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Saturday, 04/06/2019 7:17:17 PM

Saturday, April 06, 2019 7:17:17 PM

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LDSR: New ArcMail Partnership Expected to Add $2M in Revenue & Cross-Selling Opportunities
Zacks Small Cap Research
Zacks Small Cap Research
February 14, 2019, 1:15 PM EST
By M. Marin

OTC:LDSR

READ THE FULL LDSR RESEARCH REPORT

Technology company Data443, a wholly owned subsidiary of LandStar, Inc. (LDSR), is conducting an aggressive M&A campaign and forging partnerships to complement its internally developed technologies. Earlier this week, the company announced that it had signed a two-year exclusive partnership agreement with ArcMail, which offers enterprise information and email archiving solutions.

Importantly, Data443 expects the partnership to contribute revenue of about $2 million over the next year. Management anticipates that its overall M&A pipeline will produce an aggregate annual revenue run-rate of roughly $8-$10 million and the ArcMail partnership helps support this view. Moreover, the partnership also expands Data443’s product line. The company expects to cross-promote the ArcMail products to its existing customer base and VAR network. In particular, ArcMail’s focus has been largely on the domestic market, while Data443 is developing an extensive International customer and reseller base. The per capita cost of data breaches in many offshore companies is significant. For example, the FY 2017 per capita cost of a data breach in Canada is $190, while it is $146 in France, according to a study conducted by research firm Ponemon Institute. This is not as high as the estimated per capita $225 cost in the U.S., but nonetheless still presents challenges for companies, driving the need to secure cyber-security solutions, we believe.

As it executes its strategy and deepens its product portfolio, the company continues to announce renewals with existing customers. For instance, last month Data443 announced that ARALOC had renewed its pact with Boston University and in December, the company renewed its agreements with Jane Street Capital LLC, FleetPride and WellStar Health System, while ARALOC renewed its customer contract with Southern States Cooperative.

In our view, these renewals underscore the ongoing demand for cyber security solutions. According to Data443, in 2019 global businesses are anticipated to spend $124 billion on information security, with a significant percentage of that earmarked for GDPR compliance solutions.



https://finance.yahoo.com/news/ldsr-arcmail-partnership-expected-add-181500005.html?.tsrc=rss
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