Opportunities and Challenges for Cybersecurity: Glance at TNT, VOR, WHK and FZO

Opportunities and Challenges for Cybersecurity: Glance at TNT, VOR, WHK and FZO

Summary

  • While Online services providers with access to our financial and personal information claim to maintain cyber security, breaches had been reported in many instances including phishing, malware, ransomware scams and online scams
  • To create more cyber resilience in Australia, the government has announced an investment of A$1.35 billion
  • To mitigate cyber breach and boost protection and cyber resilience for individuals and businesses during the COVID-19 pandemic, the role of cyber security companies has become more prominent
  • ASX stocks such as TNT, VOR, WHK and FZO, have all experienced double to triple digit growth in their share prices

Technology had been instrumental in making the economy function smoothly amid the disrupted COVID-19 environment. Online educators, contactless payment facilitator, ecommerce players, online health services providers played a pivotal role in meeting the daily challenges of life while maintaining social distancing.

However, using their services means registering on their platform, sharing personal data, including financial data. While every company claims to maintain security, breaches had been reported in many instances including phishing, malware, ransomware scams and online scams.

The Australian government is actively putting efforts to lessen the risk associated with cyber security and has pledged A$1.35 billion investment over next decade, also known as the Cyber Enhanced Situational Awareness and Response (CESAR) package, to mitigate cyber breach and boost protection and cyber resilience for individuals and businesses.

On that note, let’s glance through few Cyber security players

Interesting Read: Cyber Espionage Campaign: Strings that tie China, Australia and the US

Tesserent Limited (ASX:TNT)

Tesserent Limited offers network security management solutions such as network perimeter protection, internal behavioural monitoring and alerts, secure internet connectivity and co-location. Products include fire-wall authentication, antivirus and anti-malware systems, and intrusion detection with flagship product known as Cyber 360. The company serves government bodies, education providers, and corporate enterprises.

On 23 July 2020, the company announced the acquisition of Seer security’s Melbourne and Canberra-based businesses, helping TNT to become the largest pure cybersecurity provider of Canberra’s. The acquisition will lead to servicing several Federal government departments, including Defence and Law Enforcement with specialist high security services and delivery capabilities. Expected to close in early August, the acquisition will be funded through the company’s Acquisition Debt Funding Facility with Pure Asset Management.

The company recently announced meeting its financial objectives, including meeting A$40 million revenue run rate. Further, the company highlighted that it expects its earnings before interest, tax, depreciation and amortisation (EBITDA) and cash flow to turn positive in June. The company also secured an additional A$10 million debt facility by signing an agreement with existing debt provider, Pure Asset Management. The proceeds from the debt facility is expected to be used to support acquisitions.  

On 27 July 2020, TNT closed at A$0.195, up by 11.429% from its previous close. In the last three months, the company’s share price went up by 250% and in six months, the price rally reflected a 108.33% growth.

Also Read: Australia On Tightening Its Cyber-Regulation: Glance at AR9 and TNT

Vortiv Limited (ASX:VOR)

Vortiv provides cybersecurity and cloud services to customers in Australia though cyber security specialist, Decipher Works Pty Ltd and a cloud and cloud security specialist, Cloudten Industries Pty Ltd.

On 30 June 2020, the company reported continuous revenue growth since 2017 and highlighted that the company had achieved key milestones required to transform the Company to become a growing and profitable cloud and cyber security business.

For the financial year ended 31 March 2020, the company achieved A$11.5 million revenues with a profit before tax at A$1.4 million. The revenue growth was backed by repeat business and cross selling from loyal customer base, increasing average spend for top 10 clients and increased demand for cloud and cyber security market. The Profit before tax was backed by revenue growth, optimum utilisation of Cloudten and Decipher Works professional staff and economies of scale achieved in operations

On 27 July 2020, VOR closed at A$0.240, up by 4.348% from its previous close. In the last three months, the company’s share price went up by 137.11% and in six months, the price rally reflected a 21.05% growth.

Whitehawk Limited (ASX:WHK)

WhiteHawk Limited is a global cloud based- cybersecurity exchange company that empowers businesses to take effective action against cyber-crime and fraud.

On 1 July 2020, the company received a working capital facility update for A$1 million on the implementation of the Share Purchase Agreement and Equity Swap Agreement with RiverFort Global Opportunities PPC Ltd. As per the Share Purchase Agreement, 12,987,013 ordinary shares will be issued at a placement price of A$0.077 per share. The Equity Swap Agreement dictates RiverFort to make compulsory monthly payments to Company which, when aggregated will equal to A$1 million based on certain conditions. The A$400,000 Bridge Loan will be repaid in cash.

The funding raised will be used to execute Proofs of Value across active leads of 5 product lines; for working capital; and to broaden sales channels.

On 27 July 2020, WHK closed at A$0.094, up by 8.046% from its previous close. In the last three months, the company’s share price went up by 58.18% and in six months, the price rally reflected a 10.13% growth.

Family Zone Cyber Safety Ltd (ASX:FZO)

Family Zone is engaged in providing cyber safety through cloud-based solutions to keep kids safe online and manage digital lifestyles.

On 22 July 2020, Family Zone Cyber Safety announced issuing 1,178,100 shares post the exercise of 1,178,100 options ($0.21, 8 Nov 2022) for raising A$247,401.

The company through its investor presentation highlighted serving schools in 37 states in the US with almost 2% or 271 of all US school districts using the company’s 271 products. The company added 214 thousand contracted student licenses in Q4 FY20.

The company claims that the business generates recurring contracted revenue.

On 27 July 2020, FZO closed at A$0.380, down by 5% from its previous close. In the last three months, the company’s share price went up by 166.67% and in six months, the price rally reflected a 142.42% growth.

Interesting Read: Optimism around Economic Outlook; Cyber-attacks target Australian firms

 


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