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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