Press Releases

Unedited news and product information from vendors.

Intrusion Inc. Reaches Profitability for the Year 2010 Despite a Loss for the Fourth Quarter
Feb 09, 2011 (03:02 PM EST)


RICHARDSON, Texas, Feb. 9, 2011 /PRNewswire/ -- Intrusion Inc. (OTC Bulletin Board: INTZ), ("Intrusion") today announced financial results for the quarter and year ended December 31, 2010.  Intrusion achieved a net profit for the year 2010, the second consecutive year to do so, despite recording a loss for the fourth quarter.

(Logo: http://photos.prnewswire.com/prnh/20030703/INTRUSIONLOGO)

Intrusion's net loss was $0.3 million in the fourth quarter 2010, compared to a net income of $0.4 million for the fourth quarter 2009.  Net income was $0.2 million for the year 2010, a 22% increase over 2009.

Revenue for the fourth quarter 2010 was $0.9 million, compared to $1.5 million for the fourth quarter 2009.  Revenue for the year 2010 was $5.6 million, a 14% increase over 2009.  

Gross profit margin was 61% of revenue in the fourth quarter of 2010, compared to 66% of revenue in the fourth quarter 2009.   For the year, the gross profit margin was 63%, compared to 66% in 2009.  Differences in gross profit margin are primarily the result of changes in product mix.  

Intrusion's fourth quarter 2010 operating expenses were $0.9 million up from $0.6 million in the fourth quarter 2009.  For the year 2010, operating expenses were $3.3 million, up from $3.0 million in 2009.  

As of December 31, 2010, Intrusion reported cash and cash equivalents of $0.5 million, a working capital deficiency of $0.7 million and debt of $0.2 million.  

"Overall, 2010 was a good year for Intrusion.  Revenue increased 14% over 2009, even though revenue decreased in the fourth quarter due to delays in U.S. Government contracts.  Our total orders booked in the fourth quarter were $1.3 million," stated G. Ward Paxton, Chairman, President and CEO of Intrusion.  "Total debt decreased to $230,000 at year end," Paxton concluded.  

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 1-800-399-2043 (if outside the United States, 1-706-634-5518).  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 16, 2011 by calling 1-800-642-1687 (if outside the United States, 1-706-645-9291).  At the replay prompt, enter conference identification number 43396005.  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 systems, high speed data mining, regulated information compliance, data leak prevention and data privacy protection, and network intrusion prevention and detection products.  Intrusion's product families include TraceCop™ for entity identification, Savant™ for network data mining, Compliance Commander™ for regulated information compliance, data leak prevention and data privacy protection, and Intrusion SecureNet for network intrusion prevention and 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, 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,


2010


2009

ASSETS








Current Assets:




Cash and cash equivalents

$

540


$

519

Accounts receivable

222


351

Inventories, net

61


7

Prepaid expenses

23


68

Total current assets

846


945





Property and equipment, net

117


146

Other assets

39


39

TOTAL ASSETS

$

1,002


$

1,130





LIABILITIES AND STOCKHOLDERS' DEFICIT


Current Liabilities:




Accounts payable and accrued expenses

$

529


$

674

Dividends payable

22


360

Deferred revenue

983


93

Total current liabilities

1,534


1,127





Loan payable to officer

230


970





Stockholders' Deficit:




 Preferred stock, $.01 par value:




    Authorized shares – 5,000




    Series 1 shares issued and outstanding – 220  




      Liquidation preference of $1,114 as of December 31, 2010

778


778

    Series 2 shares issued and outstanding – 460

      Liquidation preference of $1,155 as of December 31, 2010

724


724

    Series 3 shares issued and outstanding – 354

      Liquidation preference of $775 as of December 31, 2010

504


504

 Common stock, $.01 par value:




    Authorized shares – 80,000




    Issued shares – 11,828 in 2010 and 11,715 in 2009

    Outstanding shares – 11,818 in 2010 and 11,705 in 2009

118


117

 Common stock held in treasury, at cost – 10 shares

(362)


(362)

 Additional paid-in capital

55,570


55,545

 Accumulated deficit

(57,868)


(58,094)

 Accumulated other comprehensive loss

(226)


(179)

 Total stockholders' deficit

(762)


(967)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

$

1,002


$

1,130




INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share amounts)



Three Months Ended

Year Ended


December 31,

December 31,


2010

2009

2010

2009






Revenue

$ 938

$  1,519

$  5,588

$  4,920

Cost of revenue

364

517

2,060

1,662






Gross profit

574

1,002

3,528

3,258






Operating expenses:





  Sales and marketing

281

189

921

922

  Research and development

372

202

1,395

1,106

  General and administrative

214

213

992

980






Operating income (loss)

(293)

398

220

250






Other income

-

-

47

-

Interest expense, net                

(9)

(19)

(41)

(64)






Income (loss) before income taxes

(302)

379

226

186

Income tax provision

-

-

-

-

Net income (loss)

(302)

379

226

186

Preferred stock dividends accrued

(38)

(38)

(136)

(154)

Net Income (loss) attributable to common stockholders

$  (340)

$         341

$        90

$        32






Net income (loss) per share attributable to common stockholders:  

                                    Basic

$   (0.03)

$    0.03

$    0.01

$   0.00

                                    Diluted

$    (0.03)

$    0.03

$    0.01

$   0.00






Weighted average shares outstanding:





                                   Basic

11,798

11,705

11,745

11,678

                                   Diluted

11,798

13,206

13,366

12,873




Financial Contact

Michael L. Paxton, VP, CFO

972.301.3658, mpaxton@intrusion.com



SOURCE Intrusion Inc.