Australian-listed digital security company Covata Limited told shareholders on Thursday that it has signed a deal with Cisco that would see the NASDAQ-listed networking company licence both its product and platform technologies on a software-as-a-service basis.
While the value of the contract has not been disclosed, Covata said the 10-year deal comes with a minimum four-year term, while revenue received from Cisco clients using the Covata product and platform technologies will be shared between the two companies.
The deal is a big step in Covata's expansion strategy to build its profile in the United States, after completing a reverse-takeover deal last year allowing it to list on the Australian Securities Exchange (ASX).
Covata, which initially emerged from its fully owned Sydney-based subsidiary Cocoon Data Holdings, listed publicly in November last year after raising an oversubscribed AU$15 million share offer.
Covata founder and CEO Trent Telford, who has moved to the US to help oversee the company's expansion in North America, said the new agreement with Cisco validates the company's technology and highlights its potential.
"For over three decades, Cisco has been pioneering the IT space, and we are delighted to be working with them to bring a new security service component to their global customers," Telford told shareholders. "This agreement is a monumental step for the company in terms of both the validation of the technology, and the company's capacity to deliver world-class deals.
"We are building out a team to focus on supporting Cisco's strategic path over the coming years, and we look forward to working with them on future joint initiatives," said Telford.
Covata told shareholders that it has deployed the product to Cisco, and the initial customer engagement has already commenced.
In February, the company revealed in its half-yearly results that expenses stemming from its backdoor listing on the ASX left it with a loss of AU$14.7 million for the six months ending December 2014.
Covata reported that its expenses for the six months came to AU$15.6 million, almost triple the AU$5.6 million it incurred for the same period the prior year.
It reported just AU$0.21 million in revenue for the six-month period, down from the previous year's revenue tally of AU$0.25 million for the same period.