Tesserent CEO Report on Current Activities and Outlook

Tesserent Limited (ASX:TNT) is pleased to provide a report from the CEO Keith Glennan, to shareholders and the investor market, on recent and current activities conducted by the company over the past few months.

KEY TAKEAWAYS:

• Strong cash position. $0.5M banked in February from Family Zone (ASX:FZO) transaction ($1.5M cash received so far) with another $2M expected by 31 May 2017. Tesserent is debt free.
• Tesserent is executing its business strategy across a broad range of customers and sectors.
• $2 million worth of new contacts secured so far in 2017, with revenues from these deals being realised post-implementation on a monthly pro-rata basis during this financial year and into the future.
• Government introduces new legislation (Notifiable Data Breaches Bill) on 13 February 2017, which is already having a positive effect of Tesserent’s pipeline.
• Revenue is growing, with the management team aiming for contracted revenue of $500,000 per month by 30 June 2017.
• Completed highly successful Austrade mission to the US in early February 2017 with introductions to potential new clients and channel partners.
• Management currently in negotiations with potential large domestic channel partners including potential telco partnerships.
• Currently undertaking national broker and investor roadshow to update and deliver company strategy to a range of investment managers.

The board and management of Tesserent are pleased with the operational and corporate activities that have been successfully undertaken since listing on the ASX in February 2016. As well as increasing the number of customers and broadening its sector coverage, Tesserent is today in an improved operational and financial position.

Currently, the commercial team is building a strong pipeline. The company is pleased with the range and profile of the potential customers in the pipeline. In addition to the direct sales model currently adopted in Australia, Tesserent Management is also in discussions with several large domestic organisations that could evolve to become significant channel partners.

Tesserent CEO Keith Glennan commented, “Bringing Tesserent through the 12 months since the IPO has been a challenge in some respects; however, I’m very confident that the company we operate today is now in a much stronger position. Our revenues are strengthening, our pipeline is growing, and we remain focused on being Australia’s leading cyber security services business.”

“Our annuity revenue model ensures a solid base from which we can grow, in a market that is also growing rapidly. As a CEO, I look forward to continuing to build Tesserent’s business. And as a major shareholder, I remain intrinsically aligned with all Tesserent shareholders and focused on building a robust business that in turn will deliver strong investment growth to all shareholders.”

Tesserent is a specialist in managed cyber security. Tesserent has built its own platform for the delivery of managed cyber-security, which it deploys for the management of its own customers and also licenses to partners around the world to enable them to deliver effective cyber-security management to their customers.

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