Yesterday, just before noon Pacific, Plurilock Security (PLUR.V) was halted on the TSX-V.
The reason for the halt was left unsaid, but this morning the company dropped its news and, yeah, worth the wait.
Plurilock Security Inc. has won a record $19.3-million (U.S.) cybersecurity contract with a semiconductor company listed in the S&P 500 index, and a key player in worldwide semiconductor supply chains. The contract represents the largest single sale in company history.
Under the terms of the contract, Plurilock will modernize and replatform the customer’s security operations stack, leveraging the industry’s leading artificial-intelligence-native cybersecurity platform to replace an aging array of partially integrated, high-overhead security solutions.
As we’ve noted many times, Plurilock – which is not a client company but which has been in the past – has a heavy roster of North American corporate, government, and military contracts to provide their patented AI-driven information security technology that allows for constant and seamless ID-checking across client networks.
In short, instead of using the traditional login/password technique of checking a user is who they say they are, Plurilock checks hundreds of identifiers, from keystroke combos to tabs open, mouse use and more, so that if security is breached, their AI will spot anomalies and notify those who need to know.
That tech is very undervalued in the Canadian public markets, but is increasingly bringing in hard cash contracts, including the $19m pulled in today.
By my reckoning, Plurilock now rolls in around $90m a year – not bad for a $38 million market cap.
The knock on PLUR has been that its margins were slim, but an increasing focus on consulting, where the margins are 3x better, is changing that story up.
The company will also provide two dedicated cybersecurity experts from the security operations (SecOps) practice of its critical-services business unit for a 12-month period, to support the integration and smooth implementation of the new platform.
So the question now is, who is this client?
The company communications indicate the client is an S&P 500 semiconductor company, which points to one of the following as being the new partner.
- NVIDIA (NVDA) – $992 billion
- Broadcom (AVGO) – $335 billion
- Advanced Micro Devices (AMD) – $202 billion
- Texas Instruments (TXN) – $160 billion
- Qualcomm (QCOM) – $129 billion
- Intel (INTC) – $125 billion
- Applied Materials (AMAT) – $115 billion
- Analog Devices (ADI) – $89 billion
- Lam Research (LRCX) – $85 billion
- Micron Technology (MU) – $78 billion
There are four more that I can find that are smaller than those, but that’s a murderer’s row of massive companies with tendrils into multiple industries, that can expand this deal on a large scale at the drop of a hat.
And that goes along with the murderer’s row on their board and advisory board of execs with connections in companies like these.
Indeed, it appears this $19m contract is, in itself, an expansion of an earlier deal.
The contract was secured through Plurilock’s subsidiary, Aurora Systems Consulting, and was awarded based on the strength of earlier critical-services contracts, underscoring the synergies across Plurilock’s businesses.
[..]
“This record-breaking deal reflects Plurilock’s strategy to expand revenue and margins from non-government clients and demonstrates that the integration of our previous acquisitions is delivering results,” said Ian L. Paterson, chief executive officer of Plurilock. “Being chosen to transform the security operations of a leading S&P 500 enterprise underscores the trust that world-class organizations are placing in our capabilities.”
If you’ve been reading about these guys on our site for a while, you’ll know they’;ve delivered on everything promised over the last six months, from balance sheet debt turnaround to expanded revs to improved margins. This is just another example.
— Chris Parry
FULL DISCLOSURE: Again, not a client. Just a beauty we spotted, that we’ve dealt with before, and that we’ve been buying along the way.