- Software developer archTIS (AR9) bolsters revenue and profits once more over the final quarter of the 2021 financial year
- Company revenue grew by 80 per cent quarter on quarter to $2.26 million, with gross profit up 86 per cent to $1.48 million
- The company cited key customer wins alongside rising annual recurring licensing revenue over the quarter as drivers of the growth
- Nevertheless, despite the quarterly growth, it seems investors were hoping for more from archTIS' quarterly report
- Shares in the company are down 5.88 per cent and trading at 32 cents each at 10:37 am AEST
Software developer archTIS (AR9) has bolstered revenue and profits once more over the final quarter of the 2021 financial year.
The cybersecurity company told investors this morning its revenue for the three months to the end of June grew to $2.26 million — up roughly 80 per cent compared to the March quarter this year and almost 1300 per cent compared to the June quarter in 2020.
The revenue growth was driven by record customer receipts of $3.22 million for the June quarter, with gross profit up 86 per cent quarter on quarter to $1.48 million.
archTIS increased its spending by 8.6 per cent in the June quarter compared to the March quarter this year, but the company said this reflected its increased investment in sales and marketing.
Company CEO and Managing Director Daniel Lai said the June quarter was a "strong record-breaking" quarter for the business.
"We set out with a plan to scale the business through the expansion of a global sales distribution network, increased market awareness, and technology-leading product innovation," Mr Lai said.
"This has provided shareholders with another quarter of record revenue growth, strong customer cash receipts, and an increasing recurring licence business."
archTIS offers information sharing and identity management software to universities, government organisations, the defence sector, and more. Essentially, the company's tech lets organisations securely share confidential and top-secret information online.
Customers driving growth
While archTIS said its revenue growth was largely attributable to annual recurring licensing revenue, the company cited key customer wins throughout the June quarter as the main driver of its growth.
The company said it delivered several material contract wins in the Europe, Middle East and Africa (EMEA) region over the quarter for its NC Protect and Kojensi product offerings.
At the same time, the company struck some important partnerships with the likes of Thales Australia, Microsoft, and several Australian small-to-medium enterprises (SMEs) to launch its planned Nexium Defence Cloud Edge product.
This all came alongside archTIS' successful merger with Nucleus Cyber, which the company flagged as a potential acquisition partner late last year.
Looking ahead, archTIS said it is anticipating slower sales growth over the September quarter, as is typical for this time of year.
With Australian businesses rejigging their budgets for the start of the new financial year and northern hemisphere businesses taking summer breaks, archTIS said sales are usually slow during the first quarter of the financial year.
As such, the company said it would spend the quarter focusing on building its sales pipeline opportunities and exploring its acquisition strategy and product offerings, among other strategies.
Nevertheless, despite the quarterly growth, it seems investors were hoping for more from archTIS' quarterly report.
Shares in the company were down 5.88 per cent and trading at 32 cents each at 10:37 am AEST. The company has a $72.6 million market cap.