TEL AVIV - HUB Cyber Security Ltd. (NASDAQ:HUBC), an Israeli provider of confidential computing cybersecurity solutions, has publicly addressed legal actions initiated by Dominion, including insolvency proceedings in Tel Aviv's District Court. HUB has labeled the actions as frivolous and without merit, viewing them as an attempt to pressure the company amid a commercial dispute in a New York court.
The company, which specializes in advanced data services and cybersecurity, has filed a counterclaim in New York, alleging misconduct by Dominion. HUB emphasized its commitment to defending its reputation and business operations through all necessary legal avenues.
Earlier this month, HUB announced it had raised over $8 million in funding and acquired QPOINT, a company with annual revenues exceeding $26 million. This strategic move is intended to enhance HUB's portfolio of innovative solutions and market presence. The company asserts that it remains on track to meet its business objectives for the year, focusing on innovation, customer satisfaction, and market expansion.
HUB also highlighted its relationship with Rafael Advanced Defense Systems, the developer of Israel's Iron Dome defense system, as indicative of the trust and reliance placed on its cybersecurity offerings. The company maintains that it is on a path toward sustained growth and continues to deliver value to its customers.
Founded in 2017 by veterans of the Israeli Defense Forces' elite intelligence units, HUB Cyber Security operates in over 30 countries, providing a range of cybersecurity services and products aimed at protecting sensitive commercial and government information.
This article is based on a press release statement from HUB Cyber Security Ltd.
InvestingPro Insights
In light of HUB Cyber Security Ltd.'s recent legal challenges and strategic developments, a closer look at the company's financial health and market performance offers additional context for investors. According to InvestingPro data, HUBC currently has a market capitalization of 12.57 million USD, signaling a relatively small player in the cybersecurity market. The company's revenue for the last twelve months as of Q2 2023 stands at 73.04 million USD, with a marginal revenue growth of 4.47%. Despite the positive revenue growth, HUBC's gross profit margin remains low at 0.61%, reflecting the challenges the company faces in translating sales into substantial profit.
Two notable InvestingPro Tips for HUBC are its substantial debt burden and the fact that it is quickly burning through cash. These factors are critical for investors to consider, especially in the context of HUBC's ongoing legal disputes and the need for financial stability to support its growth ambitions. With the company not turning a profit over the last twelve months and its share price experiencing significant volatility, it's clear that HUBC is navigating a complex financial landscape.
Investors seeking a deeper analysis of HUBC's financial position and market prospects can find more comprehensive insights, including additional InvestingPro Tips, at InvestingPro. There are over 10 additional tips available, which could provide valuable guidance for those considering an investment in HUB Cyber Security Ltd. Moreover, interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, further empowering their investment decisions with professional-grade tools and data.
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