Osirium Technologies licence extension

Cloud-based cybersecurity provider Osirium Technologies (LON: OSI) has secured a three-year privileged access management (PAM) licence extension with an existing customer. The deal has a value of £500,000.

That is equivalent to 30% of the total bookings achieved by Osirium Technologies in 2021. The cash will be paid up front and revenues recognised over the three-year period.

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The customer, which is a global asset manager, has been using the PAM service for six years and the latest contract will cover 4,500 devices.

The customer has also extended the use of Osirium Technologies’ privileged process management (PPA) service for another 12 months. The PPA service has been used since 2019. The number of licences has increased from 40 to more than 75.

This shows how Osirium Technologies can win an initial contract with a client and sell additional licences and other services on the back of the initial deal.

Osirium Technologies is forecast to achieve revenues of £1.74m in 2022. It remains loss-making, although deals like the late4st one mean that cash flow is better than the reported loss.

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The share price initially jumped on the announcement, but it has lost much of the increase and is currently 8.7% higher at 6.25p.

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