Company Performance - Intrusion Inc. (INTZ) ended the latest trading session at $1.19, reflecting a +0.85% adjustment from the previous day's close, which lagged behind the S&P 500's 1.08% gain [1] - Over the past month, shares of Intrusion Inc. have decreased by 21.85%, while the Computer and Technology sector and the S&P 500 have lost 13.17% and 8.26%, respectively [1] Upcoming Earnings - Analysts expect Intrusion Inc. to report earnings of -$0.18 per share in the upcoming earnings disclosure, indicating a year-over-year growth of 80.85% [2] - The consensus estimate for revenue is projected at $1.66 million, representing a 46.46% increase compared to the same quarter last year [2] Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of -$0.39 per share and revenue of $7.5 million, showing changes of +76.07% and +29.96% from the previous year, respectively [3] Analyst Projections - Recent shifts in analyst projections for Intrusion Inc. are important for investors as they reflect changing business trends and analysts' confidence in the company's performance [4] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 stocks averaging an annual return of +25% since 1988 [6] - The Zacks Consensus EPS estimate for Intrusion Inc. has increased by 45% in the past month, and the company currently holds a Zacks Rank of 2 (Buy) [6] Industry Overview - The Computer - Networking industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 27, placing it in the top 11% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Intrusion Inc. reported a narrower loss in Q4 2024 compared to the previous year, but the results fell short of market expectations, leading to a significant decline in share price [1][4]. Financial Performance - The company incurred a loss of 36 cents per share in Q4 2024, an improvement from a loss of $1.80 per share a year ago, but wider than the Zacks Consensus Estimate of a loss of 23 cents [1]. - Quarterly revenues reached $1.7 million, reflecting a year-over-year increase of 22.7% and an 11% sequential growth, although it was below the consensus estimate of $2 million [2]. - The gross profit margin was reported at 75%, down from 79% in the prior-year quarter, attributed to varying product mixes [5]. - Total operating expenses were $3.2 million, a decrease of 8.8% from the previous year, leading to an operating loss of $1.9 million, which narrowed by 20% year over year [5]. Product Development and Market Demand - The company expanded its product offerings with the introduction of Intrusion Shield Sentinel and Intrusion Shield Command Hub, aimed at enhancing cybersecurity solutions [3]. - Intrusion Inc. secured 20 new customer contracts in 2024, indicating a growing demand for its cybersecurity products [3]. Market Reaction - Following the earnings report, Intrusion Inc.'s shares fell by 9.2%, closing at $1.08 on February 27, and the stock has decreased by 71.1% over the past year, contrasting with a 46.8% growth in the Zacks Computer-Networking industry [4]. Balance Sheet - As of December 31, 2024, the company had total cash and cash equivalents of $4.9 million, a significant increase from $1.1 million as of September 30, 2024 [6].

Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were $1.7 million, representing an 11% increase sequentially and a 23% increase year-over-year [17] - For fiscal 2024, revenues totaled $5.8 million, a 3% increase compared to fiscal year 2023 [21] - Operating expenses in Q4 2024 were $3.2 million, flat sequentially and down $0.3 million year-over-year [24] - The net loss from operating activities for Q4 2024 was $2 million, improving by $0.5 million or 20% year-over-year [28] - The net loss for the full year 2024 was $7.8 million, a $6.1 million or 44% improvement from the prior year [29] Business Line Data and Key Metrics Changes - Consulting revenue in Q4 totaled $1.3 million, an increase of $0.3 million sequentially and $0.4 million year-over-year [21] - Shield revenue in Q4 was $0.4 million, a decrease of $0.1 million both sequentially and year-over-year [22] - For the full year, Shield revenue was $1.6 million, a decrease of $0.1 million or 5% from 2023 [22] Market Data and Key Metrics Changes - The company signed a total of 20 new Shield logos during the year, with near-zero churn among Shield customers [7] - The company has seen an expansion in its pipeline driven by increasing demand for its products in the U.S. and the Asia Pacific region [7] Company Strategy and Development Direction - The company aims to focus on sustainable growth and profitability, having eliminated the need for further capital raises in 2025 unless compelling opportunities arise [8][9] - The management is revamping its channel program and increasing digital marketing efforts to enhance visibility and engagement [12][13] - The company is investing in R&D to improve its product portfolio, including the launch of the Intrusion Shield Command Hub and the Intrusion Shield Sentinel [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's financial position and growth opportunities, emphasizing the rising demand for cybersecurity solutions [33] - The management noted that while the sales cycle may be elongated due to changes in federal administration, the overall environment remains steady for existing contracts [56][58] - Concerns about cybersecurity threats are increasing, which is expected to drive demand for the company's solutions [60][62] Other Important Information - The company is virtually debt-free and has sufficient cash to fund operations through fiscal year 2025 and beyond [8] - The gross profit margin for Q4 2024 was 75%, down from 79% in Q4 2023, primarily due to product mix [23] Q&A Session Summary Question: What would be compelling for potential capital raises? - Management indicated that compelling opportunities would include acquisitions or arrangements that significantly enhance the product portfolio [38][40] Question: What are the new promotional programs being considered? - Management plans to increase visibility through social media and influencer engagement, which will not require significant spending [44] Question: What is the size of the typical Shield contract? - The size of Shield contracts varies widely, ranging from $5,000 to a couple of hundred thousand dollars, with a focus on larger deals going forward [45][50] Question: What is the sales cycle for cybersecurity software, especially on the federal side? - The sales cycle is described as fluid, with a steady environment for existing contracts but potentially elongated cycles for new opportunities [56][58] Question: How is the $15 million in cash being utilized? - Management confirmed that the cash is being managed wisely, with plans to invest in sales personnel and other resources [67][70] Question: How many of the 20 Shield clients have increased their revenue obligations? - Approximately one-third of the new Shield clients have increased their commitments, while another third may have expansion potential [72][73] Question: What are the geographic areas of opportunity? - The company is focusing on the U.S. and Asia-Pacific regions, particularly the Philippines, with an emphasis on larger deals [78]

Core Viewpoint - Intrusion Inc. reported a quarterly loss of $0.36 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.23, marking a significant earnings surprise of -56.52% [1][2] Financial Performance - The company posted revenues of $1.68 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 17.24%, compared to revenues of $1.37 million a year ago [2] - Over the last four quarters, Intrusion has surpassed consensus EPS estimates three times but has only topped revenue estimates once [2] Stock Performance - Intrusion shares have declined approximately 61.3% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The current Zacks Rank for Intrusion is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.25 on revenues of $2 million, and for the current fiscal year, it is -$0.70 on revenues of $9.01 million [7] - The estimate revisions trend for Intrusion is mixed, and changes in these estimates could occur following the recent earnings report [6] Industry Context - The Computer - Networking industry, to which Intrusion belongs, is currently in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Performance - Revenue for the year ended December 31, 2024, totaled $5.8 million, an increase of $0.2 million or 2.9% from $5.6 million in 2023[105] - Gross profit for the 12-months ended December 31, 2024, was $4.4 million, maintaining a gross profit margin of 76.8% compared to 77.6% in 2023[110] - Operating expenses for the year ended December 31, 2024, totaled $12.9 million, a decrease of 21.5% from $16.4 million in 2023[111] - Net loss for the year ended December 31, 2024, was $7.8 million, a reduction of 43.9% from a net loss of $13.9 million in 2023[104] Revenue Sources - Revenues from U.S. government entities accounted for $4.8 million or 83.8% of total revenues in 2024, up from $2.6 million or 46.2% in 2023[107] - The company anticipates that sales to government customers will represent a lower percentage of total revenues as it gains traction in commercial markets[107] Expenses - Sales and marketing expenses decreased to $4.7 million in 2024, compared to $5.7 million in 2023[113] - Research and development expenses decreased to $4.4 million in 2024 from $5.6 million in 2023[114] Cash and Financing - Cash and cash equivalents as of December 31, 2024, were $4.9 million, with $1.9 million in working capital[125] - The company entered into a $10 million Standby Equity Purchase Agreement with Streeterville Capital, LLC on July 3, 2024[129] - In 2024, Streeterville purchased 1.2 million shares of common stock, resulting in aggregate net proceeds of $1.8 million, with $0.1 million received in 2024 and $1.7 million received in January 2025[131] - The company made principal payments of $0.4 million in 2023 and $1.5 million in 2022, with a remaining balance of $0.5 million on the first note due in September 2024[133] - A note purchase agreement in September 2024 involved Streeterville purchasing a note payable of $0.6 million for $0.5 million in cash, requiring weekly payments of $25,000 until maturity[134] - The CEO purchased a note payable of $1.1 million for $1.0 million in cash, with weekly payments of $40,000 until maturity on June 15, 2024[135] Revenue Recognition - The company recognizes product revenue upon shipment or after meeting performance obligations, with most sales derived from consulting services[140] - The new product, INTRUSION Shield, is offered on a subscription basis, with revenue recognized monthly over the contract term[143] Financial Estimates and Valuations - The company maintains allowances for credit losses for estimated losses from customer payment defaults, with historical estimates aligning closely with actual results[148] - The estimated fair value of accounts receivable and accounts payable approximates their carrying amounts due to short maturities[149] Preferred Stock - The Series A preferred stock has a stated value of $1,100 per share, with a portion of proceeds used to redeem outstanding preferred stock[133] - The company is in discussions with Streeterville regarding the redemption or amendment of the first note due in September 2024[133]

Revenue Performance - Revenue for Q4 2024 was $1.7 million, an increase of 11% sequentially, driven by new customers including a contract with the U.S. Department of Defense[3] - Full year revenue for 2024 was $5.8 million, a $0.2 million increase compared to 2023[6] Profitability Metrics - Gross profit margin for Q4 2024 was 75%, down from 79% in Q4 2023[4] - Net loss for Q4 2024 was $(2.0) million, or $(0.36) per share, an improvement from a net loss of $(2.8) million, or $(1.80) per share, in Q4 2023[5] - Full year net loss for 2024 was $(7.8) million, or $(1.63) per share, compared to a loss of $(13.9) million, or $(11.45) per share, in 2023[8] Operating Expenses - Operating expenses for Q4 2024 were $3.2 million, flat sequentially and a decrease of $0.3 million year-over-year[4] Capital and Funding - The company raised $14.5 million in proceeds through capital transactions in Q4 2024 and early January 2025[9] - Cash and cash equivalents at December 31, 2024, were $4.9 million, with additional proceeds of $9.2 million from transactions completed after year-end[9] Product Development and Customer Growth - Introduced new products including Intrusion Shield Sentinel and Intrusion Shield Command Hub, enhancing the cybersecurity portfolio[8] - The company signed a total of 20 new Intrusion Shield logos during 2024, indicating growth in customer base[8]

Core Insights - Intrusion Inc. (INTZ) is set to report its fourth-quarter 2024 results on February 27, with revenue expectations of $2.03 million, reflecting a 47.8% year-over-year increase, while the bottom line is anticipated to show a loss of 23 cents per share, unchanged from the previous 60 days [1][2]. Group 1: Financial Performance - The Zacks Consensus Estimate indicates a revenue increase of 47.8% year-over-year, with a projected loss of 23 cents per share for the fourth quarter [2]. - INTZ has consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 43% [3]. - The company's shares have declined by 68.3% over the past year, contrasting with a 30.9% growth in the Zacks Computer-Networking industry [3]. Group 2: Growth Drivers - The increasing adoption of INTZ's cybersecurity solution, Intrusion Shield, is expected to positively impact the company's revenue in the fourth quarter, with expanded market reach in the Philippines and Asia Pacific [4]. - INTZ is engaged in potential proof of concepts (POCs) with major enterprises, which are anticipated to convert into bookings in the fourth quarter and beyond [4]. - The launch of Shield Sentinel, a high-performance cybersecurity monitoring solution, and enhancements in AI features within the Shield Command Hub are aimed at addressing modern cybersecurity challenges [5][6]. Group 3: Government Contracts - INTZ's penetration into the government sector is promising, highlighted by a $2 million contract awarded by the U.S. Department of Defense to support enhanced cybersecurity efforts [7]. - Management expects the continued strength of Intrusion Shield to contribute positively to financial outcomes in the fourth quarter and beyond [7]. Group 4: Challenges - Heavy investments in research and development to support new product developments may negatively impact the company's margins [8].

Company Overview - Intrusion Inc. (INTZ) closed at $1.83, reflecting a +0.55% change from the previous day, which is lower than the S&P 500's gain of 0.67% [1] - The stock has experienced a significant decline of 37.24% over the past month, underperforming compared to the Computer and Technology sector's loss of 0.79% and the S&P 500's gain of 2.07% [1] Earnings Projections - The upcoming earnings per share (EPS) for Intrusion Inc. is projected at -$0.23, indicating a substantial drop of 155.56% compared to the same quarter last year [2] - Quarterly revenue is estimated to be $2.03 million, which represents an increase of 47.81% from the year-ago period [2] Analyst Estimates - Recent changes in analyst estimates for Intrusion Inc. reflect shifting short-term business dynamics, with positive revisions indicating analyst optimism regarding the company's business and profitability [3] - The Zacks Rank system, which incorporates these estimate changes, provides a practical rating system for stocks [4] Zacks Rank and Industry Performance - Intrusion Inc. currently holds a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the past month [5] - The Computer - Networking industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 68, placing it in the top 28% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Intrusion Inc. (INTZ) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.Intrusion Inc. is one of 609 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zac ...

Intrusion Inc. (INTZ) recently unveiled Shield Sentinel, a high-performance cybersecurity monitoring solution tailored for large enterprises and carriers. Designed to tackle complex network environments, Shield Sentinel delivers advanced capabilities, including bidirectional monitoring of fiber trunks at speeds up to 100 Gbps, continuous domain name system (DNS) and traffic flow logging and robust forensic analysis.Shield Sentinel has demonstrated successful outcomes in strengthening cybersecurity efforts. ...