CIPHERPOINT LIMITED

CPT
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Cipherpoint : Appendix 4C and Activities Report

04/28/2022 | 03:45am

ASX ANNOUNCEMENT (ASX: CPT)

28 APRIL 2022

QUARTERLY ACTIVITIES REPORT AND BUSINESS UPDATE AND APPENDIX 4C FOR THE QUARTER

ENDED 31 MARCH 2022

Cipherpoint Limited (Cipherpoint or the Company) (ASX:CPT) is pleased to provide the following quarterly activities report and business update and Appendix 4C for the quarter ended 31 March 2022.

  • Record Customer Receipts

  • Quarterly Revenues outperformed on PCP basis

  • Continued Brace168 and VITCS growth with positive outlook

  • $200k deferred cash received from asset sale to archTIS (ASX:AR9).

  • Deferred AR9 share milestone achieved which will be settled for cash of approximately $107k.

$2.283M Cash at Bank

Quarter Financial Highlights

The results for the Cipherpoint group (the Group), include revenues and cashflows from both of our Brace168 and VIT Cyber Security services divisions.

Financial highlights for the quarter were:

  • Customer receipts continued to increase to $1.593M compared to December quarter receipts of $1.441M (10% Qtr on Qtr).

  • The Group held $2.283M in cash as of 31 March 2022 and continues to further invest in growth.

  • Consistently solid seasonally adjusted revenue growth Q on Q in Brace168 and VITCS. Both business units out-performed revenue for the prior corresponding period (PCP) i.e. Q4FY21 vs Q4FY22 (Brace168 71%, VITCS 55%).

Revenue

1.40

Millions

1.20

1.00

0.80

0.60

0.40

0.20

-

Q4 Jan-Mar '21 Q1 Apr-Jun '21 Q2 Jul-Sep '21 Q3 Oct-Dec '21 Q4 Jan-Mar '22

Brace168VIT CS

The growth in receipts from customers reflects the delivery performance of the business. However, operating expenses reflect investment in growth with higher staff costs due to new hires, and further consolidation of VITCS operating costs.

During the quarter, the Company made payments to related parties of $190K which were comprised of usual executive and non-executive director fees, salaries, and consultancy payments.

Cipherpoint Executive chairman Mr Ted Pretty said "Pleasingly the March quarter saw record customer receipts. Whilst revenues reflected the usual seasonal variation there is recognition by the Board that the Company needs to deliver more. The Board will use the June quarter to insist on better sales performance and will aggressively pursue a project to review all costs (including Board overhead) in the business with the view to accelerate the move to cash flow breakeven."

Activities Report and Business Update

The demand for cyber security and data protection solutions and services remained strong. During the March quarter:

  • Both Brace168 and VITCS continued to consolidate their relationships with existing customers and commit resources to building their sales pipeline.

  • Brace continued to directly build on existing relationships securing 5 contract extensions and uplifts with existing customers covering project work, end point protection and extensions to managed detection and response services. It also secured 2 new pen tests through its partner channels.

  • VITCS secured 8 new contracts, 5 with Tasmanian Business Enterprises and Agencies and 3 with local business customers comprising both project work as well as manages secures bubbles.

Outlook

The Company continues to see positive tailwinds in the growing market for cyber security services as the Federal Government and the private sector ramp up their investment in cyber protection. The Company intends to continue to build out its managed security services business with specific focus on driving organic revenue growth in the SMB segment. The Company will also make progress in deploying an additional SOC in Tasmania where we have seen demand for cyber services increase.

The Board has observed that asset prices for potential targets remain high so it will only entertain acquisitions that are accretive when and if they arise.

--Ends--

This announcement has been approved for release by the Board.

About Cipherpoint Group

Ted Pretty

Peter Taylor

Managing Director and Executive Chairman

Investor Relations

Peter@nwrcommunications.com.au

+61 412 036 231

©2022 Cipherpoint Limited or its affiliates

ABN 61 120 658 497

Cipherpoint through its wholly owned subsidiaries Brace 168 and VITCS is a focused managed cyber security services business. It utilizes its best of breed security operations centre and a highly trained operations and advisory team to identify and detect security vulnerabilities using Brace168's unique cyber security approach driven by the NIST framework. It provides innovative IT and cyber security solutions to a broad range of enterprise sectors and government.

Further information

For further information, please visit https://cipherpoint.com

Cipherpoint investor relations contact:

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

Cipherpoint Limited

ABN

61 120 658 497

Quarter ended ("current quarter")

31 March 2022

Consolidated statement of cash flows

Current quarter

$A'000

Year to date

(12 months)

$A'000

  • 1. Cash flows from operating activities

  • 1.1 Receipts from customers

  • 1.2 Payments for

    • (a) research and development

    • (b) product manufacturing and operating costs

    • (c) advertising and marketing

    • (d) leased assets

    • (e) staff costs

    • (f) administration and corporate costs

  • 1.3 Dividends received (see note 3)

  • 1.4 Interest received

  • 1.5 Interest and other costs of finance paid

  • 1.6 Income taxes paid

  • 1.7 Government grants and tax incentives

  • 1.8 Other (provide details if material)

  • 1.9 Net cash from / (used in) operating activities

1,593

(43)

-

(25)

-

(1,422)

(694)

- - (7)

- - -

4,668

(452)

-

(203)

-

(4,039) (3,043)

- - (48)

- -

(29)

(598)

(3,145)

2.

Cash flows from investing activities

2.1

Payments to acquire or for:

(a) entities

-

-

(b) businesses

-

(2,677)

(c) property, plant, and equipment

(40)

(269)

(d) investments

-

-

(e) intellectual property

-

-

Page 4

Consolidated statement of cash flows

Current quarter

$A'000

Year to date

(12 months)

$A'000

(f) other non-current assets

  • 2.2 Proceeds from disposal of:

    • (a) entities

    • (b) businesses

    • (c) property, plant, and equipment

    • (d) investments

    • (e) intellectual property

    • (f) other non-current assets

  • 2.3 Cash flows from loans to other entities

  • 2.4 Dividends received (see note 3)

  • 2.5 Other (provide details if material)

  • 2.6 Net cash from / (used in) investing activities

(4)

- - - - - 200 - - -

(65)

- 1,320 - - - 200 -

- (32)

156

(1,523)

  • 3. Cash flows from financing activities

  • 3.1 Proceeds from issues of equity securities (excluding convertible debt securities)

  • 3.2 Proceeds from issue of convertible debt securities

  • 3.3 Proceeds from exercise of options

  • 3.4 Transaction costs related to issues of equity securities or convertible debt securities

  • 3.5 Proceeds from borrowings

  • 3.6 Repayment of borrowings

  • 3.7 Transaction costs related to loans and borrowings

  • 3.8 Dividends paid

  • 3.9 Other (provide details if material)

  • 3.10 Net cash from / (used in) financing activities

- -

- -

126

- -

- -

2,170 -

- -

913

- -

- (90)

126

2,993

4.

Net increase / (decrease) in cash and cash equivalents for the period

4.1

Cash and cash equivalents at beginning of period

4.2

Net cash from / (used in) operating activities (item 1.9 above)

4.3

Net cash from / (used in) investing activities (item 2.6 above)

2,599 (598)

3,962 (3,145)

156

(1,523)

Page 5

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Cipherpoint Limited published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 07:44:06 UTC.

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