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Intrusion Inc. Records Revenue of $1.6 Million in the First Quarter of 2017

RICHARDSON, Texas, May 15, 2017 (GLOBE NEWSWIRE) -- Intrusion Inc. (OTCQB:INTZ), (“Intrusion”) today announced financial results for the quarter ended March 31, 2017.

Intrusion’s net loss was $351 thousand in the first quarter 2017, compared to net loss of $544 thousand for the first quarter 2016.

Revenue for the first quarter 2017 was $1.56 million, compared to $1.51 million for the first quarter 2016.

Gross profit margin was 63% of revenue in the first quarter 2017; compared to 64% in the first quarter 2016.

Intrusion’s first quarter 2017 operating expenses were $1.28 million; compared to $1.48 million in the first quarter 2016.

As of March 31, 2017, Intrusion reported cash and cash equivalents of $0.2 million, a working capital deficiency of $0.6 million and debt of $3.6 million.

“We booked $2.3 million of orders in the first four months of 2017 consistent with the $2.3 million of orders in the first four months of 2016. Gross profit as a percent of revenue was 63% in the first quarter of 2017, slightly below our goal of 65%, due to product mix. Our top priority in 2017 is to increase sales. We have significantly increased our sales pipeline from new potential customers. At this time, our pipeline of TraceCop business includes fourteen new customers and five existing customers. Our pipeline of Savant business includes nine new customers and two existing customers,” stated G. Ward Paxton, President and CEO of Intrusion.

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., CDT today. Interested investors can access the call at 1-877-258-4925 (if outside the United States, 1-973-500-2152). For those unable to participate in the live conference call, a replay will be accessible beginning today at 7:00 P.M., CDT until May 22, 2017 by calling 1-855-859-2056 (if outside the United States, 1-404-537-3406). At the replay prompt, enter conference identification number 21215585. 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 product families include TraceCop™ for identity discovery and disclosure, Savant™ for network data mining and advanced persistent threat 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 www.intrusion.com. We develop, market and support a family of entity identification, high speed data mining, cybercrime and advanced persistent threat detection products.

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, the effect of military actions on government and corporate spending on information security products, spending patterns of, and appropriations to, U.S. government departments, 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.”

INTRUSION INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except par value amounts)
March 31, December 31,
2017 2016
ASSETS
Current Assets:
Cash and cash equivalents$ 193 $ 64
Accounts receivable 523 745
Inventories, net 45 45
Prepaid expenses 118 75
Total current assets 879 929
Property and equipment, net 262 308
Other assets 39 40
TOTAL ASSETS$ 1,180 $ 1,277
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities:
Accounts payable and accrued expenses$ 911 $ 896
Dividends payable 338 303
Obligations under capital lease, current portion 119 139
Deferred revenue 67 395
Total current liabilities 1,435 1,733
Loan payable to officer 3,465 2,885
Obligations under capital lease, noncurrent portion 45 61
Stockholders' Deficit:
Preferred stock, $.01 par value:
Authorized shares – 5,000
Series 1 shares issued and outstanding – 200
Liquidation preference of $1,125 in 2017 and $1,075 in 2016 707 707
Series 2 shares issued and outstanding – 460
Liquidation preference of $1,284 in 2017 and $1,227 in 2016 724 724
Series 3 shares issued and outstanding – 289
Liquidation preference of $704 in 2017 and $673 in 2016 412 412
Common stock, $.01 par value:
Authorized shares – 80,000
Issued shares – 12,808 in 2017 and 12,758 in 2016
Outstanding shares – 12,798 in 2017 and 12,748 in 2016 128 128
Common stock held in treasury, at cost – 10 shares (362) (362)
Additional paid-in capital 56,583 56,595
Accumulated deficit (61,850) (61,499)
Accumulated other comprehensive loss (107) (107)
Total stockholders' deficit (3,765) (3,402)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT$ 1,180 $ 1,277


INTRUSION INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)
Quarter ended Quarter ended
March 31, March 31,
2017 2016
Revenue$1,559 $1,511
Cost of revenue583 539
Gross profit976 972
Operating expenses:
Sales and marketing361 428
Research and development585 730
General and administrative331 327
Operating loss(301) (513)
Interest expense, net(50) (31)
Net loss(351) (544)
Preferred stock dividends accrued(35) (35)
Net loss attributable to common stockholders$(386) $(579)
Net loss per share attributable to common stockholders:
Basic$(0.03) $(0.05)
Diluted$(0.03) $(0.05)
Weighted average shares outstanding:
Basic12,748 12,703
Diluted12,748 12,703


Contact Michael L. Paxton, VP, CFO 972.301.3658, mpaxton@intrusion.com

Source:Intrusion Inc.