Intrusion(US:INTZ)2025-11-11 23:00Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $2.0 million, representing a 5% increase sequentially and a 31% increase year over year, driven by contract expansion with the Department of Defense [11][15] - Gross profit margin for Q3 was 77%, down 58 basis points year over year, consistent with expected variability based on product and service mix [16] - Net loss for Q3 2025 was $2.1 million, or $0.10 per share, unchanged from the net loss of $2.1 million in Q3 2024 [17] Business Line Data and Key Metrics Changes - Consulting revenue was $1.5 million, up $0.1 million sequentially and $0.4 million year over year [15] - Shield revenues totaled $0.5 million, relatively flat sequentially but up approximately $0.1 million year over year, primarily reflecting work under the DoD contract [15] Market Data and Key Metrics Changes - The company shipped over 230 units of its Critical Infrastructure device as part of a contract with the Department of Defense, indicating strong demand for protecting critical infrastructure from cyber threats [9][10] - The partnership with Port Nexus is seeing strong demand for Shield Endpoint embedded within their MyFlare solution, particularly among school districts [10][41] Company Strategy and Development Direction - The launch of Shield Cloud on the AWS Marketplace is expected to drive long-term growth by expanding customer access to Shield Technology [7][8] - The company is preparing to launch Shield Cloud on Microsoft's Azure platform, further expanding its reach to potential customers [8] - The focus remains on disciplined spending while investing in product development and sales and marketing to accelerate customer base growth [16] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about closing new agreements in the government sector once the current government shutdown is resolved, while also seeing an expanding pipeline of non-government opportunities [12][14] - The company is confident in its ability to deliver stronger performance over time, supported by ongoing investments and improved customer engagement [19] Other Important Information - Cash and cash equivalents as of September 30, 2025, were $2.5 million, with short-term investments in U.S. treasuries of $2 million, and an additional $3 million received post-quarter end related to the DoD contract extension [17] Q&A Session Summary Question: Infrastructure work with the DoD and future opportunities - Management indicated that the initial project has opened doors for further discussions about deployment in other locations, with significant potential for additional contracts in both government and private sectors [23][24] Question: Experience on AWS and initial feedback - The company has received positive feedback from initial beta customers and is making updates to improve configuration and installation, with expectations for accelerated adoption [26][28] Question: Revenue opportunity with OT Defender - Management highlighted that OT Defender presents larger sales opportunities compared to other products, with significant market potential in underinvested cybersecurity areas [54][55] Question: Revenue opportunity with Port Nexus school safety offering - The solution is expected to become critical in schools, with strong interest from school administrators due to its simplicity and effectiveness in enhancing situational awareness during incidents [58][60] Question: Shield Cloud revenue opportunity - Management expressed optimism about the growth potential in the cloud market, emphasizing the need for effective execution of marketing and demand generation plans [63]