Wynyard Group has signed a $3.3 million contract with a consulting and risk management firm it didn't identify for its advanced cyber threat analytics software (ACTA), its third multi-million dollar deal inked so far this year.
The crime-fighting and security software developer launched ACTA at the end of 2015 when it signed a contract with Telstra Corp, which uses the software across its internal ICT network. ACTA looks at user and entity behavioural analytics to determine high priority threats to networks.
Chief operating officer Paul Stokes said the contract is an extension of the partnership model Wynyard is pursing for ACTA, targeting major security operations centres, and is worth at least $3.3 million to Wynyard.
"Managed security service providers (MSSPs) are a target market for ACTA," Stokes said.
"They don't lack threat information and indicators, but there's no easy to way to tell if the alerts should truly be the highest priority. Now they can quickly determine what's important, focus on real threats and investigate incidents more quickly. This is a growing challenge for all large corporations but more prominent for MSSPs who are managing security for many customers."
Wynyard is looking to sell ACTA to its existing customers who have their own security operations, Stokes said.
Today's deal is the third large contract it's announced this year, having signed two three-year deals worth $29.8 million for its advanced crime analytics and investigations case management applications.
Wynyard has been in recent financial difficulty, having to raise $30 million by selling discounted shares in a rights offer to meet its working capital requirements beyond the end of the month after a placement on more favourable terms was scuppered by heightened volatility in global markets. The company raised $42.6 million in 2015, when its net cash outflow was $32.7 million
Last Wednesday, it announced the one-for-four renounceable rights offer at 85 cents a share, well below the minimum $2 that shareholders approved in December. The firm says it has binding commitments for the full $30 million.
Yesterday, it said major shareholders will get a 4 per cent discount of the dollar amount they commit, by way of a fee payable in shares, for committing to the rights offer, taking the effective share price to 81.6 cents. The fee was initially negotiated by an institutional shareholder, and Wynyard decided to extend it to all major and institutional investors.
Wynyard expects 2016 revenue in the middle of analysts' current forecast range of $54 million to $65 million.
The shares last traded at 95 cents, and have dropped about 45 per cent so far this year.