Q1 2023 Intrusion Inc Earnings Call
Before I turn the call over to Tony I'd like to remind everyone that statements made during this conference call relating to the company's expected future performance future business prospects future events.
Future performance from our business partnerships future turns or agreements relating to financing or plans may include forward looking statements.
As defined under the private Securities Litigation Reform Act of 1095.
Please refer to our SEC filings, including our 10-K for more information on the specific risk factors that could cause our actual results to differ materially from the projections described in todays conference call.
Any forward looking statements that we make on this call are based upon information that we believe as of today and we undertake no obligation to update these statements as a result of 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 GAAP measures. If we believe it is useful to investors or we believe it will help investors better understand our performance or business trends.
I'll turn the call over to Tony.
Thank you Josh good afternoon, everyone and thank you all for joining us today.
In today's call I'll cover Q1 results as well as provide an update on our strategic operational and financial objectives.
Of which I'll talk about in greater detail.
Total revenue for the first quarter was $1 3 million a decrease of $1 5 million compared to the first quarter of 2022 and down <unk> 1 million compared to Q4 2022 revenue.
The decline in total revenue for the quarter was largely due to the full quarter effects of.
The loss of a consulting contract that we've previously disclosed.
Q4.
And while the revenue growth that we expected as a result of our sales and marketing efforts related to our shield family of products is taking significantly longer than I expected or desired.
I feel positive about the underlying progress in our business from a product and partner perspective, and we continue to receive very positive feedback on our underlying technology and.
The efficacy of our solutions.
Turning now specifically to our shield family of products Shield revenues for the first quarter were $3 million, which was flat sequentially and up $1 million compared to the first quarter of 2022.
Intrusion shield revenues for the first quarter represented 24% of total revenue.
And while it's still too early to project the full year impact of the new shield branded products, we introduced last year cloud and endpoint.
We are seeing clear and growing interest in these new products. In addition to our hardware solution.
In addition to the interest we are seeing in our suite of shield products, We announced in early March that intrusion had entered into a reseller agreement with net Kate <unk>.
Provider of the PFS plus family a firewall products.
This agreement allows intrusion to sell of a net gain PFS plus firewall and intrusion shield as a package.
Ah Pfsense is trusted by individuals businesses and governments all over the world and the combination of our two products is an exciting entry into the cyber security marketplace.
I believe that this combination will be welcomed by new customers as well as our installed base due to the customer awareness and adoption of PSS, which is already very high.
I'm hopeful that we will be able to share with you some new customer announcements as a result of this partnership in the near future.
In addition, we recently signed an agreement to partner with Sci investments company for Sci to jointly market our products to <unk> client base as well as new perspective customers.
Sci is a leading provider of technology and investment solutions and the financial services industry.
They served 10 of the top 20 U S banks.
49 of the top 100 investment managers worldwide.
With capabilities across investment processing operations and asset management Sci works with corporations financial institutions financial professionals and ultra high net worth families to manage change and help protect their assets for growth today and in the future.
NCI also manages advises or administers approximately one two trillion in assets.
In addition to these services Sci assist its client base with cyber security protection through their STI Spirit Division, which offers a managed cyber security service.
<unk> ability to Sci customers.
This partnership is moving quickly and we've already made several customer presentations with Sci.
We anticipate that this partnership will grow into a meaningful relationship and additional revenue for both intrusion and Sci.
We are also engaged with an alliance with business development professionals, who are leveraging decades of experience with cyber and consulting divisions are one of the big four consulting firms.
This alliance is quickly expanded our base of qualified leads and opportunities and brings the potential for significantly larger deals.
And like our Sci partnership we've moved quickly to operationalize the SaaS, but of our sales motion and have already had very positive feedback from several potential customers that we've jointly presented too.
Turning now to our consulting business we.
We experienced the decline of <unk> 6 million in revenue year over year, and a decline of <unk> 1 million sequentially.
As I noted earlier Q1 consulting revenue now reflects the full quarter impact of the loss of that one consulting contract in Q4.
However, through our team's hard work, we've been able to fill much of the revenue gap from this loss.
And we continue to expect growth over the course of the year from our consulting business as a result of our partnerships our business development efforts and referrals from our business Advisory Board.
As you May have seen last week, we announced a significant renewal in our consulting business from a major purchaser of our purchaser of our services utilizing our applied threat intelligence engine.
And this renewal further exemplifies the confidence in the ongoing need for intrusions critical cyber security solutions and validates the need to be proactive.
Protecting vital networks utilizing two pools with strong intelligence and staying focused on emerging threats.
We also announced in early March that intrusion and partnered with net foundry to support Zero Trust.
Cyber security standards and principles and our endpoint products.
Zero Trust approach has been strongly endorsed by the U S government and is increasingly profitable or in the popular in the private sector as well.
We've been working together with net foundry for some time now to integrate net foundry zero trust networking into our shield end client.
Which will give immediate benefits to customers seeking better protection for.
For their endpoint devices.
In particular this technology approach eliminates the potential for compromises. The result of man in the middle based attack vectors.
Okay.
Now during the first quarter, we made the difficult decision to further reduce our head count and eliminate certain contractor spending as we deliberately moved to reduce our cash burn rate.
We also reduced our spending in other non head count areas to better align our available cash with the realities in our business from a revenue perspective.
This is never an easy decision as many of you know and we greatly value all of our employees and contract partners.
I believe we've taken swift and appropriate and adequate actions without sacrificing our long term growth.
For our objectives for the business.
Okay.
Finally, we've continued to work closely with Streeter Bill regarding potential modifications to our existing debt agreements to provide more flexibility for our business.
Tim will provide more details on our financial position.
However, it's worth noting that we believe our expected capital needs have been significantly reduced as a result of our lower cost structure and our anticipated pipeline of new business combined with the various funding levers and tools.
That are at our disposal.
I recently attended the annual RSA Cyber Security conference in San Francisco, and he had a chance to observe firsthand the state of the cyber security industry.
My takeaway from that event is that intrusion is technically well positioned to provide complementary enhanced capabilities for a wide variety of solutions and at the same time. There is an abundance of solutions in the marketplace, often with very little objective differentiation in terms of capabilities or effectiveness.
That matter.
I heard repeatedly from buyers that they are exhausted by the complexity of managing a complicated set of solutions that they're seeking to consolidate to fewer suppliers with more objectively provable value for the solutions that they do invest in.
And what I continue to have confirmed from partners and customers.
Our unrivaled applied threat intelligence capabilities provide a much needed and unique layer of protection and help illuminate where existing tools fall short and protecting the network in.
Critical organizational assets.
I believe that while we have to earn our place in the set of solutions to customer may choose to do.
You have the right combination of ingredients with our net gain in the foundry partners to satisfy the needs of any customer seeking better and more cost effective cyber security solutions.
For their enterprise.
I'll have a few more comments later, but with that I'd now like to turn the call over to Kim for a detailed review of our first quarter financials.
Yes.
Thanks, Tony.
Turning now to our financial performance for the quarter revenues for the first quarter of 2023 were $1 3 million a day.
<unk> and <unk> 1 million sequentially and.
Year over year.
First quarter revenues for our consulting business, we're winning.
Decrease of 38% year over year, and 9% sequentially due to the loss at the win.
One of my Prime contract franchise, she chose not to renew the final option year at their contract.
As Tony mentioned earlier, we are now seeing the full quarter impact at this box.
First quarter revenue for shield with $3 million, representing 24% of total revenues.
In comparison to the prior year period revenues increased $8 1 million for the quarter, representing a year over year income and 50%.
Products shipped towards shale I think the result of new customer sales increased utilization by existing customers and a reduction in consulting revenues as a result of the last in a large.
<unk> contract as previously mentioned.
We continue to have several large deals in our qualified pipeline demand for our products continued to remain strong.
Gross profit margin was 76% for the first quarter of 2023 compared to 51% in the first quarter of 2022.
The increased margin in the current quarter as Rick talked about product mix, which showed revenues now representing a higher percentage of R&D.
<unk> revenues and the loss of low margin consulting contract as previously mentioned.
We are continuing to control our cost structure, while also making creating investments in our long term profitable growth.
Operating expenses in the first quarter of 2023 or $5 million, a slight increase spend $4 $9 million in the comparable quarter of last year, which is due to increased sales and marketing activities, which was mostly offset by reduced contract labor and administrative and legal costs.
The net loss for the first quarter of 2023 was $4 7 million or <unk> 22 per share.
<unk> <unk> at $4 1 million or <unk> 21 per share for the for the first quarter of 2018.
Turning to the balance sheet on March 31, we had cash and cash equivalents.
$4 million down from $3 million on December 31.
In January of this year, we amended our debt agreement with Schrader zone, whereby <unk> agreed to waive their right to principal redemption through March 31.
Subsequently no redemptions have been made to date as Tony mentioned earlier, we are in discussions with state or go to potentially amend our existing note agreements with terms that we believe are beneficial to both parties.
In February we entered into a note purchase agreement with <unk> now in the amount of $1 $4 million and the related security agreement whereby intrusion granted a security interest in the employee retention tax credits gives you the company under the cares Act.
The ERC refund was received in March and this note was repaid in full.
Additionally, it is worth noting that in April we billed and collected on a large renewal contract bridging some cash needs. While we continue to evaluate available financing options.
As Tony indicated earlier, we implemented cost reduction measures in late March. These reductions included the elimination of 16 full time positions reduction in contract labor utilization and voluntary.
Salary reductions for several of our executive officers.
We estimate that these changes will result in cash savings of approximately $1 $5 million per quarter.
We believe these cost reduction measures combined with our revenue growth expectations significantly reduce the amount of cash needed to fund operations for 2023.
As a result, if we are successful in amending the terms of our existing note agreements. We now estimate our capital needs for the remainder of the year to be reduced from our previous estimates.
While there can be no assurance that we will be able to raise the capital necessary to fund our plan. We remain we believe the capital markets remain open to us for the future rounds of funding.
With that financial overview, I would like to turn the call now back over to Tony for a few closing comments Tony.
Kim.
To conclude we obviously have some short term liquidity issues to resolve but having said that I believe the company is that a critical turning point and is heading in a positive direction overall.
Im very heartened by the reception, we've received about our new products I'm delighted by the quality of our products and the quantity of features are creative and talented product development teams deliver every day.
And we will continue to make adjustments in our sales and marketing efforts as conditions dictate.
And as I indicated earlier I think some recent changes we've made.
Already showing very positive results.
I look forward to sharing the next steps in our journey with all of you.
And I want to personally thank our investors and financial partners for their continued patience and support.
As we execute our strategy.
This concludes our prepared remarks, and now I'll turn the call over to the operator for Q&A.
At this time I would like to remind everyone in order to ask a question.
Press Star followed by the number one on your telephone keypad.
Let's pause for a moment.
A Q&A roster.
Okay.
Okay.
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Sure.
If your line is on mute please UN mute.
Okay.
Okay.
I apologize.
Can you hear me.
Hello, Karen yes.
Yes, I apologize.
In terms of the economic environment being a little bit weaker have you noticed any change in.
Sales cycle with your enterprise customers.
Okay.
Yeah.
Even remark when I was.
Referring to RSA, everybody I talked to at the RSA show.
<unk> basically the same thing that we're experiencing which is.
A lot more caution in the marketplace deal.
The time is taking longer.
Some customers kind of sitting on their hands.
Per quarter, and we've certainly experienced some of that.
Deals that we expected to close soon.
Q4 last year dragged into Q1 and beyond and just.
This week, we actually signed some deals that we thought were going to occur weeks earlier so.
I do see that as a.
As an issue and it's hard to tell when that climate might change, but certainly.
Certainly with us at the moment.
Yeah.
Besides a longer sales cycle have you noticed customers potentially.
Going for smaller deal size, and maybe smaller pieces of software as.
As well.
Haven't really seen that.
As I said on the call.
We have heard very strongly that people want to consolidate vendors.
We are looking for the efficacy of their span of the Bang for the partnership paid yet.
And we have a whole sales motion.
As a part of our cycle now that.
It helps address that question in audio no.
How effective.
Solutions that you have in place really are.
As you as you may remember our tools.
Looks at every packet that comes through the firewall, both the amount and with that kind of tool we can help.
Health measure of the effectiveness of.
Of the cyber security solutions that are in place.
And so that messages being quite well received in terms of both fine tuning the tools that people have in place, but also of measuring the effectiveness of some of.
The tools that they have in place.
Great and then my last question is on your channel partners, obviously with this uncertain economic environment have you seen your channel partners either changed or strategy.
Strategy with your product either.
Putting more emphasis on it or less emphasis on it.
Well I think the same thing is happening there with jazz.
Turning in the macro environment, they're seeing longer deal cycles.
And they more or less expressed the same thing that their customers are asking for.
More consolidated.
Supplier choice and those kinds of things so it seems to be pretty pervasive.
In the marketplace overall.
That sounds good well. Thank you for answering my question and I wish you guys. Good luck. Thank you. Thank you appreciate the question.
Thank you.
Your next question comes from the line of Zach Chandler with AOS and <unk> and your line is open.
Thank you and I usually go by Ross.
Could you give us more color on this S C.
<unk> relationship is this a contract that you have with them that they will be paying you money and in addition, you are going to be.
Working with them on their own cyber security client base and other other business lines client basis or is this like.
Like a reseller situation, where they are simply going to be another reseller for ya.
Well done.
The deal we signed with them allows them to be a reseller, but the.
The primary motion is.
US in partnership with them going to market and selling the combination of intrusion products and.
Sci services. So there are there a managed service provider managed service security price provider actually.
And so we're going to market with them primarily.
So are they also going to be using.
Shield and your services in their daily work.
It's a complicated question there where in their lab.
But theyre not a.
A direct customer in the in the sense that we are protecting their entire enterprise at the moment.
But we're working on that.
Part of the deal right now.
So you would anticipate that.
Over time, they will become.
Direct customer that you will have a more direct role in protecting their business.
Yeah, we would hope so it's really run their internal operations are really run by a different part of the business.
The agreement we have is with theirs.
Spear S. P. H E. R E Division and that is the managed service provider.
Entity for.
For Sci.
And incidentally that group doesn't run the operations even for Sci internally, so it's a different customer within the overall business.
So they are selling your product, they're going to work with you and selling your product to their cyber security customer base. In addition, yes.
You are still working to sell your product to their internal cyber security team.
Correct.
Okay and did you mentioned something about a.
Large accounting.
Accounting slash consulting firm.
Customer.
No that comment was.
There is.
A consortium of former bank for partners or now in business for themselves.
And doing business development activity.
There are targets are obviously.
Business relationships that they had established while they were.
Working in this big four firm.
But what's been really nice about this relationship is.
They have very senior level relationships with their former customers and they've been able to prequalify.
And.
And make sure that we're a good product set and then make those introductions and also shepherd the conversation along.
And make it a much quicker, we hope sales cycle than us.
Would traditionally be the place.
In the case of large enterprises, a bit hard sometimes for a little company like confusion to get in the door and these guys are both door openers, but also.
Because of their experience.
No where our product fits in there about former customers.
Profile, if you will so.
All of the all of the meetings, we've had have been very high quality.
Very high level of enthusiasm so I'm pretty excited about this as a.
As a as a way of accelerating our our adoption in the marketplace.
You mentioned you had a number of contracts deals <unk> signed since the end of the quarter can you give us an idea of what kind of revenue we should be expecting to see it the whole issue here I think from at least our perspective has been waiting to see traction in the marketplace.
<unk> for the shield product, we it seems like it should be a homerun product it hasnt gain that traction yet that we mailed Lucy.
Is what you are seeing now is any of this stuff you're talking about that's happened in recent days weeks actually crossing that rubicon to well we are going to start to see.
Meaningful revenue generation floor from the products for the company.
I'm, a little reluctant to characterize that now because we have.
Even this week some deals that we expect to sign.
And so on so I don't really want to characterize but what I would say is.
I believe that the.
That direction is.
Correct and.
I would expect that we will see meaningful revenue as a result of the sales effort Sydney.
Activities that we previously outlined.
So and we do believe there for that.
By the time, we have done in three months when we have this next call. We'll have we'll be seeing revenue generation and therefore, an example, the ability to perhaps open up new financing avenues through that revenue generation.
Well again, I don't want to make the call on financing piece at this point because there's a lot of water results. The idea. If you have over this 800 IV.
Yes.
After that <unk>.
With that many patients out of options yet.
I think we'll have the ability to have a different conversation than leaf.
At Pryor so.
Okay I'll pass it back to others. Thank you.
Right.
Again, if you would like to ask a question press star followed by the number one on your telephone keypad.
Your next question is from the line of and more written with breakthrough investors. Your line is open.
Hey, guys good evening.
Tony You just said that you would expect some meaningful revenue what is what is meaningful revenue to yield much sir.
What type of numbers.
Given where we're at anything above zero is meaningful to me.
That's the kind of joke, a little bit but.
Yes.
We're playing in.
A pretty big space and.
With the net gain stuff, we have the opportunity to sell to.
People downloaded that software 7 million times.
I talked about Ncis cuts.
Customer.
Portfolio, we now have an opportunity to market to that group of people.
And Theres a number of other efforts underway with that.
As I mentioned with the former Big four partners. So.
And we still have in our pipeline some of the big deals that we had hoped to close in Q1 moved into Q2 and I hope that we can still land parts of those the good news is nobody's walked away. The bad news is they havent signed yet so the timing of that as always.
Up to the.
Deal ferries or whoever.
Sort of governing CSA.
I would be.
Very very disappointed if we don't.
If we're not able to show you significant progress.
And this in this current quarter.
So did I understand you correctly with Ross.
<unk>, perhaps even to have the.
The ability to announce a deal this week, but so far it has not happened.
Well.
Again until the deal ferries.
Do their pixie dust.
They could happen I'm not going to announce any deal.
Right right.
Yes, we have a pipeline of deals that we expect to sign in and when we do that and they're meaningful we'll announce them.
And it sounds like in your prepared remarks.
And it would seem to make sense based on what you I'd also.
With Ross.
This consortium of the former Big four consulting people are opening doors to customers that would be quite a bit larger than what you were previously targeting is accurate.
Yes, I would say generally that's true not 100% of the opportunities are.
There are bigger deals, but a good proportion of tomorrow, that's pretty exciting to us and as I said.
Earlier.
Not only are they.
Highly qualified introductions, meaning there is a need in our budget.
And identified buyer and so on and so forth. These guys know their clients pretty well.
No what gaps and opportunities they out.
That those clients have in their business and so.
When we get together, we can have a very.
Direct conversation about what we do and the benefits that we bring.
To the table for their environment. So.
I'm happy with the way it's gone so far.
Good morning.
One of them is <unk>.
Okay.
Saves a lot of the dancing around that normally would occur.
Before you get to that point.
Good good to hear and my last one I suppose I mean, EBIT answered as well, but maybe it's best for Kim.
And my hearing correctly.
On an annualized basis based on the cost.
Reductions were talking about it.
<unk> million dollars.
Annually.
Yes.
As part of the reductions were elected salary deferrals by some of the members of the management and board.
And those were fixed monthly injections, and so and those will take us through September <unk>.
They were pretty signet significant reductions for a company our size and that is the correct way to think about it.
Great I appreciate you guys doing that.
Yeah.
<unk> shown your commitment.
Good things on the right track by that time, and hopefully get you guys back to a normal.
T enormous salaries also thank you guys for your time I appreciate it.
Thank you. Thank you.
Your next question comes from the line of Scott Duck with H C. Wainwright. Your line is open.
Hi, Good afternoon, guys. Thanks for taking my questions and apologies, if visa or already asked that jumped in a little bit late here.
Tony can you talk a little bit about where you are with some of these <unk>.
Salary and technical partners.
You're still in the.
Education phase with them or are they.
Outselling and having some level of success.
Yeah, let me make a distinction between the technology partners and the and the resellers.
On the on the reseller front, we've made I think really good progress.
In Q1, we have.
Training portal.
And in our model through the channel is that our channel partners to provide tier one level support for our products.
So now we have.
Digital training modules available for.
Those partners to get fully up to speed.
On our products and how to support them for customers and that was a big lift to get that work done as well as.
On the partner portal alert.
Marketing materials.
And all kinds of information that you need for a.
Per our channel business to be.
Successful and productive so a lot of work went into that along with our new branding messaging and so on which Doug.
And a pretty dramatic changes over the over the last year.
And so great progress on that front.
Our channel partners continue to bring us.
Qualified leads.
But as I said earlier they were seeing some of the same phenomena that I talked about earlier, which is elongated deal cycles.
Some customers just sitting on our hands and not making.
By decisions of this particular boring.
From a technical partner side.
Those are largely internal.
Our integrations that we're doing with the technology teams with those partners. So.
That's all work primarily goes on behind the scenes and then once the product integrations are done can become part of.
What's in our bag to sell in terms of products.
Services and so on.
So hopefully that answers your gross.
Yes, I appreciate that that's very helpful. And then my second one clearly theres a lot going on in the macro environment not much of a good but I'm curious if they're just kind of one or two.
Positives that could happen that could serve as a real catalyst in getting.
Buyers.
To pull the trigger a little bit more quickly.
Well I think you know macro speaking there is a few things that I think will point to.
Potential opportunities for us.
The.
Current administration is just issued a new strategy for the federal government related to cyber security strategy and in there is.
A whole bunch of.
What I would call acceleration of things that should should help us one is for more public private partnerships.
Attacking the cyber security issues that we have.
Another is more aggressive going after the bad guys.
And not just waiting to be attacked.
And there is a whole bunch of other things.
Sort of in that strategy and this was guidance to all of the federal agencies to play some sort of a role in cyber security strategy.
In response to that I would expect that what youre going to see it.
Is increased level of regulation wherever it's appropriate.
Requiring more transparency and visibility of cyber risks and those kinds of things.
The FCC has talked about.
Creating more or additional.
Guidance in this particular space.
Yes.
Almost every agency, whether it's health and human services or <unk>.
DHS or you name it.
All big.
Begun to talk about things that they're planning to do.
In their space from a regulatory standpoint, and I think that helps us both on our government business, but it also kind of sets the standard for the.
The private sector should adhere to it's kind of like.
When the federal government created the fed ramp standard for cloud.
If you could say you were fed ramp certified.
As a cloud provider.
That was a stamp of approval and the fact that you met a much higher security standards.
Ben.
Than had been the case before and so I think youll see a lot of activity over the next two years trying to.
Raised the water level, if you will.
For cyber security.
Across the board and I think our technology is a good fit.
In that in that motion.
Great I appreciate that thank you guys.
Your next question comes from the line of Ross Taylor with Arris investments. Your line is open.
Thank you and thank you Tony.
Chancing a follow up you've mentioned a number of potential.
Deals that could be signed could you give us an idea of either how many.
Deals you have that are in we'll call. It the pipeline, perhaps where is the exchange paperwork or where you're at that end game status and what kind of dollar amount they might represent in the way of revenues you can give a rather large ballpark figure on the ladder, but I'm trying to get an idea of.
Kind of where we're sitting what are we looking for in the next potentially three months.
Yes, I'm not going to comment on things that we haven't signed.
I'll say that our.
Pipeline continues to grow it's not getting smaller.
And.
I think that's probably as much as.
I should say at this point I don't want to give guidance.
And appropriately here, but.
I will say I'm optimistic I'm not.
Discouraged at all and I'm looking forward to.
Landon these things and having a different conversation.
Next quarter.
Okay, one of the knocks and it's believed to be one of the reasons why.
<unk> has kind of struggled to find a major strategic partner or someone who is like the first year.
Player in the cyber space for what seems to be an important addition to <unk>.
The cyber security Arsenal has been the fact that you haven't been able to demonstrate there is a market place.
For shield and what you are doing do you believe that what you are looking at that you're referencing here is potentially coming through that this deal with Sci and and what you have in front of you will in.
They force reasonably foreseeable future meeting this year show us traction that answers that question for these larger players telling them that there is indeed, a demand a need and an interest for what youre doing.
Well, yeah, it's exactly why we have done some of these deals as I see them as accelerators for us in the marketplace.
We've previously talked about.
Selling to managed service providers and managed service security providers and so on and we're still pursuing that but these other things that we've mentioned today.
Should be accelerators for us and will allow us to get to market faster with some.
Hopefully larger customers that would demonstrate.
Viability.
A number of different industries in them.
That does open up once we demonstrated that the more strategic conversations that could be meaningful in the long run so.
Absolutely what we're trying to do.
So when you, but im asking someone no more specific when you're looking at what you see today.
Do you believe that we are crossing this river here that we're crossing the rubicon and that within.
And second half of this year, we're going to actually see that traction that we've been waiting for I mean, this has been a bit of a waiting for godot stock.
And that is going to we're going to.
Kudos to have arrived.
And it's going to arrive in the next quarter or two in a way that you can actually start to see people signing agreements and it's not going to be.
We hope to see clients, but rather we are seeing them, we are gaining traction and we've seen once you find one or two major players falling others will fall things of that nature, but that's do you believe that to where you are now.
Yes.
Based on the pipeline that we've got and the conversations we're.
We're having now I'm strongly believes in that.
I wouldn't.
Characterize it any other way that we got to do our work we've got to land them.
These are all this is all work to do but I'm at.
Im encouraged by what I see and.
I think some of the engineering work that we've done.
And these integrations.
Net gaydon.
And so on I think just add to that.
Capabilities and or things that customers are getting pretty excited about so.
The answer is yes.
And and and you're excited about it I mean, you tend to be kind of I am I am.
Personal inside.
I took a big salary cut because I believe there is a future here and there's a lot of exciting things we can do in <unk>.
We've got some short term issues to take care of but.
I'm in it for the long term.
Pretty bullish that we're going to be pretty successful operation at the end of the day.
Well, here's hoping to the idea that we start to see that success in coming weeks and certainly in the next quarter or two because it has been a long time coming but it would seem that there should be a real need for this product I'm always kind of a little bit baffled by why it doesn't have better traction in the marketplace. So I'm, hoping that this next quarter or two even.
Next week or two will start to answer that for me.
Yeah, and again I think we've crossed the point, where there is nobody in our team is embarrassed to go.
Sell this product.
Reliable and scalable.
We have the capabilities that.
We think customers want.
Yeah.
Now it's full tilt Boogie go sell it.
Okay, great. Thank you for your time co Craftsman.
At this time there are no questions in queue I'll turn the call back over to our host Mr. Tony Scott.
Alright, thanks, well I don't have.
Too much else to say I think you know.
Okay.
I'm really looking forward to our next quarter call I want to thank everybody for joining us today and as I said before it's a pivotal time for intrusion and our entire organization and I am excited about our future and I do appreciate the patience.
Sticking with us that our investors and financial partners, who have shown us we couldnt do what we do without you and.
As I said I'm looking forward to a different conversation next time, we talk.
Thanks for joining us today.
Ladies and gentlemen. This concludes today's conference call you may now disconnect.
Thanks for joining us today.
Ladies and gentlemen.