GlobeNewswire Inc | Nov 11, 2021 04:07PM EST

November 11, 2021

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 Shields 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 CallINTRUSIONs 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. INTRUSIONs 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 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 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 SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands except par value amounts)

September December 30, 31, 2021 2020ASSETS 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 ? 80,000Issued shares ? 18,803 in 2021 and 17,428 in2020 188 174 Outstanding shares ? 18,793 in 2021 and 17,418in 2020Common stock held in treasury, at cost ? 10 (362 ) (362 )sharesAdditional 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 SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands except per share amounts)

Three Months Ended Nine Months Ended September September September September 30, 2021 30, 2020 30, 2021 30, 2020Revenue $ 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 1,863 1,081 4,862 2,741 developmentGeneral and 1,592 377 4,261 962 administrative Operating loss (6,108 ) (1,407 ) (15,662 ) (2,594 ) Interest and other 19 ? 87 8 incomeInterest expense (8 ) (2 ) (11 ) (4 )Gain on the ? ? 635 ? extinguishment of debt Net loss $ (6,097 ) $ (1,409 ) $ (14,951 ) $ (2,590 ) Preferred stock ? (13 ) ? (79 )dividends accruedNet loss attributable $ (6,097 ) $ (1,422 ) $ (14,951 ) $ (2,669 )to common stockholders Net loss per shareattributable 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 ContactJoel Achramowiczsheltonir@sheltongroup.comP: (415) 845-9964