Publicly listed information security provider archTIS has brought its after tax loss down by 37 per cent to $1.4 million during the last six months ending 31 December 2020 as it sets its eyes on global expansion.
The company made a loss of $2.3 million from ordinary activities after tax in the corresponding period the year prior.
Meanwhile, revenue from ordinary activities was up 358 per cent for the half year, year-on-year, to $1.1 million, with recurring revenue up a similar 355 per cent, to $459,235, for the period.
Underpinning archTIS’ half yearly results was a $4.2 million contract with federal government’s Department of Defence in September, the acquisition of US cyber security outfit Nucleus Cyber for $9.75 million in October and a $8.4 million capital raising in November — the latter of which particularly placing archTIS in a “strong financial position” to look at expansion opportunities, the provider claimed in a statement to the Australian Securities Exchange (ASX).
“Our prior half year successes will allow us to leverage and drive significant investments towards the expansion of sales distribution and identified market growth opportunities across the next six months and beyond,” said Daniel Lai, archTIS managing director and CEO. “Our global mission to safeguard the world’s most valuable information is playing out in all regions.”
According to financial documents posted to the ASX, part of those expansion plans include establishing a global presence across the Asia Pacific, the Americas, and the Europe, the Middle East and Africa regions.
This expands on plans archTIS alluded to during its acquisition of Nucleus, with the provider claiming at the time that it would expand globally through Microsoft’s Start-up program.
The provider also plans to develop its US presence with a federal and defence-focused business unit, leveraging its existing Australian momentum in the space, along with its relationships with the government agencies for Defence and Intelligence.
It also plans to utilise its relationships with defence companies to establish the business unit, including Northrop Grumman, BAE, Raytheon, Lockheed, Leidos and Thales, among others.
In addition to its expansion plans, the provider also is looking to drive its strategic alliances across Microsoft field sales and channel partners through its Nucleus Cyber IP co-sell arrangement, drum up attention towards attribute-based access controls as well as go after high-margin licenses to drive annual recurring revenue with its Kojensi platform and Nucleus’ NC Protect product.