working capital of $2.9 million and no
debt. Excluding the effects of a $2.7 million private placement at
the end of the first quarter 2005, which yielded net proceeds of
$2.5 million, the cash burn rate in the second quarter was $0.6
million, compared to $0.7 million in the first quarter 2005 and
$1.5 million in the second quarter 2004. "Our quarterly financial
results were significantly affected by the slippage of three U.S.
Government orders that are now anticipated in the third quarter,"
stated G. Ward Paxton, Chairman, President and CEO of Intrusion.
"Even so, we were able to show 55% revenue growth in the second
quarter over second quarter 2004, and more importantly, our funnel
of business for Compliance Commander, our new Regulated Information
Compliance and Identity Theft Prevention product is steadily
growing." "We recently announced Compliance Commander Product sales
to Texans Credit Union of Richardson, Texas, and Partners Federal
Credit Union of Anaheim, California. Customer evaluations are going
well, and we continue to make good progress with the Compliance
Commander product," Paxton concluded. Additionally, U.S. Army bases
are evaluating Intrusion's SecureNet Network Intrusion
Prevention/Detection system and results achieved on existing base
installations are very good. The U.S. Army at Fort Hood was
selected by The Aberdeen Group as a recipient of Aberdeen Group's
2005 Best Security Practices award for Fort Hood's implementation
of Intrusion's SecureNet Network Intrusion Prevention/Detection
System and Intrusion's SpySnare(TM), spyware prevention system.
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 1-800-399-2043 (if outside the United States,
1-706-634-5518). 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 11, 2005 by calling 1-800-642-1687 (if
outside the United States, 1-706-645-9291). At the replay prompt,
enter conference identification number 8068728. Additionally, a
live and archived audio webcast of the conference call will be
available at http://www.intrusion.com/ . About Intrusion Inc.
Intrusion Inc. is a leading global provider of regulated
information compliance, entity identification systems, data privacy
protection products, and network intrusion prevention and detection
solutions. In addition, Intrusion offers deployment technologies
along with security services for the information-driven economy.
Intrusion's product families include the Compliance Commander(TM)
for regulated information compliance, data privacy protection and
identity theft prevention, TraceCop(TM) identification and location
service, Intrusion SpySnare(TM) for real-time inline blocking of
spyware and unwanted P2P applications, and Intrusion SecureNet(TM)
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
http://www.intrusion.com/ . This release, other than historical
information, may include forward- looking statements regarding
future events or the future financial performance of the Company.
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, including
but not limited to the following: the difficulties in forecasting
future sales caused by current economic and market conditions, the
effect of military actions on government and corporate spending on
information security products, spending patterns of, and
appropriations to, U.S. government departments, the impact of our
cost reduction programs and our refocused product line, the
difficulties and uncertainties in successfully developing and
introducing new products in emerging markets, market acceptance of
our products, the impact of our sustained losses on our ability to
successfully operate and grow our business, our stock price and our
ongoing Nasdaq eligibility, our ability to generate sufficient cash
flow or obtain additional financing on acceptable terms in order to
fund ongoing liquidity needs, the highly competitive market for our
products, the effects of sales and implementation cycles for our
products on our quarterly results, difficulties in accurately
estimating market growth, the consolidation of the information
security industry, the impact of changing economic conditions,
business conditions in the information security industry, our
ability to manage acquisitions effectively, our ability to manage
discontinued operations effectively, the impact of market peers and
their products as well as risks concerning future technology and
others identified in our Annual Report on Form 10-KSB, as amended,
and other Securities and Exchange Commission filings. These filings
can be obtained by contacting Intrusion Investor Relations. This
release may include various non-GAAP financial measures (as defined
by SEC Regulation G). The Company's management believes these
measures provide useful information to investors about the
Company's financial condition and results of operations for the
period presented by eliminating the effects of one-time and other
transactions that can distort underlying operational results in
order to provide greater comparability of the Company's quarterly
financial performance on a year-to-year basis. The most directly
comparable GAAP financial measures and reconciliation of the
differences between the GAAP financial measures can be found in the
text of this release and the Company's Unaudited Condensed
Consolidated Statements of Operations attached to this release.
INTRUSION INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In
thousands except par value amounts) June 30, December 31, 2005 2004
ASSETS Current Assets: Cash and cash equivalents $1,284 $2,315
Short-term investments 2,350 75 Accounts receivable, net of
allowance for doubtful accounts of $243 in 2005 and $508 in 2004
480 1,220 Inventories, net 840 950 Prepaid expenses 255 393 Total
current assets 5,209 4,953 Property and equipment, net 340 299
Other assets 43 64 TOTAL ASSETS $5,592 $5,316 LIABILITIES AND
STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and
accrued expenses $1,389 $1,667 Deferred revenue 914 799 Total
current liabilities 2,303 2,466 Stockholders' Equity: Preferred
stock, $.01 par value: Authorized shares - 5,000 Series 1 shares
issued and outstanding - 389 in 2005 and 840 in 2004 Liquidation
preference of $1,970 in 2005 1,375 2,968 Series 2 shares issued and
outstanding - 720 in 2005 Liquidation preference of $1,808 in 2005
1,132 --- Common stock, $.01 par value: Authorized shares - 80,000
Issued shares - 6,493 in 2005 and 5,431 in 2004 Outstanding shares
- 6,483 in 2005 and 5,421 in 2004 65 54 Common stock held in
treasury, at cost - 10 shares (362) (362) Additional paid-in
capital 51,951 49,095 Accumulated deficit (50,693) (48,732)
Accumulated other comprehensive loss (179) (173) Total
stockholders' equity 3,289 2,850 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $5,592 $5,316 INTRUSION INC. UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands
except per share amounts) Three Months Ended Six Months Ended June
30, June 30, 2005 2004 2005 2004 Revenue $1,709 $1,103 $2,894
$2,370 Cost of revenue 740 577 1,267 1,213 Gross profit 969 526
1,627 1,157 Operating expenses: Sales and marketing 873 1,013 1,632
1,973 Research and development 703 732 1,405 1,334 General and
administrative 304 315 532 579 Severance and related costs 55 34 55
130 Operating loss (966) (1,568) (1,997) (2,859) Interest income,
net 29 7 33 26 Other income, net 2 40 2 40 Loss before income taxes
(935) (1,521) (1,962) (2,793) Income tax provision --- --- --- ---
Net loss (935) (1,521) (1,962) (2,793) Preferred stock dividends
accrued (56) (62) (85) (62) Beneficial conversion feature on
preferred stock --- --- (919) (938) Net loss attributable to common
stockholders $(991) $(1,583) $(2,966) $(3,793) Net loss per share
attributable to common stockholders (basic and diluted) $(0.16)
$(0.31) $(0.49) $(0.73) Weighted average shares outstanding - Basic
and Diluted 6,182 5,166 6,110 5,165 Financial Contact Michael L.
Paxton, VP, CFO 972.301.3658, Media Contact Ben Bittle, Director of
Product Management 972.664.8107,
http://www.newscom.com/cgi-bin/prnh/20030703/INTRUSIONLOGO
http://photoarchive.ap.org/ DATASOURCE: Intrusion Inc. CONTACT:
financial, Michael L. Paxton, VP, CFO, +1-972-301-3658, or , or
media, Ben Bittle, Director of Product Management, +1-972-664-8107,
or , both of Intrusion Inc. Web site: http://www.intrusion.com/
Copyright
Intrusion (NASDAQ:INTZ)
Historical Stock Chart
From Jun 2024 to Jul 2024
Intrusion (NASDAQ:INTZ)
Historical Stock Chart
From Jul 2023 to Jul 2024