AR9 1.32% 7.7¢ archtis limited

And another one. I do not based my investment only from those...

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    And another one. I do not based my investment only from those but lots of people do and it is always good to stay informed of those .they can effect the SP....
    I think that this financial report could have been what we needed to reverse the down trend, this is a good report, supported by the news and the share price is at a very good level for newcomer to enter the stock...I mean, we were at around 60c a while ago, money start to come in at an increasing rate....all imo...

    Now that article, copied and pasted...
    The Motley Fool Australia
    Could a record breaking quarter bring the Archtis (ASX:AR9) share price back?
    Kerry Sun | April 27, 2021 12:34pm

    AR9

    changing asx share price represented by up and down arrows on line graph
    Image source: Getty Images

    The Archtis Ltd (ASX: Ar9) share price has had underwhelming traction lately. This comes despite strong and growing company fundamentals.

    The Archtis share price has halved since its all-time record high of 60 cents in August 2020. Furthermore, it is down 13% year-to-date. In stark contrast to its share price performance, the company released its quarterly results which highlight record-breaking revenue and recurring licensing.

    Archtis share price flat despite record quarterly results
    The Archtis share price is currently flat despite its strong growth trajectory for accelerated revenue and recurring licensing during the March quarter.

    Its revenues for the quarter increased 84% on the prior quarter and up 776% year-on-year to $1.25 million. This was driven by a strong annual recurring revenue from software licensing of $421,000 for the quarter. Up 57% over the prior quarter.

    Archtis achieved a number of significant global customer wins, contract renewals, and expansion of existing licenses throughout the quarter. The company believes these milestones strong endorse its secure information sharing platforms NC Protect and Kojensi, as world-leading technology products.

    To further drive growth, the company established a regional presence in London to target Europe, the Middle East, and Africa. In addition, Archtis focused on Singapore to expand its APAC presence.

    Expanding focus
    To expand the company’s success in servicing the Australian government and defence industry, Archtis created a US Federal and Defence focused business unit. This unit is designed to serve key US government agencies.

    Operational expenses for the quarter increased 95% over the prior quarter to $2.12 million, reflecting its integration with Nucleus Cyber becoming a part of the company for the full quarter. Archtis has also pushed investment in sales and marketing resources. The intention was to execute its go-to market strategy. This is in line with its ‘use of funds’ segment presented to shareholders during its November 2020 capital raising and March 2021 investor update.

    Despite the increase in costs, the company stands profitable. Furthermore, with a gross profit of $802,000, up 57%. Its gross margins decreased from 75% in the previous quarter to 64%. This is due to an increased proportion of revenue from consulting services. Which is at a lower margin than software licensing, and a one-time pass-through hardware requirement.

    The company retains a healthy cash balance of $12.03 million which is quite significant considering its market capitalisation of just $61 million.

    Archtis share price outlook
    Archtis expects to continue to invest in scalable growth. In particular, in sales and marketing to expand global sales distribution and market awareness. This should translate to continued revenue growth coupled with increasing recurring licensing revenues. Thus, it should drive gross profit and margins higher.

    The company’s strong cash position has given it the confidence to say that it will not require additional capital raises for operational growth, whilst exploring potential strategic acquisitions to expand its product breadth and growth prospects.

    At the time of writing, the Archtis share prices trading for 28 cents, up 5.56%.






 
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