APAC Customer Enhances Border Security with Over $10M Investment in Cognyte Solutions

Rhea-AI Summary

Cognyte Software (NASDAQ: CGNT) has secured two new agreements worth over $10 million with a longstanding military intelligence customer in the Asia-Pacific region. The agreements focus on enhancing border security capabilities through technology upgrades and expansion. The first agreement involves upgrading existing Cognyte solutions with latest versions, while the second introduces a new solution following a rigorous evaluation process. These implementations aim to optimize personnel allocation and prevent unauthorized access, strengthening the customer's national security measures.

Positive

• Secured new contracts worth over $10M with existing APAC customer
• Expansion of existing customer relationship demonstrates product satisfaction
• Successfully passed rigorous evaluation process for new solution implementation

Negative

• None.

Insights

Financial Analyst

The $10 million combined agreements represent a significant win for Cognyte, accounting for approximately 2% of their market cap. The deal structure includes both an upgrade of existing systems and expansion into new solutions, indicating strong customer retention and upsell potential. This dual-agreement approach showcases Cognyte's ability to maintain long-term relationships while expanding their footprint within existing accounts.

The military intelligence sector in APAC represents a stable, high-margin revenue stream with typically longer contract cycles. Border security investments tend to be resilient to economic downturns, providing predictable recurring revenue. The deal validates Cognyte's competitive position in the investigative analytics space and suggests potential for similar expansions with other existing customers.

Security Technology Expert

The strategic significance of this deal extends beyond its monetary value. Border security solutions require sophisticated integration of multiple data sources and analytics capabilities, creating high switching costs and strong vendor lock-in. The customer's decision to both upgrade existing systems and adopt new solutions indicates Cognyte's technology maintains a competitive edge in this specialized market.

The successful evaluation process for the new solution suggests Cognyte's R&D investments are yielding results, particularly in advanced analytics capabilities essential for modern border security. Their local presence and deep customer understanding create significant barriers to entry for competitors, strengthening their market position in the APAC region.

Long-time military intelligence customer leverages advanced solutions to protect its national interests and improve operational efficiency

HERZLIYA, Israel--(BUSINESS WIRE)-- Cognyte Software Ltd. (NASDAQ: CGNT) (“Cognyte”), a global leader in investigative analytics software, today announced two new agreements, valued at over $10 million combined, with a longstanding military intelligence customer in the Asia-Pacific (APAC) region. The customer is upgrading and expanding its use of Cognyte’s advanced technology to enhance its border security capabilities.

Border security is a critical priority for nations worldwide, necessitating sophisticated technologies to address evolving threats and ensure national safety. The first agreement involves upgrading the customer’s current Cognyte solutions to include the latest versions and capabilities, thereby enhancing their ability to secure their borders. In addition, the second agreement enables the customer to introduce a new solution following a rigorous evaluation process, during which Cognyte’s technology, strong local presence and deep understanding of the customer’s needs and challenges proved invaluable.

The expanded capabilities provided by both agreements will allow the customer to enhance their security measures by optimizing personnel allocation and preventing unauthorized access, thereby safeguarding national interests.

“Customers enthusiastically embrace Cognyte’s investigative analytics technology and frequently extend their investments to enable continued operational success,” said Efi Nuri, Chief Revenue Officer at Cognyte. “This speaks to Cognyte’s ability to deliver unique value and proven results for our customers year after year, decade after decade.”

About Cognyte Software Ltd.

Cognyte Software Ltd. is a global leader in investigative analytics software that empowers a variety of government and other organizations with Actionable Intelligence for a Safer World™. Our open interface software is designed to help customers accelerate and improve the effectiveness of investigations and decision-making. Hundreds of customers rely on our solutions to accelerate and conduct investigations and derive insights, with which they identify, neutralize and tackle threats to national security and address different forms of criminal and terror activities. Learn more at www.cognyte.com.

Cautionary Statement Regarding Forward-Looking Statements

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are identified by use of the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “should,” “views,” and similar expressions.

Any forward-looking statements contained herein are based on current expectations, but are subject to risks and uncertainties that could cause actual results to differ materially from those indicated, including, but not limited to, the impact and contributions of the slate of director nominees Cognyte has nominated, the projected growth of Cognyte’s business, and Cognyte’s ability to achieve its financial and business plans, goals and objectives and drive shareholder value, including with respect to its ability to successfully implement its strategy, and other risk factors discussed from time to time in Cognyte’s filings with the SEC, including those factors discussed under the caption “Risk Factors” in its most recent annual report on Form 20-F, filed with the Securities and Exchange Commission (“SEC”) on April 9, 2024, as amended on April 19, 2024 and in subsequent reports filed with or furnished to the SEC. Cognyte assumes no obligation and does not intend to update these forward-looking statements, except as required by law, to reflect events or circumstances occurring after today’s date.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241118629063/en/

Media Relations Contact:

Michelle Allard McMahon

Rainier Communications on behalf of Cognyte Software

prcognyte@rainierco.com

Source: Cognyte Software Ltd.

FAQ

What is the value of Cognyte's new border security contracts in APAC?

Cognyte (CGNT) secured two new agreements valued at over $10 million combined with a military intelligence customer in the Asia-Pacific region.

What are the main components of Cognyte's new APAC border security agreements?

The agreements include upgrading existing Cognyte solutions with latest versions and capabilities, and implementing a new solution following evaluation to enhance border security operations.

How will these new agreements benefit Cognyte's APAC customer?

The agreements will enhance the customer's border security capabilities by optimizing personnel allocation and preventing unauthorized access, thereby strengthening national security measures.