RICHARDSON, Texas, Feb. 10 /PRNewswire-FirstCall/ -- Intrusion Inc. (OTC Bulletin Board: INTZ), ("Intrusion") today announced financial results for the quarter and year ended December 31, 2009. Intrusion achieved net income for the third consecutive quarter in the fourth quarter 2009 and achieved net income for the year 2009. Intrusion's net income was $0.4 million in the fourth quarter 2009, compared to a net income of $8 thousand for the fourth quarter 2008. Net income was $0.2 million for the year 2009, compared to a net loss of $0.8 million for the year 2008. Revenue for the fourth quarter 2009 was $1.5 million, compared to $1.2 million for the fourth quarter 2008. Revenue for the year 2009 was $4.9 million, compared to $4.1 million in 2008. Gross profit margin was 66% of revenue in the fourth quarter of 2009, compared to 68% of revenue in the fourth quarter 2008. For the year 2009, the gross profit margin was 66%, compared to 67% in 2008. Intrusion's fourth quarter 2009 operating expenses were $0.6 million down from $0.8 million in the fourth quarter 2008. For the year 2009, operating expenses were $3.0 million, down from $3.5 million in 2008. As of December 31, 2009, Intrusion reported cash and cash equivalents of $0.5 million, a working capital deficiency of $0.2 million and debt of $1.0 million. "2009 was a good year for Intrusion. We returned to profitability for the year and achieved a profit for the third consecutive quarter as a result of increased revenue and reduced expenses," stated G. Ward Paxton, Chairman, President and CEO of Intrusion. "We are working hard to close more contracts and keep this positive trend going," 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 February 17, 2010 by calling 1-800-642-1687 (if outside the United States, 1-706-645-9291). At the replay prompt, enter conference identification number 55916057. 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) December 31, December 31, 2009 2008 ------------ ------------ ASSETS Current Assets: Cash and cash equivalents $519 $554 Accounts receivable 351 341 Inventories, net 7 20 Prepaid expenses 68 56 ------- ------- Total current assets 945 971 Property and equipment, net 146 169 Other assets 39 39 ------- ------- TOTAL ASSETS $1,130 $1,179 ======= ======= LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable and accrued expenses $1,034 $725 Loan payable to officer - 480 Deferred revenue 93 1,090 ------- ------- Total current liabilities 1,127 2,295 Loan payable to officer 970 - 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 $1,240 as of December 31, 2009 778 918 Series 2 shares issued and outstanding - 460 Liquidation preference of $1,270 as of December 31, 2009 724 724 Series 3 shares issued and outstanding - 354 Liquidation preference of $853 as of December 31, 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 (58,094) (58,280) Accumulated other comprehensive loss (179) (179) ------- ------- Total stockholders' deficit (967) (1,116) ------- ------- TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $1,130 $1,179 ======= ======= INTRUSION INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share amounts) Three Months Ended Year Ended December 31, December 31, 2009 2008 2009 2008 ------ ------ ------ ------ Revenue $1,519 $1,178 $4,920 $4,140 Cost of revenue 517 382 1,662 1,375 ------ ------ ------ ------ Gross profit 1,002 796 3,258 2,765 Operating expenses: Sales and marketing 189 326 922 1,407 Research and development 202 216 1,106 1,136 General and administrative 213 229 980 968 ------ ------ ------ ------ Operating income (loss) 398 25 250 (746) Interest expense, net (19) (17) (64) (62) ------ ------ ------ ------ Income (loss) before income taxes 379 8 186 (808) Income tax provision - - - - ------ ------ ------ ------ Net income (loss) 379 8 186 (808) Preferred stock dividends accrued (38) (41) (154) (161) ------ ------ ------ ------ Net Income (loss) attributable to common stockholders $341 $(33) $32 $(969) ====== ====== ====== ====== Net income (loss) per share attributable to common stockholders: Basic $0.03 $0.00 $0.00 $(0.08) ====== ====== ====== ====== Diluted $0.03 $0.00 $0.00 $(0.08) ====== ====== ====== ====== Weighted average shares outstanding: Basic 11,705 11,638 11,678 11,638 ====== ====== ====== ====== Diluted 13,206 11,638 12,873 11,638 ====== ====== ====== ====== 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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