Intrusion (INTZ) Q2 2025 Earnings Call August 12, 2025 05:00 PM ET Speaker0Good day, everyone, and welcome to the Intrusion Second Quarter twenty twenty five Financial Results Conference Call. At this time, all participants are in a listen only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Josh Carroll, Investor Relations. Sir, the floor is yours.Speaker1Thank you, and welcome. Joining me today are Tony Sco ...

Financial Data and Key Metrics Changes - Total revenues for the first quarter of 2025 were $1,800,000, representing a 6% increase compared to the previous quarter and a 57% increase year-over-year [12][14] - Gross profit margin was 76% for the first quarter of 2025, down from 80% in the first quarter of 2024, primarily due to product mix changes [17] - Net loss for the first quarter of 2025 was $2,100,000, or $0.11 per share, compared to a net loss of $1,700,000, or $0.94 per share, for the first quarter of 2024 [19] Business Line Data and Key Metrics Changes - Consulting revenues totaled $1,400,000 in the first quarter, an increase of $100,000 sequentially and $700,000 year-over-year [14] - Shield revenues were $400,000, an increase of $100,000 sequentially but flat year-over-year [15][16] Market Data and Key Metrics Changes - Sales to U.S. Government entities represented 92% of revenues in the first quarter of 2025, indicating strong demand for Shield and Consulting services [17] - The company is experiencing strong demand for its products both domestically and in the Asia Pacific region, driven by a growing positive reputation [6] Company Strategy and Development Direction - The company is focusing on making its ShieldCloud product available on the AWS Marketplace, expected to contribute positively to revenue in the second half of fiscal year 2025 [7] - Strategic investments are being made in R&D to enhance product offerings, particularly in protecting critical infrastructure assets [10] - A new partnership with PortNexus has been established to integrate IntrusionShield endpoint into their solutions, indicating a focus on expanding market reach [11] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the strength of the non-government pipeline supporting growth despite uncertainties in federal budget approvals [13] - The demand for cybersecurity solutions is expected to increase due to rising threats, positioning the company for potential growth [21] Other Important Information - The company has eliminated outstanding debt and has a strong cash position of $10,700,000 as of March 31, 2025, compared to $100,000 in March 2024 [19][20] - A $100,000,000 replacement S-3 shelf registration was filed, providing financial flexibility for future opportunities [20] Q&A Session Summary Question: Potential changes to pricing - Management is reviewing pricing strategies to ensure competitiveness, particularly for managed service providers, without reducing prices [25][26] Question: Support for AWS marketplace entry - The company plans to utilize various marketing strategies to create awareness in the AWS marketplace, following best practices [30] Question: Expansion opportunities with the DOD - Management believes there are opportunities for expanding the relationship with the DOD, with ongoing conversations [31] Question: Shield revenue for the quarter - Shield revenue was confirmed to be $400,000, up from the previous quarter and fully backfilling the loss from a large customer [33][38] Question: CIOs' budgets for cybersecurity products - Management noted no significant changes in budgets for cybersecurity products, with robust interest observed at the RSA conference [43][44] Question: Catalyst for significant revenue growth - Management indicated that growth will come from a combination of existing products, new offerings, and potential opportunities in AWS and other digital marketplaces [49][52] Question: Revenue potential from PortNexus partnership - While it's too early to project specific revenue figures, management is optimistic about the partnership's potential for expansion [58]