Cipherpoint Ltd (ASX:CPT) is expecting that new versions of its cp.Protect product will unlock opportunities to expand its subscription base in the near term from existing customers.
These new versions, which have been under development over the last six months, extend the number of supported applications required by its key customers and introduce new feature improvements.
The company remains focused on delivering its unique discovery, classification and protection solutions to new customers and markets.
Key customer renewals
During the course of the March quarter, the company secured renewals from key customers including:
- Arthur J Gallagher & Co $53,000;
- Ballad Health $30,000;
- Defence Science and Technology Agency $24,000; and
- Singapore Power $35,000.
In addition to the recent acquisition of Acronym Media as a new cp.Discover customer, the company has entered into a further two other paid proof-of-concept engagements in Europe.
Brace168 Pty acquisition
Cipherpoint entered into a binding term sheet to acquire 100% of cybersecurity services platform Brace168 Pty Ltd, which was settled on April 1, 2021.
The company’s group results will include a full quarter of Brace168 revenues and cash flows following the conclusion of the quarter ending June 30, 2021.
March quarter highlights
The March quarter saw the company continue to build pipeline opportunities with its partner NTT DATA Deutschland for the DACH region.
It ramped up its digital marketing campaign for cp.Discover, the company’s sensitive data discovery and classification product.
The new digital marketing campaign has led to securing a new US customer following the close of the March quarter on 19 April.
Whilst COVID-19 related shut-downs across Europe have continued to affect the business, management remains committed to converting pipeline leads to sales at the earliest possible opportunity.
Financial highlights
The financial highlights for the quarter were:
- Operating cash costs for the March 2021 quarter were $737,000, down from $802,000 for the December 2020 quarter while net operating cash outflows were $632,000 for the March quarter, also down from the $802,000 outflows for the December 2020 quarter;
- Following a successful placement and rights issue closing in the quarter, the company raised $2.5 million in new capital from existing and new investors; and
- The company held $3.96 million in cash as of end-March 2021.