The WhiteHawk Ltd (ASX: WHK) share price soared 70.21% higher to 16 cents on Tuesday after the company announced that it had secured a United States government contract.
What are the details of the contract?
The contract between WhiteHawk and the US government has an annual base of US$580,000 per year with a contract option for an additional $600,000 in services each year. The contract will run for 5 years with the option for additional services included each year. It is the first time WhiteHawk has won a primary US federal government contract, previously providing services as a subcontractor.
WhiteHawk will operate a cyber risk radar which will monitor cyber risks and business risks for the supply chain vendors of a key US federal government IT team. The company will provide cyber risk score cards for over 150 vendors, via an integrated risk management dashboard.
WhiteHawk stated that its software-as-a-service (Saas) approach will allow for rapid implementation and scaling across over 150 vendors virtually and remotely, it also stated that this was the optimal approach due to the current coronavirus pandemic.
The company suggested that supply chain vendor cyber risks remained at high levels globally and that cyber risk solutions are currently in high demand.
Executive chair of WhiteHawk, Terry Roberts commented on the contract, stating;
"After a very successful proof of value early last year, now we are putting in place our first 5-year cyber risk radar contract with a sophisticated U.S. government CIO, who will work with us to take the capabilities of our platform and virtual services to the next level."
About the WhiteHawk share price
WhiteHawk is a Saas company that was founded in 2016. WhiteHawk helps its clients to identify cyber security risks and to choose solutions providers that can meet client needs.
In the first quarter of 2020, Whitehawk collected US$561,000 in sales receipts from customers. Of the funds received, US$263,000 were renewable SaaS subscriptions. The company had accrued revenue in the first quarter of 2020 of US$516,000, compared to US$333,000 in the previous quarter. Cash held by the company was reduced from US$1,527,000 in the previous quarter to US$1,471,000 at the end of the first quarter of 2020.
The WhiteHawk share price is up 540% since its 52-week low of 2.5 cents. It is up 78% since the beginning of the year. The WhiteHawk share price has returned 60% since this time last year.
