Here’s why this ASX tech share is rocketing 60% today

A man with a scrappy beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.A man with a scrappy beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.

The Archtis Ltd (ASX: AR9) share price is entering the stratosphere on Thursday following a positive company announcement.

At the time of writing, the software security provider’s shares are up 60% to 16 cents.

Let’s take a look at what Archtis released to the ASX this morning.

Archtis completes ‘largest sale’ in its history

Investors are rallying up the Archtis share price after digesting the company’s latest news.

In its statement, Archtis advised it has been awarded a $7 million contract with the Australian Department of Defence.

Under the deal, the existing deployment of Kojensi will be expanded and enhanced within the Defence network.

Kojensi is a highly secure multi-level platform that allows classified information to be shared internally with partners and clients. Users can create, share files and co-author documents in real time on a protected cloud space. It also allows the operator to control how the information is accessed and used.

The value of the contract will be split, with $3.59 million payable on delivery which includes services, support and hardware. The other $3.44 million will come in recurring revenue that will be owed over a two-year period.

The contract begins today and will continue until 30 June 2024. There is also an option for the Department of Defence to extend the agreement for another 12 months on the same terms.

Commenting on the news fuelling the Archtis share price today, managing director Daniel Lai said:

We are pleased to close the largest sale in the company’s history for $7.03m.

Over the past 18 months we have been actively targeting global defence agencies and the broader defence industry due to their compelling need to secure highly sensitive information.

This target market strongly aligns with the unique value proposition our products offer. Kojensi and NC Protect are filling a critical need for zero-trust information security in the well-funded defence and intelligence market and the industries that support them.

Archtis share price snapshot

Despite its huge gains today, the Archtis share price has fallen 16% since the start of 2022.

When looking further back, its shares are down 35% since this time last year.

Based on today’s price, Archtis presides a market capitalisation of around $27.70 million.

The post Here’s why this ASX tech share is rocketing 60% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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