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ProfitScout

03/20/25 11:11 AM

#2612 RE: ProfitScout #2609

$CYCU: Cycurion CEO Kevin Kelly Provides Corporate Update in Letter to Stockholders

MCLEAN, Va., March 18, 2025 (GLOBE NEWSWIRE) -- Cycurion (Nasdaq: CYCU) (“Cycurion” or the “Company”), a trusted leader in IT cybersecurity solutions and AI, provides a corporate update in a Letter to Stockholders from CEO Kevin Kelly:

Dear Fellow Stockholders,

After a volatile first month of trading following Cycurion’s entrance into the Nasdaq market, I want to reiterate the Cycurion team’s and my commitment to our stockholders. We remain highly confident in achieving our objectives that will ultimately drive intrinsic enterprise value growth underpinned by three key levers:

Expansion of our groundbreaking AI-powered ARx Security Platform, which we believe has the potential to revolutionize the cybersecurity market and serve as a game-changer for Cycurion with its high SaaS margin profile.
Organic companywide growth, including expanding current client relationships where there is tremendous opportunity for growth, primarily in the ARx vertical, driven by a focused strategy that includes sales & marketing talent additions.
Opportunistic and accretive acquisition strategy that seeks complementary additions to Cycurion’s existing offerings, while expanding sales reach. This strategy offers selling enterprise/government cybersecurity and IT support firms a value realization opportunity with a growing, trustworthy successor.
ARx Security Platform – Significant Organic, High-Margin AI-Powered Cybersecurity Growth Platform. At the heart of our growth strategy is the recently announced ARx Security Platform, an unrivaled cybersecurity innovation with the potential to disrupt the existing cybersecurity landscape. Powered by advanced AI technology, this robust solution provides real-time insights and protection against evolving cybersecurity threats. ARx offers a comprehensive multi-layered defense mechanism that includes a Web Application Firewall, Bot Mitigation, and Geo Gating. Additionally, as a pure SaaS offering, ARx can be deployed in a rapid and seamless manner without cumbersome and costly network hardware installations.

With high product margins, the ARx Security Platform is both a cybersecurity industry breakthrough and the foundational future contributor to Cycurion’s growth. We are laser-focused on expanding this high-margin & ROI segment to drive sustained growth and establish a formidable position in the cybersecurity space. We strongly believe ARx’s value proposition will ultimately be positively reflected in the price of Cycurion stock upon the market both obtaining a better understanding of the offering’s worth and making the connection for all stakeholders that Cycurion is now a leading cybersecurity provider. We look forward to sharing more details on our vision for ARx and its growth over the coming months.

Our Team. Cycurion’s success has always been built on the expertise and dedication of our world-class team of cybersecurity professionals. We have 70 great employees, many possessing the highest level of government security clearance, working at the upper echelon of government and corporate organizations, ensuring superior client service and driving our growth.

Accretive Acquisitions for Enhanced Capabilities. Cycurion will also seek growth with an opportunistic lens via highly strategic, complementary acquisitions that are designed to enhance our capabilities and extend our reach in both the government and commercial sectors. These prospective acquisitions will be designed to strengthen our technology portfolio, expand our client base, and accelerate our growth. By complementing our cutting-edge ARx Platform with these prospective strategic additions, we intend to reinforce Cycurion’s leadership in cybersecurity innovation and ensure Cycurion is well-equipped to meet the demands of a rapidly changing market.

Capital Structure Update

Current outstanding number of shares of common stock is just over 30 million, which yields a basic market capitalization of $16.2 million, based on the closing share price on March 17 of $0.54; and
If all the of outstanding shares of the various series of preferred stock are converted and all of the outstanding warrants are exercised for shares of common stock, the pro forma total number of shares of then-outstanding common stock would be approximately 46 million (excludes the pre-existing SPAC warrants that are significantly out-of-the-money, exercisable at $11.50/share); and
The total potential capital that Cycurion could receive from the exercise of all of the warrants that remain outstanding (excluding the $11.50 SPAC warrants) would be approximately $4.0 million.
Conclusion. We believe we have a highly valuable solution in our ARx Security Platform. We are enthusiastic about executing our growth strategies as we strive to deliver lasting value to our stockholders. We are confident in accomplishing the task at hand and will seek to buttress our stance by adding talented individuals who are aligned with our core beliefs and driven to succeed. We believe that Cycurion is optimally positioned to capitalize on the rapidly growing global demand for cybersecurity solutions with cybercrime costs projected to reach $10.5 trillion annually, and the cybersecurity market nearing $200 billion.

Moreover, we are mindful of the heightened volatility in the price of Cycurion’s stock over the recent weeks. The challenging broader market, and the technology sector in particular, has been under significant pressure since the middle of February, coincidentally when we completed the transaction that brought Cycurion public. That said, please rest assured that all of us, Alvin McCoy (CFO), the Board of Directors, the entire integrated Cycurion team, and I are working with the singular mission to execute our model and drive increasing value for Cycurion stockholders. We thank you for your initial support, and we look forward to sharing additional positive news with you in the near future.

Sincerely,

Kevin Kelly
Cycurion CEO

About Cycurion
Based in McLean, Virginia, Cycurion (NASDAQ: CYCU) is a forward-thinking provider of IT cybersecurity solutions and AI, committed to delivering secure, reliable, and innovative services to clients worldwide. Specializing in cybersecurity, program management, and business continuity, Cycurion harnesses its AI-enhanced ARx platform and expert team to empower clients and safeguard their operations. Along with its subsidiaries, Axxum Technologies, Cloudburst Security, and Cycurion Innovation, Inc., Cycurion serves government, healthcare, and corporate clients with a commitment to securing the digital future.

Forward looking Statements
This letter to our stockholders and press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the operations and prospective growth of Cycurion’s business.

Many factors could cause Cycurion’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements described in this press release, including words such as “continue”, “expect”, “intend”, “will”, “hope”, “should”, “would”, “may”, “potential”, and other similar expressions. Such factors could include, among others, those detailed in its Registration Statement on Form S-4, as filed with the Securities and Exchange Commission (the “SEC”). Should one or more of these risks or uncertainties materialize, or should the assumptions set out in the section entitled “Risk Factors” in that filing with the SEC underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this press release and Cycurion does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law. Cycurion cannot assure that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Individuals are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.

Investor Contact:
CORE IR
investors@cycurion.com

Media Contact:
Phone: (703) 555-0123
Email: media@cycurion.com

https://www.globenewswire.com/newsroom/ti?nf=OTM5NjExOSM2ODEwOTYwIzIyOTg5MDA=
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ProfitScout

08/06/25 12:32 PM

#2620 RE: ProfitScout #2609

$IQST: Meet IQSTEL, The Dynamic Holding Company With Interests Ranging From Telecom To AI That Litchfield Hills Research Believes Is Undervalued
By Meg Flippin Benzinga

DETROIT, MICHIGAN - August 5, 2025 (NEWMEDIAWIRE) - IQSTEL Inc. (NASDAQ: IQST), a multinational telecommunications and technology company that recently rebranded as a dynamic holding company to reflect its diverse interests, is making inroads on its goal to achieve $1 billion in revenue by 2027.

The company, which has grown over the years through a combination of strategic acquisitions - it has made twelve since 2018 - and operational excellence, has businesses in telecommunication, fintech and artificial intelligence, all of which are seeing transformational growth.

IQSTEL operates on four continents, has six offices around the globe and employs more than 100 employees. Since launching in 2018, it has made a number of telecommunication acquisitions including SwissLink, Smartbiz Telecom and Qxtel, bought fintech companies ITS Blockchain and Global Money One, acquired AI company Reality Border and recently purchased Globetopper, a global B2B gift card concierge firm.

In addition to acquisitions, it's also striking partnerships that are generating revenue for the company. Take its recent strategic partnership to deploy IQSTEL's AIRWEB AI agents to ONAR's account managers through its AIRWEB platform. The deal not only validates IQSTEL's AI technology, reports the company, but it also gives it entry into a high-margin vertical. Another example of its focus on high-tech, high-margin products that will help it achieve $1 billion in revenue is the recent launch of IQ2Call.ai, a next-generation, AI-powered call center service developed by Reality Border, which targets a market the company estimates to be worth $750 billion globally.

Revenue Growing In 2025

But it's not just partnerships and acquisitions that make IQSTEL a compelling story. It is also posting financial results it says are surpassing its own expectations.

For the first half of 2025, IQSTEL reported preliminary revenue of $128.8 million. In June alone, it posted revenue of $27.3 million. The company said revenue was driven by an increase in commercial momentum across its global telecom and tech operations.

IQSTEL expects to reach a $400 million annualized revenue run rate in Q3 - which it reports as being ahead of plan - and to reach $1 billion in revenue by 2027. Its recent acquisition of Globetopper is expected to contribute an additional $5-6 million in monthly revenue as of July.

"We're pleased with the strong performance in the first half and even more enthusiastic about what lies ahead," said IQSTEL's CEO, Leandro Iglesias, when reporting results for the first half of 2025. "Historically, the second half of the year delivers even stronger results, and with Globetopper now part of the group, we're confidently on track to reach our $340 million revenue forecast for 2025."

IQSTEL is also making progress reducing its debt, recently cutting it by $6.9 million or about $2 per share, which it said will have a direct and positive impact on the company's net stockholders' equity. The figure stood at $11.34 million as of the first quarter.

The company said the reduction was achieved through a combination of debt conversions into common shares and Series D Preferred Shares. In addition to improving the company's capital structure, the transaction provides $0.92 million in interest savings, directly enhancing IQSTEL's cash flow and operational flexibility, reports IQSTEL.

Buy Rating From Litchfield Hills

But it's not just IQSTEL that is optimistic about the company's prospects. So too is Litchfield Hills research which has a buy rating on the company and a price target of $18 per share. IQSTEL was recently trading at a little over $9 per share.

The investment firm gave IQSTEL a buy rating citing the company's robust telecom operations, which include providing international wholesale voice and SMS transport for over 35 telecom operators including Verizon, Vodafone and China Mobile, extensive global relationships led by CEO Iglesias, the company's asset-light model, its disciplined approach to M&A, accelerating revenue and what Litchfield says is the potential for significant upside.

"The key to the company's success is its CEO, Leandro Jose Iglesias. We have spent hours in in-depth conversations with him on every aspect of the business, as well as his vision for the future," wrote the investment firm in the research report. "In our opinion, the keys to his success are his extensive contacts from his 27 years in the international telecom industry and his ability to attract and work with talented executives. He has a vision for success, and to date, has executed this well."

IQSTEL is in growth mode and it isn't slowing down. With a goal to reach $1 billion in revenue in two years time and with a stock that the company and Litchfield Hills believe is undervalued, this telecom, AI and fintech incubator may be worth paying attention to.

Featured image from Shutterstock.

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.

This content was originally published on Benzinga. Read further disclosures here.

View the original release on www.newmediawire.com