Intrusion(US:INTZ)2019-08-13 00:45Financial Data and Key Metrics Changes - Revenue for Q2 2019 was $4 million, an increase from $3.2 million in Q1 2019 and $2.4 million in Q2 2018 [7][9] - Net income reached $1.8 million, up from $947,000 in Q1 2019 and $474,000 in Q2 2018 [7][11] - Gross profit margin was 60%, consistent with Q1 2019 and slightly down from 61% in Q2 2018 [9] Business Line Data and Key Metrics Changes - The company booked $2.9 million in renewals during Q2 2019, indicating a stable base business with some growth [14] - Sales and marketing expenses were reduced to $0.7 million in Q2 2019 from $0.9 million in the same quarter of 2018, benefiting from a reimbursement of prior expenses [10][11] Market Data and Key Metrics Changes - The company anticipates a pattern of slow bookings in Q3, with an expected uptick in renewals in Q4 2019 [14] - The company is pursuing several large orders that are expected to contribute to growth in the future [19] Company Strategy and Development Direction - The company is focusing on expanding its customer base and pursuing larger projects, with 14 new prospects currently in the pipeline [16][18] - Management is prioritizing hiring senior-level staff to enhance capabilities and support growth [49][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the current business and the potential for growth from new and renewing contracts [19] - The company is optimistic about the upcoming renewals of large orders from 2018, which are expected to contribute to revenue in Q4 2019 [19] Other Important Information - The company noted that operating expenses are expected to return to traditional levels in Q3 2019 after a reduction in Q2 [10][11] - Management highlighted the importance of maintaining customer satisfaction while pursuing larger opportunities [18] Q&A Session Summary Question: What should be expected for new orders in Q3 and Q4? - Management indicated that Q3 will primarily consist of renewals, with larger orders expected in 2020 [21][22] Question: Status of new customer orders mentioned in previous calls? - There is one order still awaiting confirmation, which is expected to grow into a larger contract next year [25] Question: Current status of potential large orders for Savant? - Management confirmed that discussions are ongoing, with some orders potentially moving to 2020 [26][28] Question: Need for hiring higher caliber staff? - Management acknowledged the need to hire senior-level staff and is actively pursuing candidates [49][50] Question: Status of partnerships for expanding Savant's market reach? - Management is in discussions with potential partners but noted that interest typically arises after demonstrating successful deployments [53][55] Question: Clarification on the financial performance of the quarter? - Management confirmed that the quarter's performance was strong, with no atypical factors affecting profitability [57][58] Question: Will there be more frequent communications regarding significant contracts? - Management expressed a commitment to communicate more frequently about material developments as they arise [82][85]