The following is a summary of the Intrusion Inc. (INTZ) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Intrusion Inc. reported Q3 2024 revenues of $1.5 million, marking a 3% sequential increase and a 2% year-over-year increase.

• Shield revenue contributed significantly to this growth, with a 49% sequential increase, largely driven by a new U.S. Department of Defense contract.

• Operating expenses were reported at $3.2 million, showing a slight sequential increase but a decrease from the previous year's same quarter.

• The gross profit margin remained healthy at 77%, showing a slight increase from the previous quarter.

• The net loss for the quarter improved by $1.1 million year-over-year to $2.1 million, attributed to lower operating expenses and reduced interest charges.

Business Progress:

• Intrusion signed an additional seven new Shield logos, bringing the total to 18 for the year, with nearly zero churn from Shield customers.

• Expanded two contracts with existing customers due to positive experiences with the technology.

• Strong demand noted in the Philippines and the broader Asia Pacific region, with growing high-quality opportunities expected to close in upcoming quarters.

• Engaged in several promising proof of concepts (POCs) with large enterprise customers in the U.S., anticipated to convert into bookings.

• Continued investment in product development, adding new capabilities to enhance the efficacy and value of cybersecurity solutions.

Opportunities:

• Increased presence and positive reputation in the Asia Pacific region open up further market expansion and new customer engagements.

• The cybersecurity challenges faced globally present ongoing demand for Intrusion's cybersecurity solutions, particularly as institutions increase their investments in securing operations.

Risks:

• The company received a written notice from NASDAQ about non-compliance with the $1 minimum bid price requirement, which poses a risk to its continued listing.

• Dependence on significant contracts, like the U.S. Department of Defense, poses a concentration risk.

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