archTIS Ltd has reduced its overall cost structure to further align with market demands and achieve cash flow neutrality in a timelier manner.
The global provider of innovative software solutions for the secure collaboration of sensitive information also confirmed its 60% year-over-year revenue growth outlook and $9.5 million of cash receipts for FY23.
Once resized, AR9 is expected to reduce its annual operating expenditure by $2.25 million from December 2022 onward, including the reduction of staff and contractors by 18%.
The company will also take several steps to become more efficient by cutting discretionary spend.
“The technology market has recently seen significant shifts to improved capital efficiencies in a return to positive cash flow,” archTIS managing director Daniel Lai said.
“archTIS like other global technology companies is looking to create greater efficiencies across all aspects of the business to support the growth of shareholder value and the achievement of cash flow neutrality more rapidly.
"We continue to provide a strong revenue growth and cash receipts outlook as we build momentum on our strategic initiatives.”
Common product foundation
The aim of the cost-cutting measures is to establish a common product foundation across Kojensi and NC Protect and consolidate into one cohesive product development unit.
AR9 is focused on ensuring the security, stability and scalability of the core platform while catering for innovative market-driven enhancements to the offerings.
Additional savings will be realised across customer services, administration and non-vertically focused marketing activities until sufficient cash is being generated to ensure sustainable and self-funded reinvestment.