Senetas lands record-breaking Middle Eastern encryption hardware order

Senetas has announced its largest-ever order for its encryption hardware, a substantial deal set to add between $2.5 and $3 million to its FY2024 revenue. This substantial order is a significant milestone for the company and involves deploying over 100 high-speed Ethernet encryptors to a Middle Eastern government agency through its global distributor, Thales.

Andrew Wilson, Senetas CEO, expressed his gratification towards the deal, stating, "This transaction is the culmination of more than 2 years work by the Senetas and Thales sales and engineering teams, and I would like to congratulate them for bringing it to realisation. It represents a significant boost to Senetas's revenue in FY2024, and the cash flow is expected in the first quarter of FY2025." The order is expected to contribute not only substantially to the company's revenue but also to boost Senetas's FY2024 profit before tax by between $2 and $2.3 million.

A noteworthy aspect of the deal is the inclusion of maintenance services, which Mr. Wilson highlights as a source of ongoing medium-term revenue for the company. He divulges an encouraging outlook for Senetas, asserting that the "ongoing sales pipeline remains very robust with good momentum expected through the remainder of FY2024 and into FY2025".

In addition to this significant order, Senetas's majority-owned subsidiary, Votiro Cybersec Global Pty Ltd (Votiro), has been experiencing positive business momentum in the early part of the 2024 calendar year. Votiro has reported good growth in annual recurring revenue (ARR), reaching US$10.2 million by the end of April 2024, primarily due to new contracts awarded to the company in the two months since February 2024.

Mr. Wilson is optimistic about Votiro's continued growth, stating, "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." He also cites an acceleration of technology and business partner programs, along with established connections with essential distributors and resellers, as additional factors augmenting Votiro's business momentum.

In light of a project delay, cash flow breakeven for Votiro is now expected within the December quarter of 2024, a deviation that Mr Wilson ensures will not affect business momentum. He guarantees that any cash requirements for Votiro resulting from this delay will be comfortably met from Senetas's cash reserves or through third-party funding. This forward-thinking approach reinforces Senetas's flux-positive financial management while continuing to support Votiro's progression.

In conclusion, Senetas's largest-ever order, coupled with Votiro's promising momentum, marks a significant stride for the company and positions it for positive growth well into 2025. Senetas's robust approach to sales and strategic planning continues to strengthen its standing in the competitive and fast-paced cybersecurity domain.