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archTIS advances Kojensi platform sales in the defence sector

Snapshot

The company is focused on developing its Kojensi platform sales pipeline to commercial clients in the Defence Industry and Space sectors.

archTIS Ltd - Archtis advances Kojensi platform sales in the defence sector for 2020

Quick facts: archTIS Ltd

Price: 0.41 AUD

ASX:AR9
Market: ASX
Market Cap: $66.14 m
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archTIS Ltd (ASX:AR9) launched a campaign at the start of 2020 to target the Australian defence industry supply chain and the company has successfully advanced its sales pipeline, securing a range of contracts during the year-to-date.

The campaign focused on the Kojensi platform, which addresses the critical need to manage and share sensitive information securely across national security and law enforcement communities.

According to the Centre for Defence Industry Capability, there are around 5,000 businesses in the Australian Defence Industry sector employing about 40,000 individuals.

archTIS is confident that it is well-positioned to capitalise on the Australian Government $200 billion investment into modernising Australia's Defence capability.

National security contract

This month the company secured a contractual agreement with KPMG to provide resources to conduct several specialised security services, which includes an information security services contract with a Commonwealth National Security Agency.

archTIS will contribute resources with a focus on security architecture, information sharing, integration and cross-domain services, up to the value of $400,000, with the contract expected to be around three months in duration.

Software contracts renewed

In July, the company renewed two software contracts with Commonwealth Government agencies for a total value exceeding $400,000.

A software maintenance and service contract with a Commonwealth national security agency was renewed, with a value of $141,200, to provide maintenance and support services for an existing Kojensi platform for a further 12 months.

archTIS also renewed a separate 12-month services contract with a national law enforcement agency valued at $259,090.

The contract renewals demonstrate continued value and recurring nature of software services to the Commonwealth Government and follow the recent sale of the Kojensi platform to Northrop Grumman Corporation (NYSE:NOC) for its pilot with Curtin University as part of a new sales channel into large non-government enterprises managing sensitive data.

First commercial defence industry contract

The company secured its first defence industry commercial contract with Northrop Grumman on June 18 to purchase an initial 50 licences of the Kojensi platform to securely share information for its business development teams.

This contract with the global US$53 billion Military System Integrator (MSI) has initial annual recurring revenue of $35,455.

Northrop Grumman will initially use the platform within their Australian and US Business Development teams, which will allow secure and seamless collaboration on highly confidential Defence Tender submissions.

Accelerating commercialisation strategy

In June, archTIS completed a $2.24 million capital raising to drive Kojensi Platform growth, raising $590,750 from a share purchase plan (SPP) with around 10.7 million new shares issued at a price of 5.5 cents per share.

This followed a $1.65 million placement completed in May.

The funds raised will assist archTIS to accelerate its commercialisation strategy and increase the uptake of its Kojensi Platform for secure classified information sharing.

Space sector sale

Marking the company’s first win in the education and space sectors, Curtin University contracted archTIS in May to build and implement differential access controls for an Australian DataLake for Space Situational Awareness (SSA) data.

The DataLake is a paid prototype that will implement Kojensi Enterprise and Axiomatic’s attribute-based access control (ABAC) policy engine to provide individually customised access to data repositories.

archTIS will enable different stakeholders and organisations to access information, collaborate and query information at different levels of sensitivity through the DataLake, generating $62,000 in initial revenue.

The DataLake prototype will be the company’s first integration with Axiomatics, paving the way for Kojensi to enter the big data analytics market.

The contract is also a significant win for the company in the growing Australian and global space industry sector which, according to KPMG, is a $5 billion market growing at an annual growth rate of 8.6%.

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