Intrusion's New Product Could Be A Very Big Deal

Summary

• The company has introduced a new product called Shield, which is complementary to their existing products and mostly meant for the commercial market where Intrusion hardly has any presence.
• They hired an experienced new CEO with numerous contacts in his rolodex, which will come in handy.
• The new product is in addition to the existing business, which reduces the risk, and even the existing business will likely benefit from the new CEO's contacts.
• The new product Shield is a simple add-on to a company network and functions as a SaaS business, that alone should make the stock much more attractive.

We have been following Intrusion (NASDAQ:INTZ) for years as the trail of articles we left behind here on SA will testify. We sort of lost sight of the company a bit as we feared their business had reached a plateau, mainly selling into the DoD in what is a fairly laborious sales process, and they might simply not have the scale large enough to grow beyond that.

Well, we worry much less. First of all, we want to thank fellow SA contributor Aaron Warwick's article from waking us up from our self-induced slumber and attending us to the strategic reorientation that the company is in the process of making. We suddenly got interested again.

Until Wednesday, May 27, that reorientation seemed to consist of:

• Hiring a new salesperson with ample connections in the DoD that could increase sales there. This is already working, with that new salesperson harvesting 6 or 7 new contracts, three of which are in procurement already.
• The possibility of putting the company up for sale.
• The possibility of partnering with a large company that could launch them into the (much larger) commercial space as they simply lack the manpower to do that on their own.

This sounded already interesting enough for us to buy shares for the SHU portfolio, but in their previous (May 14) regularly Q1CC, they also mentioned a yet to be introduced new product, one that would be complementary to their existing ones.

They couldn't say too much about that at the time, as they were still in the process of writing and filing the (no less than 13) patents for this new product, but it sounded interesting because it was filling a hole in their line-up: real-time prevention.

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Analyst’s Disclosure:I am/we are long INTZ. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.