Cognyte secures $10 million follow-on order from APAC military client

HERZLIYA, Israel - Cognyte Software Ltd. (NASDAQ:CGNT), a security analytics firm with a market capitalization of $665 million and impressive gross margins of 71%, announced Wednesday it has received a follow-on order valued at over $10 million from a military intelligence customer in the Asia-Pacific region. According to InvestingPro data, the company has demonstrated strong revenue growth of ~13% in the last twelve months.

The order represents an expansion of services to an existing military client who will now deploy Cognyte’s investigative analytics solutions across multiple units, according to a company press release. This expansion comes as InvestingPro analysis shows the company maintaining a healthy balance sheet with more cash than debt, positioning it well for continued growth.

The customer has been using Cognyte’s technology to enhance intelligence capabilities along a complex border area, helping to monitor potential security threats. The expanded deployment will cover a wider geographical area to support cross-border missions.

"This follow-on order reflects the strong results our customer continues to see from our investigative analytics solutions," said Efi Nuri, Chief Revenue Officer at Cognyte.

Cognyte, which specializes in software for data processing and investigative analytics, provides solutions that leverage artificial intelligence, big data analytics and machine learning technologies. The company serves law enforcement, national security, and intelligence agencies.

The Israel-based company trades on the NASDAQ under the ticker CGNT. Cognyte describes itself as focused on helping customers generate "Actionable Intelligence for a Safer World" through its technology offerings.

This expansion strengthens Cognyte’s presence in the APAC region’s military sector, where the company has established a longstanding relationship with this particular customer. InvestingPro analysts project positive net income growth for the current year, with additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other top stocks.

In other recent news, Cognyte Software Ltd. has secured a $10 million contract with a Tier 1 military organization in the EMEA region. Additionally, the company announced a $5 million contract with an EMEA law enforcement agency, aiming to enhance operational effectiveness by accelerating investigations and improving outcomes. Cognyte has also solidified a three-year subscription agreement with a national security customer in the EMEA region, valued at over $10 million annually, which will provide access to advanced AI-powered solutions. Furthermore, Cognyte is expanding its U.S. presence with the acquisition of GroupSense, Inc., involving an initial payment of approximately $4 million and a potential earnout of up to $5 million. The acquisition is expected to bolster Cognyte’s growth in the U.S. market. In addition, Cognyte’s board of directors has approved a new $20 million share repurchase program, following the completion of a previous buyback of the same amount. These developments reflect the company’s strategic efforts to strengthen its market position and enhance its offerings.

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