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Intrusion Inc. Reports Revenue Of $1.8 Million In The Second Quarter Of 2014

Companies mentioned in this article: Intrusion Inc.

RICHARDSON, Texas, Aug. 11, 2014 /PRNewswire/ -- Intrusion Inc. (OTCQB: INTZ), ("Intrusion") announced today financial results for the three and six months ended June 30, 2014.

http://photos.prnewswire.com/prnvar/20030703/INTRUSIONLOGO

Intrusion's net loss was $22 thousand in the second quarter 2014, compared to net income of $205 thousand in the second quarter 2013.

Revenue for the second quarter 2014 was $1.8 million compared to $2.1 million in the second quarter 2013.

Gross profit margin was 66 percent of revenue in the second quarter of 2014 compared to 65 percent in the second quarter 2013.

Intrusion's second quarter 2014 operating expenses were $1.2 million compared to $1.1 million in the second quarter 2013.

As of June 30, 2014, Intrusion reported cash and cash equivalents of $0.2 million, a working capital deficiency of $1.3 million and debt of $1.8 million.

"We are disappointed that we only reached break-even for the second quarter," stated G. Ward Paxton, President and CEO of Intrusion. "We had $40 thousand of Savant sales in the second quarter 2014 compared to $620 thousand of Savant sales in the second quarter 2013, however, we have already received $360 thousand of Savant orders in the third quarter," 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., 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 August 18, 2014 by calling 1-855-859-2056 (if outside the United States, 1-404-537-3406). At the replay prompt, enter conference identification number 86386443. 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, regulated information compliance, data leak prevention, and data privacy protection and network intrusion prevention and detection products. Intrusion's product families include TraceCop(TM) for entity identification, the Compliance Commander(TM) 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."

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

                                                INTRUSION INC.

                                UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

                                    (In thousands except par value amounts)


                                                    June 30,                   December 31,

                                                         2014                                2013
                                                         ----                                ----

    ASSETS


    Current Assets:

     Cash and
      cash
      equivalents                                                  $203                           $1,139

     Accounts
      receivable                                        1,027                                 816

      Inventories,
      net                                                  19                                  19

     Prepaid
      expenses                                             70                                  95
                                                          ---                                 ---

    Total
     current
     assets                                             1,319                               2,069


     Property
      and
      equipment,
      net                                                 414                                 297

     Other
      assets                                               55                                  51
                                                          ---                                 ---

    TOTAL
     ASSETS                                                      $1,788                           $2,417
                                                                 ======                           ======


         LIABILITIES AND STOCKHOLDERS' DEFICIT


    Current Liabilities:

     Accounts
      payable
      and
      accrued
      expenses                                                     $908                             $998

     Dividends
      payable                                              20                                 437

     Line of
      credit
      payable                                               -                                  -

     Obligations
      under
      capital
      lease,
      current
      portion                                             144                                 106

     Deferred
      revenue                                              30                                 139

     Loan
      payable to
      officer                                           1,530                                   -
                                                        -----                                 ---

    Total
     current
     liabilities                                        2,632                               1,680


    Loan
     payable to
     officer                                                -                              1,530

    Obligations
     under
     capital
     lease,
     noncurrent
     portion                                              126                                  67


    Stockholders' Deficit:

     Preferred stock, $.01
      par value:

       Authorized shares -
        5,000

       Series 1 shares issued
        and outstanding-200 in
        2014 and 220 in 2013

           Liquidation
            preference
            of $1,112
            as of June
            30, 2014                                      708                                 778

        Series 2 shares issued
         and outstanding-460 in
         2014 and 2013

           Liquidation
            preference
            of $1,155
            as of June
            30, 2014                                      724                                 724

       Series 3 shares issued
        and outstanding-289 in
        2014 and 354 in 2013

           Liquidation
            preference
            of $633 as
            of June 30,
            2014                                          411                                 504



      Common stock, $.01 par
       value:

         Authorized shares -
          80,000

         Issued shares - 12,436
          in 2014 and 12,182 in
          2013

         Outstanding
          shares -
          12,426 in
          2014 and
          12,172 in
          2013                                            124                                 122

      Common
       stock held
       in
       treasury,
       at cost -
       10 shares                                        (362)                              (362)

      Additional
       paid-in
       capital                                         56,248                              55,905

      Accumulated
       deficit                                       (58,716)                           (58,424)

      Accumulated
       other
       comprehensive
       loss                                             (107)                              (107)
                                                         ----                                ----

      Total
       stockholders'
       deficit                                          (970)                              (860)
                                                         ----                                ----

    TOTAL
     LIABILITIES
     AND
     STOCKHOLDERS'
     DEFICIT                                                     $1,788                           $2,417
                                                                 ======                           ======

                                                                           INTRUSION INC.

                                                     UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                                              (In thousands except per share amounts)


                                                                                                               Three Months Ended        Six Months Ended

                                                                                                                    June 30,                 June 30,

                                                                                                                             2014                     2013    2014    2013
                                                                                                                             ----                            ----    ----

    Revenue                                                                                                                       $1,805                   $2,073           $3,399 $3,850

    Cost of revenue                                                                                                           616                      726   1,192   1,361
                                                                                                                              ---                      ---   -----   -----


    Gross profit                                                                                                            1,189                    1,347   2,207   2,489


    Operating expenses:

    Sales and marketing                                                                                                       352                      435     775     747

    Research and development                                                                                                  520                      378     999     777

    General and administrative                                                                                                313                      297     666     640
                                                                                                                              ---                      ---     ---     ---


    Operating income (loss)                                                                                                     4                      237   (233)    325


    Interest expense, net                                                                                                    (26)                    (32)   (59)   (63)
                                                                                                                              ---                      ---     ---     ---


    Income (loss) before income taxes                                                                                        (22)                     205   (292)    262


    Income tax provision                                                                                                        -                       -      -      -
                                                                                                                              ---                     ---    ---    ---


    Net income (loss)                                                                                                              $(22)                    $205           $(292)  $262


    Preferred stock dividends accrued                                                                                        (34)                    (38)   (71)   (78)
                                                                                                                              ---                      ---     ---     ---

    Net income (loss) attributable to common
     stockholders                                                                                                                  $(56)                    $167           $(363)  $184
                                                                                                                                    ====                     ====            =====   ====


    Net income (loss) per share attributable
     to common stockholders:  Basic                                                                                                $0.00                    $0.01          $(0.03) $0.02
                                                                                                                                   =====                    =====           ======  =====

                                             Diluted                                                                               $0.00                    $0.01          $(0.03) $0.00
                                                                                                                                   =====                    =====           ======  =====


    Weighted average common shares
     outstanding:                                                                                                          12,419                   12,172  12,356  12,172

                               Basic


                               Diluted                                                                                     12,419                   13,893  12,356  13,893
                                                                                                                           ======                   ======  ======  ======

Logo - http://photos.prnewswire.com/prnh/20030703/INTRUSIONLOGO

SOURCE Intrusion Inc.