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01/11 11:04
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals a mixed outlook. Financially, there is a positive revenue increase, but gross margins have declined, and net loss has widened. The Q&A section highlighted competitive pressures and regulatory uncertainties, with management providing unclear responses on growth potential. The entrance into the AWS marketplace and potential DoD expansion are positive, but the lack of specific guidance on break-even points and revenue from new partnerships tempers optimism. Without a clear market cap, the prediction remains neutral due to the offsetting factors.
Total Revenues $1.8 million, a 6% increase sequentially and a 57% increase year-over-year, driven by multiple new contracts and logos, including a contract with the U.S. Department of Defense.
Consulting Revenues $1.4 million, an increase of $0.1 million sequentially and $0.7 million year-over-year, impacted by delays in renewals and task orders due to the continuing resolution and federal budget approval delays.
Shield Revenues $0.4 million, an increase of $0.1 million sequentially and flat year-over-year, with the loss of a large customer being backfilled by new customers.
Gross Profit Margin 76%, down from 80% year-over-year, primarily due to changes in product mix.
Operating Expenses $3.4 million, an increase of $0.3 million sequentially and flat year-over-year, driven by increased professional fees and a one-time settlement related to the SEC investigation.
Net Loss $2.1 million, or $0.11 per share, compared to a net loss of $1.7 million, or $0.94 per share, for the prior year, with the increase attributed to a net interest credit recorded in the previous year.
Cash and Cash Equivalents $10.7 million, compared to $0.1 million in March 2024, due to proceeds from share price increases and the elimination of Series A preferred stock.
Senior Debt Retired remaining $0.5 million through an exchange of common stock, further strengthening the balance sheet.
New Product: Piloting a promising new product in the Shield family.
Product Availability: Shield Cloud product to be available on AWS marketplace in Q2 2025.
Partnership: New partnership with PortNexus to embed Intrusion Shield Endpoint into their solutions.
Market Expansion: Strong demand for products in the Asia-Pac region and domestically.
Customer Base: 92% of revenues from U.S. government entities in Q1 2025.
Operational Efficiency: Near-zero churn and fourth consecutive quarter of revenue growth.
Sales and Marketing Initiatives: Revamping channel program and increasing digital marketing efforts.
Strategic Shift: Focus on protecting critical infrastructure assets due to rising cybersecurity threats.
Financial Position: Eliminated outstanding debt and strong cash position of $10.7 million.
Competitive Pressures: Intrusion is facing a highly competitive cybersecurity market, which necessitates enhanced marketing and channel efforts to increase visibility and engagement.
Regulatory Issues: The company is currently navigating uncertainties related to federal budget approvals, which could impact government contracts and revenue.
Supply Chain Challenges: There have been significant delays in onboarding and deal closures, impacting revenue timing and resource allocation.
Economic Factors: The ongoing fluid situation with federal government cost-cutting measures poses risks to government contracts, although no immediate impacts have been reported.
Customer Dependency: A significant loss of a large customer in the previous year has necessitated the acquisition of new customers to backfill revenue, indicating a risk in customer concentration.
Investment Risks: Increased investments in sales, marketing, and product development may lead to higher operating expenses, which need to be managed carefully to maintain liquidity.
New Product Launch: Piloting a new product in the Shield family, with expectations for positive revenue contributions in the second half of fiscal year 2025.
AWS Marketplace Availability: Shield Cloud product to be available on AWS marketplace in Q2 2025, anticipated to drive revenue growth.
Digital Marketing Initiatives: Increasing digital marketing efforts to enhance visibility and engagement on social media platforms.
Channel Program Revamp: Revamping channel program to improve messaging, pricing, and go-to-market processes.
R&D Investments: Strategic investments in R&D to enhance product offerings, particularly for critical infrastructure protection.
Partnerships: New partnership with PortNexus to integrate Intrusion Shield Endpoint into their solutions.
Revenue Expectations: Total revenues for Q1 2025 were $1.8 million, a 6% increase sequentially and 57% year-over-year.
Gross Profit Margin: Gross profit margin for Q1 2025 was 76%, down from 80% in Q1 2024.
Operating Expenses: Operating expenses for Q1 2025 totaled $3.4 million, with plans for disciplined investment in sales and marketing.
Net Loss: Net loss for Q1 2025 was $2.1 million, compared to a net loss of $1.7 million in Q1 2024.
Cash Position: Cash and cash equivalents of $10.7 million as of March 31, 2025, providing sufficient capital for operations through 2025.
Future Capital Plans: No plans to raise additional capital in 2025, with a $100 million S-3 shelf registration filed for financial flexibility.
Share Repurchase Program: During the first quarter, Intrusion retired the remaining $0.5 million of its senior debt through an exchange of common stock, which further strengthened the balance sheet.
The earnings call indicates positive sentiment due to several factors: strong financial performance driven by DoD contracts, expansion in AWS and Azure marketplaces, and promising partnerships like PortNexus. Despite some margin decline, the company shows potential for growth with new revenue opportunities like OT Defender. The Q&A reveals optimism about future projects and market expansion, although there is some uncertainty in specific revenue projections. Overall, the strategic initiatives and partnerships suggest a positive outlook for the stock price in the short term.
The earnings call indicates positive financial performance with a 28% revenue increase year-over-year, driven by a significant DoD contract. Despite a slight increase in operating expenses, the company is managing losses effectively. The partnership with PortNexus and AWS Marketplace availability are strategic positives. The Q&A reveals optimism about future contracts and market opportunities, particularly in defense and critical infrastructure. However, concerns about customer mix and long sales cycles are noted. Overall, the sentiment is positive, with potential for stock price appreciation, especially if new contracts materialize.
The earnings call reveals a mixed outlook. Financially, there is a positive revenue increase, but gross margins have declined, and net loss has widened. The Q&A section highlighted competitive pressures and regulatory uncertainties, with management providing unclear responses on growth potential. The entrance into the AWS marketplace and potential DoD expansion are positive, but the lack of specific guidance on break-even points and revenue from new partnerships tempers optimism. Without a clear market cap, the prediction remains neutral due to the offsetting factors.
The earnings call presents a mixed picture. Positive aspects include revenue growth and improved net loss, but concerns arise from declining gross margins and customer retention issues. The Q&A reveals some uncertainty in management's responses, especially regarding strategic focus and promotional efforts. The registered direct offering could dilute stock value. Overall, with no strong catalysts or clear guidance shifts, the stock price is likely to remain stable.
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