INTRUSION Reports Fourth Quarter and Full Year 2020 Results
February 25 2021 - 4:05PM
INTRUSION, Inc. (NASDAQ: INTZ) announced today
financial results for the fourth quarter and full year ended
December 31, 2020.
Fourth Quarter and Recent Business
Highlights
- Ramping orders for its
revolutionary Shield™ threat detection and
prevention solution after successful market release
- Expanded network of channel
distributors and resellers to sell Shield
- Further broadened executive team,
particularly in sales and marketing, in support of rapid
growth
- Hired Chief Marketing Officer with
direct prior experience at McAfee and Intel
- Appointed new Board member with
prior executive experience at Red Hat, Inc., within the enterprise
software industry and in scaling organizations globally
- Ended the quarter with strengthened
balance sheet and $16.7 million in cash
“Since releasing INTRUSION’s revolutionary
Shield solution only 6 weeks ago, we have received
an unprecedented amount of interest and a growing pipeline of
customers that is nothing short of extraordinary,” said Jack B.
Blount, President and CEO of INTRUSION.
“Shield is the first platform that uses real-time
artificial intelligence to not just block intruders, but to kill
cyberattacks including zero-days.
“Also during the quarter, we continued to expand
our executive team with highly experienced individuals that offer
deep domain expertise across the cybersecurity and software
industries as well as channel sales. I firmly believe we have the
right team in place to drive our company to the next level of
growth, and I am very pleased with the progress we have made. I’m
also encouraged by the early signs of recovery in our government
business that should contribute to our growth this year as it
returns to historical levels. Overall, the strong momentum we have
generated in such a short period of time is indicative of the
market need for our Shield family of solutions,
for which we expect to see increasing traction and growth
throughout the coming year.”
Fourth Quarter Financial
Results
Revenue for the fourth quarter 2020 was $1.6
million, compared to $2.6 million in the fourth quarter 2019 and
$1.6 million for the third quarter 2020. For the full year 2020,
revenue was $6.6 million as compared to $13.6 million in 2019.
Gross profit margin was 58% of revenue in the
fourth quarter of 2020, compared to 61% in the fourth quarter 2019
and 59% in the third quarter 2020. For the full year 2020, gross
margin was 59% as compared to 61% in the prior year.
Operating expenses in the fourth quarter of 2020
were $4.8 million, which included a $1.1 million non-cash write-off
related to a prior office lease agreement. This compares to
operating expenses of $1.3 million in the fourth quarter 2019 and
$2.3 million in the third quarter 2020. Full year 2020 operating
expenses were $10.4 million, which included the aforementioned
non-cash write-off, compared to $3.8 million in 2019.
Net loss in the fourth quarter of 2020 was $3.9
million, which included the $1.1 million non-cash write-off and
compares to net income of $0.3 million in the fourth quarter 2019
and a net loss of $1.4 million in the third quarter 2020. For the
full year 2020, net loss was $6.5 million, which included the
fourth quarter non-cash write-off, compared to net income of $4.5
million in the prior year.
As of December 31, 2020, cash and cash
equivalents amounted to $16.7 million. In October,
INTRUSION raised $18.2 million in net proceeds
from a follow-on public issuance of approximately 2.5 million
shares of its common stock. 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:
5796455. For those unable to participate in the live conference
call, a replay will be accessible beginning tonight at 7:00 P.M.
CST until March 4, 2021 by calling 1-800-585-8367 or
+1-416-621-4642 for international callers. At the replay prompt,
enter conference ID number 5796455. Additionally, a live and
archived audio webcast of the conference call will be available at
www.intrusion.com.
About INTRUSION Inc.
INTRUSION Inc. protects any-sized company by
leveraging advanced threat intelligence with real-time artificial
intelligence to kill cyberattacks as they occur – including
zero-days. 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.
Cautionary Statement Regarding Forward
Looking Information
This release may contain certain forward-looking
statements, including, without limitations, statements about the
performance of protections provided by our Shield
products, the effect of the recent additions to our board and
executive management team, the anticipated recovery of our
governmental customers and an expanded need for them and an
increasing customer base to address cybersecurity risks, leading to
expected growth in our sales performance for this year, as well as
any other statements which reflect management's expectations
regarding future events and operating performance. These
forward-looking statements speak only as of the date hereof and
involve a number of risks and uncertainties, including, the risk
that the Company does not benefit as anticipated from sales of our
current solutions, including the INTRUSION
Shield solution, the performance of our expanded
management team, and that customers will address and mitigate their
perceived cybersecurity risks through the purchase of our products
and solutions. 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, risks that we have detailed in the Company's
most recent reports on Form 10-K and Form 10-Q, particularly under
the heading “Risk Factors.”
Investor Relations ContactJoel
Achramowiczsheltonir@sheltongroup.comP: (415) 845-9964
INTRUSION INC.UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands except
par value amounts)
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
Assets |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
16,704 |
|
|
$ |
3,334 |
|
Accounts receivable |
|
|
1,233 |
|
|
|
1,566 |
|
Prepaid expenses |
|
|
370 |
|
|
|
152 |
|
Total current assets |
|
|
18,307 |
|
|
|
5,052 |
|
Property and Equipment: |
|
|
|
|
|
|
|
|
Equipment |
|
|
1,453 |
|
|
|
1,138 |
|
Furniture and fixtures |
|
|
43 |
|
|
|
43 |
|
Leasehold improvements |
|
|
67 |
|
|
|
63 |
|
|
|
|
1,563 |
|
|
|
1,244 |
|
Accumulated depreciation and amortization |
|
|
(1,097 |
) |
|
|
(909 |
) |
|
|
|
466 |
|
|
|
335 |
|
Finance leases, right-of-use assets, net |
|
|
20 |
|
|
|
62 |
|
Operating leases, right-of-use assets, net |
|
|
1,010 |
|
|
|
1,348 |
|
Other assets |
|
|
79 |
|
|
|
38 |
|
TOTAL ASSETS |
|
$ |
19,882 |
|
|
$ |
6,835 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable, trade |
|
$ |
408 |
|
|
$ |
252 |
|
Accrued expenses |
|
|
628 |
|
|
|
828 |
|
Dividends payable |
|
|
— |
|
|
|
20 |
|
Finance leases liabilities, current portion |
|
|
21 |
|
|
|
43 |
|
Operating leases liabilities, current portion |
|
|
488 |
|
|
|
284 |
|
PPP loan payable, current portion |
|
|
421 |
|
|
|
— |
|
Deferred revenue |
|
|
177 |
|
|
|
516 |
|
Total current liabilities |
|
|
2,143 |
|
|
|
1,943 |
|
|
|
|
|
|
|
|
|
|
Finance leases liability, noncurrent portion |
|
|
— |
|
|
|
21 |
|
PPP loan payable, noncurrent portion |
|
|
212 |
|
|
|
— |
|
Operating leases liability, noncurrent portion |
|
|
1,866 |
|
|
|
1,315 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value: |
|
|
|
|
|
|
|
|
Authorized shares — 5,000 |
|
|
|
|
|
|
|
|
Series 1 shares issued and outstanding — 200 Liquidation preference
of $1,013 in 2019 |
|
|
— |
|
|
|
707 |
|
Series 2 shares issued and outstanding — 460 Liquidation preference
of $1,155 in 2019 |
|
|
— |
|
|
|
724 |
|
Series 3 shares issued and outstanding — 289 Liquidation preference
of $634 in 2019 |
|
|
— |
|
|
|
412 |
|
Common stock, $0.01 par value: |
|
|
|
|
|
|
|
|
Authorized shares — 80,000 |
|
|
|
|
|
|
|
|
Issued shares — 17,428 in 2020 and 13,552 in 2019 |
|
|
|
|
|
|
|
|
Outstanding shares — 17,418 in 2020 and 13,542 in 2019 |
|
|
174 |
|
|
|
136 |
|
Common stock held in treasury, at cost—10 shares |
|
|
(362 |
) |
|
|
(362 |
) |
Additional paid-in-capital |
|
|
77,187 |
|
|
|
56,759 |
|
Accumulated deficit |
|
|
(61,295 |
) |
|
|
(54,777 |
) |
Accumulated other comprehensive loss |
|
|
(43 |
) |
|
|
(43 |
) |
Total stockholders’ equity |
|
|
15,661 |
|
|
|
3,556 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
19,882 |
|
|
$ |
6,835 |
|
INTRUSION INC.UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In
thousands except per share amounts)
|
|
Three Months EndedDecember
31, |
|
Year EndedDecember 31, |
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Revenue |
|
$ |
1,580 |
|
$ |
2,572 |
|
$ |
6,619 |
|
$ |
13,643 |
|
Cost of revenue |
|
660 |
|
1,002 |
|
2,709 |
|
5,342 |
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
920 |
|
1,570 |
|
3,910 |
|
8,301 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
1,941 |
|
485 |
|
3,821 |
|
1,298 |
|
Research and development |
|
1,056 |
|
539 |
|
3,797 |
|
1,314 |
|
General and administrative |
|
760 |
|
252 |
|
1,723 |
|
1,182 |
|
Loss on lease abandonment |
|
1,092 |
|
— |
|
1,092 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
(3,929 |
) |
294 |
|
(6,523 |
) |
4,507 |
|
Interest expense |
|
(2 |
) |
(1 |
) |
(6 |
) |
(46 |
) |
Interest income |
|
3 |
|
4 |
|
11 |
|
4 |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
(3,928 |
) |
297 |
|
(6,518 |
) |
4,465 |
|
|
|
|
|
|
|
|
|
|
|
Income tax provision |
|
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(3,928 |
) |
$ |
297 |
|
$ |
(6,518 |
) |
$ |
4,465 |
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends accrued |
|
— |
|
(35 |
) |
(79 |
) |
(139 |
) |
Net income (loss) attributable to common stockholders |
|
$ |
(3,928 |
) |
$ |
262 |
|
$ |
(6,597 |
) |
$ |
4,326 |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share attributable to common stockholders:
Basic |
|
$ |
(0.23 |
) |
$ |
0.02 |
|
$ |
(0.45 |
) |
$ |
0.32 |
|
Diluted |
|
$ |
(0.23 |
) |
$ |
0.02 |
|
$ |
(0.45 |
) |
$ |
0.28 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
Basic |
|
17,029 |
|
13,542 |
|
14,678 |
|
13,502 |
|
Diluted |
|
17,029 |
|
15,392 |
|
14,678 |
|
15,352 |
|
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