RICHARDSON, Texas, Nov. 11 /PRNewswire-FirstCall/ -- Intrusion Inc. (OTC Bulletin Board: INTZ), ("Intrusion") today announced financial results for the three months and nine months ended September 30, 2009. Intrusion was profitable for the second consecutive quarter. Intrusion's net income was $79 thousand in the third quarter 2009 compared to $17 thousand for the third quarter 2008. Revenue for the third quarter 2009 was $1.3 million compared to $1.2 million for the third quarter 2008. Gross profit margin was 65 percent of revenue in the third quarter of 2009 compared to 69 percent of revenue in the third quarter of 2008. Intrusion's third quarter 2009 operating expenses were $0.7 million compared to $0.8 million for the third quarter 2008. As of September 30, 2009, Intrusion reported cash and cash equivalents of $0.1 million, a working capital deficiency of $1.5 million, and debt of $1.0 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 $3.6 million of new TraceCop orders announced in October gives us traction for a positive fourth quarter and the beginning of 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 18, 2009 by calling 1-800-642-1687 (if outside the United States, 1-706-645-9291). At the replay prompt, enter conference identification number 37669286. 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, data leak prevention, and data privacy protection and network intrusion prevention and detection products. Intrusion's product families include TraceCop(TM) for entity identification, the Compliance Commander(TM) for regulated information compliance, data leak prevention 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-K, 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, 2009 2008 ---- ---- ASSETS Current Assets: Cash and cash equivalents $103 $554 Accounts receivable 283 341 Inventories, net 17 20 Prepaid expenses 69 56 -- -- Total current assets 472 971 Property and equipment, net 129 169 Other assets 39 39 -- -- TOTAL ASSETS $640 1,179 ==== ====== LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities: Loan payable to officer $970 $480 Accounts payable and accrued expenses 598 538 Deferred revenue 100 1,090 Dividends payable 318 187 --- --- Total current liabilities 1,986 2,295 Commitments and Contingencies Stockholders' Deficit: Preferred stock, $.01 par value: Authorized shares - 5,000 Series 1 shares issued and outstanding - 220 in 2009 and 260 in 2008 Liquidation preference of $1,226 as of September 30, 2009 778 918 Series 2 shares issued and outstanding - 460 Liquidation preference of $1,256 as of September 30, 2009 724 724 Series 3 shares issued and outstanding - 354 Liquidation preference of $843 as of September 30, 2009 504 504 Common stock, $.01 par value: Authorized shares - 80,000 Issued shares - 11,715 in 2009 and 11,648 in 2008 Outstanding shares - 11,705 in 2009 and 11,638 in 2008 117 116 Common stock held in treasury, at cost - 10 shares (362) (362) Additional paid-in capital 55,545 55,443 Accumulated deficit (58,473) (58,280) Accumulated other comprehensive loss (179) (179) ---- ---- Total stockholders' deficit (1,346) (1,116) ------ ------ TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $640 $1,179 ==== ====== INTRUSION INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Revenue $1,253 $1,215 $3,401 $2,961 Cost of revenue 435 373 1,145 993 --- --- ----- --- Gross profit 818 842 2,256 1,968 Operating expenses: Sales and marketing 198 349 733 1,081 Research and development 288 210 904 920 General and administrative 235 244 768 739 --- --- --- --- Operating income (loss) 97 39 (149) (772) Interest income (expense), net (18) (22) (44) (45) --- --- --- --- Income (loss) before income taxes 79 17 (193) (817) Income tax provision - - - - --- --- --- --- Net income (loss) 79 17 (193) (817) Preferred stock dividends accrued (38) (41) (116) (121) --- --- ---- ---- Net loss attributable to common stockholders $41 $(24) $(309) $(938) === ==== ===== ===== Net income (loss) per share attributable to common stockholders: Basic $0.00 $0.00 $(0.03) $(0.08) ===== ===== ====== ====== Diluted $0.00 $0.00 $(0.03) $(0.08) ===== ===== ====== ====== Weighted average shares outstanding: Basic 11,704 11,638 11,669 11,638 ====== ====== ====== ====== Diluted 13,529 11,638 11,669 11,638 ====== ====== ====== ====== http://www.newscom.com/cgi-bin/prnh/20030703/INTRUSIONLOGO http://photoarchive.ap.org/ DATASOURCE: Intrusion Inc. CONTACT: Financial, Michael L. Paxton, VP, CFO of Intrusion Inc., +1-972-301-3658, Web Site: http://www.intrusion.com/

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