Senetas points to Australia’s cybersecurity credentials with new Middle East deal
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Cyber security company Senetas (ASX:SEN) flagged a new deal this morning, announcing a sales agreement into the Middle Eastern market.
The order was booked via its global distribution partner, French multinational Thales.
Senetas said the deal marked the largest order yet for its CN9000 Ethernet encryptors — a hardware product that provides end-to-end encryption and secure key management for large networks and applications.
The company estimates that Thales will derive around $US2m (~$2.7m) in revenues from the deal.
While not specifying the flow-through amount, Senetas said its final receipt of funds will be less, accounting for cost of goods sold and the payment of fees to Thales.
Shares in the company rose back to around 6.5c in morning trade, continuing a strong month of trade in September after SEN shares fell 13 per cent following the release of its full-year results on August 28.
The CN9000 encryptors will be deployed “to secure the data in transit of a Middle Eastern government agency”, the company said.
Commenting on the deal, Senetas CEO Andrew Wilson said it reflects the fact that cybersecurity products engineered in Australia are building a strong global reputation.
Wilson also extolled the benefits of a partnership approach by highlighting the distribution strength of Thales in global markets.
“Most significantly for Senetas, an order of this size is a realisation of the considerable opportunity we have seen building in that market over the past 12 months, and now that pipeline is starting to deliver,” Wilson said.
Looking ahead, Wilson flagged additional growth opportunities in the European market once the company gains certification from regulators.
Senetas’ full-year results showed it booked revenues of $22.605m in the 2020, and is one of a number of ASX small cap cybersecurity firms looking to capitalise on the tailwinds from COVID-19.