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Senetas (ASX:SEN) share price soars 16% on new order

two harms shaking hands with one arm appearing as a circuit board representing senetas share price
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The Senetas Corporation Limited (ASX: SEN) share price has risen 15.52% today after announcing winning its biggest order to date. By the market’s close, the Senetas share price was trading at 6.7 cents after closing yesterday’s session at 5.8 cents.

What does Senetas do?

Senetas is a developer of high-performance encryption security solutions. The company’s hardware network encryptors aim to protect business and government agencies from damaging security breaches and cyber attacks.

In addition, Senetas’ services segment offers its customers absolute control over file sharing and data sovereignty through its platform ‘SureDrop’.

What did Senetas announce?

Senetas advised it has secured its largest ever single order for its ultra-high speed, 100Gbps ethernet encryptors through its global distributor, Thales. The CN9000 series product will be deployed to secure a Middle Eastern Government agency’s data in transit. 

The gross value of the new order is approximately $2 million. However, after allowing cost of goods and margin to Thales, net revenue to Senetas will be a lesser amount which the company did not disclose.

Unsurprisingly, Senetas CEO, Andrew Wilson, was pleased with the size of the order. He pointed to the realisation of a considerable opportunity that has been building over the past 12 months, and is now delivering. He commented:

With our increased presence in this market, and the potential for new opportunities via the pending European certification and custom algorithm encryptors for Eastern Europe, we continue to see exciting opportunities to further expand the market for Senetas products and expect good growth from these regions over the medium term.

About the Senetas share price

The Senetas share price is down almost 10% from a trailing 12 months. Although the Senetas share price has recovered from its March low of 3.8 cents, it has been a bumpy ride of late for shareholders with fluid gains and falls greater than 15%. With today’s increase in the Senetas share price, the company has a market capitalisation of around $72 million.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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