The Archtis Ltd (ASX: AR9) share price has surged after the company announced a new services contract today.
Archtis wins new contract
Archtis has won a new 3-month services contract with KPMG to provide information security services with a Commonwealth national security agency.
Archtis will provide $400,000 worth of resources and subject matter experts under the deal, which starts immediately. This will see the company contribute to security architecture, information sharing, integration and cross-domain services. It will be part of a consortium of industry leaders assembled by KPMG.
Archtis management said the contract recognised the company’s development of services and intellectual property.
What does Archtis do?
Archtis is an Australian-based cyber security technology company that specialises in the safe and secure sharing of classified information. Since its establishment in 2006, the company has provided cyber security consulting and infrastructure and software development services to Australian government clients.
In a bid to commercialise its services, Archtis launched its software-as-a-service (SaaS) Kojensi platform last year to service government, defence and commercial clients. The company released an update for the fourth quarter of FY20 which highlighted strong progress in commercialising its platform.
The company has been growing sales momentum after renewing a government contract and also securing its first commercial contract with the defence industry. This follows a deal with Curtin University in May which will see Artchis expand into the education and space sector. Archtis also completed a $2.26 million capital raise in early June to expand its platform to new markets.
Foolish Takeaway
At the time of writing, the Archtis share price is trading at almost 9.7% higher for the day at around 51.0 cents. Shares in the company have been sold down after hitting an intra-day high of 58 cents earlier. Since mid-July, the Arcthis share price has surged more than 236% with tradee reaching an all-time high of 60 cents.
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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post The Archtis share price soars on new contract appeared first on Motley Fool Australia.
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