Ava Risk Group to deploy SecureLink to major military cybersecurity data network project
The military cybersecurity contract will see Ava earn around $16.86 million in licence fee revenues over the following 14 months.
Ava Risk Group (ASX: AVA) is about to deploy its SecureLink technology to the Indian Ministry of Defence under a major military cybersecurity data network project.
The company received official notice today that its in-country manufacturing partner SFO Technologies had received the purchase order for Ava’s future fibre technologies.
Ava is expected to receive US$11.9 million (A$16.86 million) in paid licence fee revenue from the order over the next 14 months.
According to Ava, the current production schedule will see up to US$1 million (A$1.5 million) in revenue come in before the end of the current 2019 financial year, with the remainder to be received during FY2020.
“This large-scale deployment of our data network security solution will generate further interest in our cybersecurity solutions and contribute significant earnings in FY2020 and beyond,” Ava chief executive officer Scott Basham said.
The large order follows a letter of intent that was announced in September last year where Ava’s data network security solution was selected for exclusive use by more than one million military personnel.
Negotiations on the letter of intent where formalised last week and Ava also anticipates additional revenue after the initial three-year warrant period from a seven-year spares and maintenance contract.
Future fibre technologies
Ava’s future fibre technologies which are part of today’s announced contract offer fibre optic intrusion detection systems for critical sites and infrastructure.
The security systems detect and locate perimeter intrusions, data network tapping and tampering and oil and gas pipeline interference.
To-date, Ava has deployed more than 1,700 of these systems in over 65 countries with primary clients coming from government, transport, military, oil and gas and utility sectors.
Ava Risk Group business
Ava is diversified risk management technology and services company that operates globally.
The company’s clients include numerous well-known brands, businesses and government organisations including Microsoft, Armani, HSBC, Qantas, US Army, Australian Federal Police, Shell and the Government of South Australia – just to name a few.
In addition to cybersecurity, Ava provides secure international logistics of high-risk values including precious metals and currency.
Meanwhile, the company’s BQT solutions include secure, reliable smart reader and car systems that use high security access control technology.
The products include biometric solutions and electric locking and are used at more than 3,500 sites in over 50 countries.
CEO share purchase
Earlier this month, Mr Basham put his money behind Ava and the pending contract deployment by acquiring 100,000 fully paid ordinary shares in the company.
The stock was bought at $0.17 per share – equating to a $17,000 purchase.
News of the contract deployment spurred Ava’s share price up 73% to reach a high of $0.225 in intraday trade before settling at $0.165 by mid-afternoon – up 17.86%.