Intrusion(US:INTZ)2025-08-12 22:00Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $1,900,000, representing a 6% increase sequentially and a 28% increase year-over-year, driven largely by work performed under the Department of Defense contract [9][11] - Operating expenses totaled $3,500,000, an increase of $100,000 sequentially and $400,000 year-over-year, primarily due to increased R&D spending [12][14] - Net loss for Q2 2025 was $2,000,000 or $0.10 per share, compared to a net loss of $2,100,000 for Q2 2024 [14] Business Line Data and Key Metrics Changes - Consulting revenues in Q2 2025 totaled $1,400,000, flat compared to the prior quarter but up $200,000 year-over-year [11] - Shield revenues in Q2 2025 were $500,000, an increase of $100,000 sequentially and up $200,000 year-over-year, primarily reflecting work under the Department of Defense contract [11][12] Market Data and Key Metrics Changes - The company is focusing on critical infrastructure protection, which is seen as a promising market opportunity, highlighted by a $3,000,000 contract extension with the Department of Defense [5][9] - The company anticipates deeper penetration in both governmental and commercial sectors, which will result in changes to the customer mix [12] Company Strategy and Development Direction - The company is making strategic investments in critical infrastructure and plans to launch its Shield Cloud product on the AWS Marketplace, with a similar launch on Microsoft Azure planned for later this year [6][7] - The company is refining its reseller partnerships, focusing on managed service providers (MSPs) and managed security service providers (MSSPs) to enhance sales efforts [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustainable growth and profitability, citing improved conversations with current and potential customers [15] - The company is optimistic about the demand for its products, particularly in the context of new federal budget opportunities [10][15] Other Important Information - The company has sufficient capital to fund operations through the remainder of 2025 and into early 2026, with cash and cash equivalents of $4,700,000 and short-term investments of $3,700,000 as of June 30, 2025 [15] Q&A Session Summary Question: Is the $3,000,000 contract with the DoD an expansion or extension of services? - The contract is both a renewal of an existing contract and an increase in scope and dollar value [17] Question: What is the broader opportunity within the DoD? - The company sees significant domestic opportunities in critical infrastructure sectors, which are a focus of the current administration [19][20] Question: What sales and marketing strategies will be employed in the marketplaces? - The company plans to follow best practices for creating awareness and promoting its technologies in the marketplaces [21] Question: What is the status of reseller partnerships? - The company is refining its reseller partnerships, focusing on those that show potential for success [23] Question: Have there been shifts in federal or enterprise budgets or sales cycles? - The company is seeing long sales cycles but is focusing on opportunities in operational technology (OT) protection, which is less crowded than IT protection [31][32] Question: When might the company achieve cash flow breakeven? - Management is optimistic about achieving cash flow breakeven soon, depending on securing contracts [42] Question: Who are the major competitors? - The company identifies perceived competitors but believes its offerings are unique and plans to better communicate these differences [44][46]