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Thu. 11 Nov 2021, 4:07pm ETBenzinga
In: Earnings, News, Press Releases

PLANO, Texas, Nov. 11, 2021 (GLOBE NEWSWIRE) -- INTRUSION, Inc. (NASDAQ:INTZ), a provider of cyberattack prevention solutions, including zero-days, announced today financial results for the third quarter ended September 30, 2021.

 Recent Financial & Business Highlights

  • Third quarter revenue of $1.8 million was up 14% over the prior year
  • Shield revenue represented 13% of total revenue in the quarter, up from 7% in the prior quarter

  • Top Shield customer, Lippert Components, accelerated deployment across its global workforce

  • Added five new Shield customers during the quarter varying in size

  • Received further validation of Shield's efficacy to protect against contemporary cyberattacks from three separate cybersecurity evaluation firms

Third Quarter Financial Results

Revenue for the third quarter 2021 was $1.8 million, compared to $2.0 million for the second quarter 2021 and $1.6 million for the third quarter 2020.

Gross profit margin was 62% of revenue in the third quarter 2021, compared to 63% for the second quarter 2021 and 59% for the third quarter 2020.

Operating expenses in the third quarter 2021 were $7.2 million, compared to $6.9 million for the second quarter 2021 and $2.3 million for the third quarter 2020.

The third quarter 2021 net loss was $6.1 million, or ($0.34) per share, compared to a net loss of $5.0 million, or ($0.28) per share, for the second quarter 2021 and a net loss of $1.4 million, or ($0.10) per share, for the third quarter 2020.

As of September 30, 2021, cash and cash equivalents were $7.2 million and working capital was $4.9 million.

Conference Call

INTRUSION's management will host a conference call today at 4:00 P.M., CST. Interested investors can access the live call by dialing 1-888-330-2041, or 1-646-960-0151 for international callers, and providing the following access code: 6774917. 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 18, 2021, by dialing 1-800-770-2030, or 1-647-362-9199 for international callers, and entering the following access code: 6774917. Additionally, a live and archived audio webcast of the conference call will be available at www.intrusion.com.

About INTRUSION, Inc.

INTRUSION, Inc. (NASDAQ:INTZ) protects any-sized company by leveraging advanced threat intelligence with real-time artificial intelligence to kill cyberattacks as they occur – including zero-days. INTRUSION's solution families include INTRUSION Shield, an advanced cyber-defense solution that kills cyberattacks in real-time using artificial intelligence (AI) and advanced cloud threat intelligence; INTRUSION TraceCop™ for identity discovery and disclosure; and INTRUSION Savant™ for network data mining and advanced persistent threat detection. For more information, please visit www.intrusion.com.

Cautionary Statement Regarding Forward Looking Information

This release may contain certain forward-looking statements, including, without limitations, statements about the performance of protections provided by our Shield products, the effect of the recent additions to our board and executive management team, the anticipated recovery of our governmental customers and an expanded need for them and an increasing customer base to address cybersecurity risks, leading to expected growth in our sales performance for this year, as well as any other statements which reflect management's expectations regarding future events and operating performance. These forward-looking statements speak only as of the date hereof and involve a number of risks and uncertainties, including, the risk that the Company does not benefit as anticipated from sales of our current solutions, including the INTRUSION Shield solution, the performance of our expanded management team, and that customers will address and mitigate their perceived cybersecurity risks through the purchase of our products and solutions. 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, including, risks that we have detailed in the Company's most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors."



INTRUSION INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands except par value amounts)

       
  September 30,

2021
  December 31,

2020
 
ASSETS        
Current Assets:        
Cash and cash equivalents $7,153  $16,704 
Accounts receivable  1,048   1,233 
Prepaid expenses  617   370 
Other current assets  19    
Total current assets  8,837   18,307 
Non-Current Assets:        
Property and Equipment:        
Equipment  2,502   1,453 
Furniture and fixtures  43   43 
Leasehold improvements  67   67 
         
Property, plant and equipment, gross  2,612   1,563 
Accumulated depreciation and amortization  (1,417)  (1,097)
Property and equipment, net  1,195   466 
Finance leases, right-of-use assets, net  1,696   20 
Operating leases, right-of-use assets, net  882   1,010 
Other assets  167   79 
Total non-current assets  3,940   1,575 
TOTAL ASSETS $12,777  $19,882 
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
         
Current Liabilities:        
Accounts payable, trade $747  $408 
Accrued expenses  957   628 
Finance lease liabilities, current portion  582   21 
Operating lease liabilities, current portion  860   487 
PPP loan payable, current portion     421 
Deferred revenue  822   177 
Total current liabilities  3,968   2,142 
         
Non-Current Liabilities:        
PPP loan payable, noncurrent portion     212 
Finance lease liabilities, noncurrent portion  620    
Operating lease liabilities, noncurrent portion  1,412   1,867 
Total non-current liabilities  2,032   2,079 
         
Commitments and contingencies        
         
Stockholders' equity:        
Common stock $0.01 par value:        
Authorized shares — 80,000

Issued shares — 18,803 in 2021 and 17,428 in 2020

Outstanding shares — 18,793 in 2021 and 17,418 in 2020
  188   174 
Common stock held in treasury, at cost – 10 shares  (362)  (362)
Additional paid-in capital  83,240   77,187 
Accumulated deficit  (76,246)  (61,295)
Accumulated other comprehensive loss  (43)  (43)
Total stockholders' equity  6,777   15,661 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $12,777  $19,882 
         

INTRUSION INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share amounts)

             
  Three Months Ended  Nine Months Ended 
  September 30, 2021  September 30, 2020  September 30, 2021  September 30, 2020 
Revenue $1,819  $1,588  $5,632  $5,039 
Cost of revenue  690   652   2,048   2,050 
                 
Gross profit  1,129   936   3,584   2,989 
                 
Operating expenses:                
Sales and marketing  3,782   885   10,123   1,880 
Research and development  1,863   1,081   4,862   2,741 
General and administrative  1,592   377   4,261   962 
                 
Operating loss  (6,108)  (1,407)  (15,662)  (2,594)
                 
Interest and other income  19      87   8 
Interest expense  (8)  (2)  (11)  (4)
Gain on the extinguishment of debt        635    
                 
Net loss $(6,097) $(1,409) $(14,951) $(2,590)
                 
Preferred stock dividends accrued     (13)     (79)
Net loss attributable to common stockholders $(6,097) $(1,422) $(14,951) $(2,669)
                 
Net loss per share attributable to common stockholders:                
Basic $(0.34) $(0.10) $(0.85) $(0.19)
Diluted $(0.34) $(0.10) $(0.85) $(0.19)
                 
Weighted average common shares outstanding:                
Basic  17,909   14,450   17,692   13,981 
Diluted  17,909   14,450   17,692   13,981 
                 

Investor Relations Contact

Joel Achramowicz

sheltonir@sheltongroup.com

P: (415) 845-9964