FREMONT, Calif. - Actelis Networks, Inc. (NASDAQ:ASNS), known for its cyber-hardened networking solutions, has announced a new follow-on order from a significant aerial transportation agency under the U.S. Department of Transportation. This order, which extends the network into new regions, follows a substantial contract awarded in September and signals the agency's growing trust in Actelis' technology to provide secure and robust connectivity.
The company's technology is set to support the backhaul of radar communications, a critical component for maintaining air safety and ensuring smooth operations. Actelis' solutions are designed to transmit radar data reliably to air traffic control centers, offering the necessary high bandwidth and security for mission-critical environments.
A distinct feature of Actelis' offerings is their adaptability. In regions with fiber infrastructure, Actelis' hybrid-fiber devices manage data transmissions effectively. Conversely, in areas lacking fiber, the company's technology can enhance the performance of existing copper lines to match fiber-grade quality. This flexibility allows for immediate improvement to infrastructure without incurring the high costs associated with new wiring.
Tuvia Barlev, Chairman and CEO of Actelis, highlighted the company's growing reputation across various transportation networks, attributing follow-on orders to the demonstrated value of Actelis' solutions in applications ranging from traffic management to railway and aerial transportation. Barlev emphasized the importance of reliable connectivity for safety and mobility and noted the company's role as a trusted partner in completing projects more swiftly than alternative options.
The global air traffic management and consulting market is projected to expand from $14.79 billion in 2024 to $19.46 billion by 2032, with a CAGR of 3.49%, according to a Fortune Business Insights report. Actelis aims to address the challenges faced by modernization efforts, which often grapple with the costs of new connectivity wiring. By leveraging existing network wiring, Actelis' solution presents a cost-effective option for agencies.
Actelis Networks, Inc. specializes in hybrid fiber-copper, cyber-hardened networking solutions for rapid deployment in wide-area IoT applications, including government, ITS, military, utility, rail, telecom, and campus networks. The company also focuses on enhancing network security and resilience through its "Cyber Aware Networking" initiative, which incorporates AI-based cyber monitoring and protection for edge devices.
This announcement is based on a press release statement from Actelis Networks, Inc.
In other recent news, Actelis Networks has terminated a term sheet for the potential acquisition of Quality Industrial Corp. In addition, the company has secured various orders, including a $200,000 order from the United States Department of Military Affairs, a new order from a major U.S. aerial transportation agency, and a project to upgrade a New York City municipality's traffic management system. Actelis Networks has also received a follow-on order from a major Italian motorways operator, building upon a previous order valued at over $300,000.
The company has also exercised Series A-2 warrants for approximately 999,670 shares of common stock, expected to generate around $2.25 million. Furthermore, Actelis Networks has regained compliance with Nasdaq's listing requirements, ensuring its continued presence on the exchange.
On the technological front, Actelis Networks has announced a partnership to enhance the cybersecurity of Internet of Things (IoT) devices, introducing an AI-powered Software as a Service (SaaS) layer to its 'Cyber Aware Networking' architecture. These are recent developments in Actelis Networks' operations.
InvestingPro Insights
As Actelis Networks (NASDAQ:ASNS) secures a follow-on order from a major U.S. Department of Transportation agency, investors should consider some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Actelis Networks has a market capitalization of $8.24 million USD, reflecting its position as a small-cap company in the networking solutions sector. The company's revenue for the last twelve months as of Q2 2024 stands at $6.02 million USD, with a notable quarterly revenue growth of 80.96% in Q2 2024. This growth aligns with the company's recent contract wins and expansion into new regions, as mentioned in the article.
However, it's important to note that Actelis Networks is currently operating at a loss, with an adjusted operating income of -$5.75 million USD for the last twelve months. This is reflected in one of the InvestingPro Tips, which states that the company is "Not profitable over the last twelve months." This financial situation underscores the importance of the new contracts and follow-on orders for the company's future growth and potential path to profitability.
Another relevant InvestingPro Tip indicates that the "Stock price movements are quite volatile." This volatility is evident in the company's price performance, with a significant 88.71% price increase over the last six months, contrasted by a 32.84% decrease over the last three months. Such volatility may be attributed to the company's small market cap and its position in a rapidly evolving industry.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 11 more InvestingPro Tips available for Actelis Networks, providing a deeper understanding of the company's financial health and market position.
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