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PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Intrusion Inc. Reports Net Income of $1.5 Million and Revenue of $3.9 Million in the Third Quarter of 2019

November 11, 2019

RICHARDSON, Texas, Nov. 11, 2019 (GLOBE NEWSWIRE) -- Intrusion Inc. (OTCQB: INTZ), (“Intrusion”) announced today financial results for the three and nine months ended September 30, 2019.

Intrusion’s net income was $1.5 million in the third quarter 2019 compared to a net income of $0.62 million in the third quarter 2018.

Intrusion’s revenue for the third quarter 2019 was $3.9 million compared to $2.7 million in the third quarter 2018.

Gross profit was $2.4 million or 62 percent of revenue in the third quarter of 2019 compared to $1.7 million or 64 percent of revenue in the third quarter 2018.

Intrusion’s third quarter 2019 operating expenses were $0.9 million compared to $1.0 million for the third quarter 2018.

As of September 30, 2019, Intrusion reported cash and cash equivalents of $2.1 million and working capital of $2.9 million.

Intrusion’s management will host its regularly scheduled quarterly conference call to discuss the Company’s financial and operational progress at 4:00 P.M., CST today. Interested investors can access the call at 1-877-258-4925 (if outside the United States, 1-973-500-2152). For those unable to participate in the live conference call, a replay will be accessible beginning today at 7:00 P.M., CST until November 18, 2019 by calling 1-855-859-2056 (if outside the United States, 1-404-537-3406). At the replay prompt, enter conference identification number 2177277. 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 global provider of entity identification, high speed data mining, cybercrime and advanced persistent threat detection products. Intrusion’s product families include TraceCop™ for identity discovery and disclosure, and Savant™ for network data mining and advanced persistent threat detection. Intrusion’s products help protect critical information assets by quickly detecting, protecting, analyzing and reporting attacks or misuse of classified, private and regulated information for government and enterprise networks. For more information, please visit www.intrusion.com.

This release may contain certain forward-looking statements, which reflect management’s expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. Such statements include, without limitations, statements regarding future revenue growth and profitability, the difficulties in forecasting future sales caused by current economic and market conditions, the difficulties in producing timely renewals of contracts, the effects of sales and implementation cycles for our products on our quarterly results, and difficulties in accurately estimating market growth, the effect of military actions on government and corporate spending on information security products, spending patterns of, and appropriations to, U.S. government departments, as well as other statements. 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. The factors that could cause actual results to differ materially from expectations are detailed in the Company’s most recent reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.”

Financial ContactMichael L. Paxton 972.301.3658, mpaxton@intrusion.com

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

Septembe December r 30, 31, 2019 2018 ------- ------- ASSETS Current Assets Cash and cash equivalents $ 2,111 $ 1,652 Accounts receivable 2,704 1,967 Prepaid expenses 136 91 ------- ------- Total current assets 4,951 3,710 Noncurrent Assets Property and equipment, net 295 200 Finance leases right-of-use assets, net 73 121 Operating leases right-of-use assets, net 1,407 — Other assets 38 38 ------- ------- Total noncurrent assets 1,813 359 ------- ------- TOTAL ASSETS $ 6,764 $ 4,069 - ----- - -----

LIABILITIES AND EQUITY (DEFICIT) Current Liabilities Accounts payable and accrued expenses $ 1,078 $ 1,596 Dividends payable 32 594 Finance leases liability, current portion 43 58 Operating lease liability, current portion 277 — Deferred revenue 643 1,004 ------- -------- Total current liabilities 2,073 3,252 Noncurrent Liabilities Loan payable to officer — 1,815 Finance leases liability, noncurrent portion 32 64 Operating lease liability, noncurrent portion 1,389 — ------- -------- Total noncurrent liabilities 1,421 1,879 Stockholders’ Equity (Deficit): Preferred stock, $.01 par value: Authorized shares – 5,000 Series 1 shares issued and outstanding – 200 Liquidation preference of $1,025 in 2019 and $1,213 in 2018 707 707 Series 2 shares issued and outstanding – 460 Liquidation preference of $1,155 in 2019 and $1,385 in 2018 724 724 Series 3 shares issued and outstanding – 289 Liquidation preference of $633 in 2019 and $760 in 2018 412 412 Common stock, $.01 par value: Authorized shares – 80,000 Issued shares – 13,550 in 2019 and 13,259 in 2018 Outstanding shares – 13,540 in 2019 and 13,249 in 2018 135 133 Common stock held in treasury, at cost – 10 shares (362) (362) Additional paid-in capital 56,770 56,609 Accumulated deficit (55,073) (59,242) Accumulated other comprehensive loss (43) (43) ------- -------- Total stockholders’ equity (deficit) 3,270 (1,062) ------- -------- TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) $ 6,764 $ 4,069 - ----- - ------

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

Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 -------- ---------- ------- Revenue $ 3,860 $ 2,665 $ 11,071 $ 7,296 Cost of revenue 1,465 967 4,339 2,744 -------- -------- ---------- ------- Gross profit 2,395 1,698 6,732 4,552 Operating expenses: Sales and marketing 356 466 813 1,311 Research and development 297 329 775 832 General and administrative 277 243 930 828 -------- -------- ---------- ------- Operating income (loss) 1,465 660 4,214 1,581 Interest expense, net (1 ) (43 ) (45 ) (144 ) -------- -------- ---------- ------- Net income (loss) $ 1,464 $ 617 $ 4,169 $ 1,437 Preferred stock dividends accrued (35 ) (35 ) (104 ) (104 ) -------- -------- ---------- ------- Net income (loss) attributable to common stockholders $ 1,429 $ 582 $ 4,065 $ 1,333 - ------ -- ----- - ------- - ----- Net income (loss) per share attributable to common stockholders: $ 0.11 $ 0.04 $ 0.30 $ 0.10 Basic - ------ -- ----- - ------- - ----- Diluted $ 0.09 $ 0.04 $ 0.27 $ 0.09 - ----- -- ---- - -------- - ----- Weighted average common shares outstanding: Basic 13,523 13,062 13,466 13,009 -------- -------- ---------- ------- Diluted 15,371 14,955 15,314 14,901 -------- -------- ---------- -------