View all news

INTRUSION Reports Third Quarter 2020 Results

November, 12, 2020

Positive Response to Beta Testing of New Cybersecurity Solution and

Strengthened Balance Sheet with Successful Follow-On Offering

PLANO, Texas, Nov. 12, 2020 (GLOBE NEWSWIRE) -- 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 Contact
Julia Kramer, VP Marketing
julia@intrusion.com
P: 972-301-3635

Investor Relations Contact
Joel Achramowicz
sheltonir@sheltongroup.com
P: (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 receivable1,030   1,556 
Prepaid expenses647   152 
Total current assets3,182   5052 
Noncurrent Assets    
Property and equipment, net356   335 
Finance leases right-of-use asset, net30   62 
Operating leases right-of-use asset, net1,160   1,348 
Other assets57   38 
Total noncurrent assets1,603   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 portion31  43 
Operating leases liability, current portion295  284 
PPP loan payable, current portion392   
Deferred revenue58  516 
Total current liabilities2,196  1,943 
Finance leases liability, noncurrent portion1  21 
PPP loan payable, noncurrent portion239   
Operating lease liability, noncurrent portion1,095  1,315 
Total noncurrent liabilities1,335  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 capital58,877  56,759 
Accumulated deficit(57,367) (54,777)
Accumulated other comprehensive loss(43) (43)
Total stockholders' equity1,254  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 Ended
September 30,
 Nine Months Ended
September 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 

 


Multimedia Files:

Categories: Press Releases
View all news