UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended March 31, 2003 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to . |
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Commission File Number 0-20191 |
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INTRUSION INC. |
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(Exact name of Registrant as specified in its charter) |
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Delaware |
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75-1911917 |
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(State or other
jurisdiction of |
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(I.R.S. Employer |
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1101 East Arapaho Road, Richardson, Texas |
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75081 |
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(Address of principal executive offices) |
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(Zip Code) |
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(972) 234-6400 |
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(Registrant’s telephone number, including area code) |
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Not Applicable |
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Former name, if changed since last report) |
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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
Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
The number of shares outstanding of the Registrant’s Common Stock, $0.01 par value, on May 9, 2003 was 20,648,425.
INTRUSION INC.
INDEX
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PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
INTRUSION
INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED
BALANCE SHEETS
(In thousands, except par value amounts)
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March 31, |
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Dec 31, |
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(Unaudited) |
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(Audited) |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
945 |
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$ |
2,898 |
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Short-term investments |
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7,300 |
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7,825 |
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Accounts receivable, less allowance for doubtful accounts $755 in 2003 and $934 in 2002 |
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1,556 |
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2,363 |
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Inventories, net |
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1,726 |
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1,411 |
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Other assets |
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796 |
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759 |
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Total current assets |
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12,323 |
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15,256 |
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Property and equipment, net |
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1,222 |
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1,597 |
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Other assets |
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87 |
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86 |
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TOTAL ASSETS |
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$ |
13,632 |
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$ |
16,939 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable and accrued expenses |
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$ |
2,740 |
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$ |
2,905 |
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Deferred revenue |
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1,289 |
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1,650 |
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Total current liabilities |
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4,029 |
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4,555 |
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Stockholders’ Equity: |
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Preferred stock, $.01 par value, authorized shares – 5,000, no shares issued and outstanding |
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— |
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— |
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Common stock, $.01 par value, authorized shares – 80,000 Issued shares – 20,688 in 2003 and 20,686 in 2002 Outstanding shares – 20,648 in 2003 and 20,646 in 2002 |
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207 |
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207 |
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Common stock held in treasury, at cost – 40 shares |
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(362 |
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(362 |
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Additional paid-in capital |
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47,371 |
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47,371 |
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Accumulated deficit |
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(37,385 |
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(34,604 |
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Accumulated other comprehensive loss |
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(228 |
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(228 |
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Total stockholders’ equity |
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9,603 |
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12,384 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
13,632 |
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$ |
16,939 |
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See accompanying notes.
3
INTRUSION
INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
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Three Months Ended |
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March 31, |
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March 31, |
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Net sales |
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$ |
1,476 |
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$ |
2,514 |
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Cost of sales |
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1,004 |
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1,709 |
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Gross profit |
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472 |
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805 |
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Operating expenses: |
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Sales and marketing |
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1,863 |
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3,902 |
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Research and development |
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923 |
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1,879 |
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General and administrative |
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402 |
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709 |
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Amortization of intangibles |
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— |
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199 |
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Severance costs |
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126 |
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— |
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Operating loss |
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(2,842 |
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(5,884 |
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Interest income, net |
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61 |
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89 |
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Loss before income tax provision |
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(2,781 |
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(5,795 |
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Income tax provision |
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— |
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— |
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Loss from continuing operations |
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(2,781 |
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(5,795 |
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Income from discontinued operations |
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401 |
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Net loss |
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$ |
(2,781 |
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(5,394 |
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Basic and diluted loss per share, continuing operations |
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$ |
(0.13 |
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(0.28 |
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Basic and diluted loss per share |
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$ |
(0.13 |
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$ |
(0.26 |
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Weighted average common shares outstanding, basic and diluted |
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20,648 |
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20,632 |
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See accompanying notes.
4
INTRUSION
INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
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Three Months Ended |
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March 31, |
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March 31, |
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Operating Activities: |
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Loss from continuing operations |
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$ |
(2,781 |
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$ | ||