Intrusion Inc. Reports First Quarter 2024 Results
Intrusion Inc. (NASDAQ:INTZ) announced its first quarter 2024 financial results, highlighting several key developments.
EPS improved to $(0.94) per share from $(4.49) per share year-over-year. Revenue decreased by $0.2 million to $1.1 million due to reduced consulting revenue.
Gross profit margin rose to 80%, while operating expenses dropped to $3.4 million from $5.0 million. Net loss reduced to $(1.7) million, compared to $(4.7) million year-over-year. Cash and equivalents were $0.1 million as of March 31, 2024.
Subsequent to the quarter, Intrusion raised $2.6 million through a private offering and $0.6 million from a warrant inducement offering. The company regained Nasdaq compliance and achieved significant business milestones, including a $25 million contract with iOne Resources for the 2025 Philippines midterm elections and a partnership with TIM to enhance supply chain security for Orca Cold Chain Solutions. Intrusion also acquired a minority stake in Klever AI to improve its technology.
- EPS improved to $(0.94) per share from $(4.49) per share year-over-year.
- Gross profit margin increased to 80% from 76% year-over-year.
- Operating expenses decreased to $3.4 million from $5.0 million.
- Net loss reduced to $(1.7) million from $(4.7) million year-over-year.
- Raised $2.6 million through a private offering.
- Raised an additional $0.6 million via warrant inducement offering.
- Regained compliance with Nasdaq's minimum bid price and equity standards.
- Secured a $25 million contract with iOne Resources for the 2025 Philippines midterm elections.
- Partnership with TIM to enhance supply chain security for Orca Cold Chain Solutions.
- Acquired a minority stake in Klever AI to improve Intrusion Shield technology.
- Revenue decreased to $1.1 million, a decline of $0.2 million year-over-year.
- Consulting revenue decreased due to the delay in federal budget approval.
- Cash and cash equivalents were only $0.1 million as of March 31, 2024.
Insights
Intrusion Inc. has shown a significant improvement in its financial position compared to the same quarter last year. The
The fact that Intrusion has regained Nasdaq compliance is a positive sign for market confidence, ensuring continued access to capital markets. The
For retail investors, the main takeaway here is that while the company is showing signs of recovery and strategic growth, the cash position remains precarious. Short-term gains are evident, but long-term sustainability still hinges on revenue growth and continued financial discipline.
The expansion of the Intrusion Shield customer base is a promising development, especially with the partnership with iOne Resources, which could bring in over
However, the decline in consulting revenue due to federal budget delays could be a red flag. Investors need to recognize the dependency on such external factors which can affect quarterly performance. The announcement of partnerships with TIM and Orca Cold Chain Solutions underscores a strategic emphasis on supply chain security, a important area in today's cyber threat landscape.
From a market perspective, these initiatives are aligned with the increasing demand for robust cybersecurity solutions, positioning Intrusion favorably for long-term growth. Retail investors should view these partnerships as a solid foundation for potential future revenue streams but remain cautious about the company's ability to convert these into tangible financial gains consistently.
Intrusion Shield customer penetration continues to expand
PLANO, TX / ACCESSWIRE / May 14, 2024 / Intrusion Inc. (NASDAQ:INTZ), a leader in cyberattack prevention solutions, announced today financial results for the first quarter ended March 31, 2024.
Recent Financial & Business Highlights:
- Improved first quarter EPS to
$(0.94) per share from$(4.49) per share in the first quarter of 2023. - In partnership with iOne Resources, announced a notice of award to supply the Secure Electronic Transmission Services (SETs) for the 2025 Philippines midterm elections.
- Partnered with Total Information Management Corporation (TIM) to provide advanced threat detection and prevention solutions to Orca Cold Chain Solutions to enhance supply chain security.
- Acquired a minority stake in Klever AI to help improve Intrusion Shield technology and broaden customer penetration into multiple industries.
- Regained compliance with Nasdaq's minimum bid price and equity standard requirements.
First Quarter Financial Results
Revenue for the first quarter of 2024 was
The gross profit margin was
Operating expenses in the first quarter of 2024 were
The net loss for the first quarter of 2024 was
As of March 31, 2024, cash and cash equivalents were
"During the first quarter, we continued to make progress toward growing our Intrusion Shield customer base as we build on the strong momentum we experienced at the end of 2023," said Tony Scott, CEO of Intrusion. "Our robust Shield partnerships have continued to benefit our business, which is evident by the announcement that we made recently with iOne Resources, where Intrusion's technology will be a part of a
Mr. Scott continued, "Over the past several weeks, we have also successfully been able to complete the final stages of our strategic plan to regain compliance with Nasdaq's minimum listing requirements with the announcement of our most recent Private Offering and converting
Conference Call
Intrusion's management will host a conference call today at 5:00 P.M., EDT. Interested investors can access the live call by dialing 1-888-506-0062, or 1-973-528-0011 for international callers, and providing the following access code: 681222. The call will also be webcast live (LINK). For those unable to participate in the live conference call, a replay will be accessible beginning tonight at 7:00 P.M. EDT until May 28, 2024, by dialing 1-877-481-4010, or 1-919-882-2331 for international callers, and entering the following access code: 50472. Additionally, a live and archived audio webcast of the conference call will be available at www.intrusion.com.
About Intrusion Inc.
Intrusion Inc. is a cybersecurity company based in Plano, Texas. The Company offers its customers access to its exclusive threat intelligence database containing the historical data, known associations, and reputational behavior of over 8.5 billion IP addresses. After years of gathering global internet intelligence and working with government entities, the company released its first commercial product in 2021. Intrusion Shield allows businesses to incorporate a Zero Trust, reputation-based security solution into their existing infrastructure. Intrusion Shield observes traffic flow and instantly blocks known or unknown malicious connections from entering or exiting a network to help protect against zero-day and ransomware attacks. Incorporating Intrusion Shield into a network elevates an organization's overall security posture by enhancing the performance and decision-making of other solutions in its cybersecurity architecture.
Cautionary Statement Regarding Forward-Looking Information
This release may contain certain forward-looking statements, including, without limitations, comments about the performance of protections provided by our Intrusion Shield product and any other words that react to management's expectations regarding future events and operating performance. These forward-looking statements speak only as of the date hereof. They involve several risks and uncertainties, including, without limitation, the chances that our products and solutions do not perform as anticipated or do not meet with widespread market acceptance. These statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including risks that we have detailed in the Company's most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors."
IR Contact:
Alpha IR Group
Mike Cummings or Josh Carroll
INTZ@alpha-ir.com
INTRUSION INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
| Three Months Ended | ||||||||
| March 31, 2024 | March 31, 2023 | |||||||
Revenue | $ | 1,131 | $ | 1,309 | ||||
Cost of Revenue | 226 | 313 | ||||||
Gross Profit | 905 | 996 | ||||||
Operating Expenses: | ||||||||
Sales and marketing | 1,177 | 1,738 | ||||||
Research and development | 1,019 | 1,796 | ||||||
General and administrative | 1,181 | 1,506 | ||||||
Operating Loss | (2,472 | ) | (4,044 | ) | ||||
Interest expense | (228 | ) | (285 | ) | ||||
Interest accretion and amortization of debt issuance costs | 990 | (446 | ) | |||||
Interest (expense) and other income | (6 | ) | 41 | |||||
Net Loss | $ | (1,716 | ) | $ | (4,734 | ) | ||
Net Loss Per Share: | ||||||||
Basic | $ | (0.94 | ) | $ | (4.49 | ) | ||
Diluted | $ | (0.94 | ) | $ | (4.49 | ) | ||
Weighted Average Common Shares Outstanding: | ||||||||
Basic | 1,865 | 1,054 | ||||||
Diluted | 1,865 | 1,054 | ||||||
INTRUSION INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value amounts)
| March 31, 2024 | December 31, 2023 | |||||||
| (unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 122 | $ | 139 | ||||
Accounts receivable, net | 256 | 364 | ||||||
Prepaid expenses and other assets | 385 | 635 | ||||||
Total current assets | 763 | 1,138 | ||||||
Noncurrent Assets: | ||||||||
Property and equipment: | ||||||||
Equipment | 1,972 | 2,069 | ||||||
Capitalized software development | 3,131 | 2,791 | ||||||
Leasehold improvements | 15 | 15 | ||||||
Property and equipment, gross | 5,118 | 4,875 | ||||||
Accumulated depreciation and amortization | (2,105 | ) | (1,955 | ) | ||||
Property and equipment, net | 3,013 | 2,920 | ||||||
Finance leases, right-of-use assets, net | 216 | 382 | ||||||
Operating leases, right-of-use assets, net | 1,569 | 1,637 | ||||||
Other assets | 171 | 171 | ||||||
Total noncurrent assets | 4,969 | 5,110 | ||||||
TOTAL ASSETS | $ | 5,732 | $ | 6,248 | ||||
LIABILITIES AND STOCKHOLDERS??? DEFICIT | ||||||||
Current Liabilities: | ||||||||
Accounts payable, trade | $ | 1,893 | $ | 2,215 | ||||
Accrued expenses | 356 | 222 | ||||||
Finance lease liabilities, current portion | 284 | 384 | ||||||
Operating lease liabilities, current portion | 247 | 178 | ||||||
Notes payable | 1,724 | 10,823 | ||||||
Deferred revenue | 915 | 439 | ||||||
Total current liabilities | 5,419 | 14,261 | ||||||
Noncurrent Liabilities: | ||||||||
Finance lease liabilities, noncurrent portion | 2 | 3 | ||||||
Operating lease liabilities, noncurrent portion | 1,480 | 1,539 | ||||||
Total noncurrent liabilities | 1,482 | 1,542 | ||||||
Commitments and Contingencies | ||||||||
Stockholders' Deficit: | ||||||||
Series A Preferred stock, | 9,275 | - | ||||||
Common stock, | 19 | 18 | ||||||
Common stock held in treasury, at cost - 1 share | (362 | ) | (362 | ) | ||||
Additional paid-in capital | 101,875 | 101,049 | ||||||
Accumulated deficit | (111,933 | ) | (110,217 | ) | ||||
Accumulated other comprehensive loss | (43 | ) | (43 | ) | ||||
Total stockholders' deficit | (1,169 | ) | (9,555 | ) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 5,732 | $ | 6,248 | ||||
SOURCE: Intrusion, Inc.
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