ASX-listed secure collaboration archTIS has reported a 12 per cent increase for its annual recurring revenue, to $4 million, in its December 2024 financial quarter.
archTIS said gross margin was up to 78 per cent, and that the company is net cash positive with $6.1 million available.
Total revenue however was down to $1.3 million for the quarter, while operating expenses remained flat at $1.7 million, down one per cent.
The company highlighted contracts with Accenture, BAE, SAP, and United States and European customers and resellers for growth and retention.
archTIS also signed a binding agreement to buy Direktiv in San Francisco, which provides a cloud-agnostic event-driven orchestration engine for enterprises seeking to automate and streamline their operations.
The acquisition of Direktiv will cost US$750,000, payable in three tranches over a 12 month period.
Chief executive of archTIS, Daniel Lai, said the company delivered positive cash flow from operating activities, led by strong customer receipts and the R&D rebate.
"Our recent wins with BAE SA, ANI, Accenture and a number of overseas accounts which demonstrate continued exposure to Defence as the preferred provider of policy-enforced data-centric security products and platforms," Lai said.
archTIS also appointed Australian Army veteran Dr Marcus Thompson AM, PhD in cybersecurity, as a non-executive director, and Gerard Foley to lead the company's Asia Pacific software business as general manager.
Foley moved from Raytheon Australia where he had held senior executive positions.
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