Intrusion, Inc. Reports Third Quarter of Fiscal 2022 Results
Intrusion Inc. (NASDAQ:INTZ) reported third quarter 2022 revenue of $2.2 million, a 21% increase year-over-year and a 7% increase sequentially. The revenue from the new Intrusion Shield products surged by 70% year-over-year. Operating expenses decreased to $5.0 million from $7.0 million in the prior year, while the net loss narrowed to ($2.9) million, or ($0.15) per share. Cash reserves improved to $6.9 million as of September 30, 2022. The company maintains a robust outlook for cybersecurity investments despite macroeconomic challenges.
- Revenue increased by 21% year-over-year and 7% sequentially.
- Intrusion Shield revenue up 70% year-over-year, accounting for 15% of total revenue.
- Gross profit margin improved to 54.6%, a 6.2% increase from the previous year.
- Operating expenses decreased from $7.0 million to $5.0 million year-over-year.
- Cash and cash equivalents increased to $6.9 million from $4.1 million.
- Net loss of ($2.9) million, though improved from ($6.1) million a year ago.
New Intrusion Shield products reach general availability
PLANO, TX / ACCESSWIRE / November 3, 2022 / Intrusion Inc. (NASDAQ:INTZ), a leader in cyberattack prevention solutions, announced today financial results for the third quarter of fiscal year 2022.
Recent Financial & Business Highlights:
- Third quarter revenue of
$2.2 million was up$0.1 million or7% sequentially and up$0.4 million or21% year-over-year. - Intrusion Shield revenue increased
70% year-over-year and represented approximately15% of total revenue in the quarter. - New Shield Cloud and Shield Endpoint products reach general availability in the third quarter.
- The Company continued to improve its financial flexibility by entering into a Securities Purchase Agreement raising
$4 million during the third quarter.
"We are continuing to execute on our strategic initiatives through the launch of our new products and partnerships we have announced," said Tony Scott, CEO of Intrusion. "While we continue to invest in our Shield On-Premise, the addition of the Cloud and Endpoint solutions improves the accessibility of our advanced threat intelligence dataset and sets the stage as we continue to execute along our multi-year product roadmap in support of the growing future demand in the space. I am optimistic about the ways in which our new and existing products stand up to the most challenging threats today."
Scott continued, "The threats from cybercriminals and ransomware remain prevalent. While the macroeconomic environment poses some challenges to broader IT budgets, the outlook for cybersecurity is robust and we continue to expect investments in cybersecurity, specifically in the market subsegments in which we operate. Intrusion is well-positioned for sustainable growth in this dynamic space with products designed to serve the rapidly expanding hybrid and cloud environment. We believe that the actions that we are taking today set us up well to end the year and move into 2023 with strong momentum."
Third Quarter Financial Results
Revenue for the third quarter of 2022 was
The gross profit margin was
Operating expenses in the third quarter of 2022 were
The net loss for the third quarter of 2022 was (
As of September 30, 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 November 10, 2022, 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
INTRUSION INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||||||||||
Revenue | $ | 2,192 | $ | 1,819 | $ | 6,085 | $ | 5,632 | ||||||||
Cost of Revenue | 995 | 939 | 2,814 | 2,795 | ||||||||||||
Gross Profit | 1,197 | 880 | 3,271 | 2,837 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Sales and marketing | 1,711 | 3,533 | 4,485 | 9,376 | ||||||||||||
Research and development | 1,456 | 1,863 | 4,592 | 4,862 | ||||||||||||
General and administrative | 1,852 | 1,592 | 5,961 | 4,261 | ||||||||||||
Operating Loss | (3,822 | ) | (6,108 | ) | (11,767 | ) | (15,662 | ) | ||||||||
Interest and Other Income | 2,002 | 19 | 2,004 | 87 | ||||||||||||
Interest Expense | (1,061 | ) | (8 | ) | (1,657 | ) | (11 | ) | ||||||||
Gain on extinguishment of debt | - | - | - | 635 | ||||||||||||
Gain on lease termination | (35 | ) | - | 385 | - | |||||||||||
Net loss | $ | (2,916 | ) | $ | (6,097 | ) | $ | (11,035 | ) | $ | (14,951 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic | $ | (0.15 | ) | $ | (0.34 | ) | $ | (0.57 | ) | $ | (0.85 | ) | ||||
Diluted | $ | (0.15 | ) | $ | (0.34 | ) | $ | (0.57 | ) | $ | (0.85 | ) | ||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 19,826 | 17,909 | 19,433 | 17,692 | ||||||||||||
Diluted | 19,826 | 17,909 | 19,433 | 17,692 | ||||||||||||
INTRUSION INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value amounts)
September 30, 2022 | December 31, 2021 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 6,906 | $ | 4,100 | ||||
Accounts receivable | 916 | 1,034 | ||||||
Prepaid expenses and other assets | 2,858 | 356 | ||||||
Total current assets | 10,680 | 5,490 | ||||||
Noncurrent Assets: | ||||||||
Property and equipment: | ||||||||
Equipment | 2,740 | 2,517 | ||||||
Capitalized software development | 890 | - | ||||||
Furniture and fixtures | 43 | 43 | ||||||
Leasehold improvements | 67 | 67 | ||||||
Property, plant and equipment, gross | 3,740 | 2,627 | ||||||
Accumulated depreciation and amortization | (1,994 | ) | (1,567 | ) | ||||
Property and equipment, net | 1,746 | 1,060 | ||||||
Finance leases, right-of-use assets, net | 1,211 | 1,709 | ||||||
Operating leases, right-of-use assets, net | 581 | 808 | ||||||
Other assets | 137 | 166 | ||||||
Total noncurrent assets | 3,675 | 3,743 | ||||||
TOTAL ASSETS | $ | 14,355 | $ | 9,233 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable, trade | $ | 1,156 | $ | 718 | ||||
Accrued expenses | 1,114 | 534 | ||||||
Finance lease liabilities, current portion | 667 | 644 | ||||||
Operating lease liabilities, current portion | 315 | 935 | ||||||
Notes payable, current portion | 9,574 | - | ||||||
Deferred revenue | 869 | 560 | ||||||
Total current liabilities | 13,695 | 3,391 | ||||||
Noncurrent Liabilities: | ||||||||
Notes payable, noncurrent portion | 844 | - | ||||||
Finance lease liabilities, noncurrent portion | 67 | 673 | ||||||
Operating lease liabilities, noncurrent portion | 290 | 1,250 | ||||||
Total noncurrent liabilities | 1,201 | 1,923 | ||||||
Commitments and Contingencies - See Note 8 | - | - | ||||||
Stockholders' Equity: | ||||||||
Preferred stock, | - | - | ||||||
Common stock | 209 | 191 | ||||||
Common stock held in treasury, at cost - 10 shares | (362 | ) | (362 | ) | ||||
Additional paid-in capital | 90,787 | 84,230 | ||||||
Accumulated deficit | (91,132 | ) | (80,097 | ) | ||||
Accumulated other comprehensive loss | (43 | ) | (43 | ) | ||||
Total stockholders' equity | (541 | ) | 3,919 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 14,355 | $ | 9,233 | ||||
SOURCE: Intrusion Inc.
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