PLANO, TX - Intrusion Inc. (NASDAQ:INTZ), a cybersecurity firm, announced today that James F. Gero is set to retire from its Board of Directors on November 20, 2024. Gero, who has been a part of the board since October 27, 2003, also served as the Chairman of the Compensation Committee and a member of the Audit Committee during his tenure.
The company's Chairman of the Board, Anthony J. LeVecchio, expressed gratitude for Gero's dedication, highlighting his 21 years of service and the valuable executive leadership he provided, particularly in navigating recent challenges faced by the company. Gero's departure will reduce the board's size to five members until a suitable replacement is appointed. Intrusion has begun the process of searching for a new board member.
Gero stated that the decision to retire was driven by his interest in pursuing other activities. He remarked on the bright future of Intrusion, commending the company's cybersecurity solutions and innovative strategies, and expressed confidence in the current leadership's ability to propel the company's growth.
Intrusion Inc., headquartered in Plano, Texas, specializes in cyberattack prevention solutions. The company boasts a proprietary threat intelligence database with data on over 8.5 billion IP addresses. Intrusion's commercial product, Intrusion Shield, was launched in 2021 and is designed to integrate with existing infrastructure to enhance security against Zero-Day and ransomware attacks by blocking malicious or unknown connections.
The press release also contains forward-looking statements regarding the anticipated positive outcomes from the company's sales, marketing, and strategic initiatives. However, these statements come with the caution that they are subject to risks and uncertainties that could cause actual results to differ materially from expectations.
This news article is based on a press release statement from Intrusion Inc.
In other recent news, INTRUSION Inc. has seen significant developments in its financial performance and growth strategies. The cybersecurity firm reported a 50% sequential increase in revenue from its product, Shield, during the third quarter, amounting to roughly $300,000. Additionally, the company secured a $2 million contract from the Department of Defense and expanded its business development efforts in the Philippines and Guam.
The company managed to add seven new clients and expand existing contracts, resulting in a total of 19 new deals for Shield in the fiscal year of 2024. Despite concerns over the pace of the marketing strategy, INTRUSION Inc. maintains an optimistic outlook about continuous growth and targets to reach breakeven by 2025.
In the face of NASDAQ delisting due to share price issues, INTRUSION Inc. is evaluating its options to regain compliance with NASDAQ's continued listing standards. However, there is no certainty that the company will be able to restore its compliance with the minimum bid price requirement or maintain compliance with other NASDAQ listing requirements. These are some of the recent developments surrounding INTRUSION Inc.
InvestingPro Insights
As Intrusion Inc. (NASDAQ:INTZ) navigates this transition in its board composition, investors may find value in examining the company's current financial position. According to InvestingPro data, Intrusion's market capitalization stands at a modest $4.91 million, reflecting its status as a small-cap cybersecurity player.
Despite the company's innovative cybersecurity solutions and proprietary threat intelligence database, Intrusion faces significant financial challenges. An InvestingPro Tip indicates that the company is "quickly burning through cash," which aligns with the reported operating income of -$9.59 million for the last twelve months as of Q2 2024. This cash burn rate could be a critical factor for investors to monitor, especially as the company seeks to grow its commercial product, Intrusion Shield.
On a positive note, Intrusion boasts "impressive gross profit margins," with InvestingPro data showing a gross profit margin of 78.06% for the same period. This suggests that while the company is struggling with profitability, its core products have strong pricing power in the market.
However, investors should be aware that analysts do not anticipate the company will be profitable this year, according to another InvestingPro Tip. This projection, combined with the fact that the stock price has "fallen significantly over the last year" by 92.28%, underscores the challenges Intrusion faces in translating its technological capabilities into financial success.
For those interested in a deeper analysis, InvestingPro offers 12 additional tips for Intrusion Inc., providing a more comprehensive view of the company's financial health and market position.
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