RICHARDSON, Texas, Feb. 11, 2019 (GLOBE NEWSWIRE) — Intrusion Inc. (OTCQB: INTZ) (“Intrusion”) today announced financial results for the quarter and year ended December 31, 2018.
Intrusion’s net income for the fourth quarter 2018 was $0.9 million, compared to net income of $0.2 million for the fourth quarter 2017. Net income for the year 2018 was $2.3 million, compared to a net loss of $30 thousand for 2017.
Revenue for the fourth quarter 2018 was $3.0 million, compared to $2.1 million in the fourth quarter 2017. Revenue for the year 2018 was $10.3 million, compared to $6.9 million in 2017.
Gross profit margin was 63% of revenue in the fourth quarter of 2018, compared to 58% of revenue in the fourth quarter 2017. For the year, the gross profit margin increased to 63%, compared to 59% in 2017.
Intrusion’s fourth quarter 2018 operating expenses were $1.0 million, compared to $1.0 million in the fourth quarter 2017. For the year 2018, operating expenses were $4.0 million, compared to $4.8 million in 2017.
As of December 31, 2018, Intrusion reported cash and cash equivalents of $1.7 million, working capital of $0.5 million, and debt of $1.9 million. Comparably, 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.
“Orders booked in the fourth quarter 2018 totaled $5.2 million consisting primarily from renewals of existing projects. For the year 2018 orders totaled $14.4 million, compared to $9.8 million in 2017,” 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 18, 2019 by calling 1-855-859-2056 or 1-404-537-3406. At the replay prompt, enter conference identification number 1298823. 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.”
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except par value amounts)
|Cash and cash equivalents||$||1,652||$||224|
|Total current assets||3,710||1.290|
|Property and equipment, net||321||124|
|LIABILITIES AND STOCKHOLDERS’ DEFICIT|
|Accounts payable and accrued expenses||$||1,596||$||1,182|
|Obligations under capital lease, current portion||58||44|
|Total current liabilities||3,252||2,079|
|Loan payable to officer||1,815||2,865|
|Obligations under capital lease, noncurrent portion||64||17|
|Preferred stock, $.01 par value:|
|Authorized shares – 5,000|
|Series 1 shares issued/outstanding–200|
|Liquidation preference of $1,213 in 2018 and $1,163 in 2017||707||707|
|Series 2 shares issued/outstanding–460|
|Liquidation preference of $1,385 in 2018 and $1,328 in 2017||724||724|
|Series 3 shares issued/outstanding–289|
|Liquidation preference of $760 in 2018 and $728 in 2017||412||412|
|Common stock, $.01 par value:|
|Authorized shares – 80,000|
|Issued shares – 13,259 in 2018 and 12,808 in 2017|
|Outstanding shares – 13,249 in 2018 and 12,798 in 2017||133||128|
|Common stock held in treasury, at cost – 10 shares||(362||)||(362||)|
|Additional paid-in capital||56,609||56,518|
|Accumulated other comprehensive loss||(43||)||(107||)|
|Total stockholders’ deficit||(1,062||)||(3,509||)|
|TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT||$||4,069||$||1,452|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)
|Three Months Ended
|Cost of revenue||1,102||872||3,847||2,824|
|Sales and marketing||293||362||1,604||1,531|
|Research and development||405||365||1,237||2,162|
|General and administrative||283||239||1,112||1,094|
|Operating income (loss)||896||243||2,476||(749||)|
|Interest expense, net||(45||)||(52||)||(189||)||(209||)|
|Other income (expense)||—||—||—||928|
|Income (loss) before income taxes||851||191||2,287||(30||)|
|Income tax provision||—||—||—||—|
|Net income (loss)||$||851||$||191||$||2,287||$||(30||)|
|Preferred stock dividends accrued||(35||)||(35||)||(139||)||(139||)|
|Net income (loss) attributable to common stockholders||$||816||$||156||$||2,148||$||(169||)|
|Net income (loss) per share attributable to common stockholders:|
|Weighted average common shares outstanding:|
Michael L. Paxton, VP, CFO
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