UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
|
ý |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2002
OR
|
o |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number 0-20191
INTRUSION INC.
(Exact name of Registrant as specified in its charter)
|
Delaware |
|
75-1911917 |
|
(State
or other jurisdiction of |
|
(I.R.S.
Employer |
|
|
|
|
|
1101 East Arapaho Road, Richardson, Texas 75081 |
||
|
(Address of principal executive offices) |
||
|
(Zip Code) |
||
|
|
|
|
|
(972) 234-6400 |
||
|
(Registrant’s telephone number, including area code) |
||
|
|
|
|
|
Not Applicable |
||
|
Former name, if changed since last report) |
||
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:
Yes ý No o
The number of shares outstanding of the Registrant’s Common Stock, $.01 par value, on October 31, 2002 was 20,646,425.
INTRUSION INC.
INDEX
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets as of September 30, 2002 and December 31, 2001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
PART I - FINANCIAL INFORMATION
INTRUSION INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value amounts)
(Unaudited)
|
|
|
Sept 30, |
|
Dec 31, |
|
||
|
ASSETS |
|
|
|
|
|
||
|
Current Assets: |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
7,947 |
|
$ |
15,783 |
|
|
Short-term investments |
|
5,215 |
|
4,652 |
|
||
|
Accounts receivable, less allowance for doubtful accounts of $827 in 2002 and $797 in 2001 |
|
3,143 |
|
5,206 |
|
||
|
Income taxes receivable |
|
— |
|
2,779 |
|
||
|
Inventories, net |
|
2,699 |
|
5,016 |
|
||
|
Other assets |
|
992 |
|
601 |
|
||
|
Total current assets |
|
19,996 |
|
34,037 |
|
||
|
Property and equipment, net - continuing operations |
|
2,092 |
|
3,603 |
|
||
|
Property and equipment, net - discontinued operations |
|
— |
|
741 |
|
||
|
Intangible assets, net |
|
3,209 |
|
3,807 |
|
||
|
Other assets |
|
88 |
|
107 |
|
||
|
TOTAL ASSETS |
|
$ |
25,385 |
|
$ |
42,295 |
|
|
|
|
|
|
|
|
||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
||
|
Current Liabilities: |
|
|
|
|
|
||
|
Accounts payable and accrued expenses |
|
$ |
3,679 |
|
$ |
6,000 |
|
|
Deferred revenue |
|
1,541 |
|
1,658 |
|
||
|
Total current liabilities - continued operations |
|
5,220 |
|
7,658 |
|
||
|
Total current liabilities - discontinued operations |
|
402 |
|
1,139 |
|
||
|
Total current liabilities |
|
5,622 |
|
8,797 |
|
||
|
Stockholders’ Equity: |
|
|
|
|
|
||
|
Preferred stock, $.01 par value, authorized shares - 5,000, no shares issued and outstanding |
|
— |
|
— |
|
||
|
Common
stock, $.01 par value, authorized shares - 80,000 |
|
207 |
|
206 |
|
||
|
Common stock held in treasury, at cost - 40 shares |
|
(362 |
) |
(362 |
) |
||
|
Additional paid-in capital |
|
47,371 |
|
47,320 |
|
||
|
Accumulated deficit |
|
(27,026 |
) |
(13,327 |
) |
||
|
Foreign currency translation adjustment |
|
(427 |
) |
(339 |
) |
||
|
Total stockholders’ equity |
|
19,763 |
|
33,498 |
|
||
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
25,385 |
|
$ |
42,295 |
|
See accompanying notes.
3
INTRUSION INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
Sept 30, |
|
Sept 30, |
|
Sept 30, |
|
Sept 30, |
|
||||
|
Net Sales |
|
$ |
2,394 |
|
$ |
3,612 |
|
$ |
6,373 |
|
$ |
13,381 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cost of sales |
|
1,322 |
|
2,354 |
|
4,173 |
|
11,249 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Gross profit |
|
1,072 |
|
1,258 |
|
2,200 |
|
2,132 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||
|
Sales and marketing |
|
2,507 |
|
4,597 |
|
9,606 |
|
19,123 |
|
||||
|
Research and development |
|
1,398 |
|
2,933 |
|
4,762 |
|
10,472 |
|
||||
|
General and administrative |
|
693 |
|
894 |
|
2,016 |
|
3,704 |
|
||||
|
Amortization of intangibles |
|
199 |
|
182 |
|
598 |
|
852 |
|
||||
|
Restructuring and other charges |
|
— |
|
— |
|
200 |
|
3,973 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Operating loss |
|
(3,725 |
) |
(7,348 |
) |
(14,982 |
|||||||