archTIS Ltd is trading higher after winning a A$4.06 million contact with the Australian Department of Defence to conduct a proof of concept (PoC) that aims to usher in a modernised and secure work environment within the department.
The aim of the PoC is to evaluate potential improvements in productivity, security and regulatory compliance in the department's operations.
This initiative focuses on modernising the department's office environment and will utilise NC Protect, a product of archTIS, along with Microsoft and various third-party software products.
The DoD is already an existing client of NC Protect and this new contract broadens horizons for the company as it showcases the software’s versatility in broader applications within the defence industry.
Markets have welcomed the news with shares on the ASX trading as high as A$0.087, up 26.1% on the previous close.
Productivity and security
archTIS managing director Daniel Lai said: “This contract is an important step for Defence to evaluate the productivity gains.
“We believe that NC Protect can contribute to the way the department works on and secures information in a modern workplace environment.
“The need to increase productivity, security and speed across Defence has been identified in the newly released Defence Strategic Review, this initiative is a small but important part of that cultural change.”
“This contract is an important step for Defence to evaluate the productivity gains. We believe that NC Protect can contribute to the way the department works on and secures information in a modern workplace environment.
“The need to increase productivity, security and speed across Defence has been identified in the newly released Defence Strategic Review, this initiative is a small but important part of that cultural change.”
Agreement highlights
The PoC project is set to begin immediately and is slated for completion by the end of this year.
As part of the contractual agreement, the Commonwealth reserves the right to terminate the contract at their convenience, with the full contract amount becoming due to archTIS upon such termination.