Intrusion Inc.

Quarter 2025 Earnings Conference Call and Webcast. At this time, all participant lines are in a listen-only mode. For those of you participating in the conference call, there will be an opportunity for questions at the end of today's prepared comments. Please note this conference call is being recorded. An audio replay of the conference call will be available on the company's website within a few hours after this call. I would now like to turn the call over to Josh Carroll with Investor Relations.

Thank you and welcome. Joining me today are Tony Scott, President and Chief Executive Officer, and Kimberly Pinson, Chief Financial Officer. This call is being webcast and will be archived on the Investor Relations section of our website. Before I turn the call over to Tony, I'd like to remind everyone that the statements made during this conference call relating to the company's expected future performance, future business prospects, future events, or plans may include four looking statements as defined under the Private Securities Litigation Reform Act of 1995. Please refer to our SEC filings for more information on specific risk factors that could cause our actual results to differ materially from the projections described in today's conference call. Any forward-looking statements that we make on this call are based upon information that we believe, as of today, we undertake no obligation to update these statements as a result of the new information or future events. In addition to U.S. GAAP reporting, we report certain financial measures that do not conform to generally accepted accounting principles. During the call, we may use non-GAAP measures if we believe it is useful to investors or if we believe it will help investors better understand our performance or business trends. With that, let me now turn the call over to Tony for a few opening remarks.

Thank you, Josh. Good afternoon, and thank you all for joining us. The first quarter of 2025 marked another meaningful milestone for intrusion, highlighted by our fourth consecutive quarter of sequential revenue growth, and another quarter of near zero churn, the piloting of promising new product in our Shield family of products, a new commercial go-to-market partnership, and accelerating awareness of Intrusion's capabilities through our enhanced marketing and channel efforts. Now, regarding our pipeline, we're continuing to experience strong demand for our products, both domestically and across the broader Asia-Pac region. driven by the growing positive reputation of our solutions. While we've been making solid progress on the sales front over the past few quarters, we're still not satisfied with the level of growth that we've been experiencing. And as mentioned during our fourth quarter earnings call, we identified several key initiatives to drive our growth, and I'd like to provide an update on our progress on those initiatives. We're progressing according to plan to make our Shield Cloud product available on the AWS marketplace, which as I previously noted back in February, is a high growth engine for many companies like ours. And it'll become available for potential customers during the second quarter. We believe that we will begin to see some positive contributions from this initiative to our revenue results during the second half of fiscal year 2025. We're also on track with our efforts to increase our digital marketing to create better visibility and engagement on relevant social media platforms. We're currently working with a consultant on these efforts, and while early, we're encouraged by the reception and the response that we're seeing, all with the goal of increasing awareness in a very noisy cybersecurity market. We are making great progress with revamping our channel program to refine our messaging, our pricing, our go-to-market processes, and various other aspects that we have identified as gaps that we believe have inhibited our growth. And as we noted last quarter, while not always under our control, every quarter we've had significant deals slip into the next quarter, or we've experienced meaningful delays in onboarding, which impacts the timing of revenue and makes it hard to allocate resources properly. These enhancements are progressing well and are expected to enable a more reliable and consistent cadence of bookings and revenue management. Also, we intend to hire a channel sales leader to support these efforts within the next few months. On the R&D front, we're continuing to strategically invest at a relatively constant level to improve our portfolio to ensure that our products are able to address the ever-evolving challenges of cybersecurity. And one of the key areas that we're making product investments in is to help protect critical infrastructure assets, such as local utilities, power and water, communications, and other critical services. We view this as a very promising market for intrusion, given the rise in ransomware, supply chain attacks, and other threats currently facing these critical infrastructure assets. Our pilot projects in this area are going well, and we expect expanded deployments during the second quarter and throughout the remainder of the year. As a result of these pilots, we've identified additional capabilities that we can relatively quickly develop, which will further enhance our offerings in this space and should lead to additional revenue opportunities. On the partnership front, I'm pleased to announce a new partnership with PortNexus, who has chosen to embed Intrusion Shield Endpoint into their MyFlare and PledgePlus solutions. According to PortNexus, MyFlare helps first responders react more quickly to critical situations where every second of delay can mean the difference between life and death. PledgePlus is a solution for fleet management operators that helps with minimizing problems caused by distracted driving. In both cases, intrusion technology will be integrated into the PortNexus developed solutions to provide enhanced security for the endpoints used by Portnexus customers. And I'd like to thank the Portnexus team for selecting Intrusion, and we look forward to a long-term partnership, as well as our mutual success in the marketplace. Now, briefly onto our financials for the quarter. Total revenues for the first quarter were $1.8 million, representing a 6% increase compared to the previous quarter. Our operating expenses during the quarter were up slightly compared to the fourth quarter, driven primarily by increased professional fees related to the timing of our annual audit and a one-time settlement in the fourth quarter with our D&O carrier for reimbursement of legal support costs associated with the now-completed SEC investigation. While we have and will continue to make further investments in our business, over the next few quarters, we still plan to do so in a very disciplined manner. As you're all aware, we were able to take meaningful steps during the end of the fourth quarter and the first few days of the first quarter to strengthen our balance sheet, which gave us a strong cash position to fund our business through fiscal year 2025 and beyond, fully eliminating our outstanding debt and removing the need for additional capital in 2025. We're excited about our improved financial health and the position we believe it puts us in to focus on growing our business. Finally, before I wrap up and pass the call over to Kim, I'd like to address the environment we're operating in. Many of you have asked during recent investor roadshows and conferences what, if any, impacts our business may be facing in as a result of the recent efforts to cut costs by the federal government. While the situation is still very fluid, we're currently not experiencing any impacts to our government contracts as a result of the recent policy and priority changes. However, we are still waiting on Congress to pass a full budget for the current fiscal year and to agree on the contours of the budget for next year, which, as many of you know, is always filled with some degree of risk. Despite this uncertainty, we're confident that the strength of our non-government pipeline will continue to support our growth trajectory in the interim as we await further clarity on the federal budget. It's an exciting time for intrusion, and the demand for our products continues to grow. And with that, I'd now like to turn the call over to Kim for a more detailed review of our first quarter financials. Kim?