Cyber security provider and IBM partner Decipher Works, which was acquired by local financial technology provider Transaction Solutions International (ASX:TSN) late last year, has played a major part winding back its new parent’s annual losses.
Transaction Solutions International, which is publicly-listed on the Australian Securities Exchange (ASX), told shareholders on 29 May that it had narrowed its annual net loss for the year ending 31 March to $590,000.
The year prior, the financial payments and technology company reported a $1.3 million loss.
It appears the change came largely as a result of the company’s increase in revenue, which rose from $91,766 for the year ending March 2017, to $2.36 million for the 12 months to the end of March this year.
“The revenue is predominantly derived from the Decipher Works…business since its acquisition in August 2017,” the company told shareholders in a statement. “Based on the [seven] months of revenue between August 2017 to March 2018, [Decipher Works’] annualised revenue is approximately $4 million.”
The latest Decipher Works revenue figure represents an 18 per cent increase compared to revenue from the 12 months prior to the acquisition by Transaction Solutions International. Decipher Works is a Sydney-based cyber security specialist, which counts IBM, Okta, Forgerock and Thycotic among its vendor partners.
As well as integration services, Decipher Works also offers managed services and support, access management, identity governance and enterprise security.
The increased revenue figure for both Decipher Works and by Transaction Solutions International, which also has a 25 per cent stake in ATM machine operator TSI India, has seen the parent company more than halve its net annual loss, compared to the previous year.
Transaction Solutions International told shareholders that Decipher Works continues to look for organic growth through the expansion of its customer base and service offering, with new business won by the cyber security provider for the nine months since its acquisition amounting to $3.8 million.
Meanwhile, Decipher Works’ parent company said it continues to pursue an acquisition strategy to grow its cyber security business, and that it is currently negotiating with target companies over potential acquisition deals.
In November last year, Transaction Solutions International said that Decipher Works was on track to hit record revenue growth in the 2018 financial year, after new wins in the insurance industry.