On July 15 2019, Senetas (ASX:SEN) confirmed that Thales (recently acquired Gemalto) will continue to be Senetas’ exclusive global distributor. Products to be distributed include the Senetas high-speed network encryptor product portfolio including the virtual network encryptor CV1000 under the brand SafeNet High Speed Encryptor (HSE). A further update will be provided on the addressable market and new product releases in the final result release which is expected late August.

KEY POINTS

  • Thales (acquirer of Gemalto) will continue to be Senetas’ exclusive global distributor.  
  • With Thales being the global leader in digital security including encryption, the potential market coverage for Senetas’ products has been massively enhanced.
  • Lower profit expectations for FY2019 with a solid rebound forecast for FY2020.
  • Traditional and new hardware encryption products, virtual technologies, SureDrop and cybersecurity awareness to drive growth over the next few years.

INVESTMENT PROPOSITION

Senetas is well positioned to participate in the growth of the global hardware encryption market. The US, Asia, European and Middle-East markets represent significant growth opportunities for Senetas with governments, defence departments and commercial organisations becoming increasingly aware of the risks of cyber-attacks and the integrity of data in motion.   

The distribution agreement with its partner Gemalto secures access to its global sales, partnering and support locations, enabling Senetas to penetrate new major markets and gain from cross-selling opportunities. Senetas is continuing to undertake investments and acquisitions in software based technologies leveraging its distribution and technical capabilities in order to enhance revenue growth.

With a growing presence in international markets, superior technology, positive industry fundamentals, strong balance sheet and with a number of new products being released to the market, Senetas remains a growth story. 

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