Intrusion Inc. Achieves Profitability in Second Quarter
August 13 2008 - 4:05PM
PR Newswire (US)
RICHARDSON, Texas, Aug. 13 /PRNewswire-FirstCall/ -- Intrusion Inc.
(OTC:INTZ) (BULLETIN BOARD: INTZ) , ("Intrusion") announced today
financial results for the three and six months ended June 30, 2008.
Intrusion's net income was $41 thousand in the second quarter 2008
compared to a $0.5 million net loss for the second quarter 2007.
Revenue for the second quarter 2008 was $1.3 million compared to
$1.0 million for the second quarter 2007. Gross profit margin was
66 percent of revenue in the second quarter of 2008 compared to 61
percent of revenue in the second quarter of 2007. Intrusion's
second quarter 2008 operating expenses were $0.8 million, compared
to $1.1 million for the second quarter 2007. As of June 30, 2008,
Intrusion reported cash and cash equivalents of $0.2 million,
working capital of $(1.3) million and debt of $1.2 million.
"Revenue increased 28%, gross profit margin increased from 61% to
66% and operating expenses decreased 31% in the second quarter of
2008 compared to the second quarter of 2007. These positive
achievements resulted in net income for the second quarter of
2008," stated G. Ward Paxton, Chairman, President and CEO of
Intrusion. "The growth in revenue and profit in the second quarter
was primarily driven by the $2.5 million of orders booked in the
first half of the year. We entered the third quarter with a backlog
of $1.0 million," 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., 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 20, 2008
by calling 1-800-642-1687 (if outside the United States,
1-706-645-9291). At the replay prompt, enter conference
identification number 58845317. 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, INTRUSION INC. UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands except par value amounts)
June 30, December 31, 2008 2007 ASSETS Current Assets: Cash and
cash equivalents $212 $362 Accounts receivable, net of allowance
for doubtful accounts of $40 in 2008 and 2007 554 110 Inventories,
net 83 146 Prepaid expenses 64 75 Total current assets 913 693
Property and equipment, net 121 144 Other assets 39 39 TOTAL ASSETS
$1,073 $876 LIABILITIES AND STOCKHOLDERS' DEFICIT Current
Liabilities: Line of credit $- $100 Loan payable to officer 1,180 -
Accounts payable and accrued expenses 736 688 Deferred revenue 266
312 Total current liabilities 2,182 1,100 Stockholders' Deficit:
Preferred stock, $.01 par value: Authorized shares - 5,000 Series 1
shares issued and outstanding - 260 Liquidation preference of
$1,347 as of June 30, 2008 918 918 Series 2 shares issued and
outstanding - 460 Liquidation preference of $1,184 as of June 30,
2008 724 724 Series 3 shares issued and outstanding - 354 in 2008
Liquidation preference of $795 as of June 30, 2008 504 504 Common
stock, $.01 par value: Authorized shares - 80,000 Issued shares -
11,648 Outstanding shares - 11,638 116 116 Common stock held in
treasury, at cost - 10 shares (362) (362) Additional paid-in
capital 55,475 55,527 Accumulated deficit (58,305) (57,472)
Accumulated other comprehensive loss (179) (179) Total
stockholders' deficit (1,109) (224) TOTAL LIABILITIES AND
STOCKHOLDERS' DEFICIT $1,073 $876 INTRUSION INC. UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands
except per share amounts) Three Months Ended Six Months Ended June
30, June 30, 2008 2007 2008 2007 Revenue $1,283 $1,003 $1,746
$2,095 Cost of revenue 440 393 620 814 Gross profit 843 610 1,126
1,281 Operating expenses: Sales and marketing 361 504 732 1,019
Research and development 195 388 710 811 General and administrative
230 248 496 475 Operating income (loss) 57 (530) (812) (1,024)
Interest income (expense), net (16) (1) (22) 1 Other income - 1 - 1
Income (loss) before income taxes 41 (530) (834) (1,022) Income tax
provision - - - - Net income (loss) 41 (530) (834) (1,022)
Preferred stock dividends accrued (40) (43) (105) (86) Net income
(loss) attributable to common stockholders $1 $(573) $(939)
$(1,108) Net income (loss) per share attributable to common
stockholders (basic and diluted) $0.00 $(0.06) $(0.08) $(0.12)
Weighted average shares outstanding - Basic and Diluted 11,638
9,271 11,638 8,873
http://www.newscom.com/cgi-bin/prnh/20030703/INTRUSIONLOGO
http://photoarchive.ap.org/ DATASOURCE: Intrusion Inc. CONTACT:
Michael L. Paxton, VP, CFO of Intrusion Inc., +1-972-301-3658, Web
site: http://www.intrusion.com/
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