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Intrusion Inc. Reports Net Income for Fourth Quarter 2017

RICHARDSON, Texas, Feb. 12, 2018 (GLOBE NEWSWIRE) -- Intrusion Inc. (OTCQB:INTZ), (“Intrusion”) today announced financial results for the quarter and year ended December 31, 2017.

Intrusion’s net income for the fourth quarter 2017 was $0.2 million, compared to a net loss of $0.3 million for the fourth quarter 2016. Net loss for the year 2017 was $30 thousand, compared to a net loss of $1.6 million for 2016. The fiscal year 2017 net loss of $30 thousand included $900 thousand other income reported in the third quarter 2017.

Revenue for the fourth quarter 2017 was $2.1 million, compared to $1.4 million in the fourth quarter 2016. Revenue for the year 2017 was $6.9 million, compared to $6.1 million in 2016.

Gross profit margin was 58% of revenue in the fourth quarter of 2017, compared to 64% of revenue in the fourth quarter 2016 and 56% of revenue in the third quarter 2017. For the year, the gross profit margin decreased to 59%, compared to 64% in 2016. Gross profit margin decreased in 2017 mainly due to increased levels of material and labor costs included in deliverables during 2017.

Intrusion’s fourth quarter 2017 operating expenses were $1.0 million, compared to $1.2 million in the fourth quarter 2016. For the year 2017, operating expenses were $4.8 million, compared to $5.3 million in 2016.

As of December 31, 2017, Intrusion reported cash and cash equivalents of $0.2 million, a working capital deficiency of $0.8 million, and debt of $2.9 million. Comparably, as of December 31, 2016, Intrusion reported cash and cash equivalents of $0.1 million, working capital deficiency of $0.8 million and debt of $3.1 million.

“We booked $9.8 million of orders in 2017, which included $4.4 million of orders in the fourth quarter. This compares to $4.8 million of orders in 2016. This significant build up in bookings of orders during 2017, especially in the fourth quarter, is the result of our increased sales efforts in the Trace Cop business segment. This focus will continue and we expect to see continued success with additional growth in revenue,” stated G. Ward Paxton, Chairman, 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., CST today. Interested investors can access the call at 1-877-258-4925. 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 19, 2018 by calling 1-855-859-2056 or 1-404-537-3406. At the replay prompt, enter conference identification number 6098916. 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, and 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.

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, forecasted future sales opportunities with potential new customers, 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)

December 31, December 31,
2017 2016
ASSETS
Current Assets:
Cash and cash equivalents $224 64
Accounts receivable 962 745
Inventories, net 15 45
Prepaid expenses 89 75
Total current assets 1,290 929
Property and equipment, net 124 308
Other assets 38 40
TOTAL ASSETS 1,452 1,277
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities:
Accounts payable and accrued expenses $1,182 $ 896
Dividends payable 447 303
Obligations under capital lease, current portion 44 139
Deferred revenue 406 395
Total current liabilities 2,079 1,733
Loan payable to officer 2,865 2,885
Obligations under capital lease, noncurrent portion 17 61
Stockholders' Deficit:
Preferred stock, $.01 par value:
Authorized shares – 5,000
Series 1 shares issued/outstanding–200
Liquidation preference of $1,163 in 2017 and $1,113 in 2016 707 707
Series 2 shares issued/outstanding–460
Liquidation preference of $1,328 in 2017 and $1,270 in 2016 724 724
Series 3 shares issued/outstanding–289
Liquidation preference of $728 in 2017 and $697 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 56,518 56,595
Accumulated deficit (61,529) (61,499)
Accumulated other comprehensive loss (107) (107)
Total stockholders' deficit (3,509) (3,402)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $1,452 $1,277


INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)


Three Months Ended
December 31,
Year Ended
December 31,
2017 2016 2017 2016
Revenue $ 2,081 $ 1,410 $ 6,862 $ 6,102
Cost of revenue 872 506 2,824 2,183
Gross profit 1,209 904 4,038 3,919
Operating expenses:
Sales and marketing 362 361 1,531 1,637
Research and development 365 591 2,162 2,499
General and administrative 239 250 1,094 1,190
Operating income (loss) 243 (298)(749)(1,407)
Interest expense, net (52)(43)(209)(145)
Other income (expense) 928
Income (loss) before income taxes 191 (341)(30)(1,552)
Income tax provision
Net income (loss) $191 $(341)$(30)$(1,552)
Preferred stock dividends accrued (35)(35)(139)(139)
Net income (loss) attributable to common stockholders $156 $(376)$(169)$(1,691)
Net income (loss) per share attributable to common stockholders:
Basic $0.01 $(0.03)$(0.01)$(0.13)
Diluted $0.01 $(0.03) $(0.01) $(0.13)
Weighted average common shares outstanding:
Basic 12,798 12,748 12,785 12,737
Diluted 14,369 12,748 12,785 12,737


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

Source:Intrusion Inc.