RICHARDSON, Texas, Nov. 7 /PRNewswire-FirstCall/ -- Intrusion Inc.
(OTC:INTZ) (BULLETIN BOARD: INTZ) , ("Intrusion") today announced
financial results for the three months ended September 30, 2007.
Revenue for the third quarter 2007 was $0.9 million compared to
$1.7 million for the third quarter 2006. Intrusion's operating loss
was $0.6 million in the third quarter 2007 compared to $0.2 million
for the third quarter 2006. Gross profit margin was 60 percent of
revenue in the third quarter of 2007 compared to 55 percent of
revenue in the third quarter of 2006. Intrusion's third quarter
2007 operating expenses were $1.1 million, approximately the same
as the third quarter 2006. As of September 30, 2007, Intrusion
reported cash and cash equivalents of $0.9 million, working capital
of $0.4 million and debt of $0.1 million. Intrusion closed a
private placement sale of 1,190,476 shares of common stock at $0.42
per share on September 26, 2007 for a total of $500,000 in net
proceeds. The stock was purchased by G. Ward Paxton, Chairman,
President, and CEO. 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 September 26, 2007.
"Our 60 percent gross profit margin in the third quarter was
outstanding, and we continued our tight control of operating
expenses. Revenue in the third quarter declined due to a delay in
receipt of orders," 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., 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 November 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 21535598. 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 entity identification systems, regulated
information compliance, and data privacy protection and network
intrusion prevention and detection products. Intrusion's product
families include TraceCop(TM) for identity identification, the
Compliance Commander(TM) for regulated information 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 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) September 30, December 31, 2007
2006 ASSETS Current Assets: Cash and cash equivalents $947 $933
Accounts receivable, net of allowance for doubtful accounts of $76
in 2007 and $90 in 2006 407 844 Inventories, net 228 209 Prepaid
expenses 83 198 Total current assets 1,665 2,184 Property and
equipment, net 156 162 Other assets 39 41 TOTAL ASSETS $1,860
$2,387 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities:
Accounts payable and accrued expenses $809 $1,099 Line of credit
100 200 Deferred revenue 351 367 Total current liabilities 1,260
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 - 11,534 in 2007 and 8,306 in 2006 Outstanding
shares - 11,524 in 2007 and 8,296 in 2006 115 83 Common stock held
in treasury, at cost - 10 shares (362) (362) Additional paid-in
capital 55,378 53,947 Accumulated deficit (56,661) (55,077)
Accumulated other comprehensive loss (179) (179) Total
stockholders' equity 600 721 TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $1,860 $2,387 INTRUSION INC. UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per
share amounts) Three Months Ended Nine Months Ended September 30,
September 30, 2007 2006 2007 2006 Revenue $919 $1,736 $3,014 $3,791
Cost of revenue 370 778 1,184 1,624 Gross profit 549 958 1,830
2,167 Operating expenses: Sales and marketing 499 562 1,518 2,227
Research and development 358 272 1,169 1,679 General and
administrative 255 306 730 1,039 Operating loss (563) (182) (1,587)
(2,778) Interest income, net 1 2 2 43 Other income (expense), net -
- 1 (65) Loss before income taxes (562) (180) (1,584) (2,800)
Income tax provision - - - - Net loss (562) (180) (1,584) (2,800)
Preferred stock dividends accrued (44) (44) (130) (132) Net loss
attributable to common stockholders $(606) $(224) $(1,714) $(2,932)
Net loss per share attributable to common stockholders (basic and
diluted) $(0.06) $(0.03) $(0.18) $(0.42) Weighted average shares
outstanding - Basic and Diluted 10,397 7,046 9,387 7,025
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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