Intrusion Inc. (NASDAQ:INTZ) Q4 2023 Earnings Call Transcript

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Anthony Scott: Yes. We had — so there’s a couple of things to think about in this space. One was if you remember our business, we have a series of contracts that just renew generally a year after year after year as the budget gets passed and then we get task orders against those renewals. Because of the length of this CR, some of those renewals didn’t happen when the new budget didn’t get passed. And Congress can’t — or agencies can’t spend money if it’s not appropriated and authorized by the Congress. . And so we were impacted by those. And then on top of it, we had some new opportunities, some of which we thought could be funded by sort of, I’ll call it, emergency funding or funding that generally isn’t subject to the annual process.

But it turned out in the end that, that was not possible. So we’ve got a pipeline of prospective deals that when the dust settles, we think we’ve got a good opportunity for the remaining 6 months of the year. And it will — as I said, it will take a little while for that to sort through. But we feel like we’re in pretty good shape there. So I’m optimistic.

Operator: At this time, there are no other questions in queue. I’ll turn the call back over to your host, Mr. Tony Scott.

Anthony Scott: Well, thanks. I appreciate the questions. As we find ourselves at the end of — almost at the end of Q1, I think there’s a couple of things to be excited about. As I mentioned on the call, some of the wins that we had in Q4, I think, are likely to turn into significantly bigger opportunities in the remaining part of the year, and we look forward to that. We’re also excited about this one opportunity I mentioned with our I1 Resources partner for the Bureau of Elections in the Philippines. And I think that’s a real positive if we can win that solution. Part of that solution is a new variation of the product that we created to provide additional layer of security when you have a StarLink terminal, and that was one of the winning elements that helped this solution get down selected for the Bureau of Elections.

And we’re seeing a great level of interest in other applications. As I think many of you know, StarLink terminals are popping up everywhere. But a lot of customers are looking for additional cybersecurity. So we’re hoping to take advantage of that growth and make sure that Intrusion is a part of that solution whenever anybody buys a StarLink terminal for their business. So taken together, I’m still optimistic about our future. As I mentioned, I’m going to invest additionally over the course of the year, and I hope to have some very positive news over the next several months for you. I appreciate everybody’s patience. This has obviously taken a lot longer and been a lot harder than any of us imagined a year ago or 2 years ago. But we’re committed, we’re working hard.

The team is ready and anxious and we’re looking forward to showing what we can do. So I want to thank everybody, and I appreciate your participation.

Operator: Thank you. This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.

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