archTIS closes out strong FY21 with “record breaking” June quarter

archTIS Ltd has closed out what executives described as a “strong FY21” with record cash receipts and $12.7 million in available capital. In its unaudited quarterly financials, the software solutions provider revealed it netted $2.26 million in revenue over FY21’s June quarter — up 80% on the previous quarterly reporting period. The ASX-lister’s gross profit was also up 86% on the March quarter, while archTIS’ operating expenses only increased by 8% to support the company’s investments. archTIS attributes its financial growth to a suite of key customer wins and renewals across government agencies, defence contractors and broader commercial global markets, with plans to continue building this sales pipeline in the new financial year. Scaling the business archTIS managing director and CEO Daniel Lai said archTIS delivered a strong, record-breaking quarter. “We set out with a plan to scale the business through the expansion of a global sales distribution network, increased market awareness and technology-leading product innovation. “This has provided shareholders with another quarter of record revenue growth, strong customer cash receipts and an increasing recurring licensing business.” Financial performance Over FY21’s final quarter, the software solutions provider reported unaudited increases across its revenue, profit and annual recurring revenue (ARR) metrics — beating what was previously regarded as the company’s “best quarter in history”. Revenue growth was a particular highlight, up 80% on the March quarter’s $1.25 million result, and up 1,289% on the previous corresponding period’s (PCP) $162,000 result. Annual recurring revenue also jumped 39.1% on the March result and 581.1% on the PCP to $1.94 million. archTIS also continued profitability in the June quarter, tabling $1.48 million in gross profits compared to the $797,000 recorded in the previous quarter. The company’s operating expenses over the June quarter totalled $2.3 million — up 8.6% on the prior quarter and reflecting archTIS’ investment in sales and marketing resources to execute its go-to-market strategy. Cash receipts from customers more-than-doubled between the March and June quarters, rising from $1.5 million to $3.22 million. June quarter activities Overall, archTIS maintains its customer wins across the government, defence and global market sectors drove commercial growth in FY21. The ASX-lister secured contracts across its NC Protect and Kojensi product offerings, including within the Europe, Middle East and Africa — a market of growing strategic importance. In mid-June, archTIS inked a contract worth $868,000 to deploy its NC Protect solutions within an Australian Commonwealth national security agency. Just one week prior, the software solutions provider also landed a $578,000 contract to deploy its Kojensi cloud technology platform with Australia’s Department of Defence. At the start of June, the ASX-lister partnered with computing powerhouses Thales and Microsoft to deliver tactical cloud computing for the Australian Defence force. During the June quarter, archTIS also appointed Kylie Sheather as its Chief Financial Officer. What’s the outlook? Moving into the new financial year, archTIS is preparing for a traditionally slower first sales quarter and will focus its capabilities across several key areas, including building its sales pipeline. The ASX-lister will also focus on its intellectual property, capturing market opportunities across government and defence agencies and driving its acquisition strategy.