Intrusion (NASDAQ:INTZ) Posts Earnings Results, Misses Estimates By $0.05 EPS

Intrusion (NASDAQ:INTZ) issued its earnings results on Thursday. The company reported ($0.12) EPS for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.05), FiscalAI reports. Intrusion had a negative net margin of 191.24% and a negative return on equity of 178.06%. The business had revenue of $2.68 million during the quarter, compared to analysts’ expectations of $2.10 million.

Here are the key takeaways from Intrusion’s conference call:

• Q3 revenue rose 84% sequentially to $2.7 million and 36% year over year, driven by the Texas state agency contract and VigilAigent, which contributed $0.8 million in its first full quarter. Revenue from legacy Intrusion was down 2% year over year, however.
• Management cited growing interest in critical-infrastructure cybersecurity and opportunities in Texas, federal agencies, and partner-led school safety deployments. These prospects have not yet translated into disclosed contract values, and the company said conversion to actual awards remains the focus.
• Gross margin fell to 55% from 77% a year earlier, reflecting a mix shift toward lower-margin VigilAigent services and Texas consulting; Shield revenue was 5% of sales, versus 25% a year ago.
• Intrusion reported a $2.9 million quarterly net loss and had just $0.4 million in cash at September 30; interest expense rose to $397,000. Management said it has identified about 70% of a previously discussed $3 million in annual expense reductions, but emphasized that revenue growth is essential.
• Nasdaq granted a second 180-day extension to meet its $1 minimum bid-price requirement. Management said a reverse split remains possible if necessary, while prioritizing sales growth to regain compliance.

Intrusion Trading Down 7.3%

Shares of INTZ traded down $0.04 during midday trading on Thursday, hitting $0.54. 85,207 shares of the stock traded hands, compared to its average volume of 192,519. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.39 and a current ratio of 0.39. Intrusion has a 1-year low of $0.47 and a 1-year high of $1.61. The business’s 50 day moving average price is $0.68 and its two-hundred day moving average price is $0.81.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on INTZ. Weiss Ratings restated a “sell (e+)” rating on shares of Intrusion in a report on Wednesday, August 26th. Zacks Research upgraded shares of Intrusion from a “strong sell” rating to a “hold” rating in a research note on Wednesday, August 5th. One equities research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $5.25.

About Intrusion

Intrusion, Inc. (NASDAQ: INTZ) is a cybersecurity company that develops solutions designed to help organizations identify, investigate and respond to cyber threats. Its offerings combine network monitoring, threat intelligence and security analytics to provide visibility into potentially malicious activity across enterprise environments. The company is known for its proprietary threat intelligence capabilities, including databases that associate internet protocol addresses with information about online activity and potential threats.