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, 2004 |
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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
INTRUSION INC.
(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 |
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
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, $0.01 par value, on April 30, 2004 was 5,166,312.
INTRUSION INC.
INDEX
2
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
INTRUSION INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value amounts)
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March 31, |
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December 31, |
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(Unaudited) |
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(Audited) |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
5,787 |
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$ |
974 |
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Short-term investments |
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505 |
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1,705 |
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Accounts receivable, less allowance for doubtful accounts $574 in 2004 and $574 in 2003 |
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498 |
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972 |
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Inventories, net |
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1,481 |
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1,286 |
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Other assets |
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402 |
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449 |
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Total current assets |
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8,673 |
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5,386 |
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Property and equipment, net |
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234 |
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297 |
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Other assets |
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77 |
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77 |
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TOTAL ASSETS |
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$ |
8,984 |
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$ |
5,760 |
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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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$ |
1,875 |
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$ |
2,188 |
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Deferred revenue |
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867 |
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788 |
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Total current liabilities |
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2,742 |
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2,976 |
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Stockholders’ Equity: |
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Preferred stock, $.01 par value, authorized shares - 5,000 - 1,000 shares issued and outstanding, net of discount |
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3,534 |
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— |
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Common stock, $.01 par value, authorized shares - 80,000; issued shares - 5,176 in 2004 and 5,173 in 2003; outstanding shares - 5,166 in 2004 and 5,163 in 2003 |
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52 |
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52 |
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Common stock held in treasury, at cost - 10 shares |
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(362 |
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(362 |
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Additional paid-in capital |
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48,723 |
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47,526 |
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Accumulated deficit |
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(45,477 |
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(44,204 |
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Accumulated other comprehensive loss |
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(228 |
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(228 |
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Total stockholders’ equity |
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6,242 |
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2,784 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
8,984 |
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$ |
5,760 |
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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 revenues |
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$ |
1,267 |
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$ |
1,476 |
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Cost of revenues |
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637 |
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1,004 |
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Gross profit |
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630 |
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472 |
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Operating expenses: |
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Sales and marketing |
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960 |
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1,863 |
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Research and development |
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601 |
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923 |
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General and administrative |
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264 |
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402 |
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Severance costs |
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96 |
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126 |
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Operating loss |
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(1,291 |
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(2,842 |
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Interest income, net |
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18 |
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61 |
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Loss before income tax provision |
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(1,273 |
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(2,781 |
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Income tax provision |
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— |
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— |
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Net loss |
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$ |
(1,273 |
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$ |
(2,781 |
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Beneficial conversion feature on preferred stock |
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(938 |
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— |
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Net loss attributable to common stockholders |
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$ |
(2,211 |
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$ |
(2,781 |
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Net loss per share attributable to common stockholders (basic and diluted) |
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$ |
(0.43 |
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(0.54 |
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Weighted average common shares outstanding, basic and diluted |
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5,163 |
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