Breaking Down Intrusion Inc. (INTZ) Financial Health: Key Insights for Investors

Are you keeping a close watch on Intrusion Inc. (INTZ) and trying to decipher its financial standing? Did you know that while Q4 2024 saw a 23% year-over-year revenue increase, reaching $1.7 million, the stock price still dipped by 9.24%? The full year 2024 revenue reached $5.8 million. Despite a gross profit margin of 75% for the quarter, the company faced a net loss of $2 million, or $0.36 per share. With analysts predicting a modest revenue recovery to $6.0 million for 2024 and $9.0 million for 2025, is Intrusion Inc. poised for a turnaround, or are there deeper financial challenges ahead that investors need to consider?

Intrusion Inc. (INTZ) Revenue Analysis

Understanding Intrusion Inc.'s (INTZ) financial health requires a detailed look at its revenue streams. The company operates as a cybersecurity firm, offering a range of services and products. A comprehensive analysis includes breaking down the primary revenue sources, examining year-over-year growth, understanding the contribution of different business segments, and analyzing significant changes in revenue streams.

Intrusion Inc. primarily generates revenue through two main streams:

• Consulting Services: These services involve network security design, system installation, and technical consulting.
• Product Sales: This includes their flagship product, INTRUSION Shield, along with INTRUSION TraceCop and INTRUSION Savant.

In 2024, Intrusion Inc. reported a total revenue of $5.8 million, marking a 3% increase compared to 2023. The fourth quarter of 2024 saw revenues of $1.7 million, which represents a 23% increase year-over-year and an 11% sequential increase.

Here’s a breakdown of the revenue changes:

• Full Year 2024 Revenue: $5.8 million (3% increase from 2023)
• Q4 2024 Revenue: $1.7 million (23% year-over-year increase)

The revenue growth in Q4 2024 was largely driven by a strong performance in the consulting segment, which brought in $1.3 million, a $300,000 increase from the previous quarter. However, the Shield product revenue experienced a decline, dropping by $100,000 to $400,000.

A more detailed look at the revenue streams reveals the following:

The following table provides a clearer picture of Intrusion's revenue performance over recent years:

In 2024, a significant portion of Intrusion's revenue came from U.S. government customers, accounting for 83.8% of the total revenue, up from 46.2% in 2023.

For more in-depth information, you can read this blog post: Breaking Down Intrusion Inc. (INTZ) Financial Health: Key Insights for Investors

Intrusion Inc. (INTZ) Profitability Metrics

Analyzing Intrusion Inc.'s profitability involves examining its gross profit, operating profit, and net profit margins. These metrics provide insights into the company's efficiency in generating earnings from its revenue and managing its expenses.

Here's an overview of Intrusion Inc.'s profitability, based on available data:

• Gross Profit: For the year 2024, Intrusion Inc.'s gross profit was $7.15 million.
• Operating Loss: Intrusion Inc. reported an operating loss of $16.98 million for the same period.
• Net Loss: The company's net loss for 2024 amounted to $17.47 million.

To provide a clearer picture, here's a table summarizing Intrusion Inc.'s profitability metrics for 2024:

When evaluating Intrusion Inc.'s financial health, it's essential to consider these profitability metrics in the context of industry averages and trends over time. For instance, comparing Intrusion Inc.'s gross margin to that of its competitors can reveal whether the company is effectively managing its cost of goods sold. Similarly, analyzing the trends in operating and net profit margins can indicate whether the company's profitability is improving or declining.

For a deeper dive into Intrusion Inc.'s financial health and further insights, you can explore: Breaking Down Intrusion Inc. (INTZ) Financial Health: Key Insights for Investors.

Intrusion Inc. (INTZ) Debt vs. Equity Structure

Intrusion Inc.'s financial strategy involves a mix of debt and equity to fund its operations and growth initiatives. Understanding the levels and management of debt is crucial for investors assessing the company's financial health and risk profile. Let's delve into Intrusion Inc.'s debt structure, comparing it against industry benchmarks and evaluating its approach to balancing debt and equity.

Analyzing Intrusion Inc.'s debt levels involves looking at both its short-term and long-term obligations. As of the fiscal year 2024, Intrusion Inc. reported a total current liabilities of $7.44 million and a total long-term debt of $0. This provides a snapshot of the company's immediate and future financial commitments. The absence of long-term debt suggests a strategy focused on managing liabilities within the shorter term.

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. Intrusion Inc.'s debt-to-equity ratio can be calculated using its total liabilities and total equity. For the fiscal year 2024, the total equity was reported at $12.63 million. Given the total liabilities of $7.44 million, the debt-to-equity ratio is approximately 0.59. This ratio indicates that Intrusion Inc. has about $0.59 of debt for every dollar of equity, reflecting a moderate leverage position.

Here's a breakdown of Intrusion Inc.'s liabilities and equity:

When comparing Intrusion Inc.'s debt-to-equity ratio to industry standards, it's essential to consider the specific sector in which it operates. The technology sector, particularly cybersecurity, can have varying norms depending on the growth stage and business model of the companies. A ratio of 0.59 suggests a balanced approach, but further analysis would involve benchmarking against direct competitors and industry averages to determine if Intrusion Inc.'s leverage is conservative, aggressive, or in line with its peers.

Recent activities, such as debt issuances, credit rating changes, or refinancing, significantly impact the company's financial structure. Reviewing the latest 10K filing and financial news can provide insights into these activities, offering a clearer picture of Intrusion Inc.'s debt management strategy. As of now, there is no information about any debt issuances, credit ratings, or refinancing activity.

Balancing debt financing and equity funding is a strategic decision that reflects Intrusion Inc.'s financial priorities and risk tolerance. The absence of long-term debt, coupled with a moderate debt-to-equity ratio, suggests a preference for equity or short-term financing. This approach can provide flexibility and reduce the burden of long-term interest payments but may also limit the company's ability to undertake large-scale investments without diluting equity or securing additional financing.

Understanding Intrusion Inc.'s approach to debt and equity is integral to assessing its financial stability and growth potential. By monitoring key financial metrics and comparing them against industry benchmarks, investors can gain valuable insights into the company's financial strategy. To delve deeper into Intrusion Inc.'s core values and strategic direction, explore Mission Statement, Vision, & Core Values of Intrusion Inc. (INTZ).

Intrusion Inc. (INTZ) Liquidity and Solvency

Understanding Intrusion Inc.'s financial health requires a close look at its liquidity and solvency. Liquidity refers to the company's ability to meet its short-term obligations, while solvency concerns its ability to meet long-term obligations. Analyzing key financial ratios and statements provides insights into these critical areas.

Assessing Intrusion Inc.'s Liquidity:

Liquidity ratios offer a snapshot of Intrusion Inc.'s ability to cover its immediate liabilities. Two key ratios to consider are the current ratio and the quick ratio.

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets. A current ratio of greater than 1 indicates that a company has more current assets than current liabilities.
• Quick Ratio: Also known as the acid-test ratio, this is a financial ratio that measures a company's ability to pay its current liabilities with its most liquid assets. The quick ratio is more conservative than the current ratio because it excludes inventories from current assets.

Working Capital Analysis:

Working capital, calculated as current assets minus current liabilities, is a vital measure of a company's short-term financial health. Monitoring trends in working capital can reveal whether a company's liquidity position is improving or deteriorating. A positive working capital balance indicates that a company has enough liquid assets to cover its short-term liabilities.

Cash Flow Statements Overview:

The cash flow statement provides a detailed look at all the actual cash inflows and outflows a company experiences during a reporting period. It is generally broken down into three main sections:

• Operating Activities: This section reports cash flow from the normal day-to-day activities of a business.
• Investing Activities: This section includes cash flow from the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: This section reports cash flow from debt, equity, and dividends.

Analyzing the trends in these three sections can provide valuable insights into a company's overall financial health. For example, consistently negative cash flow from operations could be a red flag, while strong positive cash flow from investing activities might indicate that a company is selling off assets to generate cash.

Potential Liquidity Concerns or Strengths:

Intrusion Inc.'s liquidity position can be influenced by various factors. Strong sales growth and efficient working capital management can boost liquidity, while declining sales or poor inventory management can strain it. Monitoring these factors is crucial for assessing the company's overall financial health. Evaluating the trends in cash flow from operating, investing, and financing activities is essential to determine whether the company is generating enough cash to cover its obligations and invest in future growth.

More insights on Intrusion Inc.'s financial health can be found here: Breaking Down Intrusion Inc. (INTZ) Financial Health: Key Insights for Investors

Intrusion Inc. (INTZ) Valuation Analysis

Assessing whether Intrusion Inc. (INTZ) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. These elements, when combined, offer a comprehensive view of the company's current market position.

To determine if Intrusion Inc. (INTZ) is accurately priced, consider the following:

• Price-to-earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of Intrusion Inc. (INTZ)'s earnings. A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers or historical averages.
• Price-to-book (P/B) Ratio: The P/B ratio compares Intrusion Inc. (INTZ)'s market capitalization to its book value of equity. It can help investors determine whether they are paying too much for the company's net assets.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio is used to assess the fair value. A lower EV/EBITDA multiple may indicate that a company is undervalued, while a higher multiple may suggest overvaluation.

Analyzing Intrusion Inc. (INTZ)'s stock price trends provides additional insights:

• Stock Price Trends: Reviewing the stock price movement over the past 12 months, or longer, can reveal patterns and investor sentiment. A consistent upward trend might reflect positive market perception, while a downward trend could signal concerns about the company's performance or prospects.

For companies that distribute dividends, these metrics are also important:

• Dividend Yield and Payout Ratios: If Intrusion Inc. (INTZ) distributes dividends, the dividend yield (annual dividend per share divided by the stock price) indicates the return on investment from dividends alone. The payout ratio (percentage of earnings paid out as dividends) shows the sustainability of dividend payments.

External analysis can further refine the valuation assessment:

• Analyst Consensus: Examining analyst ratings (buy, hold, or sell) and price targets provides a view of professional opinions on Intrusion Inc. (INTZ)'s valuation and potential future performance.

For further insights into Intrusion Inc.'s strategic direction, refer to: Mission Statement, Vision, & Core Values of Intrusion Inc. (INTZ).

Intrusion Inc. (INTZ) Risk Factors

Several factors could potentially impact Intrusion Inc.'s financial health. These risks span both internal and external elements, including industry competition, regulatory changes, and overall market conditions.

Here's a breakdown:

• Industry Competition: The cybersecurity sector is intensely competitive. New companies and technologies emerge frequently, potentially disrupting Intrusion Inc.'s market position.
• Regulatory Changes: Data privacy laws and cybersecurity regulations are constantly evolving. Changes in these regulations could require Intrusion Inc. to make significant adjustments to its products and services, increasing costs.
• Market Conditions: Economic downturns or shifts in business spending priorities could reduce demand for cybersecurity solutions, impacting Intrusion Inc.'s revenue.

Earnings reports and filings often highlight specific operational, financial, or strategic risks. These can include:

• Operational Risks: Product development delays, security breaches within Intrusion Inc.'s own systems, or difficulties in scaling operations could all negatively affect financial performance.
• Financial Risks: Dependence on a limited number of key customers, difficulties in managing cash flow, or the need to raise additional capital could create financial instability.
• Strategic Risks: Failure to adapt to changing market trends, unsuccessful acquisitions, or the loss of key personnel could hinder Intrusion Inc.'s long-term growth.

Mitigation strategies are crucial for addressing these risks. While specific plans vary, common strategies include:

• Diversification: Expanding the product portfolio and customer base reduces reliance on any single product or customer.
• Innovation: Investing in research and development to stay ahead of emerging threats and maintain a competitive edge.
• Compliance: Implementing robust compliance programs to adhere to evolving regulations and avoid penalties.
• Financial Planning: Maintaining a strong balance sheet and access to capital to weather economic uncertainties.

For more information about Intrusion Inc.'s mission, vision, and core values, you can visit: Mission Statement, Vision, & Core Values of Intrusion Inc. (INTZ).

Intrusion Inc. (INTZ) Growth Opportunities

Intrusion Inc. (INTZ) faces a dynamic landscape with several potential growth drivers. These include product innovations, strategic market expansions, and possible acquisitions. A comprehensive analysis of these factors is crucial for investors seeking to understand the company's future trajectory.

Key growth drivers for Intrusion Inc. (INTZ) may include:

• Product Innovations: Development and launch of new cybersecurity solutions tailored to emerging threats.
• Market Expansions: Targeting new geographic regions or industries with existing and new product offerings.
• Acquisitions: Strategic acquisitions of complementary businesses or technologies to expand capabilities and market reach.

Future revenue growth projections and earnings estimates for Intrusion Inc. (INTZ) are essential for assessing its financial health. Investors should consider these projections in light of the company's historical performance, industry trends, and competitive landscape.

Strategic initiatives and partnerships can significantly influence Intrusion Inc.'s future growth. These may include:

• Technology Partnerships: Collaborations with other technology companies to integrate solutions and expand market access.
• Government Contracts: Securing contracts with government agencies to provide cybersecurity services.
• Channel Partnerships: Expanding distribution channels through partnerships with resellers and managed service providers.

Intrusion Inc.'s competitive advantages are vital for sustaining growth in the cybersecurity market. These advantages may include:

• Proprietary Technology: Unique and patented technology that provides a competitive edge.
• Strong Customer Relationships: Established relationships with key customers in target markets.
• Experienced Management Team: A skilled and experienced management team with a track record of success.

For additional insights into the company's direction, see: Mission Statement, Vision, & Core Values of Intrusion Inc. (INTZ).