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Top secret

Tim Boreham
Monday, November 26, 2018

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ArchTIS (AR9) 12 cents

A chilling aspect of cyber fraud is the vulnerability of government agencies handling sensitive information and we’ve already seen many transgressions. For example, the HR firm PageUp – which has public agencies including the Reserve Bank, Australia Post and the Attorney General’s Departments as clients – recently suffered a massive security breach.

It’s one thing to block access to the top secret, but the nature of government means that sensitive documents have to be viewed by multiple legitimate eyes within a bureaucracy.

The Canberra based ArchTIS is poised to launch a cloud-based preventative called Kojensi Gov, which enables sensitive documents to be shared without fear of leaks or other breaches.

The gist is that rather than creating a multiple of vulnerable checkpoints (such as user passwords), Kojensi creates an electronic fingerprint on the data or documents determining who can access the material and where and when.

This approach distinguishes the company from other cyber security operators that try to ensure the data is not shared.

Kojensi Gov is currently being tested by the federal Attorney General’s department, with a planned commercial launch in early 2019.

An earlier non-cloud version was trialled by the Department of Finance. archTIS has also worked with the Department of Foreign Affairs and Trade and is accredited up to ‘top secret’ status with the Department of Defence.

 “We are trying to be the Swiss banks of data, to be the world most trusted company with the world’s most valuable info,” CEO Daniel Lai says.

Archtis listed in September 21 at 20 cents apiece but has been around for 12 years, generating about $13 million of revenue over the last six years from a predecessor product.

“We have proved we can earn revenue and now is the time to launch a new product.”

In the first (September) quarter ramp-up period, Archtis clocked up revenue of $677,000, compared with $100,000 previously.

Archtis’s board includes Labor rooster and former defence minister Stephen Smith, whose contacts should prove handy, should Labor salute at the next federal election.

Archtis shares have been stubbornly underwater since listing but with $8 million of cash, the company should have enough funds to tide it over until the subscription revenues start to flow.

Disclaimer: The companies covered in this article (unless disclosed) are not current clients of Independent Investment Research (IIR). Under no circumstances have there been any inducements or like made by the company mentioned to either IIR or the author. The views here are independent and have no nexus to IIR’s core research offering. The views here are not recommendations and should not be considered as general advice in terms of stock recommendations in the ordinary sense.

Published: Monday, November 26, 2018


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