RICHARDSON, Texas, Feb. 8 /PRNewswire-FirstCall/ -- Intrusion Inc.
(OTC:INTZ) (BULLETIN BOARD: INTZ) , ("Intrusion") today announced
financial results for the quarter and year ended December 31, 2006.
Revenues for the fourth quarter 2006 were $1.5 million, compared to
$1.1 million for the fourth quarter 2005. Revenue for the year 2006
was $5.2 million, compared to $6.0 million in 2005. Intrusion's net
loss was $0.2 million in the fourth quarter 2006, compared to $0.9
million for the fourth quarter 2005. Net loss was $3.0 million for
the year 2006, compared to $3.3 million for the year 2005 Gross
profit margin was 60% of revenue in the fourth quarter of 2006,
compared to 59% of revenue in the fourth quarter 2005. For the year
2006, gross profit margin was 58%, the same as 2005. Intrusion's
fourth quarter 2006 operating expenses were $1.1 million, compared
to $1.6 million for the fourth quarter 2005. For the year 2006,
operating expenses were $6.0 million, down from $6.9 million in
2005. The net increase in cash, cash equivalents, and short-term
investments in the fourth quarter 2006 from the third quarter 2006
was $0.6 million. The net increase included a private placement
offering of common stock for $0.5 million and $0.2 million from our
line of credit. The private placement was closed on December 29,
2006. Participating in the private placement was G. Ward Paxton,
President and CEO of Intrusion for $400,000 and Michael L. Paxton,
Vice President and CFO of Intrusion for $100,000. As of December
31, 2006, Intrusion reported cash, cash equivalents and short-term
investments of $0.9 million, working capital of $0.5 million, and
$0.2 million of short-term debt. Without including the proceeds of
$0.5 million from the private placement and $0.2 million from the
line of credit, ending cash balances at December 31, 2006 were $233
thousand, down $67 thousand from September 30, 2006 and down $86
thousand from June 30, 2006. Ending cash balances at September 30,
2006 and June 30, 2006 were $300 thousand and $319 thousand
respectively. "Our two flagship product lines for the future are
TraceCop and Compliance Commander. Both products have had good
growth rates in 2006 and we expect their rapid growth to continue,"
stated G. Ward Paxton, Chairman, President and CEO of Intrusion.
"TraceCop revenue reached $2.8 million in 2006, up 75% from 2005.
Compliance Commander revenue reached $0.6 million in 2006 up 200%
from 2005. Revenues from these two product lines accounted for 65%
of our total revenue in 2006, compared to 30% of total revenue in
2005. The markets for TraceCop and Compliance Commander are
expected to grow rapidly in the future and should afford us the
continued opportunity to achieve our goals," Paxton continued. "In
addition, we have reduced our operating expenses for the year 2006,
but more dramatically for the second half of 2006 where our
operating expenses were reduced 41% from the first half. We believe
that quarterly break-even should be reached with quarterly revenue
in the $1.8 to $2.0 million range," Paxton concluded. 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
1-800-399-2043 (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., CST until February
15, 2007 by calling 1-800- 642-1687 (if outside the United States,
1-706-645-9291). At the replay prompt, enter conference
identification number 7903617. 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 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.
Such statements include, without limitations, statements regarding
future revenue growth and profitability, 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, 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
the recent loss of our Nasdaq listing, 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. Financial Contact Michael
L. Paxton, VP, CFO 972.301.3658, Media Contact Jay Barbour, VP
Marketing 972.664.8107, INTRUSION INC. UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands except par value amounts)
December 31, December 31, 2006 2005 ASSETS Current Assets: Cash and
cash equivalents $933 $2,844 Short-term investments --- 500
Accounts receivable, net of allowance for doubtful accounts of $90
in 2006 and $102 in 2005 844 443 Inventories, net 209 373 Prepaid
expenses 198 191 Total current assets 2,184 4,351 Property and
equipment, net 162 256 Other assets 41 41 TOTAL ASSETS $2,387
$4,648 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities:
Accounts payable and accrued expenses $1,099 $1,142 Short-term
liabilities 200 --- Deferred revenue 367 527 Total current
liabilities 1,666 1,669 Stockholders' Equity: Preferred stock, $.01
par value: Authorized shares - 5,000 Series 1 shares issued and
outstanding - 260 Liquidation preference of $1,331 in 2006 918 918
Series 2 shares issued and outstanding - 460 in 2006 and 500 in
2005 Liquidation preference of $1,155 in 2006 724 787 Series 3
shares issued and outstanding - 469 in 2006 and 565 in 2005
Liquidation preference of $1,026 in 2006 667 805 Common stock, $.01
par value: Authorized shares - 80,000 Issued shares - 8,306 in 2006
and 6,919 in 2005 Outstanding shares - 8,296 in 2006 and 6,909 in
2005 83 69 Common stock held in treasury, at cost - 10 shares (362)
(362) Additional paid-in capital 53,947 52,994 Accumulated deficit
(55,077) (52,053) Accumulated other comprehensive loss (179) (179)
Total stockholders' equity 721 2,979 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $2,387 $4,648 INTRUSION INC. UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands
except per share amounts) Three Months Ended Year Ended December
31, December 31, 2006 2005 2006 2005 Revenue $1,451 $1,106 $5,242
$5,978 Cost of revenue 580 450 2,204 2,514 Gross profit 871 656
3,038 3,464 Operating expenses: Sales and marketing 487 708 2,714
3,137 Research and development 388 596 2,067 2,553 General and
administrative 222 258 1,261 1,126 Severance and related costs ---
--- --- 55 Operating loss (226) (906) (3,004) (3,407) Interest
income, net 1 28 45 84 Other income (expense), net --- --- (65) 2
Loss before income taxes (225) (878) (3,024) (3,321) Income tax
provision --- --- --- --- Net loss (225) (878) (3,024) (3,321)
Preferred stock dividends accrued (44) (39) (175) (168) Beneficial
conversion feature on preferred stock --- (515) --- (1,434) Net
loss attributable to common stockholders $(269) $(1,432) $(3,199)
$(4,923) Net loss per share attributable to common stockholders
(basic and diluted) $(0.04) $(0.21) $(0.45) $(0.77) Weighted
average shares outstanding (basic and diluted) 7,100 6,880 7,043
6,424 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, Jay Barbour, VP Marketing, +1-972-664-8107, or , both of
Intrusion Inc. Web site: http://www.intrusion.com/
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