archTIS Ltd (ASX:AR9) has banked $1 million in revenues for the 2019 fiscal year after the information-sharing platform developer commercially launched its Kojensi Gov protected information product in April.
archTIS achieved a gross profit of $794,620 after subtracting $227,590 for the cost of goods sold.
The company’s cloud-based product Kojensi Gov was built on top of a bespoke solution used inside Australia’s national Defence Department.
It was beta tested from December 2018 in a trial involving a number of Australian Federal Government agencies, including the Commonwealth Attorney General’s Department (AGD) and the federal Aged Care Royal Commission.
Kojensi Gov is hosted on a certified cloud platform run by the listed company’s partner Vault System’s Australian Signals Directorate.
Improved annual result
archTIS reported annual revenues of $1.02 million for the 2019 financial year and other income of $379,526 for $4.1 million in net losses. It achieved a gross profit of $794,620
The company opted not to pay a dividend for its annual result, having reduced net losses per share by 0.46 cents each to 3.43 cents a share in the fiscal year.
archTIS increased net tangible assets per share by 1.1 cents a share to 6.8 cents in 2019, when compared to the 2017-18 financial year.
European office closed but door still open
Last financial year archTIS set up a software development office in the Czech Republic to act as a spillover for development work being conducted in its home country of Australia.
The company later closed the office but has retained its European subsidiary archTIS EU s.r.o.
Parent company archTIS is keeping hold of an option to pursue European Union software business opportunities.
The company ended June 2019 with $3.3 million in cash and cash equivalents, a $1.6 million, or 92%, increase in cash holdings when compared to June 30, 2018.
More sales planned for wider markets
archTIS managing director Daniel Lai said, “The company is pleased with its progress since listing and looks forward to delivering the initial Kojensi Gov clients in the near future.
“I look forward to the next 12 months of building revenue, growing the number of Kojensi users and seeing this reflected in the share price.”
Lai highlighted the company was targeting an international audience with its products over the next year and was converting its pipeline to sales.
He said, “We have an enormous market for our product with unique differentiators of securing and collaborating on classified information.”
Kojensi Gov can be used to share Commonwealth and state government information, including information classified as 'protected' under the International Registered Assessors Program (IRAP) assessment scheme.
Government users can also share this information with authorised people outside government, such as researchers in universities, defence personnel and legal professionals.
Target markets to add momentum
The company has put the immediate market size for Kojensi Gov as 300,000 potential users.
Kojensi Gov’s target audience size is expected to grow over the coming 12 months as the company accesses new markets in Australia and abroad.
The product is now available on the Australian Government’s Digital Transformation Agency (DTA) cloud procurement Marketplace.
Kojensi Gov will be promoted into the New Zealand government market by reseller TEAM Asparona and will be showcased internationally during four more conferences this year, adding momentum as the company target audience grows organically with international expansion.
The company’s product has attracted widespread interest at information security events and has been demonstrated more than 120 times to public and private sector parties.