Intrusion(US:INTZ)2019-05-14 02:53Financial Data and Key Metrics Changes - Revenue for Q1 2019 reached $3.2 million, an increase from $2.3 million in Q1 2018 and $3 million in Q4 2018 [11][9] - Net income for Q1 2019 was $947,000, up from $346,000 in Q1 2018 and $851,000 in Q4 2018 [12][9] - Gross profit margin was 60% in Q1 2019, down from 62% in Q1 2018 [11] Business Line Data and Key Metrics Changes - The company reported zero new bookings in Q1 2019 as all major projects were booked in 2018, but $2.3 million in renewals were booked in Q2 2019 [16][17] - A significant $2.4 million order from a new customer was renewed for a second year, indicating strong customer retention [18] Market Data and Key Metrics Changes - The company is focusing on expanding its customer base and has identified 13 new customer prospects, up from 9 in the previous quarter [41][42] - The majority of potential contracts are related to TraceCop, with some incremental growth expected in Savant business [43] Company Strategy and Development Direction - The company aims to leverage its large data sets and expertise in big data solutions to address larger customer challenges [34][35] - There is a focus on building partnerships with commercial entities to enhance sales and expand market reach [66][69] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth in sales and profits, supported by significant orders received in the previous quarters [36] - The company is actively hiring sales and engineering personnel to sustain growth [36] Other Important Information - The company is developing new data sets for TraceCop, which are expected to generate additional subscription fees in the future [26][28] - Management is preparing to kick off discussions regarding a potential IR firm partnership [56][58] Q&A Session Summary Question: Comparison of cadence for new and renewed orders - Joe Head indicated that the cadence for new and renewed orders is expected to be similar to the previous year [39] Question: Status of the $1.2 million TraceCop subscription - Joe Head clarified that the renewal mentioned previously was different and is still being pursued [40] Question: Size of potential contracts and their nature - Joe Head noted that most potential contracts are related to TraceCop, with some minor Savant opportunities [43] Question: Market size for TraceCop in the DoD sector - Joe Head estimated that the market could be significantly larger, potentially four to ten times the current size [54] Question: Progress on discussions with an IR firm - Ward Paxton confirmed that progress is being made and they are ready to initiate discussions soon [56][58]