Intrusion Inc Net Income jumped on 7,723% and Revenue surged on 49.8%
02/11/2019 • About Intrusion Inc (
$INTZ) • By InTwits
Intrusion Inc reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Intrusion Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's in pair with industry average of 8.7%
- CAPEX is quite volatile: $0m in 2018, $0m in 2017, $0m in 2016, $0m in 2015, $0m in 2014
- It operates with medium-size leverage: Net Debt/EBITDA is 0.1x while industry average is -1.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 49.8%. Revenue growth showed slowdown in 18Q4 - it was 43.2% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 11.4 pp from -2.3% to 9.1% in 2018. During 2014-2018 EBITDA Margin bottomed in 2016 at -18.2% and was growing since that time.
Gross Margin increased on 3.7 pp from 58.8% to 62.6% in 2018. SG&A as a % of Revenue dropped on 11.8 pp from 38.3% to 26.4% in 2018. During the last 5 years SG&A as a % of Revenue topped in 2016 at 46.3% and was declining since that time.
Net Income margin jumped on 22.7 pp from -0.44% to 22.3% in 2018. During 2014-2018 Net Income margin bottomed in 2016 at -25.4% and was growing since that time.
Investments (CAPEX, working capital and M&A)
Intrusion Inc's CAPEX/Revenue was 2.0% in 2018. CAPEX/Revenue showed almost no change from 2015 to 2018. Average CAPEX/Revenue for the last three years was 1.0%.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is 0.7x. Net Debt / EBITDA jumped0.1x from to 0.1x in 2018. Debt surged on 3,075% while cash surged on 638%.
Intrusion Inc has no short term refinancing risk: cash is higher than short term debt (2,848.3%).
Valuation and dividends
Intrusion Inc's trades at EV/EBITDA 21.7x and P/E 24.7x.
Financial and operational results
FY ended 12/31/2018
Intrusion Inc ($INTZ) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 7.219 | 6.824 | 6.102 | 6.862 | 10.276 | 49.8% |
| Gross Profit | 4.687 | 4.294 | 3.919 | 4.038 | 6.429 | 59.2% |
| SG&A | 2.967 | 3.121 | 2.827 | 2.625 | 2.716 | 3.5% |
| EBITDA | 0.015 | -0.837 | -1.113 | -0.543 | 2.609 | |
| Net Income | -0.274 | -1.249 | -1.552 | -0.030 | 2.287 | |
Balance Sheet
|
|---|
| Cash | 1.006 | 0.102 | 0.064 | 0.224 | 1.652 | 637.5% |
| Short Term Debt | 0.145 | 0.197 | 0.139 | 0.044 | 0.058 | 31.8% |
| Long Term Debt | 0.130 | 0.139 | 0.061 | 0.017 | 1.879 | 10,952.9% |
Cash flow
|
|---|
| Capex | 0.055 | 0.121 | 0.047 | 0.020 | 0.202 | 910.0% |
Ratios
|
|---|
| Revenue growth | -5.8% | -5.5% | -10.6% | 12.5% | 49.8% | |
| EBITDA growth | -98.3% | -5,680.0% | 33.0% | -51.2% | -580.5% | |
|
|---|
| Gross Margin | 64.9% | 62.9% | 64.2% | 58.8% | 62.6% | 3.7% |
| EBITDA Margin | 0.2% | -12.3% | -18.2% | -7.9% | 25.4% | 33.3% |
| SG&A, % of revenue | 41.1% | 45.7% | 46.3% | 38.3% | 26.4% | -11.8% |
| Net Income Margin | -3.8% | -18.3% | -25.4% | -0.4% | 22.3% | 22.7% |
| CAPEX, % of revenue | 0.8% | 1.8% | 0.8% | 0.3% | 2.0% | 1.7% |
|
|---|
| Net Debt/EBITDA | -48.7x | | | | 0.1x |
Intrusion Inc ($INTZ) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 2 | 2 | 3 | 3 | | 45.2% | 53.5% | 58.8% | 43.2% |
| EBITDA | 0 | 1 | 1 | 1 | | | | | 221.7% |
| Net Income | 0 | 0 | 1 | 1 | | | | 8.6% | 345.5% |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 1 | 2 | | -31.1% | -5.3% | 224.3% | 637.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | | -61.3% | -40.4% | -25.7% | 31.8% |
| Long Term Debt | 0 | 0 | 2 | 2 | | -15.6% | 87.5% | 8,363.6% | 10,952.9% |
Ratios
|
|---|
| Gross Margin | 62.4% | 60.9% | 63.7% | 63.0% | | -0.3% | 1.9% | 7.6% | 4.9% |
| EBITDA Margin | 19.1% | 23.4% | 25.9% | 31.3% | | 34.9% | 44.5% | 41.5% | 17.4% |
| Net Income Margin | 15.3% | 20.0% | 23.2% | 28.6% | | 37.8% | 48.4% | -10.7% | 19.4% |
Peers in Systems Software
Below you can find Intrusion Inc benchmarking vs. other companies in Systems Software industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Advantego Corp ($ADGO) | | | | | 973.8% |
| Solbright Group Inc ($SBRT) | | | 286.4% | 25.4% | 414.0% |
| Duos Technologies Group Inc ($DUOT) | | 61.0% | -9.8% | -36.4% | 210.2% |
| Dell Technologies Inc. ($DVMT) | | | | | 145.7% |
| Finjan Holdings, Inc. ($FNJN) | | -6.2% | 292.3% | 174.6% | 63.0% |
| |
|---|
| Median (48 companies) | | 20.6% | 14.7% | 16.6% | 19.0% |
|---|
| Intrusion Inc ($INTZ) | | -5.5% | -10.6% | 12.5% | 49.8% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| StrikeForce Technologies Inc ($SFOR) | 97.0% | 96.9% | 98.3% | 95.4% | 94.0% |
| Varonis Systems, Inc. ($VRNS) | 90.2% | 90.6% | 90.5% | 90.4% | 89.8% |
| Check Point Software Technologies Ltd. ($CHKP) | 88.2% | 88.5% | 88.5% | 88.6% | 89.6% |
| Tableau Software, Inc. ($DATA) | 91.0% | 88.7% | 88.0% | 87.1% | 87.7% |
| Attunity Ltd. ($ATTU) | 90.7% | 84.9% | 83.9% | 84.1% | 87.5% |
| |
|---|
| Median (53 companies) | 77.0% | 75.4% | 73.6% | 74.1% | 75.0% |
|---|
| Intrusion Inc ($INTZ) | 64.9% | 62.9% | 64.2% | 58.8% | 62.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Check Point Software Technologies Ltd. ($CHKP) | 54.3% | 52.4% | 49.8% | 50.7% | 48.8% |
| SolarWinds Corporation ($SWI) | | | -8.0% | 44.0% | 44.8% |
| Finjan Holdings, Inc. ($FNJN) | -192.1% | -295.2% | 2.2% | 30.2% | 42.0% |
| Oracle Corporation ($ORCL) | 46.2% | 43.8% | 40.8% | 40.2% | 40.8% |
| CA Inc. ($CA) | 33.9% | 36.7% | 37.2% | 36.1% | 35.3% |
| |
|---|
| Median (47 companies) | -1.6% | -5.0% | -8.0% | -3.6% | -4.7% |
|---|
| Intrusion Inc ($INTZ) | 0.2% | -12.3% | -18.2% | -7.9% | 25.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| The Rubicon Project, Inc. ($RUBI) | 15.6% | 11.4% | 12.0% | 26.0% | 16.0% |
| CYREN Ltd. ($CYRN) | 2.4% | 4.4% | 3.2% | 5.8% | 9.2% |
| ServiceNow, Inc. ($NOW) | 8.0% | 8.7% | 7.6% | 7.8% | 8.6% |
| Qualys, Inc. ($QLYS) | 10.4% | 12.2% | 11.7% | 16.4% | 8.2% |
| Zscaler, Inc. ($ZS) | | 12.5% | 7.8% | 6.5% | 8.0% |
| |
|---|
| Median (48 companies) | 2.9% | 2.2% | 2.1% | 2.4% | 2.6% |
|---|
| Intrusion Inc ($INTZ) | 0.8% | 1.8% | 0.8% | 0.3% | 2.0% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Finjan Holdings, Inc. ($FNJN) | -42.6% | -113.5% | 3.4% | 46.6% | 64.1% |
| Fortinet, Inc. ($FTNT) | 9.2% | 2.1% | 5.3% | 15.0% | 28.0% |
| Check Point Software Technologies Ltd. ($CHKP) | 22.2% | 23.7% | 24.7% | 26.8% | 25.5% |
| MAM Software Group, Inc. ($MAMS) | 13.3% | 19.3% | 21.1% | 24.2% | 25.2% |
| Red Hat, Inc. ($RHT) | 15.1% | 14.1% | 14.2% | 16.4% | 22.4% |
| |
|---|
| Median (56 companies) | 0.0% | 0.0% | -2.1% | -4.4% | -1.6% |
|---|
| Intrusion Inc ($INTZ) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| NXT-ID Inc. ($NXTD) | | | | | 9.7x |
| Symantec Corporation ($SYMC) | -3.2x | -1.5x | -5.0x | 10.0x | 4.7x |
| SolarWinds Corporation ($SWI) | | | | 6.2x | 4.1x |
| Oracle Corporation ($ORCL) | 0.4x | 1.2x | 1.6x | 2.4x | 2.4x |
| ServiceNow, Inc. ($NOW) | | | | 9.0x | 0.9x |
| |
|---|
| Median (22 companies) | -2.1x | -1.4x | -1.2x | -0.6x | -0.5x |
|---|
| Intrusion Inc ($INTZ) | -48.7x | | | | 0.1x |
