Focus remains on sales conversions from marketing and pre-sales activities while monthly recurring user-based revenue from Covata’s Australian SafeShare reseller continues to grow.
The company has received $991,000 in a research and development (R&D) tax incentive arising from its financial year 2018 R&D application, improving its operating cash balance leading into the next half.
Covata also reports that its non-executive director David Irvine, the former director-general of the Australian Security Intelligence Organisation (ASIO), has resigned from the board.
Irvine will stay on in an advisory role as the inaugural chairman of Covata’s security advisory board.
Speaking on the role change, Covata chairman Bill McCluggage said Irvine had been a valuable member of Covata’s board for the past two years.
McCluggage said: “David has graciously agreed to be the inaugural chair of our advisory board which will provide objective non-binding advice, insights or recommendations.
“In this context, we will be able to continue to leverage David’s extensive cyber industry knowledge.”
Product development is ongoing with Covata completing blockchain integration into its secure collaboration product SafeShare with technology partner ByzGen Limited (UK) and launching 'SafeShare Trust'.
SafeShare is in use by more than 27 Australian Government agencies and enterprises in sensitive industries such as defence, both in Australia and internationally.
The SafeShare Trust technology will make key aspects of stored files immutable and enable the blockchain to be the point of trust for access control to the data, ensuring it is securely shared and not tampered with.
Covata continues to promote its SafeShare for International Trafficking in Arms Regulation (ITAR) solution through lead generation campaigns.
Average total contract value for SafeShare for ITAR increased to US$25,000 from US$10,000 and sales cycles averaged three months or less.
The company has also released product upgrades to enhance SafeShare’s Microsoft-related features.
Covata is also focused on the ongoing rollout of its Eclipse product as part of European general data protection regulation (GDPR) compliance programs, conducting development testing for a European customer environment as well as integrations into internal procurement portals.
The company has deepened its relationship with dataglobal GmbH, a German-based content services, data classification and archiving vendor which has started marketing and distribution of Eclipse.
Eclipse supports European customers to implement sound information government and security requirements, particularly as part of their GDPR obligations.
Initial distribution will focus on German-speaking countries in Europe, namely Germany, Switzerland and Austria, where dataglobal has more than 550 existing archiving customers.
Covata has also identified several opportunities to resell dataglobal’s archiving suite into the Australian government and enterprise sectors, in response to both active tenders and open opportunities.
The company will send two pre-sales team members to Heilbronn, Germany, in the second week of January for detailed training with dataglobal.
Through its relationship with dataglobal, Covata is pursuing the Gartner-defined content services market which is estimated to be worth $6.4 billion and growing at a 15.7% compound annual growth rate.
The companies together have the critical capabilities required for this market including secure file sharing, enterprise information and content management and archiving.