Anthony Scott: Yeah, let me talk about our process to adoption. So typically, the challenge that we’ve had is getting a foot in the door to try to get somebody to try our product. It’s often confused with other firewall technology and so on. So historically, we’ve had to spend a fair amount of time explaining, how our technology is different from traditional firewalls and how we actually work really, really well with whatever firewall technology is out there. And once we get past that and can get to a proof of concept or a proof of value situation where the customer can actually see in real life what our product does, it usually goes really well from there. You know, in a typical POV or POC, we let our product run for a week or sometimes 10 days and we show the customer all of the things that Shield either blocked in the case of it being active or if it’s in passive or observed mode, what we would have blocked had we been in enforced mode.
And as our CTO likes to say, when shown that data, the typical customer, you know, their muscles tighten up and they get their eyes wide open and they’re shocked by the things that are either leaking in through the firewall or, in many cases, call homes that are taking place from infected devices or infected technology inside their firewall that are calling out to command and control servers somewhere on the Internet. And once we show that data, then it’s just a conversation about, generally speaking how many of these do I need and where do I place them in my network and so on. So we have a pretty high conversion rate once we get to that point. So I’m not worried at all about that aspect. I’m just, at this point, we’ve got to make more noise in the marketplace.
We’ve got to get more at-bats. You know, we need to have, just greater awareness of what our capability is. And that’s, I think going to be our challenge. As you probably know, cybersecurity technology companies spend billions and billions of dollars a year in advertising and billboards and trade shows and all the rest of it. And making a dent in that is a little bit hard, for a little company like Intrusion at this point. So our strategy is to use partners, use the channel, use managed service providers and others who can immediately see the value and act as force multipliers for us in the marketplace. In terms of cash flow positive, I don’t want to make any predictions at this particular point. I think it’s all, you know, dependent on how quickly we can ramp revenue.
I think you may have seen in the market, there’s some pretty big companies that are cybersecurity companies that even at real high valuations aren’t cash flow positive yet. And, you know, while I would love to join them in the high revenue space, I think it’s all speculative at this point in terms of when and how we might get to that particular point. So I don’t want to make any predictions. We’ll get there as quickly as we can, you know, is all I can tell you at this point.
Mike Rubinfeld: Thank you very much.
Operator: Our next question is from Ed Woo with Ascendant Capital. Your line is now open.
Ed Woo: Yeah, thank you for taking my question. I was saying the best advertisement you could get is, you know, massive data breach or massive hacking going on. There was a couple of big high profile ones out on the West Coast. You hear some of these big Las Vegas casinos and there’s rumors that they actually paid a significant amount of money. Have you seen a noticeable rash in high profile hacking type events? And how does that impact your business when, companies are getting these high-profile hacks that are very public?
Anthony Scott: Yeah, I think it’s, I think it’s a case, Ed, where whenever there’s a big fire, people start to pay a lot more attention to whether their, you know, smoke alarm is working effectively or not. And so we certainly get a lot more calls when there’s publicity around a big event. And I can speak from experience, you know, in all the businesses I’ve worked in, when one of your competitors is hacked, the first thing that your own board asks is, hey, how are we different than those guys and are we better protected? And everybody wants some reassurance that they’re not going to be the next victim. The reality today is that the bad guys are inventing and reinventing their technology. All the time and they’re very nimble and they’re very quick.
And so I can’t foresee the day when there won’t be hacks in the future. Our mission is to stay as best we can, one step ahead and protect as best we can. But I think you’re going to continue to see these, for the foreseeable future, at least. And I think that bodes well for, intrusion because some of our work with our government customers lets us see the most advanced threats and the newest things that are being tried by the bad guys. And then we can build that into our commercial product, into shield and protect against those, you know, very quickly. So I think it all bodes well for us for the future.
