archTIS Ltd has surged 70% on signing a A$7 million contract with the Australian Department of Defence to expand and enhance the existing deployment on-premise of Kojensi, a highly secure, multi-level security platform for the secure sharing and collaboration of sensitive and classified files.
This is the largest sale in the company’s history and will see AR9 receive A$3.44 million in recurring revenue over a two-year period and A$3.59 million for services, support and hardware.
Recognising the significance of the contract, investors responded positively, sending shares as much as 75% higher to A$0.175.
Highlights growth trend
As a global provider of innovative software solutions for the secure collaboration of sensitive information, this contract highlights AR9’s strong growth trend particularly in the defence and national security market and follows the recent OneDefence win with KPMG to deliver the overall data security strategy for defence.
The contract is live until June 30, 2024, with an option for the Australian Department of Defence to extend for a further 12 months on the same terms.
AR9 global COO Kurt Mueffelmann, said: “The recent sale to Australian Defence continues to drive our high-gross margin licensing strategy of more predictable, low-churn ARR. This sale alone will drive significant revenue into FY23 and beyond.”
The new contract expands upon the existing deployment of Kojensi in the agency, as well as the agency’s use of NC Protect in the Defence Information Environment (DIE). NC Protect secures documentation and file sharing across SharePoint for classified information or content in communities of interest on the DIE.
Continued expansion
With security in general becoming more and more important as more vulnerabilities raise up, AR9 is doing its best to ensure that companies and organisations are as best protected as they can be.
This latest contract with the Australian Department of Defence and the contract with OneDefence highlights the importance of platforms such as Kojensi in this environment.
archTIS managing director and CEO Daniel Lai said: “We are pleased to close the largest sale in the company’s history for $7.03 million.
"Over the past 18 months we have been actively targeting global defence agencies and the broader defence industry due to their compelling need to secure highly sensitive information."
"Filling a critical need"
Lai added: "This target market strongly aligns with the unique value proposition our products offer. Kojensi and NC Protect are filling a critical need for zero-trust information security in the well-funded, defence and intelligence market and the industries that support them.”
archTIS’ participation in the KPMG Consortium announced in April this year, saw it awarded Tranche 1 of the OneDefence Data Program. archTIS will bring its expertise in Data Security Architecture. Terms of archTIS’ involvement in the consortium are still being finalised.
Further evidence AR9 successfully executing its strategy to be the premier Data Centric Security and Policy Enforcement company in Defence. Learn more: https://www.archtis.com/wp-content/uploads/2022/06/archTIS-CaseStudy_NCProtect-AUS-DoD-6-22.pdf.