archTIS Ltd (ASX:AR9) finished developing the core technology of its Kojensi Gov and Kojensi Enterprise products during the March quarter and is now focused on the sales and marketing of products into identified markets.
The company aims to build a sales pipeline and execute opportunities in 2020 and 2021 with new leads in Australia, New Zealand, USA and Europe.
At the end of the quarter, archTIS had funds available of $1.3 million.
Responding to COVID-19
archTIS has taken immediate action to reduce operational costs in response to the COVID-19 pandemic with monthly operating expenses reduced by a third to around $280,000.
This has been achieved through a range of actions including restructuring the business and downsizing the development team post the latest release of the Kojensi platform.
The board is progressing an initiative to raise capital and believes its plans are reasonably likely to be successful to continue its operations and meet its business objectives.
Targeting Defence supply chain
archTIS has also launched a campaign to target the Australian Defence industry supply chain, including the generation of new multi-million-dollar opportunities through partnerships with major global system integrators.
In addition to contracts with Federal Government, AR9 is pivoting to target:
- Companies with high global compliance requirements; and
- Universities which have a requirement to store, share and manage very sensitive data in a secure fashion.
On March 31, the Commonwealth Ombudsman purchased an initial 50 licences of Kojensi to conduct investigations with agencies needing to share and collaborate on information classified as protected.
The Commonwealth Ombudsman safeguards the community in its dealings with the Australian Government and is responsible for inspecting the actions of authorities such as commonwealth, state and territory law enforcement agencies, state government departments, prisons, hospitals, schools, local government and public universities.
It plans to use the Kojensi Platform as a protected service saving it a substantial cost in implementing an independent protected environment to meet its needs for hosting classified information.
This agreement will facilitate greater information sharing with other government departments and agencies who work with the Commonwealth Ombudsman and will lead to much greater exposure of the platform to Government agencies at both the commonwealth and state level.
“Accelerating sales growth”
Chief executive officer Daniel Lai said: “The recent signing of the Commonwealth Ombudsman as a client further verified the commercialisation potential of Kojensi.
“We look forward to building on this momentum with accelerating sales growth in the second half of 2020 as we convert the numerous opportunities in our sales pipeline.
“While there is plenty of hard work ahead, we are excited by the number of trials we are executing and the response we have received in the market.
“We will continue to be very focused on new sales execution and the upselling of licences to existing clients as they expand use of the Kojensi Platform.”
Published at Wed, 06 May 2020 06:23:00 +0000-archTIS focused on growing sales of core technology products into identified markets