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VirtualArmour Reports Q3 2019 Results; Services Revenue Exceeds Product Sales Revenue For First Time

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CENTENNIAL, Colo., Nov. 29, 2019 (GLOBE NEWSWIRE) — VirtualArmour International Inc. (CSE:VAI) (OTCQB:VTLR), a premier cybersecurity managed services provider, reported results for the third quarter ended September 30, 2019. Financial results are in U.S. dollars, with comparisons made to the same year-ago quarter unless otherwise noted.

Q3 2019 Financial Highlights

  • Revenue for the quarter came in at $2.4 million.
  • Managed and professional services revenue increased 9.5% to $1.4 million, due primarily to the expansion and addition of clients signed under contracts over the last year.
  • Gross profit as a percentage of revenue increased to 29.8% from 26.4% due to a favorable shift in revenue mix to higher margin managed and professional services revenue.
  • Annual recurring revenue (ARR) totaled $4.7 million at September 30, 2019, up 12% from $4.2 million at September 30, 2018. The company defines ARR as the value of its service contracts normalized to a one-year period.

Q3 2019 Operational Highlights

  • Won a $330K contract with a Global Service Provider.  This opportunity will build on the almost $2M additional hardware, software and services deals that have been closed since January of 2019 for this customer.
  • Expanded opportunity with Global Satellite Company with a $245K gateway expansion project. This opportunity will build on the $1.7M additional hardware deals that have been closed in the first half of 2019 for this customer.
  • Was ranked Top 100 MSSP Globally by MSSP Alert’s Top 200 MSSP List.
  • Joined AT&T Cybersecurity Partner Program to Deliver 24/7 Cybersecurity Managed Services Across the Globe.
  • Signed two new channel partner as managed security service resellers that expands the range of service offerings to both companies allowing VirtualArmour to pursue opportunities across the US. 

Q3 2019 Financial Summary

Revenue totaled $2.4 million in the third quarter of 2019. The improvement was due to managed and professional services revenue increasing 9.5% to $1.4 million while overall sales declined from $3.9 million vs. the same period a year ago due to lower product sales (hardware and software).

Cost of sales totaled $1.7 million in the third quarter of 2019 as compared to $2.9 million in the year ago quarter). The decrease in cost of sales was due primarily to a decrease in product cost of sales.

Gross profit was $0.7 million or 29.8% of revenue in the third quarter of 2019, as compared to $1.0 million or 26.4% of revenue in the year ago quarter. The increase in gross profit and gross profit as a percentage of revenue was due to a favorable shift in revenue to higher margin managed and professional services revenue.

Total expenses were $1.1 million in the third quarter of 2019, as compared to $1.1 million in the year ago quarter.

Net and comprehensive loss was $492,000 or $(0.01) per share in the third quarter of 2019, as compared to a loss of $165,000 or $(0.00) per share in the year-ago quarter. The loss was primarily due to lower gross profit reflecting the lower product sales and the increase in interest expense.

Cash totaled $72,000 at September 30, 2019, compared to $25,000 at June 30, 2019, with the increase primarily due to the collection of receivables.

Management Commentary

“In 2019, we saw our business shift from a focus on hardware sales to more services contracts. Q3 is the first time that we have seen our managed service and professional service revenue exceed our hardware/software revenue,” said Russ Armbrust, CEO of VirtualArmour. “VirtualArmour will benefit from this shift to managed services vs. third party resale, given rapidly growing, high margin, recurring revenues are highly attractive, thereby increasing valuation multiples. Consequently, enterprise value will increase as VirtualArmour continues to deemphasize the hardware/software resale business and continues to focus on expanding its managed service business.

“As part of the new alliance with AT&T Cybersecurity, the AlienVault Unified Security Management™ (USM™) platform will be integrated with VirtualArmour’s proprietary CloudCastr client portal. The integration of our platforms will further simplify and centralize threat management across our new and existing customers’ cloud and on-premise environments. Through this alliance, we also see a tremendous cross-selling opportunity to bring a unique combination of capability and value to our respective clients

“Subsequent to the quarter, we expanded upon an engagement with a global satellite company. This client has been a long-time customer of ours and exemplifies the type of customer we focus on as a cornerstone to our growth strategy. Through our partnership we have worked closely together to open gateways all over the globe enabling this satellite provider to become a pioneering force in networking and communications.

“Due to the continued growing threat of targeted breaches across all industries and business sizes, our outlook for the rest of 2019 and into 2020 remains very positive. We are seeing larger budgets being allocated to cyber protection as companies prepare for 2020 and beyond. We anticipate further revenue growth and margin expansion from our continued ramp up in sales of managed services, along with further penetration of new markets led by our growing sales, marketing, and service organization.”

Cybersecurity Outlook

Annual global cyber losses are expected to hit US$6 trillion by 2021, with cybersecurity spending projected to exceed a total of US$1 trillion for the five years leading up to 2021. This is according to a report from Cybersecurity Ventures that suggests the immediate costs of a cyberattack can be significant, but the damage to a business’s reputation could cost just as much or even more in the long term.

With the ever-increasing cybersecurity risks and regulations being introduced, business leaders are fast realizing that there is more to be protected and serious penalties for not complying. According to the Worldwide Security Spending Guide from International Data Corporation (IDC), worldwide spending on security solutions will achieve a compound annual growth rate (CAGR) of 9.2% over the 2018 to 2022 forecast period and total US$133.8 billion in 2022.

The report says worldwide spending on security-related software, hardware and services is forecast to reach $103.1 billion in 2019, an increase of 9.4% over 2018.

VirtualArmour is well positioned to capitalize on this growth opportunity and continues to deepen its penetration into the healthcare, financial, retail and service provider industries.

About VirtualArmour

VirtualArmour International is a global cybersecurity and managed services provider that delivers customized solutions to help businesses build, monitor, maintain and secure their networks.

The company maintains 24/7 client monitoring and service management with specialist teams located in its U.S. and UK-based security operation centers. Through partnerships with best-in-class technology providers, VirtualArmour delivers leading hardware and software solutions for customers that are both sophisticated and scalable, and backed by industry-leading customer service and experience. The company’s proprietary CloudCastr client portal and prevention platform provides clients with unparalleled access to real-time reporting on threat levels, breach prevention and overall network security. 

VirtualArmour services a wide range of clients, which include Fortune 500 companies and several industry sectors in over 30 countries across five continents. For further information, visit www.virtualarmour.com.

Important Cautions Regarding Forward Looking Statements

This press release may include forward-looking information within the meaning of Canadian securities legislation and U.S. securities laws. This press release includes certain forward-looking statements concerning a service contract VirtualArmour has entered into with a current client, VirtualArmour’s continued relationship with various suppliers, the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. The forward-looking information is based on certain key expectations and assumptions made by the management of VirtualArmour. Although VirtualArmour believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information as VirtualArmour cannot provide any assurance that it will prove to be correct.

Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the success of the Company in performing the IT implementation and migration, performance under the contract by all parties, the ability of VirtualArmour to meet timelines, the continued availability of necessary hardware, the absence of any trade war or tariffs affecting VirtualArmour’s ability to perform, competitive risks and the availability of financing. These forward-looking statements are made as of the date of this press release and VirtualArmour disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

         
VirtualArmour International Inc.
Interim Consolidated Statements of Operations and Comprehensive Loss
For the three and nine months ended September 30, 2019 and 2018
(Unaudited – Expressed in U.S. Dollars)
     
  Three months ended
September 30
Nine months ended
September 30
  2019
$
2018
$
2019
$
2018
$
         
Revenue 2,429,105 3,932,672 8,679,594 11,203,415
Cost of sales (1,705,750) (2,894,256) (6,207,712) (8,161,866)
Gross Profit 723,355 1,038,416 2,471,882 3,041,549
Expenses        
General and administrative 452,492 478,108 1,742,458 1,426,305
Research and development 53,034 56,189 154,986 144,569
Sales and marketing 559,770 591,730 1,815,814 1,710,889
Total Expenses 1,065,296 1,126,027 3,713,258 3,281,763
Loss from Operations (341,941) (87,611) (1,241,376) (240,214)
Other Income (Expenses)        
Change in fair value of warrant derivative liabilities 2,589
Interest expense (150,096) (77,804) (299,362) (174,201)
Net and Comprehensive Loss for the period (492,037) (165,415) (1,540,738) (411,826)
Loss per share – basic and diluted (0.01) (0.00) (0.02) (0.01)
Weighted average number of shares outstanding – basic and diluted 63,599,447 63,599,447 63,599,447 61,678,669
     
VirtualArmour International Inc.    
Interim Consolidated Balance Sheets    
As at September 30, 2019 and December 31, 2018    
(Unaudited – Expressed in U.S. Dollars)    
     
  September 30, December 31,
  2019
$
2018
$
     
ASSETS    
Current Assets    
Cash 72,358 114,281
Accounts receivable 1,232,949 2,491,233
Other receivables –  43,750
Prepaid expenses 193,028 390,968
Contract assets 722,683 722,683
Total Current Assets 2,221,018 3,762,915
Property and equipment 457,798 513,984
Intangible assets 49,476 61,347
Contract assets 722,683 1,264,695
Total Assets 3,450,975 5,602,941
LIABILITIES    
Current Liabilities    
Accounts payable and accrued liabilities 2,348,781 3,728,051
Deferred revenue 1,274,718 888,593
Debt 957,820
Current portion of lease obligations 349,292 679,647
Due to related parties 234,813
Total Current Liabilities 5,165,424 5,296,291
Deferred revenue 831,358 1,331,256
Lease obligations 115,894 150,632
Total Liabilities 6,112,676 6,778,179
STOCKHOLDERS’ DEFICIT    
Common stock, no par value, 300,000,000 shares authorized Issued and outstanding: 63,599,447 (2018 – 63,599,447) shares 7,670,975 7,670,975
Additional paid-in capital 2,009,497 1,955,222
Deficit (12,342,173) (10,801,435)
Total Stockholders’ Deficit (2,661,701) (1,175,238)
Total Liabilities and Stockholders’ Deficit 3,450,975 5,602,941
     

Company Contact
Russ Armbrust
CEO
VirtualArmour International Inc.
Tel (720) 644-0913
Email Contact

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Quadient: Monthly information on number of shares and voting rights

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Monthly information on number of shares and voting rights
of Neopost SA1

In accordance with article 223.11 of Autorité des Marchés Financiers’
(French Securities and Investment board) General Regulations

Ordinary shares – ISIN: FR0000120560

  As at 30 November 2019
Total number of shares 34,562,912
Theoretical total number of voting rights 34,562,912
Net total number of voting rights 34,410,311

For more information, please contact:

Or visit our website: https://quadient.com/connections


1 The legal name Neopost S.A. will be changed into Quadient S.A. in 2020 during the next AGM. In the meantime, Neopost S.A. will operate under the commercial name Quadient

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Safe-T Signs Partner Agreement with a Fortune 500 Affiliate for the Resale of its SDP Solution

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HERZLIYA, Israel, Dec. 11, 2019 (GLOBE NEWSWIRE) — Safe-T® Group Ltd. (NASDAQ, TASE: SFET), a provider of secure access solutions for on-premises and hybrid cloud environments, today announced that its wholly owned subsidiary, Safe-T Data A.R Ltd., has signed a Master Terms and Conditions Agreement with a European affiliate of a Fortune 500 global professional services company, to resell Safe-T’s products and solutions in Spain, Portugal and Israel. The new partner is providing a broad range of services and solutions in more than 120 countries in strategy, consulting, digital, technology and operations and is a global leader in applying innovative solutions for improving organizations’ operations and efficiency.

As part of the agreement, Safe-T will offer its Software Defined Perimeter (SDP) to the partner’s top tier customers in various sectors, such as banking, insurance, industrial and others. Safe-T’s SDP solution will be offered as an on-premises deployment or as a cloud service.

Safe-T’s SDP solution grants access to applications on a need-to-know basis, while giving users fast and seamless access to the resources they need. This creates a “verify-first, access-second” zero-trust approach across an organization’s applications, enabling enhanced security, greater visibility and better user experience. It controls the access to internal services and utilizes third-party identity providers (such as Microsoft, Okta, DUO Security and Fortinet) to authenticate each user.

“We are very proud to have been selected by this leading firm to provide our SDP solution to its customers,” said Shachar Daniel, CEO of Safe-T. “Our SDP solution helps organizations to deploy a secure and agile Zero-Trust Network Access (ZTNA) solution, to control who can access internal and cloud services and how such access is granted. The emerging shift from legacy network, where organizations have little to no visibility or control regarding network and data usage, to Zero-Trust architecture and methodology, opens a huge potential for our own unique ZTNA solution”.

About Safe-T®

Safe-T Group Ltd. (NASDAQ, TASE: SFET) is a provider of access solutions which mitigate attacks on enterprises’ business-critical services and sensitive data, while ensuring uninterrupted business continuity. Safe-T’s cloud and on-premises solutions ensure that an organization’s access use cases, whether into the organization or from the organization out to the internet, are secured according to the “validate first, access later” philosophy of zero-trust. This means that no one is trusted by default from inside or outside the network, and verification is required from everyone trying to gain access to resources on the network or in the cloud.

Safe-T’s wide range of access solutions reduce organizations’ attack surface and improve their ability to defend against modern cyberthreats. As an additional layer of security, our integrated business-grade global proxy solution cloud service enables smooth and efficient traffic flow, interruption-free service, unlimited concurrent connections, instant scaling and simple integration with our services. With Safe-T’s patented reverse-access technology and proprietary routing technology, organizations of all size and type can secure their data, services and networks against internal and external threats. At Safe-T, we empower enterprises to safely migrate to the cloud and enable digital transformation.

Safe-T’s SDP solution on AWS Marketplace is available here.

For more information about Safe-T, visit www.safe-t.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, Safe-T is using forward-looking statements in this press release when it discusses the advantages of its SDP solution, the potential of the resale agreement with the partner and the potential of the SDP solution and/or the resale agreement to address market need and/or demand. Because such statements deal with future events and are based on Safe-T’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Safe-T could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading “Risk Factors” in Safe-T’s annual report on Form 20-F filed with the Securities and Exchange Commission (“SEC”) on March 26, 2019, and in any subsequent filings with the SEC. Except as otherwise required by law, Safe-T undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

PRESS CONTACT:
Karin Tamir
[email protected]
+972-9-8666110

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Logi Analytics Named the #1 Embedded Analytics Platform for Five Years in a Row by Dresner Advisory Services

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MCLEAN, Va., Dec. 03, 2019 (GLOBE NEWSWIRE) — Logi Analytics has earned the highest vendor rating for embedded business intelligence in the 2019 Embedded BI Market Study released this week by Dresner Advisory Services. This is the fifth consecutive year that Logi has been ranked number one.  

“We’ve been analyzing the embedded BI market for several years, and we continue to observe that it remains on a long-term upward trend and retains high importance in organizations,” said Howard Dresner, founder and chief research officer at Dresner Advisory Services. “Congratulations to Logi Analytics on receiving the top vendor placement in the 2019 study.” 

The Dresner study is the latest in a series of accolades for Logi Analytics. In October, Logi received the highest vendor rating for embedded BI in The BI Survey 19 from the Business Application Research Center (BARC). And earlier this year, Gartner gave Logi a top score for OEM and embedded BI use case in the 2019 Critical Capabilities for Analytics and Business Intelligence Platforms for the fourth year in a row.

“Logi is proud to help some of the top software teams in the world embed analytics in their applications. Being named the leader for the fifth year in a row by Dresner validates the important work our customers are doing,” said Steven Schneider, CEO of Logi Analytics. “We are invested in the success of our customers, and focused on offering the broadest set of intuitive, developer grade analytics solutions. In the past year, Logi has added new capabilities with the acquisitions of Jinfonet, the makers of JReport, and Zoomdata.”

Dresner Advisory Services is an independent advisory firm led by Howard Dresner, one of the foremost thought leaders in business intelligence and performance management. Dresner coined the term “Business Intelligence” in 1989. This is the seventh annual publication of the Embedded Business Intelligence Market Study and is part of the “Wisdom of Crowds” market survey series.

For more information on embedded analytics, read the full Dresner Embedded BI Market Study or visit LogiAnalytics.com/dresner-2019.

About Logi Analytics
Delivering compelling applications with analytics at their core has never been more crucial—or more complicated. For over 17 years, Logi has helped application teams embed sophisticated analytics in applications. In a noisy market, Logi is the only analytics provider exclusively focused on embedding analytics in commercial and enterprise applications.

Logi’s developer grade analytics platform has been trusted by over 2,100 mission-critical applications to deliver sophisticated analytics and power their businesses. The company is headquartered in McLean, Virginia with offices in Ireland and England. Learn more at LogiAnalytics.com.

About Dresner Advisory Services 
Dresner Advisory Services was formed by Howard Dresner, an independent analyst, author, lecturer, and business adviser. Dresner Advisory Services, LLC focuses on creating and sharing thought leadership for Business Intelligence (BI), information management, performance management, and related areas.

Contact:
Michelle Gardner
703.752.9700 x7064
[email protected]

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