Cipherpoint Ltd (ASX:CPT) has recorded its highest-ever quarterly revenue and customer receipts, generated in part by sales wins that brought major organisations, including telecommunication providers and property development groups, into the fold.
Subsidiaries Brace168 and recently acquired VIT Cyber Secuirty (VITCS) have performed well, with revenues from both companies rising quarter-on-quarter.
Customer receipts equalled $1.44 million for this quarter, leaving the company with $2.599 million in cash as of December 31, 2021, following the VITCS acquisition expenditure.
Acquisition strategy paying off
Cipherpoint executive chair Ted Pretty said: “The December quarter delivered record customer receipts and revenues for the group and reflects the determination of the team to grow the top line of our business in the face of strong competition for customers and resources.
“As we achieve more scale and extract operating synergies our focus will shift to improving our operating margins.
“We intend to expand both vertically in acquiring cyber capabilities and horizontally by looking at complementary businesses.
“Our strategy of acquiring additional cyber capability and complementary businesses is working very well.”
During the December quarter, Brace 168 retained 100% of its customers while securing new contacts with property group Ingenia Communities (ASX:INA) and telecommunications provider Vocus Communications (ASX:VOC), among others.
VITCS, which was only acquired two months ago, has already signed three new customers relating to cybersecurity-related professional services work.
An extension of VITCS’ existing professional services engagement with Tasmanian Government and the Red Hat (NYSE:RHT) systems support contract for the Department of Health Tasmania, have also been inked, due to commence March 1, 2022.
Forward outlook
Cipherpoint believes it is in a strong position and is confident of continued growth, especially in the growing market for cybersecurity services, leveraged with the company’s strong sales pipeline and good partner relationships.
Cipherpoint will continue its strategy of identifying suitable acquisition targets in the managed services and cybersecurity markets while deploying its cash to scale the group’s business with organic growth and pursuing bolt-on earnings-per-share accretive acquisitions.
About Cipherpoint
Cipherpoint allows businesses to discover, protect and control sensitive information across multiple platforms and repositories, including industry-best security for Microsoft SharePoint.
Its solutions restrict access to sensitive content to IT administrators and make it difficult to steal or misuse information, rather than protecting the devices that store information.
The company is focused on delivering its unique discovery, classification and protection solutions to new customers and markets.