RICHARDSON, Texas, Nov. 11 /PRNewswire-FirstCall/ -- Intrusion Inc. (OTC Bulletin Board: INTZ), ("Intrusion") today announced financial results for the three months and nine months ended September 30, 2009.

Intrusion was profitable for the second consecutive quarter.

Intrusion's net income was $79 thousand in the third quarter 2009 compared to $17 thousand for the third quarter 2008.

Revenue for the third quarter 2009 was $1.3 million compared to $1.2 million for the third quarter 2008.

Gross profit margin was 65 percent of revenue in the third quarter of 2009 compared to 69 percent of revenue in the third quarter of 2008.

Intrusion's third quarter 2009 operating expenses were $0.7 million compared to $0.8 million for the third quarter 2008.

As of September 30, 2009, Intrusion reported cash and cash equivalents of $0.1 million, a working capital deficiency of $1.5 million, and debt of $1.0 million.

"Our second consecutive profitable quarter is outstanding and is the result of continued good gross profit margin and operating expense control," stated G. Ward Paxton, Chairman, President and CEO of Intrusion. "The $3.6 million of new TraceCop orders announced in October gives us traction for a positive fourth quarter and the beginning of next year," Paxton concluded.

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 1-800-399-2043 (if outside the United States, 1-706-634-5518). 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, 2009 by calling 1-800-642-1687 (if outside the United States, 1-706-645-9291). At the replay prompt, enter conference identification number 37669286. 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 systems, regulated information compliance, data leak prevention, and data privacy protection and network intrusion prevention and detection products. Intrusion's product families include TraceCop(TM) for entity identification, the Compliance Commander(TM) for regulated information compliance, data leak prevention and data privacy protection, and Intrusion SecureNet for network intrusion prevention and 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, other than historical information, may include forward-looking statements regarding future events or the future financial performance of the Company. Such statements include, without limitations, statements regarding future revenue growth and profitability, 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, including but not limited to the following: the difficulties in forecasting future sales caused by current economic and market conditions, the effect of military actions on government and corporate spending on information security products, spending patterns of, and appropriations to, U.S. government departments, the impact of our cost reduction programs and our refocused product line, the difficulties and uncertainties in successfully developing and introducing new products in emerging markets, market acceptance of our products, the impact of our sustained losses on our ability to successfully operate and grow our business, our stock price and the recent loss of our Nasdaq listing, our ability to generate sufficient cash flow or obtain additional financing on acceptable terms in order to fund ongoing liquidity needs, the highly competitive market for our products, the effects of sales and implementation cycles for our products on our quarterly results, difficulties in accurately estimating market growth, the consolidation of the information security industry, the impact of changing economic conditions, business conditions in the information security industry, our ability to manage acquisitions effectively, the impact of market peers and their products as well as risks concerning future technology and others identified in our Annual Report on Form 10-K, as amended, and other Securities and Exchange Commission filings. These filings can be obtained by contacting Intrusion Investor Relations.

    Financial Contact
    Michael L. Paxton, VP, CFO
    972.301.3658, mpaxton@intrusion.com

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

                                                   September 30,  December 31,
                                                       2009           2008
                                                       ----           ----
    ASSETS

    Current Assets:
      Cash and cash equivalents                        $103           $554
      Accounts receivable                               283            341
      Inventories, net                                   17             20
      Prepaid expenses                                   69             56
                                                         --             --
    Total current assets                                472            971

      Property and equipment, net                       129            169
      Other assets                                       39             39
                                                         --             --
    TOTAL ASSETS                                       $640          1,179
                                                       ====         ======


    LIABILITIES AND STOCKHOLDERS' DEFICIT

    Current Liabilities:
      Loan payable to officer                          $970           $480
      Accounts payable and accrued expenses             598            538
      Deferred revenue                                  100          1,090
      Dividends payable                                 318            187
                                                        ---            ---
    Total current liabilities                         1,986          2,295

    Commitments and Contingencies
    Stockholders' Deficit:
      Preferred stock, $.01 par value:
        Authorized shares - 5,000
        Series 1 shares issued and outstanding
         - 220 in 2009 and 260 in 2008
          Liquidation preference of $1,226 as of
           September 30, 2009                           778            918
        Series 2 shares issued and outstanding
         - 460
          Liquidation preference of $1,256 as of
           September 30, 2009                           724            724
        Series 3 shares issued and outstanding
         - 354
          Liquidation preference of $843 as of
           September 30, 2009                           504            504

      Common stock, $.01 par value:
        Authorized shares - 80,000
        Issued shares - 11,715 in 2009 and 11,648
         in 2008
        Outstanding shares - 11,705 in 2009 and
         11,638 in 2008                                 117            116
      Common stock held in treasury, at cost
       - 10 shares                                     (362)          (362)
      Additional paid-in capital                     55,545         55,443
      Accumulated deficit                           (58,473)       (58,280)
      Accumulated other comprehensive loss             (179)          (179)
                                                       ----           ----
      Total stockholders' deficit                    (1,346)        (1,116)
                                                     ------         ------
    TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT        $640         $1,179
                                                       ====         ======

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

                                     Three Months Ended   Nine Months Ended
                                         September 30,       September 30,
                                        2009      2008      2009      2008
                                        ----      ----      ----      ----

    Revenue                           $1,253    $1,215    $3,401    $2,961
    Cost of revenue                      435       373     1,145       993
                                         ---       ---     -----       ---

    Gross profit                         818       842     2,256     1,968

    Operating expenses:
      Sales and marketing                198       349       733     1,081
      Research and development           288       210       904       920
      General and administrative         235       244       768       739
                                         ---       ---       ---       ---

    Operating income (loss)               97        39      (149)     (772)

    Interest income (expense), net       (18)      (22)      (44)      (45)
                                         ---       ---       ---       ---

    Income (loss) before income taxes     79        17      (193)     (817)
    Income tax provision                   -         -         -         -
                                         ---       ---       ---       ---
    Net income (loss)                     79        17      (193)     (817)
    Preferred stock dividends accrued    (38)      (41)     (116)     (121)
                                         ---       ---      ----      ----
    Net loss attributable to
     common stockholders                 $41      $(24)    $(309)    $(938)
                                         ===      ====     =====     =====


    Net income (loss) per share
     attributable to common
     stockholders:  Basic              $0.00     $0.00    $(0.03)   $(0.08)
                                       =====     =====    ======    ======
                    Diluted            $0.00     $0.00    $(0.03)   $(0.08)
                                       =====     =====    ======    ======

    Weighted average shares
     outstanding:
                    Basic             11,704    11,638    11,669    11,638
                                      ======    ======    ======    ======
                    Diluted           13,529    11,638    11,669    11,638
                                      ======    ======    ======    ======

SOURCE Intrusion Inc.

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