INTRUSION Reports Third Quarter 2020 Results
November 12 2020 - 4:05PM
INTRUSION, Inc. (NASDAQ: INTZ) announced today
financial results for the three- and nine-month periods ended
September 30, 2020.
Third Quarter and Recent Business
Highlights
- With positive beta-testing results,
accepts pre-orders for INTRUSION
Shield™
- $18.1 million in net proceeds raised
from a public offering of common shares
- Successfully uplisted to the Nasdaq
Capital Market
- Expansion of executive team with key
appointments to support growth strategy
“While extended government shutdowns associated
with the pandemic continued to impact our legacy subscription and
reporting businesses during the third quarter, the growing trend of
sophisticated cybersecurity attacks underscores the crucial need
for more advanced, innovative solutions,” stated Jack B. Blount,
President and CEO of INTRUSION. “We are
capitalizing on this need through the recent introduction and
aggressive ramp of our new Shield family of
disruptive cybersecurity solutions.
“Recent feedback from enterprise customers that are
beta testing Shield has been extraordinarily
positive, which is why we made the decision to take pre-orders
ahead of general availability. Leveraging our unique proprietary
database of threat indicators and advanced AI,
Shield detects and neutralizes threats that are
actively inside customers’ networks, effectively tackling the
problem of vulnerability from the inside out.
Shield will disrupt the cybersecurity industry
beginning with the enterprise market, which represents more than a
$7 billion opportunity in the U.S. alone. Moreover, the launch of
subsequent solutions within the Shield family will
also increase our addressable market, further fueling our
growth.”
Third Quarter Financial
Results
Revenue for the third quarter 2020 was $1.6
million, compared to $3.9 million in the third quarter 2019 and
$1.7 million for the second quarter 2020.
Gross profit margin was 59 percent of revenue in
the third quarter of 2020, compared to 62 percent in the third
quarter 2019 and 61 percent in the second quarter 2020.
INTRUSION’s third quarter 2020
operating expenses were $2.3 million, compared to $0.9 million in
the third quarter 2019 and $1.7 million in the second quarter
2020.
INTRUSION’s net loss was $1.4
million in the third quarter 2020, compared to net income of $1.5
million in the third quarter 2019 and a net loss of $0.7 million in
the second quarter 2020.
As of September 30, 2020,
INTRUSION reported cash, cash equivalents and
accounts receivables of $2.5 million. Subsequent to quarter end,
INTRUSION raised $18.1 million in net proceeds
from a follow-on offering of 3.6 million shares of its common
stock. The net proceeds reflect 2.5 million shares offered by the
Company, including the underwriter’s exercised option to purchase
an additional 465,000 shares.
Conference Call Intrusion’s
management will host a conference call today at 4:00 P.M. CST.
Interested investors can access the call at 1-833-366-0416 or
+1-236-712-2506 for international callers and provide the following
Conference ID: 5795593. For those unable to
participate in the live conference call, a replay will be
accessible beginning tonight at 7:00 P.M. CST until November 19,
2020 by calling 1-800-585-8367 or +1-416-621-4642 for international
callers. At the replay prompt, enter conference identification
number 5795593. Additionally, a live and archived audio webcast of
the conference call will be available at www.intrusion.com.
About INTRUSION Inc.
INTRUSION Inc. is a global
provider of entity identification, high speed data mining,
cybercrime and advanced persistent threat detection products.
INTRUSION’s solution families include
Shield™, a combination of plug-n-play hardware,
software, global data, and real-time Artificial Intelligence (AI)
services that provide organizations with the most robust
cybersecurity defense possible,
TraceCop™ for identity discovery
and disclosure, and Savant™ for network data
mining and advanced persistent threat detection.
INTRUSION’s solutions 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 www.intrusion.com.
This release may contain certain forward-looking
statements, which reflect management's expectations regarding
future events and operating performance and speak only as of the
date hereof. These forward-looking statements involve a number of
risks and uncertainties. Such statements include, without
limitations, statements regarding future revenue growth and
profitability, the difficulties in forecasting future sales caused
by current economic and market conditions, the effects of sales and
implementation cycles for our products on our quarterly results and
difficulties in accurately estimating market growth, uncertainties
regarding future government and corporate spending on information
security products, spending patterns of, and appropriations to,
U.S. government departments, statements about our new
INTRUSION Shield solution and its success and
future market acceptance, 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. The
factors that could cause actual results to differ materially from
expectations are detailed in the Company's most recent reports on
Form 10-K and Form 10-Q, particularly under the heading “Risk
Factors.”
Company ContactJulia Kramer, VP
Marketing julia@intrusion.comP: 972-301-3635
Investor Relations ContactJoel
Achramowiczsheltonir@sheltongroup.comP: (415) 845-9964
INTRUSION INC.UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands except
par value amounts)
|
September 30, |
|
|
December 31, |
|
2020 |
|
|
2019 |
ASSETS |
|
|
|
|
Current
Assets |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
1,505 |
|
|
$ |
3,334 |
|
Accounts receivable |
1,030 |
|
|
|
1,556 |
|
Prepaid expenses |
647 |
|
|
|
152 |
|
Total current
assets |
3,182 |
|
|
|
5052 |
|
Noncurrent
Assets |
|
|
|
|
Property and equipment, net |
356 |
|
|
|
335 |
|
Finance leases right-of-use asset, net |
30 |
|
|
|
62 |
|
Operating leases right-of-use asset, net |
1,160 |
|
|
|
1,348 |
|
Other assets |
57 |
|
|
|
38 |
|
Total
noncurrent assets |
1,603 |
|
|
|
1,783 |
|
TOTAL
ASSETS |
$ |
4,785 |
|
|
$ |
6,835 |
|
LIABILITIES AND EQUITY
(DEFICIT)
Current
Liabilities |
|
|
|
Accounts payable and accrued expenses |
$ |
1,420 |
|
|
$ |
1,080 |
|
Dividends payable |
— |
|
|
20 |
|
Finance leases liability, current portion |
31 |
|
|
43 |
|
Operating leases liability, current portion |
295 |
|
|
284 |
|
PPP loan payable, current portion |
392 |
|
|
— |
|
Deferred revenue |
58 |
|
|
516 |
|
Total current
liabilities |
2,196 |
|
|
1,943 |
|
Finance leases liability, noncurrent portion |
1 |
|
|
21 |
|
PPP loan payable, noncurrent portion |
239 |
|
|
— |
|
Operating lease liability, noncurrent portion |
1,095 |
|
|
1,315 |
|
Total
noncurrent liabilities |
1,335 |
|
|
1,336 |
|
Stockholders'
Equity: |
|
|
|
Preferred stock, $.01 par value: |
|
|
|
Authorized shares – 5,000 |
|
|
|
Series 1 shares issued and outstanding – 200 in 2019 |
|
|
|
Liquidation preference of $1,013 in 2019 |
— |
|
|
707 |
|
Series 2 shares issued and outstanding – 460 in 2019 Liquidation
preference of $1,155 in 2019 |
— |
|
|
724 |
|
Series 3 shares issued and outstanding – 289 in 2019 Liquidation
preference of $634 in 2019 |
— |
|
|
412 |
|
Common stock, $.01 par value: |
|
|
|
Authorized shares – 80,000 |
|
|
|
Issued shares – 14,939 in 2020 and 13,552 in 2019 Outstanding
shares – 14,929 in 2020 and 13,542 in 2019 |
149 |
|
|
136 |
|
Common stock held in treasury, at cost – 10 shares |
(362 |
) |
|
(362 |
) |
Additional paid-in capital |
58,877 |
|
|
56,759 |
|
Accumulated deficit |
(57,367 |
) |
|
(54,777 |
) |
Accumulated other comprehensive loss |
(43 |
) |
|
(43 |
) |
Total
stockholders' equity |
1,254 |
|
|
3,556 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
4,785 |
|
|
$ |
6,835 |
|
|
|
|
|
|
|
|
|
INTRUSION INC.UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In
thousands except per share amounts)
|
|
Three Months
EndedSeptember 30, |
|
Nine
Months EndedSeptember 30, |
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Revenue |
|
$ |
1,588 |
|
$ |
3,860 |
|
$ |
5,039 |
|
$ |
11,071 |
|
Cost of revenue |
|
652 |
|
1,465 |
|
2,050 |
|
4,339 |
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
936 |
|
2,395 |
|
2,989 |
|
6,732 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
885 |
|
356 |
|
1,880 |
|
813 |
|
Research and development |
|
1,081 |
|
297 |
|
2,741 |
|
775 |
|
General and administrative |
|
377 |
|
277 |
|
962 |
|
930 |
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
(1,407 |
) |
1,465 |
|
(2,594 |
) |
4,214 |
|
Interest expense |
|
(2 |
) |
(1 |
) |
(4 |
) |
(45 |
) |
Interest income |
|
— |
|
— |
|
8 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(1,409 |
) |
$ |
1,464 |
|
$ |
(2,590 |
) |
$ |
4,169 |
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends
accrued |
|
(13 |
) |
(35 |
) |
(79 |
) |
(104 |
) |
Net income (loss) attributable
to common stockholders |
|
$ |
(1,422 |
) |
$ |
1,429 |
|
$ |
(2,669 |
) |
$ |
4,065 |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share
attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.10 |
) |
$ |
0.11 |
|
$ |
(0.19 |
) |
$ |
0.30 |
|
Diluted |
|
$ |
(0.10 |
) |
$ |
0.09 |
|
$ |
(0.19 |
) |
$ |
0.27 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
14,450 |
|
13,523 |
|
13,981 |
|
13,466 |
|
Diluted |
|
14,450 |
|
15,371 |
|
13,981 |
|
15,314 |
|
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