Intrusion Inc. Announces First Quarter Results
May 10 2007 - 5:05PM
PR Newswire (US)
Revenue Increases 28% Compared to First Quarter 2006 RICHARDSON,
Texas, May 10 /PRNewswire-FirstCall/ -- Intrusion Inc. (OTC:INTZ)
(BULLETIN BOARD: INTZ) , ("Intrusion") today announced financial
results for the three months ended March 31, 2007. Revenue for the
first quarter 2007 was $1.1 million compared to $0.9 million for
the first quarter 2006, a 28% increase. Intrusion's operating loss
was $0.5 million in the first quarter 2007 compared to $1.5 million
in the first quarter 2006, a 67% decrease. Gross profit margin was
61% of revenue in the first quarter of 2007 compared to 55% of
revenue in the first quarter of 2006. Intrusion's first quarter
2007 operating expenses were $1.2 million, compared to $2.0 million
for the first quarter 2006, a 40% decrease. As of March 31, 2007,
Intrusion reported cash and cash equivalents of $0.7 million,
working capital of $0.5 million and debt of $0.1 million. Intrusion
closed a private placement sale of $500,000 of common stock at
$0.54 per share on March 15, 2007. The stock was purchased by G.
Ward Paxton, Chairman, President and CEO, and Michael L. Paxton,
Vice President and CFO. The price of the common stock was
determined by 110% of the average closing price for the last 20
trading days up to and including the closing date of March 15,
2007. "Even though we made progress in the first quarter in the
development of our business for our two product families, TraceCop
and Compliance Commander, we are not satisfied with the rate of
growth achieved," stated G. Ward Paxton, Chairman, 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., 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 May 18, 2007 by
calling 1-800-642-1687 (if outside the United States,
1-706-645-9291). At the replay prompt, enter conference
identification number 8955865. 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. INTRUSION INC. UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands except par
value amounts) March 31, December 31, 2007 2006 ASSETS Current
Assets: Cash and cash equivalents $682 $933 Accounts receivable,
net of allowance for doubtful accounts of $76 in 2007 and $90 in
2006 809 844 Inventories, net 209 209 Prepaid expenses 152 198
Total current assets 1,852 2,184 Property and equipment, net 172
162 Other assets 45 41 TOTAL ASSETS $2,069 $2,387 LIABILITIES AND
STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and
accrued expenses $899 $1,099 Line of credit 125 200 Deferred
revenue 351 367 Total current liabilities 1,375 1,666 Stockholders'
Equity: Preferred stock, $.01 par value: Authorized shares - 5,000
Series 1 shares issued and outstanding - 260 Liquidation preference
of $1,331 918 918 Series 2 shares issued and outstanding - 460 724
724 Liquidation preference of $1,155 Series 3 shares issued and
outstanding - 469 667 667 Liquidation preference of $1,026 Common
stock, $.01 par value: Authorized shares - 80,000 Issued shares -
9,232 in 2007 and 8,306 in 2006 92 83 Outstanding shares - 9,222 in
2007 and 8,296 in 2006 Common stock held in treasury, at cost - 10
shares (362) (362) Additional paid-in capital 54,403 53,947
Accumulated deficit (55,569) (55,077) Accumulated other
comprehensive loss (179) (179) Total stockholders' equity 694 721
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,069 $2,387 INTRUSION
INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In
thousands except per share amounts) Quarter ended Quarter ended
March 31, March 31, 2007 2006 Revenue $1,092 $851 Cost of revenue
421 387 Gross profit 671 464 Operating expenses: Sales and
marketing 515 817 Research and development 423 792 General and
administrative 227 348 Operating loss (494) (1,493) Interest
income, net 4 18 Other income (expense), net (2) --- Loss before
income taxes (492) (1,475) Income tax provision --- --- Net loss
(492) (1,475) Preferred stock dividends accrued (43) (45) Net loss
attributable to common stockholders $(535) $(1,520) Net loss per
share attributable to common stockholders (basic and diluted)
$(0.06) $(0.22) Weighted average shares outstanding - Basic and
Diluted 8,471 6,981 Financial Contact Michael L. Paxton, VP, CFO
972.301.3658, Media Contact Jay Barbour, VP Marketing 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, Jay Barbour, VP Marketing, +1-972-664-8107, or , both of
Intrusion Inc. Web site: http://www.intrusion.com/
Copyright