archTIS Ltd (ASX:AR9) achieved a strong September quarter securing $5 million in new revenue contracts as the technology company focused on protecting sensitive information executes a $15 million sales pipeline.
The company increased cash reserves from $2.466 million to $2.998 million primarily due to proceeds from the exercise of options worth around $1.315 million offset by net cash used in operating activities.
Main operating cash outflows for the September quarter were payments for staff and contractors while key activities carried out by these staff and contractors were ongoing product development, sales and marketing, and corporate administration.
archTIS ended the September quarter with the financial flexibility to execute on the pipeline opportunities in the Defence, Education and Space sectors, as well as potential merger and acquisition activities.
Strategic growth plan
Chief executive officer Daniel Lai said: “I am pleased by the results archTIS has achieved in the first quarter of the financial year.
“archTIS continues to execute against its strategic plan for growth and the successful commercialisation of Kojensi and has positioned itself strongly to take advantage of the current economic and market circumstances.”
During the quarter, the Australian Government committed to the following funding initiatives to mitigate the growing threat to Information and cybersecurity:
- $270 billion of funding to Department of Defence, including $15 billion over the next decade to cyber and information welfare capabilities; and
- $1.67 billion over the next decade to Australia’s cybersecurity strategy.
These government funding initiatives have substantial information-sharing requirements that archTIS is well positioned to potentially capture though the Kojensi platform, either directly or indirectly to private markets tendering to government.