- SideChannel recently released its financial results for Q1 2023, recognizing $1,546,000 in revenue, a 48% year-over-year increase
- The company also ended the fiscal quarter with $2,553,000 in cash, having spent about $480,000 to offset R&D and marketing expenses
- SideChannel is in the business of providing cybersecurity leadership and program development through its team of virtual Chief Information Security Officers (“vCISOs”)
- The company has also developed Enclave, a micro-segmentation software that recently received FIPS 140 certification, opening the door for SideChannel to pursue federal and state contracts and further increase cybersecurity revenue
SideChannel (OTCQB: SDCH), a company focused on delivering cybersecurity programs as a service and complimentary solutions to small and middle-market companies that have long been priced out of cybersecurity solutions, recently announced its financial results for the quarter ended December 31, 2022 (“Q1 2023”). The company recognized a 48% year-over-year revenue growth from $1,048,000 in Q1 2022 to $1,546,000 in the just-ended quarter (https://ibn.fm/ZQIlD). Furthermore, the Q1 2023 revenue represented a 26% quarter-over-quarter growth from Q4 2022 figures.
In addition, the company closed off the year with $2,553,000 in cash, having used about $480,000 in the just-ended quarter to offset operational expenses. More specifically, these expenses included investments in a few growth initiatives, including research and development (“R&D”) expenditure to advance its micro-segmentation software Enclave as well as sales and marketing to acquire new clients, according to SideChannel CFO Ryan Polk. Ryan was speaking in the company’s financial-results conference call hosted February 13. A recording of the call is available on the company’s website at https://ibn.fm/YxdC4 (registration required).
“An increasing number of emerging and mid-market companies are recognizing the need for more robust cybersecurity programs to reduce the risks impacting their business, whether it is from increased regulation, customer demands, or Board-level oversight,” CEO Brian Haugli conveyed in a news release announcing the financial results. “These companies turn to SideChannel to provide cybersecurity leadership and program development through our team of virtual Chief Information Security Officers (‘vCISOs’). In the last twelve months, revenue from our vCISO practice has increased 66%.”
The company intends to continue delivering on its strategy, which emphasizes growing vCISO relationships while adding complimentary products, cybersecurity services, and privacy services to help its clients cost-effectively reduce risk. SideChannel recognizes that small and middle-market companies face growing needs for cybersecurity through software and services. However, the rising costs and rapid turnover of Chief Information Security Officers (“CISOs”) leave them priced out of the market for the talent they truly need. In addition, CISOs are burning out and are looking for a better way to practice the profession they love and bring real value to companies in need of their services.
“We, as SideChannel, marry these two,” said Haugli in the conference call. “We offer cybersecurity programs as a service via senior experienced CISOs to those mid-market companies and emerging tech and startups on a fractional, cost-effective basis. This offers SideChannel’s customers unparalleled expertise and support, but at a price that is appropriate to their budgets. Moreover, they can also benefit from our expansive team, deep vertical expertise, and the opportunity to source from a wide array of software and other tools from across the industry.”
One software SideChannel’s clients can benefit from is Enclave. According to Haugli, this micro-segmentation application reduces risk, enhances productivity, and makes zero-trust a reality. “We can deploy Enclave in a variety of ways, either through direct license sales or via a managed service. And the focus shift on Enclave is not just to deliver encryption, but also deliver through micro-segmentation more than just encryption itself,” Haugli explained.
Enclave, Haugli intimated, is now a FIPS 140-certified product. (Federal Information Processing Standards or FIPS define the data security and computer system standards that an organization must heed. One of these standards, the FIPS 140, requires the system to have at least one working encryption algorithm https://ibn.fm/dg3tX. The certification clears SideChannel to pursue federal and state contracts, which require FIPS 140 compliance, and be able to sell Enclave to government entities. Thus, looking ahead, SideChannel is well positioned to grow revenue from cybersecurity software even further, considering that Q1 2023 revenue from this stream witnessed a 28% year-over-year growth, according to Ryan.
For more information, visit the company’s website at www.SideChannel.com.
NOTE TO INVESTORS: The latest news and updates relating to SDCH are available in the company’s newsroom at https://ibn.fm/SDCH
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