Cognosec signs Cybersecurity deal in South Africa

Cognosec AB (publ) (“Cognosec” or “The Company”), Nasdaq: COGS, a leading supplier of solutions within Cyber Security with operations in Europe, Africa and the Middle East, has signed an agreement with a major South African financial institution for delivery of Cybersecurity solutions and services for an ordervalue and revenue in 2016 of around ZAR 13 M, corresponding to EUR 0,9M*.

This contract is one of two contracts mentioned in the Company´s interim report for the third quarter that originally was anticipated to materialize during the third quarter 2016.

The contract, which covers an initial program, is over three years, and confirms the Cognosec Group’s mission to build profitable long-term relationships with its customers and points to the growing importance of Cybersecurity. Demand for network security services is ever increasing, as cybercrime becomes an issue that all companies and organisations worldwide have to protect themselves against.

A specialist in Cybersecurity and the market leader in Africa, Cognosec is perfectly placed to provide the solutions sought out by large organisations and financial institutions anywhere in the world. This contract is reflective of the company’s prestigious and growing customer base and underlines how the market values Cognosec services.

– We are delighted to broaden and deepen our business relationship with a very valued and respected customer,” said Robert Brown, CEO of Cognosec AB. “No leading financial institution can afford to take risks when it comes to protecting its assets. That’s where Cognosec comes in – to align technical expertise, skilled employees and our extensive experience to create an effective and fail-safe Cybersecurity environment.

* Based on current exchange rates.


Continued investments for growth and solid progress in Europe

Cognosec AB (publ) (“Cognosec” or “The Company”), a leading supplier of solutions within Cyber Security with operations in Europe, Africa and the Middle East, today announces its first nine month report for 2016.

The third quarter showed continued underlying revenue growth in key areas with revenues of EUR 3.3m, up 3% on the previous quarter, despite deferral of two major contracts into Q4 2016. The newly created European businesses showed good progress with revenues of EUR630k in the quarter. Further investment in resources and headcount was made to meet demand. Headcount rose 28% versus the previous year.

  • Revenues in the third quarter grew to EUR 3.3m, up 3% compared to previous quarter
  • European operations began revenue generation: EUR 630k in the third quarter
  • Two major contracts expected in Q3 rolled into Q4 2016
  • Gross profit margin for the quarter improved to 38% (Q3 2015: 33%)
  • Resources and headcount grew substantially to meet demand
  • Q3 Group Operating loss amounted to EUR1.37m (Q3 2015: profit EUR 1.00m)
  • Earnings per share for Q3 2016 amounted to EUR -0.0048 (Q3 2015 EUR 0.0041)*
  • The Group employed 107 people (Q3 2015: 83) at the end of the period, up 29 %
  • The Group remained debt free and had EUR 1.98m in cash and cash equivalents at the end of the period

*Result per share refers to result per share atributable to equity owners of the parent company. There is no potential dilutive effect on the earnings per share.

This interim report is a translation of the original interim report, which was submitted in Swedish. In any and all legal considerations, the interim report in Swedish serves as Cognosec AB (Publ) official report.


Cognosec AB approved for listing on Nasdaq First North in Stockholm and publishes company description

Cognosec AB (publ) (“Cognosec” or “The Company”), a leading Cyber Security Group and supplier of diversified solutions within the Cyber Security Sector with operations in Europe, Africa and the Middle East, has been approved for listing on Nasdaq First North. The trading is expected to commence on 22 September 2016 under the ticker symbol ”COGS” with ISIN code SE0007604061. The Company has compiled a company description that has been approved by Nasdaq First North which as of today is available on Cognosecs website, www.cognosec.se.

Jacobus Paulsen, Chairman of the Board in Cognosec says:

”Cognosec has shown strong organic growth and has considerable potential for further acquisitions. Cognosec is an accredited, profitable and debt free company that offers multiple Cyber solutions around the globe. We will continue to establish operational centres in key geographies by acquiring cyber companies to expand the products and services of the Cognosec portfolio. We now have a scalable platform in place which will strengthen our market position and the listing will be a key milestone in our development.”

Background and rationale for the listing

Cognosec experiences good sales development and the Company are in negotiations regarding several new contracts within the areas of Managed Cyber Security Services, Penetration Testing and Intrusion Prevention Services. In addition, the Company has identified several acquisition opportunities that could strengthen the offering further. Therefore, the Board believes that Cognosec is now ready to list the Company’s shares on Nasdaq First North. For the purpose of preparing the Company and to apply for the listing, Cognosec has prepared a company description that has been approved by Nasdaq First North, which as of today is available on Cognosec’s website, www.cognosec.se.

A listing of the Company’s shares on Nasdaq First North increases the visibility, which is expected to increase the interest in the Company and its products and services. A listing will also increase the company’s transparency, which builds credibility and brand among key audiences such as existing and potential customers and key employees. A listing also provides improved access to the capital markets and the ability to use the company’s shares as payment in acquisitions. Lastly, a listing on Nasdaq First North creates conditions for liquid trading of the Company’s shares.

Advisors

Danske Bank has acted as financial advisor to the Company in connection with the compilation of the Company Description. The law firm Hammarskiöld & Co has acted as legal advisor to the Company in connection with the listing in respect of Swedish law. Fogel & Partners is acting as strategic communications advisor to the Company.


Cognosec AB: Publication of Annual Report for 2015

Cognosecs AB (publ) has decided to further revise plans for the publishing of the Company´s Annual Report for 2015. Work in the completion of the Annual Report has proven to be more comprehensive then anticipated, and thus taken more time than previously planned.

New date for the publication of Cognosec AB Annual Report 2015 has been set as Friday, May 13th, 2016.

This message implies that publishing data contained in the Company’s financial calendar has been updated with this information.

For more information please contact:
Magnus Stuart, IR Officer
46 706 211 350