Join our daily newsletter At The Bell to receive exclusive market insights
- Senetas Corporation (SEN) is expecting a 170 per cent increase in its underlying earnings before interest, taxes, depreciation, and amortization (EBITDA)
- The cybersecurity business revealed the strong result as part of its unaudited half-year results for the 2021 financial year
- The tech stock is also expecting its underlying revenues to hit up to $12.8 million, an increase of 30 per cent
- In addition to this, Senetas believes its net profit after tax will total between $100,000 and $200,000 for the period
- The technology stock is expecting more growth in the second half, as its Votiro Cybersec Global investment has been picked up by a Fortune 500 company
- Shares in SEN are trading up 12.3 per cent at 6.4 cents each
Senetas Corporation (SEN) is expecting a 170 per cent increase in its underlying earnings before interest, taxes, depreciation, and amortization (EBITDA).
The cybersecurity business has released its unaudited business segment results from 1H FY21, showing an EBITDA of between $3.8 million and $4 million.
SEN is also expecting its underlying revenues to hit between $12.5 million and $12.8 million, an increase of 30 per cent on last year’s results.
In addition to this, the tech stock believes its net profit after tax will total between $100,000 and $200,000 for the half-year period.
It’s a strong result for Senetas considering it ended the previous first half period for 2020 with a $200,000 loss.
Meanwhile, SEN is expecting more growth in the second half of 2021, as its Votiro Cybersec Global investment has been picked up by a Fortune 500 company.
This customer has agreed to pay US$250,000 (around A$327,000) per annum over three years for Votiro’s Secure File Gateway product.
“The demand for software protection against such threats is now only starting to emerge and Senetas believes this growth will be considerable and will translate into an opportunity to grow a substantial annuity business,” Senetas Chairman Francis Galbally commented.
“The board is pleased that Votiro is achieving the expected results and growth that it targeted when we made our initial investment,” he added.
SEN shares have ended the day up 12.3 per cent, trading at 6.4 cents each, following Thursday’s unaudited results release.
