Intrusion Inc. Continues Profitability in Third Quarter
November 12 2008 - 4:05PM
PR Newswire (US)
RICHARDSON, Texas, Nov. 12 /PRNewswire-FirstCall/ -- Intrusion Inc.
(OTC:INTZ) (BULLETIN BOARD: INTZ) , ("Intrusion") today announced
financial results for the three months ended September 30, 2008.
Intrusion achieved a net profit for the second consecutive quarter
in the third quarter of 2008. Intrusion's net income was $17
thousand in the third quarter 2008 compared to a $600 thousand net
loss for the third quarter 2007. Revenue for the third quarter 2008
was $1.2 million compared to $0.9 million for the third quarter
2007. Gross profit margin was 69 percent of revenue in the third
quarter of 2008 compared to 60 percent of revenue in the third
quarter of 2007. Intrusion's third quarter 2008 operating expenses
were $0.8 million compared to $1.1 million for the third quarter
2007. As of September 30, 2008, Intrusion reported cash and cash
equivalents of $0.1 million, a working capital deficiency of ($1.1)
million and debt of $1.3 million. "Our second consecutive
profitable quarter is outstanding and is the result of continued
good gross profit margin and operating expense control," stated G.
Ward Paxton, Chairman, President and CEO of Intrusion. "The $2.4
million of new TraceCop orders announced earlier today get us off
to a good start for the fourth quarter and next year," 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 November 19, 2008 by calling 1-800-642-1687
(if outside the United States, 1-706-645-9291). At the replay
prompt, enter conference identification number 72786290.
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, INTRUSION INC. UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands except par value amounts)
September 30, December 31, 2008 2007 ASSETS Current Assets: Cash
and cash equivalents $96 $362 Accounts receivable, net of allowance
for doubtful accounts of $40 in 2008 and 2007 761 110 Inventories,
net 61 146 Prepaid expenses 32 75 Total current assets 950 693
Property and equipment, net 168 144 Other assets 39 39 TOTAL ASSETS
$1,157 $876 LIABILITIES AND STOCKHOLDERS' DEFICIT Current
Liabilities: Line of credit $130 $100 Loan payable to officer 1,180
- Accounts payable and accrued expenses 747 688 Deferred revenue
205 312 Total current liabilities 2,262 1,100 Stockholders'
Deficit: Preferred stock, $.01 par value: Authorized shares - 5,000
Series 1 shares issued and outstanding - 260 Liquidation preference
of $1,364 as of September 30, 2008 918 918 Series 2 shares issued
and outstanding - 460 Liquidation preference of $1,198 as of
September 30, 2008 724 724 Series 3 shares issued and outstanding -
354 in 2008 Liquidation preference of $805 as of September 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 55,463 55,527 Accumulated deficit (58,289) (57,472)
Accumulated other comprehensive loss (179) (179) Total
stockholders' deficit (1,105) (224) TOTAL LIABILITIES AND
STOCKHOLDERS' DEFICIT $1,157 $876 INTRUSION INC. UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands
except per share amounts) Three Months Ended Nine Months Ended
September 30, September 30, 2008 2007 2008 2007 Revenue $1,216 $919
$2,961 $3,014 Cost of revenue 374 370 993 1,184 Gross profit 842
549 1,968 1,830 Operating expenses: Sales and marketing 349 499
1,081 1,518 Research and development 210 358 920 1,169 General and
administrative 244 255 739 730 Operating income (loss) 39 (563)
(772) (1,587) Interest income (expense), net (22) 1 (45) 2 Other
income (expense), net - - - 1 Income (loss) before income taxes 17
(562) (817) (1,584) Income tax provision - - - - Net income (loss)
17 (562) (817) (1,584) Preferred stock dividends accrued (41) (44)
(121) (130) Net loss attributable to common stockholders $(24)
$(606) $(938) $(1,714) Net loss per share attributable to common
stockholders (basic and diluted) $(0.00) $(0.06) $(0.08) $(0.18)
Weighted average shares outstanding - Basic and Diluted 11,638
10,397 11,638 9,387
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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