RICHARDSON, Texas, Aug. 7 /PRNewswire-FirstCall/ -- Intrusion Inc.
(OTC:INTZ) (BULLETIN BOARD: INTZ) , ("Intrusion") today announced
financial results for the three and six months ended June 30, 2007.
Revenue for the second quarter 2007 was $1.0 million compared to
$1.2 million for the second quarter 2006. Intrusion's operating
loss was $0.5 million in the second quarter 2007 compared to $1.1
million for the second quarter 2006. Gross profit margin was 61
percent of revenue in the second quarter of 2007 compared to 62
percent of revenue in the second quarter of 2006. Intrusion's
second quarter 2007 operating expenses were $1.1 million, compared
to $1.8 million for the second quarter 2006. As of June 30, 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 1,111,111 shares of common stock
at $0.45 per share on June 28, 2007 for a total of $500,000 in
gross proceeds. 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 taking
110% of the average closing price for the last 20 trading days up
to and including the closing date of June 28, 2007. "Revenue and
gross profit margin increased slightly, and operating expenses were
reduced 39% to $2.3 million in the first half of 2007 compared to
the first half of 2006. These results yielded a 61% reduction of
the net loss in the first half of 2007 compared to the first half
of 2006," 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 August 14, 2007 by calling 1-800-642-1687
(if outside the United States, 1-706-645-9291). At the replay
prompt, enter conference identification number 10859704.
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, 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)
June 30, December 31, 2007 2006 ASSETS Current Assets: Cash and
cash equivalents $715 $933 Accounts receivable, net of allowance
for doubtful accounts of $76 in 2007 and $90 in 2006 747 844
Inventories, net 224 209 Prepaid expenses 127 198 Total current
assets 1,813 2,184 Property and equipment, net 167 162 Other assets
39 41 TOTAL ASSETS $2,019 $2,387 LIABILITIES AND STOCKHOLDERS'
EQUITY Current Liabilities: Accounts payable and accrued expenses
$888 $1,099 Line of credit 125 200 Deferred revenue 349 367 Total
current liabilities 1,362 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 Liquidation
preference of $1,155 724 724 Series 3 shares issued and outstanding
- 469 Liquidation preference of $1,026 667 667 Common stock, $.01
par value: Authorized shares - 80,000 Issued shares - 10,343 in
2007 and 8,306 in 2006 Outstanding shares - 10,333 in 2007 and
8,296 in 2006 103 83 Common stock held in treasury, at cost - 10
shares (362) (362) Additional paid-in capital 54,885 53,947
Accumulated deficit (56,099) (55,077) Accumulated other
comprehensive loss (179) (179) Total stockholders' equity 657 721
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,019 $2,387 INTRUSION
INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In
thousands except per share amounts) Three Months Ended Six Months
Ended June 30, June 30, 2007 2006 2007 2006 Revenue $1,003 $1,204
$2,095 $2,055 Cost of revenue 393 459 814 846 Gross profit 610 745
1,281 1,209 Operating expenses: Sales and marketing 504 848 1,019
1,665 Research and development 388 615 811 1,407 General and
administrative 248 385 475 733 Operating loss (530) (1,103) (1,024)
(2,596) Interest income (expense), net (1) 11 1 41 Other income
(expense), net 1 (53) 1 (65) Loss before income taxes (530) (1,145)
(1,022) (2,620) Income tax provision - - - - Net loss (530) (1,145)
(1,022) (2,620) Preferred stock dividends accrued (43) (43) (86)
(88) Net loss attributable to common stockholders $(573) $(1,188)
$(1,108) $(2,708) Net loss per share attributable to common
stockholders (basic and diluted) $(0.06) $(0.17) $(0.12) $(0.39)
Weighted average shares outstanding - Basic and Diluted 9,271 7,046
8,873 7,014
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 Media,
Jay Barbour, VP Marketing, +1-972-664-8107, , both of Intrusion
Inc. Web site: http://www.intrusion.com/
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