Actelis Networks Inc. (ASNS) is a leading provider of cyber-hardened, hybrid fiber-copper networking solutions, specializing in rapid deployment for wide-area Internet of Things (IoT) applications.
The company’s recent financial performance and strategic initiatives present a compelling bullish investment thesis.
Robust Financial Growth
In the third quarter of 2024, Actelis reported a 200% year-over-year revenue increase, reaching $2.54 million, up from $0.85 million in Q3 2023.
For the nine months ending September 30, 2024, revenue grew to $6.7 million, a 46% increase from the prior-year period.
This growth was driven by the execution of large contracts, including a $1.4 million software and services renewal with a major North American client, of which $1.1 million was recognized in Q3.
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Significant Margin Expansion
The company’s gross margin improved substantially to 69% in Q3 2024, up from 27% in the same quarter last year.
Higher revenues reduced indirect costs as a percentage of revenue, boosted further by the substantial software component.
Strategic Defense Contracts
Actelis has secured significant contracts within the defense sector, including orders for its cyber-hardened networking technology to be deployed on three U.S. military bases.
These orders followed the company’s inclusion on the U.S. Department of Defense Information Network’s approved product list and obtaining government security certifications.
Expanding International Footprint
The company expands internationally, securing a $300,000 order for an Italian national transportation infrastructure project.
Actelis has also entered into a distribution agreement with Carahsoft Technology, a leading public-sector distributor.
This partnership makes Actelis’ hybrid-fiber solutions accessible to federal, state, local agencies, and educational organizations across the U.S. and Canada.
Actelis’ strong financial performance, defense contracts, global expansion, and strategic partnerships position it for sustained growth and long-term success.
These factors contribute to a bullish outlook for Actelis Networks Inc.
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