FREMONT, Calif. - Actelis Networks, Inc. (NASDAQ: ASNS), a provider of cyber-hardened networking solutions, announced today a strategic partnership aimed at bolstering the cybersecurity of Internet of Things (IoT) devices. The collaboration introduces an AI-powered Software as a Service (SaaS) layer as part of the company's 'Cyber Aware Networking' architecture, designed to protect IoT devices at the network edge.
This new offering integrates an intelligence layer into Actelis' networking devices, enabling real-time monitoring and protection of physical assets such as cameras and sensors. The AI-powered software is set to enhance the security, efficiency, and operational continuity of IoT networks by delivering enterprise-grade AI Asset Intelligence & Threat Management capabilities.
Actelis plans to incorporate this patented cybersecurity software into its existing networking solutions portfolio, which is already certified by the Department of Defense (DoD). This move is expected to strengthen Actelis' comprehensive IoT connectivity solutions, especially for critical infrastructure applications across government networks, utility providers, transportation, and airports.
Chairman and CEO Tuvia Barlev emphasized the importance of the new software, stating it provides a platform that detects cyber-attacks and operational faults, enabling immediate responses to prevent issues from escalating.
The initiative is a response to the growing number of cyber-attacks targeting IoT devices. A study by the Ponemon Institute indicates that 63% of organizations anticipate a significant increase in IoT attacks. Actelis' solution seeks to address these security challenges by offering visibility, monitoring, and threat detection that leverages AI and machine learning.
This partnership aligns with Actelis' strategic focus on expanding its IoT sector presence and increasing its recurring software revenues. The global IoT security market is expected to reach $306 billion by 2032, with government, energy, and transportation sectors among the most vulnerable to cyber threats.
Actelis Networks, Inc., listed on NASDAQ under the ticker ASNS, specializes in rapid-deployment networking solutions for wide-area IoT applications. The company's portfolio includes hybrid fiber-copper switches, Ethernet devices, advanced management software, and cyber-protection capabilities.
The information in this article is based on a press release statement from Actelis Networks, Inc.
In other recent news, Actelis Networks has made significant strides in its operations. The company has reported a series of successful financial developments, including the exercise of Series A-2 warrants for approximately 999,670 shares of common stock, expected to generate around $2.25 million. This move was facilitated by H.C. Wainwright & Co., serving as the exclusive placement agent.
Actelis Networks has also secured several significant orders. The company received a $260,000 order to upgrade traffic systems in a Mid-Atlantic county, a $150,000 order from a tier-1 military contractor, and a software and service order valued at approximately $1.5 million from a major North American customer. Moreover, Actelis Networks has landed substantial orders for smart city and transport projects in Germany and Italy, respectively.
The company has also announced a partnership with Carahsoft Technology Corp. for public sector distribution in the United States and Canada. This collaboration is expected to enhance the distribution of Actelis' hybrid-fiber connectivity solutions. In a noteworthy development, Actelis Networks plans to acquire a majority stake in Quality Industrial Corporation, a Dubai-based company. This merger is expected to yield a proforma revenue of $17 million in 2023. These are the recent developments marking Actelis Networks' continued growth and expansion.
InvestingPro Insights
As Actelis Networks, Inc. (NASDAQ: ASNS) makes strides in enhancing cybersecurity for the Internet of Things (IoT) through its latest strategic partnership, the company's financial metrics and stock performance provide additional context for investors. Actelis Networks, a specialist in cyber-hardened networking solutions, is navigating a dynamic market landscape with a focus on innovation and strategic growth.
InvestingPro data reveals Actelis Networks' market capitalization stands at $7.82 million, indicating its position as a small-cap company within the tech sector. Despite a challenging environment, the company has demonstrated a significant three-month price total return of 149.52%, showcasing a strong short-term recovery. However, it is important to note that the stock has experienced a notable decline over the last month, with a price total return of -16.67%, reflecting the high price volatility that is characteristic of the company's stock as highlighted by one of the InvestingPro Tips.
Another InvestingPro Tip points out that Actelis Networks does not pay a dividend to shareholders, which is typical for companies focused on reinvesting earnings into growth initiatives, such as the development of their 'Cyber Aware Networking' architecture. The absence of dividend payouts may appeal to growth-oriented investors who are more interested in potential capital gains than income.
From a valuation perspective, Actelis Networks trades at a high Price / Book multiple of 8.36, which could suggest the stock is priced on the higher side relative to its book value. This is an important consideration for value investors assessing the company's stock.
For those looking to delve deeper into Actelis Networks' financial health and stock performance, there are additional InvestingPro Tips available (https://www.investing.com/pro/ASNS), providing a comprehensive analysis that could further inform investment decisions.
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