A prominent Middle Eastern government agency is particularly keen to safeguard its data, engaging cybersecurity tech company Senetas (ASX: SEN) for what will be its largest order for encryptors ever.
The order for 100 Senetas encryptors comes via distribution giant Thales which has been working with Senetas. It is anticipated to inject between $2.5 to $3.0 million into Senetas’ revenue for FY24. Furthermore, the agreement encompasses maintenance services, promising a steady revenue stream in the medium term.
Senetas’ majority-owned subsidiary, Votiro Cybersec Global Pty Ltd (Votiro), has been making strides in the cybersecurity landscape with Senetas CEO, Andrew Wilson, pleased with the collaborative efforts between Senetas and Thales teams over the past two years.
“We expect a continuation of strong growth in Votiro’s ARR, supported by the positive early market reaction to Votiro’s recent launch of the industry’s first Zero Trust Data Detection and Response (DDR) platform, an acceleration of its technology and business partner programs, and further establishing relationships with critical distributors and resellers,” said Wilson.
Votiro’s sales pipeline, currently standing at US$32 million, reflecting its promising outlook and customer renewal rates but even with the strong sale, Senetas has reported a delay in its financial goal timelines.
“Cash flow breakeven for Votiro is now expected to be within the December quarter due to a delay in implementation and cash flow from a project recently awarded to Votiro that will expand the deployment for Votiro’s technology in an existing customer environment in the Asia Pacific region,” added Wilson.
“This may change depending on a range of external factors and the timing for realisation of other contracts in Votiro’s sales pipeline. However, the delay will not affect business momentum and any cash requirements for Votiro will be adequately met from Senetas’s cash reserves and/or third-party funding.”
As cybersecurity threats escalate globally, the demand for encryption solutions continues to rise. Senetas’ encryption technology, coupled with Votiro’s innovative cybersecurity offerings, positions the companies at the forefront of safeguarding critical data assets in an increasingly digital world.
For the Half Year ended 31 December 2023, Senetas reported $13.5 million revenue with a net loss after tax attributable to members of $3.9 million and $11.7 million of cash on hand.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, bloodstock enthusiast and former Analyst.
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