CynergisTek (CTEK) Misses Q4 EPS by $1.04, Revenues Beat

CynergisTek (NYSE: CTEK) reported Q4 EPS of ($1.18), $1.04 worse than the analyst estimate of ($0.14). Revenue for the quarter came in at $4.7 million versus the consensus estimate of $4.47 million.

Recent Operational Highlights

• Increased year-end presold revenue by 10% to $17.2 million when compared to Q3 2020.
• Q4 gross margins improved to 37%, a 200 bps improvement over Q3 2020.
• Diversification efforts started to show momentum
  • Added a new University customer in Ball State and expanded services within an existing large University System
  • Announced expansion of our services to provide consulting and assessments as part of the Cybersecurity Maturity Model Certification (CMMC) for the 300,000 suppliers to the Defense Industrial Base under our RedSpin brand. We are one of the first 20 certified third-party assessment organizations and have started closing deals to do CMMC readiness evaluations.
• Market conditions and CynergisTek’s recent service enhancements resulted in increased professional services work as demonstrated by the recent announcement of a large $700,000 deal with a new health system client.

“We continue to see progress executing our strategy to ramp up growth, focused on solidifying our market leading position in healthcare, while actively pursuing margin enhancement opportunities and diversification steps to target other highly regulated industries,” said Caleb Barlow, President and CEO of CynergisTek.

“New offerings and the associated strategy have started to show results with a 10% increase in presold revenue, largest quarterly security bookings in over two years and a pipeline that is starting to be more balanced and representative of where we see future growth in and outside of healthcare.”

For earnings history and earnings-related data on CynergisTek (CTEK) click here.

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