- archTIS (AR9) records a 58 per cent quarter-on-quarter increase in revenue to $1.4 million for the June quarter
- The software solutions company also delivered its largest-ever contract which was a $7 million deal to expand its Kojensi platform with the Australian Department of Defence
- archTIS had $6.6 million in available cash at the end of Q4 and expects at least $9.5 million in cash receipts for FY23 as well as at least a 60 per cent year-on-year increase in revenue
- AR9 shares are down 16.3 per cent to trade at 19.3 cents at 12:48 pm AEST
archTIS (AR9) recorded a 58 per cent quarter-on-quarter increase in revenue to $1.4 million for the June quarter.
The revenue sum comprises $691,000 in licensing revenue which was a 91 per cent increase on the prior corresponding period. The company said the licence revenue growth reflects a 68 per cent increase in annualised recurring revenue of $3.3 million.
For the full 2022 financial year, archTIS reported unaudited revenue of $4.6 million with a 70.5 per cent gross operating margin.
In terms of expenditure, net operating outflows came to $3.2 million which is roughly in line with previous quarters in FY22.
Importantly for the software solutions company, it delivered its largest deal in history of $7 million. This two-year contract is with the Australian Department of Defence for the enhanced licensing of its Kojensi platform.
archTIS said the contract supports its growth within the defence and national security market, while establishing Kojensi for future user and licensing growth as the defence department deploys the platform to more sites.
The company said the contract provides $5 million of revenue to be recognised in FY23 along with $7 million of cash proceeds this year.
archTIS ended the quarter with $6.6 million in available cash as well as $2 million which was collected in July.
As for FY23, archTIS expects minimum cash receipts of $9.5 million and is targeting at least a 60 per cent year-on-year increase in revenue for FY23.
Global Chief Operating Officer and US President Kurt Mueffelmann said the company is looking forward to a “strong, record-breaking” FY23.
“The foundational work that we have done over the recently concluded fiscal year, the most recent $7 million award, and increased pipeline through product innovation and alliance adoption will provide the key layers for success going forward,” he said.
AR9 shares were down 16.3 per cent to trade at 19.3 cents at 12:48 pm AEST.