GlobeNewswire Inc | May 4, 2021 04:05PM EDT

May 04, 2021

PLANO, Texas, May 04, 2021 (GLOBE NEWSWIRE) -- INTRUSION, Inc. (NASDAQ: INTZ), a leading provider of cyberattack prevention solutions including zero-days, announced today financial results for the first quarter ended March 31, 2021.

First quarter revenue grew quarter-over-quarter and year-over-year, said Jack Blount, President and CEO of INTRUSION. We continue to make excellent progress with the rollout of INTRUSIONShield in terms of new customers and adding channel partners. As is typical for newly launched SaaS products, it will take time for INTRUSIONShield to materially contribute to our quarterly results. We remain very encouraged by the exceptional feedback weve received from existing customers and the increasing interest from potential customers. Were gaining strong momentum in our opportunity pipeline both in the U.S. as well as with our new international resellers.

Blount continued, A factor in our growth was our government business. We see activity in Washington progressing toward a gradual resumption of more normal ordering patterns as the year unfolds.

First Quarter Financial Results

Revenue for the first quarter 2021 was $1.9 million, compared to $1.6 million for the fourth quarter 2020 and $1.8 million for the first quarter 2020.

Gross profit margin expanded to 66% of revenue in the first quarter 2021, compared to 58% for the fourth quarter 2020 and 58% for the first quarter 2020.

Operating expenses in the first quarter 2021 were $5.1 million, compared to $4.8 million for the fourth quarter 2020 and $1.5 million for the first quarter 2020.

The first quarter 2021 net loss was $3.9 million, or ($0.22) per share, compared to a net loss of $3.9 million, or ($0.23) per share, for the fourth quarter 2020 and a net loss of $0.5 million, or ($0.04) per share, for the first quarter 2020.

As of March 31, 2021, cash and cash equivalents were $13.1 million and working capital was $12.3 million.

Conference CallINTRUSIONs management will host a conference call today at 4:00 P.M., CST. Interested investors can access the live call by dialing 1-844-200-6205, or +44-208-0682-558 for international callers, and providing the following access code: 969764. For those unable to participate in the live conference call, a replay will be accessible beginning tonight at 7:00 P.M. CST until May 11, 2021 by clicking on the following link, Click Here, and entering the following access code: 898017. 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. INTRUSIONs solution families include INTRUSIONShield, an advanced cyber-defense solution that kills cyberattacks in real-time using artificial intelligence (AI) and advanced cloud threat intelligence; INTRUSIONTraceCop 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 InformationThis 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 INTRUSIONShield 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.

Investor Relations ContactJoel Achramowiczsheltonir@sheltongroup.comP: (415) 845-9964

INTRUSION INC. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands except par value amounts)

March 31, December 31, 2021 2020 ASSETS Current Assets Cash and cash equivalents $ 13,072 $ 16,704 Accounts receivable 1,305 1,233 Prepaid expenses 700 370 Total current assets 15,077 18,307 Noncurrent Assets Property and equipment, net 592 466 Finance leases right-of-use assets, net 11 20 Operating leases right-of-use assets, net 979 1,010 Other assets 163 79 Total noncurrent assets 1,745 1,575 TOTAL ASSETS $ 16,822 $ 19,882 LIABILITIES AND STOCKHOLDERS? EQUITY Current Liabilities Accounts payable and accrued expenses $ 1,563 $ 1,036 PPP loan payable, current portion 428 421 Finance leases liability, current portion 11 21 Operating leases liability, current portion 598 487 Deferred revenue 146 177 Total current liabilities 2,746 2,142 Noncurrent Liabilities PPP loan payable, noncurrent portion 207 212 Operating leases liability, noncurrent portion 1,746 1,867 Total noncurrent liabilities 1,953 2,079 Stockholders' Equity: Common stock, $0.01 par value: Authorized shares ? 80,000 Issued shares ? 17,625 in 2021 and 17,428 in 2020 Outstanding shares ? 17,615 in 2021 and 17,418 in 176 174 2020Common stock held in treasury, at cost ? 10 shares (362 ) (362 )Additional paid-in capital 77,550 77,187 Accumulated deficit (65,198 ) (61,295 )Accumulated other comprehensive loss (43 ) (43 )Total stockholders' equity 12,123 15,661 TOTAL LIABILITIES AND STOCKHOLDERS? EQUITY $ 16,822 $ 19,882

INTRUSION INC. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands except per share amounts)

Quarter Quarter ended ended March 31, March 31, 2021 2020 Revenue $ 1,852 $ 1,795 Cost of revenue 625 747 Gross profit 1,227 1,048 Operating expenses: Sales and marketing 2,689 510 Research and development 1,469 753 General and administrative 973 256 Operating loss (3,904 ) (471 ) Interest expense (2 ) (1 )Interest income 3 7 Net loss (3,903 ) (465 ) Preferred stock dividends accrued ? (33 )Net loss attributable to common stockholders $ (3,903 ) $ (498 ) Net loss per share attributable to common stockholders:Basic $ (0.22 ) $ (0.04 )Diluted $ (0.22 ) $ (0.04 )Weighted average shares outstanding: Basic 17,541 13,703 Diluted 17,541 13,703