Shares in the company – which provides data-centric security solutions for the collaboration of sensitive information – closed yesterday trading for 6.9 cents. In morning trade on Wednesday, shares just leapt to 9.7 cents, putting the Archtis share price up 40.6%.

After some likely profit taking, in later morning trade shares are swapping hands for 8.3 cents apiece, up 20.3%.

For some context, the All Ordinaries Index (ASX: XAO) is down 0.1% at this same time.

Here's what's sending the ASX tech stock flying higher.

ASX tech stock inks US government deal

The Archtis share price is lifting off after the company reported that it has signed a $2.3 million contract to expand NC Protect licenses with the Australian Department of Defence. That sum includes GST.

According to the release, NC Protect "dynamically secures sensitive information by applying zero trust enforcement policies to data-centric access controls across Microsoft 365, SharePoint on premises and file share environments".

The ASX tech stock is capturing interest with the company's initial annual recurring revenue (ARR) set to increase by $276,000 in the first year. ARR will then increase to $463,000 from year two onwards.

The contract term runs through May 2028.

The new contract comes on the heels of the $700,000 services contract it was awarded in June. Management noted that this "establishes NC Protect as the data-centric security product of choice for Defence SharePoint on-premises deployments".

Pointing to further growth potential, the company expects the new contract will open the market for NC Protect to other defence and government clients around the world. Archtis said its security technology will allow for Australian Defence information to be shared with other allied partners while "enforcing need to know principles and compliance requirements".

Commenting on the government deal sending the ASX tech stock soaring today, Archtis managing director Daniel Lai said, "This contract is an important step to open new market opportunities for NC Protect."

Lai added:

It demonstrates strong growth for NC Protect with a referenceable target market client. It also validates NC Protect's unique value proposition as the premier data-centric security solution for Microsoft Corp (NASDAQ: MSFT) products within the Australian Department of Defence.

This contract places Archtis in a strong position for future growth as global defence organisations struggle with the challenge to securely share and collaborate on the sensitive and classified information.

Despite today's big boost in the Archtis share price, the ASX tech stock is down 25% over 12 months.

The post Guess which ASX tech stock just rocketed 41% on a new government deal appeared first on The Motley Fool Australia.

Malicious actors have been trolling the internet since its earliest days. Some attempt to seize control of your computer and hold it for ransom. Others attempt to steal people's personal data, which they may also hold for ransom or sell on the darknet.

While hackers are the proverbial dark side of the force here, ASX cybersecurity shares are working to keep household, corporate and government data safe from online thieves.

But as witnessed by the recent major hacks of telecom provider Optus and private health insurer Medibank, there's more work to be done to safeguard our virtual privacy and security.

What might hackers do with the stolen data?

The potential damage to impacted individuals will depend on the specifics of the stolen data, along with the hackers' own intentions.

As far as the Optus hack goes, Professor Vanessa Teague, a cryptographer from the Australian National University said (courtesy of ABC News):

In the Optus breach, what it seems to have primarily involved is identity documentation. And the thing that a person with malice might use it for, is exactly what you might use it for — and exactly the [reason] Optus had it for, which is identifying as that person in an online setting.

This kind of data could potentially allow hackers to get a credit card in the name of an impacted customer.

The MediBank breach poses different, but equally disturbing issues.

According to Teague, a person's medical data "isn't as useful for fraud [but] on the other hand, it potentially gives you much more power over some people, because it might reveal very intimate details about the person".

So, in the wake of all this hacking news, how have ASX cybersecurity shares been tracking?

How are ASX cybersecurity shares faring amid all these hacks?

The Optus data breach was reported to the public on 22 September. The Medibank hack came out only last week, with new details still emerging suggesting the data breach may be significantly worse than first reported.

For tracking the performance of these four ASX cybersecurity shares, we'll use the closing bell on 21 September as our starting date. And for context, we'll note that the All Ordinaries Index (ASX: XAO) has gained 1.1% over that time.

As for the BetaShares Global Cybersecurity ETF (ASX: HACK), the exchange-traded fund is up 3.5% since then. HACK's major holdings include international cybersecurity companies like Accenture, Cisco, Cloudflare and Crowdstrike.

As for internet security company Tesserent Ltd (ASX: TNT), it's trading right where it was when the Optus data breach news first broke.

Then there's ASX cybersecurity share Archtis Ltd (ASX: AR9). The Archtis share price is down 14.7% over this period.

And we leave off with WhiteHawk Ltd (ASX: WHK). The microcap ASX cybersecurity share is up 3.3% since the closing bell on 21 September.

The post How are ASX cybersecurity shares faring amid all these hacks? appeared first on The Motley Fool Australia.

At the time of writing, the software security provider's shares are up 60% to 16 cents.

Let's take a look at what Archtis released to the ASX this morning.

Archtis completes 'largest sale' in its history

Investors are rallying up the Archtis share price after digesting the company's latest news.

In its statement, Archtis advised it has been awarded a $7 million contract with the Australian Department of Defence.

Under the deal, the existing deployment of Kojensi will be expanded and enhanced within the Defence network.

Kojensi is a highly secure multi-level platform that allows classified information to be shared internally with partners and clients. Users can create, share files and co-author documents in real time on a protected cloud space. It also allows the operator to control how the information is accessed and used.

The value of the contract will be split, with $3.59 million payable on delivery which includes services, support and hardware. The other $3.44 million will come in recurring revenue that will be owed over a two-year period.

The contract begins today and will continue until 30 June 2024. There is also an option for the Department of Defence to extend the agreement for another 12 months on the same terms.

Commenting on the news fuelling the Archtis share price today, managing director Daniel Lai said:

We are pleased to close the largest sale in the company's history for $7.03m.

Over the past 18 months we have been actively targeting global defence agencies and the broader defence industry due to their compelling need to secure highly sensitive information.

This target market strongly aligns with the unique value proposition our products offer. Kojensi and NC Protect are filling a critical need for zero-trust information security in the well-funded defence and intelligence market and the industries that support them.

Archtis share price snapshot

Despite its huge gains today, the Archtis share price has fallen 16% since the start of 2022.

When looking further back, its shares are down 35% since this time last year.

Based on today's price, Archtis presides a market capitalisation of around $27.70 million.

The post Here's why this ASX tech share is rocketing 60% today appeared first on The Motley Fool Australia.

"G'day Fools. If you're like us, you're dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we'll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine."

It's proving to be a big week for ASX cybersecurity shares as fears of Russian cyber attacks grow and the tech sector recovers.

Internationally, cybersecurity stocks Crowdstrike Holdings Inc (NASDAQ: CRWD) and Palo Alto Networks Inc (NASDAQ: PANW) have each gained around 15% over their last five sessions.

And the theme is carrying over to the ASX. Let's take a look at what's seemingly got investors bullish on cybersecurity and two ASX shares that could be benefiting.

What's driving ASX cybersecurity shares higher?

Warning bells are ringing after Western powers – including Australia – placed sanctions on Russia, barring its banks from accessing the Society for Worldwide Interbank Financial Telecommunications (SWIFT) payment system.

International banks are likely now preparing for retaliatory cyberattacks, according to reporting by Reuters.

Meanwhile, Telstra Corporation Ltd (ASX: TLS) CEO Andy Penn told the Mobile World Congress that the crisis occurring in Ukraine is an example of a changing landscape where cyberattacks can ultimately harm individuals and businesses anywhere, as reported by The Australian.

Just last week, the Australian Cyber Security Centre (ASCS) issued a warning to organisations, asking them to consider strengthening their cybersecurity measures following Russia's invasion of Ukraine.

Of course, concerns of malicious cyber activity have helped put a spotlight on ASX cybersecurity shares.

Additionally, as cybersecurity stocks inevitably overlap with the technology sector, it's worth mentioning the latter's recent rebound.

After plunging last Thursday, the S&P/ASX All Technology Index (ASX: XTX) and S&P/ASX 200 Information Technology Index (ASX: XIJ) have recovered their losses – and then some.

The All Tech Index is currently 5% higher than it was one week ago. Meanwhile, the ASX 200 Info Tech Index is 10% higher.

These ASX cybersecurity shares have taken off this week

ArchTIS Ltd (ASX: AR9)

Producer of cybersecurity and secure information sharing solutions, ArchTIS has seen its share price surge 14% over the last week. At the time of writing, shares in the company are trading for 19 cents apiece.

Worth noting, the company released its earnings for the first half of financial year 2022 last Thursday.

Over the half, the company's revenue more than doubled ­to reach $2.4 million last half. That's a 118% increase on that of the prior comparable period.

Additionally, its reoccurring revenue grew 104% to $2 million.

WhiteHawk Ltd (ASX: WHK)

The WhiteHawk share price began trading after an extended freeze late on Thursday. It has since gained 34% to trade at 16 cents.

The trading halt was imposed by the ASX as it ran a fine-toothed comb through the company's recent disclosures.

The following day, WhiteHawk dropped its preliminary report for 2021.

Last year, the company's revenue increased 180% on that of 2020 while it posted an after-tax loss of US$2.5 million.

The post 2 ASX cybersecurity shares going gangbusters this week appeared first on The Motley Fool Australia.

At the time of writing, the Archtis share price is down a sizeable 9.43% to 24 cents.

Let's take a look at what Archtis released to the ASX this morning.

What did Archtis announce?

Investors are dropping Archtis shares on news of the company's latest capital raising.

According to its release, Archtis advises it has received firm commitments to raise $6.5 million through a share placement.

The offer was presented to domestic and international institutional and sophisticated investors. The issue price is 23 cents apiece. This equates to roughly 28.26 million new ordinary shares to be added to the company's registry.

In addition, Archtis will offer a share purchase plan (SPP) to existing shareholders to raise a further $1.5 million on the same terms as the placement.

Participants in the placement and SPP will also be able to receive 1 option to acquire an Archtis share for every 3 shares received under either offer. This will be exercisable at 35 cents, expiring 2 years from the date of issue.

The funds from the equity raising will support a number of growth initiatives for the company. These include:

• Launch the Kojensi platform into key regional markets of the United States and the United Kingdom
• Explore and execute a merger and acquisition strategy to achieve annual recurring revenue (ARR)
• Build pipeline and close opportunities in conjunction with the Microsoft field through IP Co-sell.

Archtis managing director and CEO, Daniel Lai commented:

We were pleased to see such strong demand from domestic and international institutions following our recent decision to be quoted on the OTCQB Market. A diversified shareholder base bolsters our strategic efforts to scale our information security technologies in the US and globally.

By expanding our market reach with Kojensi, NC Protect and cp. Protect, we expect to leverage our success with Australian Defence in other geographical regions and accelerate pipeline through our alliance with Microsoft IP Co-sell.

About the Archtis share price

The Archtis share price retreated between January and July 2021 following the company's expanded global operations.

The share price regained ground in August and September but has since been on a continuing decline. Archtis shares are now down 22.6% year to date.

Archtis has a market capitalisation of about $56.08 million, with more than 233.67 million shares on its books.

The post Why the Archtis (ASX:AR9) share price is sinking 9% today appeared first on The Motley Fool Australia.

Right now, the Archtis share price is 33.5 cents, 2.9% lower than its previous close.

Archtis share price slumps despite 743% revenue increase

Here's how the cyber security provider performed through FY21:

• $4.6 million of revenue, 743% more than that of FY20
• Loss before tax of $3.3 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) came to a loss of $1.5 million, still a 44% improvement on that of FY20
• $3.1 million of profit, a 1,159% increase
• No dividends

The company's annual recurring revenue over FY21 was $1.9 million, 681% more than in FY20.

It also received cash receipts worth $7.4 million, 846% more than it did in the previous period.

Archtis ended the period with $12.7 million in cash.

What happened in FY21 for Archtis?

Here's what drove the Archtis share price in FY21:

Archtis announced its plans to acquire and merge with Nucleus Cyber in October. The merger took place in December.

The merger expanded Archtis' footprint in North America, Europe, the Middle East and Africa.

It also produced cross-selling opportunities with Nucleus Cyber's existing product offering within the Microsoft Corporation's (NASDAQ: MSFT) software suite.

Archtis also secured its largest deal ever in FY21. That was was with the Australian Department of Defence and is worth $4.2 million.

Then, in the fourth quarter, the Department of Defence bought two multi-year contracts worth a total of approximately $1.4 million for the licensing of NC Protect. The defence department will use Archtis' software to secure information collaboration across the Microsoft suite.

What did management say?

Archtis' chair Dr Miles Jakeman commented on the results driving the company's share price today, saying:

Financial Year 2021 (FY21) will go down as a bittersweet period for the company as we entered into new global market opportunities. Amongst the personal loss and economic challenges experienced by hundreds of millions of people across the globe, Archtis is pleased to deliver a transformational and record-breaking financial year.

Archtis' financial performances this year was substantially higher in every single reporting metric…

Remote work has brought new challenges to collaboration and has exposed a broader need around security; particularly associated with breaches and loss of sensitive information originating from employees and contractors (insider threats). Nation-states, corporate espionage and human error have exponentially added to the challenges global organisations are facing in securing their data. The old security model is broken and archTIS is leading the way toward new and innovative methodologies that make collaboration more secure, easier to use, simple to deploy and scalable.

What's next for Archtis?

Investors focused on the Archtis share price in FY22 should keep an eye out for these developments:

The company is planning to continue driving towards triple-digit growth in annual reoccurring revenue in FY22.

It's also going to focus on creating superior products and capture a larger global market share. It will be looking out for acquisition opportunities to expand its product offerings.

Archtis will continue working on pipeline opportunities with Microsoft, Thales, Raytheon, and other partners.

Finally, the company has pointed to MarketsandMarkets research that shows the global data-centric security market's size will increase from US$3,460 million in 2020 to US$9,763 million by 2026.

It's safe to assume Archtis is hoping to get a slice of that exceptional growth.

Archtis share price snapshot

Despite today's fall, the Archtis share price has gained 8% year to date. However, it has dropped 31% since this time last year.

The post Archtis (ASX:AR9) share price slips on $3.3 million loss appeared first on The Motley Fool Australia.

Below, we take a look at the ASX cyber security company's quarterly update for the quarter ending 30 June (Q4).

What quarterly update did Archtis report?

Archtis' share price remains down at time of writing despite the company reporting a record-breaking quarter.

According to the release, total unaudited revenue for Q4 in the 2021 financial year came in at $1.25 million. That's an increase of 80% on Q3 revenue. It's also up 1,289% from Q4 in the 2020 financial year, when revenue came in at $162,000.

Archtis said the leap in revenue was mostly thanks to a 39% increase in annual recurring licensing revenue, as well as consulting services derived from its Australian Department of Defence contract.

The innovative software developer also realised an 86% increase in gross profits quarter-on-quarter, to $1.48 million, up from $797,000 in Q3.

With more money going into sales and marketing, operating expenses for the quarter were $2.3 million. This was up 8.6% from the prior quarter. As at 30 June, the company has a cash balance of $12.7 million, compared to $12.0 million in Q3.

Commenting on the results, Archtis' CEO Daniel Lai said:

Archtis delivered a strong record-breaking quarter. 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. This has provided shareholders with another quarter of record revenue growth, strong customer cash receipts and an increasing recurring licensing business.

The company credited the strong growth to some large new customer wins as well as renewals across government agencies, defence contractors and corporations around the world.

Archtis share price snapshot

The Archtis share price has gained 43% over the past 12 months, compared to a gain of 25% on the All Ordinaries Index (ASX: XAO) over that same time.

Year-to-date the Archtis share price is up 6%.

The post The Archtis (ASX:AR9) share price slides on quarterly update appeared first on The Motley Fool Australia.

This follows a speech from Telstra Corporation Ltd (ASX: TLS) CEO Andy Penn at the National Press Club on Thursday. Mr Penn spoke as the chairman of the federal government's Cyber Security Industry Advisory Committee.

ASX 200 companies greatest cyber threat

In the speech, Penn warned the rise of more sophisticated supercomputers and artificial intelligence (AI) could be one of the greatest threats to Australia's cybersecurity. Telstra's boss went on to say:

Because more abundant and better resourced cybercriminals, cyber activists, and increasingly involved in nation-state actors, means that Australia and Australians are quite literally under constant cyberattack

These comments are echoed by recent events. Australia has been suffering a barrage of cyberattacks. In April, we reported on the Reserve Bank disclosing millions of cyberattacks each day on Australian banks.

Moreover, the nation's largest meat producer, JBS Foods, was brought to a screeching halt in June following a cyberattack.

These threats could be exacerbated by the advancement in AI and supercomputers in the years to come. Speaking to this, Penn suggested Australia has 5 to 15 years to plan for a time where today's current encryption technology would become obsolete.

However, the telecommunications boss added, "careful consideration" was needed immediately.

ASX 200 shares have not escaped the past 18 months without feeling the cyber sting. Both Bluescope Steel Limited (ASX: BSL) and Nine Entertainment Co Holdings Ltd (ASX: NEC) have suffered ransomware attacks

ASX companies working in the space

We typically look to the United States court when talking about cybersecurity. Many big-name players including Crowdstrike are based in the States. However, Australia has a few of its own players right on its own doorstep.

While these companies may not be large enough to fit into the ASX 200 just yet, they are growing due to the activity of the sector. One such example is Tesserent Ltd (ASX: TNT), with a market capitalisation of $304.7 million.

As an example, Tesserent's 12-month trailing revenue has skyrocketed over the past year. This value jumped from $7.77 million at the end of 2019, to $43.78 million at the end of 2020.

Additionally, an even smaller company working in the space is Archtis Ltd (ASX: AR9). This company provides secure information-sharing solutions to a range of government agencies.

These companies are clearly riding on the coattails of the industry. Specifically, both shares outperforming the S&P/ASX 200 Index over the past year. Tesserent has returned 243.7% over the past 12 months, while Archtis has climbed 79.4% over the same period.

The post ASX 200 companies take heed: Telstra (ASX:TLS) boss says Australia faces 'unprecedented' cyber threat appeared first on The Motley Fool Australia.

Archtis shares are 3.57% higher at the time of writing today, trading at 29 cents per share.

Archtis is a Canberra-based company that consults and develops cybersecurity and secure information sharing solutions for government agencies in Australia. Let's take a look at what this contract involves.

Archtis' new defence contract

Archtis' new contract with the Australian government is for software support services for the expanded deployment and broader architectural scope of NC Protect.

NC Protect is a cloud and hybrid-based software package produced by a company called Nucleus Cyber, which allows organisations to automatically discover, classify and secure unprotected or breached data on its servers. One of its valuable assets is it works with mainstream applications, such as Microsoft 365 and Dropbox.

Archtis recently merged with Nucleus Cyber, positioning the company to benefit from both the installation and then management of NC Protect long-term. The contract is effective immediately for a fixed term ending 30 June 2021.

Archtis management pleased with 'defence ecosystem footprint'

Archtis managing director Daniel Lai welcomed the continued partnership with the Australian government.

I am pleased that our footprint within the Australian Defence ecosystem for NC Protect is quickly expanding. The need to securely share sensitive and classified information is paramount for defence. Archtis portfolio solutions are uniquely able to deliver secure policy-based access and sharing to safeguard even the most sensitive information.

This project provides further validation of our merger with Nucleus Cyber and the synergy between our products.

More about Archtis' services

Given the huge amount of investor interest around fellow ASX defence-linked share Nuix Ltd (ASX: NXL), Archtis has historically traded a little more under the radar. The company produces security solutions for supply chain, enterprises and regulated industries through attribute-based access and control (ABAC) policies.

Its main product is Kojensi, a multi government-certified platform for the secure access, sharing and collaboration of sensitive and classified information. As mentioned, it now has control of NC Protect for enhanced information protection for file access and sharing, messaging and emailing of sensitive and classified content across Microsoft 365 apps, Dropbox, Nutanix Files and Windows file shares. 

Archtis share price snapshot

The Archtis share price has risen 11% in the past week alone and is up 286% over the past 12 months.

The post Archtis (ASX:AR9) share price jumps on defence contract appeared first on The Motley Fool Australia.

The Archtis share price has halved since its all-time record high of 60 cents in August 2020. Furthermore, it is down 13% year-to-date. In stark contrast to its share price performance, the company released its quarterly results which highlight record-breaking revenue and recurring licensing. 

Archtis share price flat despite record quarterly results 

The Archtis share price is currently flat despite its strong growth trajectory for accelerated revenue and recurring licensing during the March quarter.

Its revenues for the quarter increased 84% on the prior quarter and up 776% year-on-year to $1.25 million. This was driven by a strong annual recurring revenue from software licensing of $421,000 for the quarter. Up 57% over the prior quarter.

Archtis achieved a number of significant global customer wins, contract renewals, and expansion of existing licenses throughout the quarter. The company believes these milestones strong endorse its secure information sharing platforms NC Protect and Kojensi, as world-leading technology products. 

To further drive growth, the company established a regional presence in London to target Europe, the Middle East, and Africa. In addition, Archtis focused on Singapore to expand its APAC presence. 

Expanding focus

To expand the company's success in servicing the Australian government and defence industry, Archtis created a US Federal and Defence focused business unit. This unit is designed to serve key US government agencies. 

Operational expenses for the quarter increased 95% over the prior quarter to $2.12 million, reflecting its integration with Nucleus Cyber becoming a part of the company for the full quarter. Archtis has also pushed investment in sales and marketing resources. The intention was to execute its go-to market strategy. This is in line with its 'use of funds' segment presented to shareholders during its November 2020 capital raising and March 2021 investor update. 

Despite the increase in costs, the company stands profitable. Furthermore, with a gross profit of $802,000, up 57%. Its gross margins decreased from 75% in the previous quarter to 64%. This is due to an increased proportion of revenue from consulting services. Which is at a lower margin than software licensing, and a one-time pass-through hardware requirement. 

The company retains a healthy cash balance of $12.03 million which is quite significant considering its market capitalisation of just $61 million. 

Archtis share price outlook 

Archtis expects to continue to invest in scalable growth. In particular, in sales and marketing to expand global sales distribution and market awareness. This should translate to continued revenue growth coupled with increasing recurring licensing revenues. Thus, it should drive gross profit and margins higher. 

The company's strong cash position has given it the confidence to say that it will not require additional capital raises for operational growth, whilst exploring potential strategic acquisitions to expand its product breadth and growth prospects. 

At the time of writing, the Archtis share prices trading for 28 cents, up 5.56%.

The post Could a record breaking quarter bring the Archtis (ASX:AR9) share price back? appeared first on The Motley Fool Australia.

Today is also the first day of trading for Archtis shares since the company requested a trading halt on 22 January. This was pending the release of the outcome of its proposed application to the Supreme Court of Western Australia. The application was related to Archtis' "inadvertent failure to lodge cleansing notices … in relation to various issues of shares during the period from September 2020 to January 2021".

Let's take a look at what the cyber security software solutions provider reported today. 

What did Archtis report?

The Archtis share price rocketed higher in the opening minutes of trade after the company reported total revenues for the half year of $1.11 million. That's up 358% from the $242,00 reported in the first half of the 2020 financial year. Recurring revenues ramped up 355% to reach $459,000.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at negative $941,000, an improvement on the negative $1.80 million reported in the prior corresponding half.

The company reported a 585% increase in its gross margin to $810,000, up 585%. Its cash balance, following an $8.4 million capital raising during the half, stood at $12.1 million as at 31 December, up 398% from H1 FY20.

Looking ahead, Archtis said its recently finalised merger with Nucleus Cyber as well as its $4.2 million Australia Defence contract win have helped position it well for additional revenue and licencing growth in the year ahead.

Commenting on the results, Archtis CEO Daniel Lai said:

Our prior half year successes will allow us to leverage and drive significant investments towards the expansion of sales distribution and identified market growth opportunities across the next six months and beyond. Our global mission to safeguard the world's most valuable information is playing out in all regions.

Archtis Chair Miles Jakeman added:

We are well positioned to execute on the Board strategy of increasing customer adoption on a global basis through an annual recurring revenue / software licensing model that drives significant margin and predictability over the coming quarters to create shareholder value.

Among the company's leading goals for the remainder of the 2021 financial year is to create a United States-based federal and defence-focused business unit.

Archtis share price snapshot

The Archtis share price reached an all-time closing high on 24 August of 52 cents. Whilst having dropped to today's level since then, the Archtis share price remains up around 205% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is flat over that same time.

Year to date, Archtis shares are down 3.23%.

The post Why the Archtis (ASX:AR9) share price opened 17% higher today appeared first on The Motley Fool Australia.

At the time of writing, the archTIS share price is edging 0.6% higher to 30.7 cents.

What's pushing the archTIS share price higher?

According to this morning's release, the Australian Department of Defence has renewed its annual software subscription licence with archTIS' subsidiary, Nucleus Cyber.

archTIS completed the acquisition of Nucleus Cyber in December last year for $9.75 million.

Under the deal, Nucleus Cyber will continue to provide its NC Protect product to the Defence Department. The contract value for the year-long licence is $148,866.

The NC Protect is a cybersecurity tool that allows sensitive data spread across on-premises and cloud-based platforms to be secured. In essence, it protects against breaches, data misuse and unauthorised file access enabling companies to operate without outside intrusions. This enables safe file sharing, messaging, and chat across programs such as Microsoft Office 365—SharePoint, OneDrive, Exchange and others.

With the latest contract renewal wrapped up, archTIS highlighted that this was its second licencing award from the Defence Department this year. The first, signed in September, was a $4.2 million risk reduction activity aimed at informing defence on future capability decisions and acquisitions. Spread over 3 annual licences, each value of the enterprise platform came to $760,000 per year.

In total, archTIS' group recurring annual subscription revenue stands above $950,000 from the Defence Department.

The company noted that its recent success follows the Australian Government's 10-year defence budget. A detailed plan that will seek to invest $15 billion on defence information management and cybersecurity.

What did management say?

archTIS managing director Daniel Lai, welcomed the renewed partnership, saying:

This renewal demonstrates the strategic value of the Nucleus Cyber acquisition. It provides our customers with a range of policy enforcement products to secure and share their information assets.

The merger now means archTIS can provide award-winning products to secure our clients Microsoft business applications. The Defence renewal validates the quality and uniqueness of NC Protect. This renewal and our recent Kojensi sales strongly position archTIS as a key provider of information security products to the Australian Department of Defence.

This is an exciting time for archTIS as it continues to successfully execute our strategy to become the global leader of policy enforcement in the protection and sharing of sensitive and classified information.

The post The Archtis (ASX:AR9) share price is lifting today. Here's why appeared first on The Motley Fool Australia.

What's moving the Archtis share price?

In contrast to a wider market selloff, investors are today driving up the Archtis share price after the company announced news of its latest acquisition.

Archtis is a Canberra-based firm that specialises in the design and development of products, solutions and services for secure information sharing and collaboration. The company has a broad range of products and service offerings such as:

• Kojensi, a highly secure and trusted platform for sharing sensitive and classified files and document collaboration.
• Axiomatics, a dynamic and externalised authorisation solution. 
• Appsian, a security platform with dynamic control access. 
• Consulting and solutions services for secure information sharing and inter-organisation collaboration. 

Nucleus Cyber provides advanced information protection solutions that prevent data loss and protect against insider threats across the Microsoft Corporation (NASDAQ: MSFT) software suite. Microsoft is the world's largest supplier of digital collaboration products to government, enterprise and SMEs. Microsoft boasts 115 million daily users of its Teams platform, and the Nucleus Cyber technology solutions operate seamlessly in conjunction with these products. For example, its protection solution provides a simpler, faster and cheaper solution to tailor information protection for file sharing, messaging and chat across collaboration tools. 

Nucleus Cyber's customers include companies such as Virgin Australia Holdings Ltd (ASX: VAH), the Australian Government Department of Defence and Department of Health, Melbourne Polytechnic and Paramount Pictures. 

Acquisition details 

Archtis will acquire 100% of Nucleus Cyber for a total potential consideration of up to $9.75 million in Archtis shares. The company believes that this acquisition is highly strategic and transformational for its growth trajectory and global presence. Archtis will gain immediate presence in the key North American market, as well as access to the Microsoft business product suite. 

Opportunities for the combined business

The acquisition presentation highlights the company's initial focus on foundational benefits such as simplifying its combined licensing and revenue model, solidifying its products, stabilising the combined customer base, introducing the Microsoft relationship to Archtis, and developing initial awareness. 

This will position the company in 2021 and beyond to focus more on expansion including a direct regional expansion across the European Union, Middle East and Asia Pacific regions. It will also enable Archtis to expand its product alliance with Microsoft Teams and security platforms as well as delivering lead generation and opportunities within US federal and central governments. 

The Archtis share price has increased 200% in year-to-date trading.

The post Archtis (ASX:AR9) share price jumps 8% on cyber security acquisition appeared first on The Motley Fool Australia.

What Archtis does

Archtis is a Canberra-based cyber security technology company that specialises in the safe design and development of cloud based, secure information management and collaboration software. Since its establishment in 2006, the company has provided cyber security consulting and infrastructure and software development services to Australian government clients.

In a bid to commercialise its services, Archtis launched its software-as-a-service (SaaS) Kojensi platform last year to service government, defence and commercial clients.

Landmark contract win for Archtis

Archtis's share price was sent flying today as the company announced a $4.2 million deal with the Australian defence department. It includes three licences of the Archtis Kojensi platform and will be used to perform risk reduction activity for multinational information sharing and cross domain services. The risk reduction activity will be conducted over the next 12 months. It will include development, building and accreditation activities to provide defence.

Furthermore, it will provide an information-sharing architecture pattern for cross and multi domain services between different allied partners. Thus the contract has the potential to springboard Archtis into prominence as its product will be shared with other large allied nations.

This is the company's largest contract to date, reflecting its growing maturity and the defence force's commitment to investing in premium sovereign information security capabilities.

Archtis CEO Daniel Lai said:

I am delighted that Archtis has been selected to lead this risk reduction activity. The need to share, control and trust information in the warfighter domain, between forces and with allies remains a critical requirement and archTIS is well-positioned to deliver on this.

What now for the Archtis share price?

The Archtis share price has performed exceptionally well this year to date with the growing awareness around cyber security providing a strong tailwind. Archtis's share price is currently up 300% so far this year.

The post Why the Archtis (ASX:AR9) share price is rocketing up today appeared first on The Motley Fool Australia.

Archtis wins new contract

Archtis has won a new 3-month services contract with KPMG to provide information security services with a Commonwealth national security agency.

Archtis will provide $400,000 worth of resources and subject matter experts under the deal, which starts immediately. This will see the company contribute to security architecture, information sharing, integration and cross-domain services. It will be part of a consortium of industry leaders assembled by KPMG. 

Archtis management said the contract recognised the company's development of services and intellectual property.

What does Archtis do?

Archtis is an Australian-based cyber security technology company that specialises in the safe and secure sharing of classified information. Since its establishment in 2006, the company has provided cyber security consulting and infrastructure and software development services to Australian government clients.

In a bid to commercialise its services, Archtis launched its software-as-a-service (SaaS) Kojensi platform last year to service government, defence and commercial clients. The company released an update for the fourth quarter of FY20 which highlighted strong progress in commercialising its platform.

The company has been growing sales momentum after renewing a government contract and also securing its first commercial contract with the defence industry. This follows a deal with Curtin University in May which will see Artchis expand into the education and space sector. Archtis also completed a $2.26 million capital raise in early June to expand its platform to new markets.

Foolish Takeaway

At the time of writing, the Archtis share price is trading at almost 9.7% higher for the day at around 51.0 cents. Shares in the company have been sold down after hitting an intra-day high of 58 cents earlier. Since mid-July, the Arcthis share price has surged more than 236% with tradee reaching an all-time high of 60 cents.

The post The Archtis share price soars on new contract appeared first on The Motley Fool Australia.

Shares in Archtis are trading more than 15% higher for the day, capping an extraordinary week for the company. The Archtis share price closed at 28.5 cents last Tuesday and hit an all-time high of 60 cents earlier today.

Here's why the Archtis share price is soaring.

What is fuelling the Archtis share price?

Archtis is an Australian-based cyber security technology company that specialises in the safe and secure sharing of classified information. In a bid to commercialise its services, Archtis launched its software-as-a-service (SaaS) Kojensi platform last year to service government, defence and commercial clients.

The company's quarterly report released in late July has fuelled momentum in the Archtis share price.

In the report, Archtis noted important contract wins for the quarter. The company was able to secure its first defence industry contract for its Kojensi platform with global military system integrator Northrop Grumman. Archtis also secured its first contract in the education and space sector after closing a deal with Curtin University in May.

Archtis management said the new contracts highlighted the demand for the company's Kojensi platform and demonstrated the commercialisation potential for its products.

The company has also renewed its $400,000 contract with the Australian Government.

Bullish outlook for Archtis

Analysts painted a bullish outlook on the Archtis share price in a recent research report from Lodge Partners. The report said the company was well-positioned to benefit from a range of domestic and international tailwinds such as the growing focus on cyber security.

One potential tailwind is the growth in defence and cybersecurity spending. Analysts noted the Federal Government's $1.35 billion Cyber Enhanced Situational Awareness and Response package.

In addition, Archtis has also endeavoured to streamline the company's board to push revenue growth in the future.

Foolish Takeaway

There's plenty of momentum behind the Archtis share price, which is trading at 54 cents at the time of writing after hitting a record and intraday high if 60 cents earlier today.

The post The Archtis share price has doubled in a week! Here's why appeared first on The Motley Fool Australia.

Why are analysts backing the archTIS share price?

Analysts from Lodge Partners backed their bullish outlook for archTIS by citing the company's recent quarterly update, board restructuring, fully developed product offering and commercialisation prospects. According to analysts, archTIS has made strong progress over the past 6 months and is well positioned to benefit from a range of domestic and international tailwinds such as the growing focus on cyber security.

The research report noted that the appointment of Dr Miles Jakeman to the archTIS board will provide the company with added experience and strong networks. Analysts also acknowledged the commercial performance of the company and its ability to renew key contracts with government clients as validation of it services. Also highlighted was the diverse applications of the company's services as well its achievement of a new contract with defence company, Norththrop Grumman.

What does archTIS do?

archTIS is an Australian based cyber security technology company that specialises in the safe and secure sharing of classified information. Since its establishment in 2006, the company has provided cyber security consulting and infrastructure and software development services to Australian Government clients. In a bid to commercialise its services, archTIS launched its software-as-a-service (SaaS) Kojensi platform last year to service government, defence and commercial clients.

How has the archTIS share price performed?

Yesterday, archTIS released an update for the fourth quarter of FY20, which noted the company's strong progress in commercialising its Kojensi platform. A highlight of the quarterly update included a renewed contract with the Commonwealth Government worth $400,000.

Additional highlights included archTIS securing its first commercial contract with the defence industry, reflecting the company's growing sales momentum. The company also acknowledged the successful completion of a $2.26 million capital raise in early June, which is designed to help archTIS accelerate the growth of its Kojensi platform to new markets.

Analysts from Lodge Partners also noted the federal government's $1.35 billion Cyber Enhanced Situational Awareness and Response (CESAR) package as a potential tailwind for archTIS given the recent cyber attacks from overseas operators.

The archTIS share price closed trading Tuesday around 4% higher and has rallied more than 380% since mid-June.

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