Intrusion(US:INTZ)2025-04-30 01:48Financial 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]