FREMONT, Calif. - Actelis Networks, Inc. (NASDAQ:ASNS), a provider of cyber-hardened networking solutions, announced today it has secured an order exceeding $150,000 from a tier-1 military contractor. The order is for the company's GigaLine 800 (GL800), marking its first major deployment at U.S. military bases.
The GL800, a cyber-hardened networking solution designed for rapid deployment, is part of Actelis' efforts to support the modernization of military infrastructure. Its deployment aligns with the increasing demand for higher bandwidth to support the digitization of military bases, including buildings and IoT devices.
Actelis' GigaLine 800, which was launched in December, is a hybrid-fiber solution capable of delivering multi-gigabit connectivity over existing wiring. This feature enables quick installation without the extensive costs and time typically associated with new construction and engineering.
The company's growth in the military sector is bolstered by the GL800's certification by the National Institute of Standards and Technology (NIST) for FIPS standard, the Joint Interoperability Test Command (JITC), and its inclusion on the U.S. Department of Defense's Approved Products List.
Tuvia Barlev, Chairman and CEO of Actelis, stated, "This order for a significant military contractor is a testament to Actelis' growth and ambition in the IoT sector. Our innovative solutions continue to gain traction, and this latest deployment of the GL800 highlights our ability to meet the critical needs of modern military infrastructure with rapid deployment capabilities."
The GL800 is designed with advanced security protocols, including 256-bit MACsec encryption, and is JITC certified, enhancing its appeal to government agencies focused on network security and rapid connectivity.
Actelis Networks specializes in networking solutions for a range of applications, including government, military, utility, telecom, and campus environments. The company emphasizes the delivery of secure, rapid-deployment solutions that aim to drive growth and maintain high network performance and security standards for their clients.
This news is based on a press release statement from Actelis Networks, Inc. The company's forward-looking statements involve risks and uncertainties, and actual results may differ materially from those projected. Actelis Networks has not updated or revised any forward-looking statements as of the date of the press release.
In other recent news, Actelis Networks has been making significant strides in its operations. The company has secured a $260,000 order to upgrade the traffic infrastructure in a Mid-Atlantic county.
Moreover, Actelis has announced a partnership with Carahsoft Technology Corp. for public sector distribution in the United States and Canada. This collaboration is expected to enhance the distribution of Actelis' hybrid-fiber connectivity solutions.
Among recent financial developments, Actelis has exercised Series A-2 warrants for approximately 999,670 shares of common stock, expected to generate around $2.25 million. Furthermore, the company has initiated an immediate exercise of outstanding warrants, projected to generate an additional $3 million for general corporate purposes.
In terms of expansion, Actelis has secured significant orders for smart city and transport projects in Germany and Italy, respectively. The company has also received orders for its cyber-hardened technology to be implemented at three U.S. military bases.
Lastly, Actelis plans to acquire a majority stake in Quality Industrial Corporation, a Dubai-based company. This merger is expected to yield a proforma revenue of $17 million in 2023. These are recent developments marking Actelis Networks' continued growth and expansion.
InvestingPro Insights
As Actelis Networks, Inc. (NASDAQ:ASNS) secures a significant order from a tier-1 military contractor, it's important for investors to consider the financial health and stock performance of the company. Actelis has been experiencing substantial price volatility, with a notable 113.64% three-month total return. However, this comes after a period where the stock took a substantial hit, declining 16.58% over the last month and 23.53% over the last week.
The company's market capitalization stands at a modest 7.83M USD, reflecting its position in the market. One of the InvestingPro Tips highlights that Actelis is quickly burning through cash, which is a crucial factor for investors to monitor, especially when considering the company's ambitious growth plans in the military sector. Moreover, the company's valuation implies a poor free cash flow yield, a metric that is often used to gauge the attractiveness of an investment.
Actelis' financial metrics suggest challenges, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at -1.23. This negative P/E ratio indicates the company is not currently profitable. Investors may also be concerned that short term obligations exceed liquid assets, which could pose liquidity risks.
For those interested in a deeper dive into the financials and future prospects of Actelis Networks, there are additional InvestingPro Tips available at InvestingPro. Discover more about the company's performance and use the exclusive coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. Actelis Networks' next earnings date is scheduled for August 9, 2024, which will be a significant event for investors following the company's progress.
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