Whitehawk shares jump as smallcap posts strong results with US Defense contract on radar
Cybersecurity player could win a US$30M contract from US Government in 2023
Source: Unsplash
Mentioned
KEY POINTS
- Whitehawk continues to build relationships in the US intelligence and national security ecosystem
- Company was invoiced over $5m through CY22; 2H 2022 saw continued cash positive results
- Company has no debt and is awaiting decisions on multiple US government contracts, one worth US$30m
Tech smallcap cybersecurity player Whitehawk Limited (ASX:WHK) shares were up 12$ to 7.3c on Tuesday as the company reported its latest December quarter results.
Market Index interviewed Whitehawk CEO on developments in cybersecurity through 2022 back in December last year.
Second positive quarter of growth
The company reported its second positive cash quarter for CY22 in a row as the company boasts a number of eye-catching strengths heading into CY23.
Among those eye-catchers is a series of relationships the company is progressing with the US government.
Whitehawk is targeting contracts offered by the US intelligence and defence apparatus, including the US Department of Homeland Security (DHS) and Department of Defense (DoD).
This could bode well for Whitehawk: Bell Potter noted late last year it expects a “global rearmament thematic” to remain in favour into 2032, to the benefit of companies with exposure to defence supply chains.
Highlights overview
An overview of the company’s Dec performance runs as follows:
Cash position of $3.08m and no debt
Total invoices for CY22 at $5.11m
Q4 CY22 second positive cash quarter in a row for WHK
Sold 500 licences to US government entity
Progressing a contract with the US DoD
Renewed contract with undisclosed global social media player
Whitehawk continues to progress its application with the US DHS for potential access to USD$30m (A$42m) three-year contract.
The company is also awaiting a decision from the Biden administration on whether or not it will win a US$350K (A$496K) cyber risk radar contract.
SaaS growth remains strong
The company also continues to retain a contract with an undisclosed global social media player into December 2023.
Whitehawk offers Software as a Service (SaaS) contracts to companies which require a recurring yearly payment, locking in more revenue than one-off perpetual licence arrangements.
The tech industry wholemeal has largely pivoted into SaaS arrangements.
Whitehawk shares closed 15% higher on Tuesday
Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Whitehawk was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.
