Intrusion, Inc. Reports Fourth Quarter and Full Year 2022 Results
Intrusion Inc. (NASDAQ:INTZ) reported its fourth quarter and full-year financial results for 2022, highlighting a fourth quarter revenue of $1.4 million, down 12% year-over-year. Total annual revenue reached $7.5 million, a 3% increase from 2021. The gross profit margin improved, with Q4 at 63% compared to 50% in Q4 2021. However, net losses widened to $5.2 million for Q4 and $16.2 million for the year. Operating expenses decreased to $20.5 million for the year. The company aims to raise between $15 to $20 million in 2023 to support its growth plans, partly through common stock sales.
- Full year 2022 revenue rose to $7.5 million, a 3% increase.
- Gross profit margin improved to 63% in Q4 2022 from 50% in Q4 2021.
- Operating expenses decreased to $20.5 million for the full year 2022, down from $23.2 million in 2021.
- Q4 revenue declined by $0.2 million, or 12%, year-over-year.
- Net loss for Q4 2022 was $5.2 million, worsening from $3.8 million in Q4 2021.
- The company needs to secure $15 to $20 million in funding for 2023, with no assurance of timely financing.
Intrusion Shield Gains Traction Year over Year
PLANO, TX / ACCESSWIRE / March 6, 2023 / Intrusion Inc. (NASDAQ:INTZ), a leader in cyberattack prevention solutions, announced today financial results for the fourth quarter and full year ended December 31, 2022.
Recent Financial & Business Highlights:
- Fourth quarter revenue of
$1.4 million was down$0.2 million , or12% , year-over-year. - Full year 2022 revenue of
$7.5 million was up$0.3 million , or3% , year-over-year. - Intrusion Shield revenues for the fourth quarter totaled
$0.3 million , representing22% of total revenues. - Intrusion Shield revenues for the full year 2022 totaled
$1.2 million , representing16% of total revenues.
"Intrusion improved its overall financial performance on nearly every standard financial metric during fiscal year 2022, capping an important year where we made progress along our financial, operational, and strategic objectives," said Tony Scott, CEO of Intrusion. "Our top line fourth quarter results were not as we expected, primarily due to the loss of a single consulting contract in the fourth quarter. Fortunately, this contract carried a lower margin profile and the impact on our bottom line was not as pronounced. Shield revenues for the fourth quarter were
Mr. Scott continued, "We exited 2022 with positive momentum having rounded out the management team, enhanced the product branding and messaging, increased the stability and performance of the Shield appliance, and launched new products. The majority of the overhang that existed when I first joined the Company has been resolved and we are moving forward with a clear path forward to achieve our objectives."
Fourth Quarter Financial Results
Revenue for the fourth quarter of 2022 was
The gross profit margin was
Operating expenses in the fourth quarter of 2022 were
The net loss for the fourth quarter of 2022 was (
Full Year 2022 Financial Results
Revenue was
The gross profit margin was
Operating expenses were
The net loss was (
As of December 31, 2022, cash and cash equivalents were
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. The call will also be webcast live LINK. For those unable to participate in the live conference call, a replay will be accessible beginning tonight at 7:00 P.M. CST until March 13, 2023, 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. is a cybersecurity company based in Plano, Texas. The Company offers its customers access to its exclusive threat intelligence database containing the historical data, known associations, and reputational behavior of over 8.5 billion IP addresses. After years of gathering global internet intelligence and working exclusively with government entities, the Company released its first commercial product in 2021. Intrusion Shield is designed to allow businesses to incorporate a Zero Trust, reputation-based security solution into their existing infrastructure. Intrusion Shield observes traffic flow and instantly blocks known malicious or unknown connections from both entering or exiting a network to help protect against Zero-Day and ransomware attacks. Incorporating Intrusion Shield into a network can elevate an organization's overall security posture by enhancing the performance and decision-making of other solutions in its cybersecurity architecture.
Cautionary Statement Regarding Forward-Looking Information
This release may contain certain forward-looking statements, including, without limitation, our expectations for positive results from our recent sales, marketing, and strategic initiatives, which statements 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 our recent sales, marketing, and strategic efforts will not result in increased product awareness or sales of our Intrusion Shield. 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, the risk that this financing fails to provide the needed capital for the Company to execute its current business strategies, the Company does not achieve the anticipated results from its current sales, marketing, operational, and product development initiatives, as well as 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."
IR Contact:
Alpha IR Group
Mike Cummings or Sam Cohen
INTZ@alpha-ir.com
Media Contact:
LaunchTech Communications
Sara Knott
sknott@golaunchtech.com
540-764-0043
INTRUSION INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended | Twelve Months Ended | ||||||||||
December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | ||||||||
Revenue | $ | 1,444 | $ | 1,645 | $ | 7,529 | $ | 7,277 | |||
Cost of Revenue | 540 | 577 | 3,354 | 3,621 | |||||||
Gross Profit | 904 | 1,068 | 4,175 | 3,656 | |||||||
Operating Expenses: | |||||||||||
Sales and marketing | 2,025 | 1,808 | 6,510 | 10,935 | |||||||
Research and development | 1,873 | 1,467 | 6,465 | 6,328 | |||||||
General and administrative | 1,522 | 1,634 | 7,483 | 5,896 | |||||||
Operating Loss | (4,516) | (3,841) | (16,283) | (19,503) | |||||||
Interest and Other Income | 24 | - | 2,028 | 722 | |||||||
Interest Expense | (702) | (11) | (2,359) | (21) | |||||||
Gain on Lease Termination | - | - | 385 | - | |||||||
Net Loss | $ | (5,194) | $ | (3,852) | $ | (16,229) | $ | (18,802) | |||
Net loss per share: | |||||||||||
Basic | $ | (0.25) | $ | (0.20) | $ | (0.82) | $ | (1.05) | |||
Diluted | $ | (0.25) | $ | (0.20) | $ | (0.82) | $ | (1.05) | |||
Weighted average common shares outstanding: | |||||||||||
Basic | 20,854 | 18,885 | 19,791 | 17,992 | |||||||
Diluted | 20,854 | 18,885 | 19,791 | 17,992 |
INTRUSION INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value amounts)
December 31, 2022 | December 31, 2021 | |||||
ASSETS | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $ | 3,015 | $ | 4,100 | ||
Accounts receivable | 530 | 1,034 | ||||
Prepaid expenses and other assets | 1,877 | 356 | ||||
Total current assets | 5,422 | 5,490 | ||||
Noncurrent Assets: | ||||||
Property and equipment: | ||||||
Equipment | 2,865 | 2,517 | ||||
Capitalized software development | 1,380 | - | ||||
Furniture and fixtures | 43 | 43 | ||||
Leasehold improvements | 78 | 67 | ||||
Property and equipment, gross | 4,366 | 2,627 | ||||
Accumulated depreciation and amortization | (2,208) | (1,567) | ||||
Property and equipment, net | 2,158 | 1,060 | ||||
Finance leases, right-of-use assets, net | 1,048 | 1,709 | ||||
Operating leases, right-of-use assets, net | 504 | 808 | ||||
Other assets | 143 | 166 | ||||
Total noncurrent assets | 3,853 | 3,743 | ||||
TOTAL ASSETS | $ | 9,275 | $ | 9,233 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current Liabilities: | ||||||
Accounts payable, trade | $ | 1,273 | $ | 718 | ||
Accrued expenses | 446 | 534 | ||||
Finance lease liabilities, current portion | 667 | 644 | ||||
Operating lease liabilities, current portion | 294 | 935 | ||||
Notes payable | 10,114 | - | ||||
Deferred revenue | 455 | 560 | ||||
Total current liabilities | 13,249 | 3,391 | ||||
Noncurrent Liabilities: | ||||||
Finance lease liabilities, noncurrent portion | 10 | 673 | ||||
Operating lease liabilities, noncurrent portion | 231 | 1,250 | ||||
Total noncurrent liabilities | 241 | 1,923 | ||||
Commitments and Contingencies | - | - | ||||
Stockholders' Equity: | ||||||
Common stock | 212 | 191 | ||||
Common stock held in treasury, at cost - 10 shares | (362) | (362) | ||||
Additional paid-in capital | 92,304 | 84,230 | ||||
Accumulated deficit | (96,326) | (80,097) | ||||
Accumulated other comprehensive loss | (43) | (43) | ||||
Total stockholders' equity | (4,215) | 3,919 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 9,275 | $ | 9,233 |
SOURCE: Intrusion, Inc.
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