Intrusion (INTZ) Investor Update summary

Business performance and growth

• Added seven new Shield customers in Q3, with expansion in two existing accounts, totaling 19 new deals and 17 new logos for the fiscal year so far.

• No customer churn for Shield in Q3, indicating strong retention and satisfaction.

• Shield revenue grew 50% sequentially from Q2 to Q3, with Q2 Shield revenue at $300,000.

• Gross margin improved by approximately 2% in Q3, and cost management delivered additional savings.

• Working capital management is expected to reduce the need for additional capital in Q4.

Market expansion and contracts

• Secured a $2 million DoD contract combining Shield and consulting, contributing to Q3 revenue and expected to lead to further contracts in Q4 and Q1.

• Business development trips to the Philippines and Guam generated high-quality pipeline opportunities expected to close in Q4 and Q1.

• Strong momentum in the South Pacific driven by heightened cybersecurity concerns and less competition from other vendors.

• Word of mouth among regional CISOs and CIOs is accelerating adoption.

Product development and innovation

• Added AI features to the Command Hub, enhancing value for managed service providers, ISPs, enterprises, and government agencies.

• Improved ability to update and refresh rule sets and databases, providing more timely cybersecurity protection.

• Product enhancements are expected to support larger deal sizes over time.