WhiteHawk continues its advance in the cybersecurity space
Global cyber security provider WhiteHawk Limited (ASX:WHK) have provided an optimistic quarterly report for the period ending 30 September.
The company report that US$394K in receivables had been collected during the quarter, while it ended the period in a strong cash position with US$1.8M cash and a strong pipeline of sales contracts.
During the fourth quarter, anticipated cash outflows of US$580K will likely be offset by expected cash inflows from revenue growth. Plus, based on contracts signed, sales to date, and discussions with customers, WhiteHawk anticipate increased revenue growth in the next two quarters.
As for the third quarter, revenues booked were lower than trend — despite signing two large contracts this quarter — due to the lump sum nature of invoicing large US federal government departments and enterprises.
There was also a large and complex contract transition from the previous prime contractor which saw the kick-off of WhiteHawk’s subcontract with Accenture Federal on a US$2B US federal government department contract delayed. However, this is now moving forward.
Also delayed was the execution of a second subcontract with a separate US federal government department, due to stringent on-premise clearance requirements. That too, is now beginning to be executed.
Contracts executed during the quarter include a contract extension with a top 12 US Defense Industrial Base (DIB) company, including new automated WhiteHawk Cyber Risk Scorecards across 30 supply chain companies.
The company also continued to execute the third phase of a Cyber Risk Management contract a top 10 US financial institution, that included 26 new vendors. The comprehensive program award is on its way but has been delayed to January 2020.
During the quarter WhiteHawk’s Cyber Risk Profile was fully integrated into Sontiq/EZShield’s service to advance its online SMB SaaS risk offering and grow the mature pipeline of financial institutions and insurance groups.
Currently, WhiteHawk is engaged with two financial institutions in the advanced stage of negotiating the implementation of the Sontiq/WhiteHawk Business Risk SaaS Secure service to all SMB customers, with tens of thousands of small to mid-sized businesses (SMBs) — with revenues of up to US$1 billion each — in each implementation phase.
Other highlights of the quarter include:
- Executing two Proofs of Value (PoV), of the WhiteHawk 360 Cyber Risk Frameworks with a tier 1 global insurance group and a tier 1 manufacturer.
- Top 5 selection in the US Cyber Command (USCYBERCOM) Dreamport Cyber Challenge demonstrating cyber risk monitoring and resilience for US Defense Industrial Base (DIB) contractors/companies.
- Created a tailored Cyber Risk Program offering for global consulting groups to leverage as an impactful solution for their mid-tier and fortune 1000 business customers in need of continuous cyber risk monitoring, prioritisation, and near real time risk mitigation.
The company outlined four primary areas of focus going forward:
- Maximise execution on three current US government CIO contracts in the fourth quarter 2019 and throughout 2020, following the initiation of work.
- Mature the current 360 Cyber Risk Framework proposal conversations with Defense Industrial Base (DIB). companies, delivering 1-2 new contracts in the remainder of 2019.
- Continue to position the WhiteHawk 360 Cyber Risk Framework as the premier solution for identifying, prioritising and mitigating cyber risks across the entire US Defense Industrial Base (in accordance with 2020 updated regulations and the CMMC Certification Framework). This comes after WhiteHawk was down-selected in the top 5 companies of the open competition in August 2019.
- Kick off Phase 1 of the Sontiq/EZShield/WhiteHawk SMB SaaS services to one of two tier 1 financial institutions (currently in advanced discussions) across their respective business customers, thereby scaling services to thousands of SMBs in 2020.