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Redspin Momentum Continues for DoD’s Cybersecurity Maturity Model Certification Services
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Rhea-AI Summary
CynergisTek (NYSE American: CTEK) reports robust demand for its CMMC readiness services, signing nearly $400,000 in new client agreements. The Department of Defense aims to cut $600 billion in cybercrime losses by enforcing third-party assessments for contractors. CMMC certification requires significant preparation, propelling demand for Redspin's services. CEO Mac McMillan highlights increased requests from contractors needing to meet evolving DoD requirements, indicating strong revenue growth potential as assessments will begin next quarter.
Positive
Signed nearly $400,000 in new client agreements, indicating strong demand.
Increased requests from Defense contractors to ensure compliance with DoD requirements.
Early preparation for the assessment demand is showing results in driving revenue growth.
Negative
None.
Redspin, the first Authorized C3PAO, reports steady growth and demand for its CMMC readiness and assessment services.
AUSTIN, Texas--(BUSINESS WIRE)--
Redspin, a division of CynergisTek (NYSE American: CTEK), and the first organization authorized as a Cybersecurity Maturity Model Certification (CMMC) Third Party Assessor Organization (C3PAO), announces continued momentum for its CMMC readiness and assessment services with the signing of nearly $400,000 in multiple new client agreements.
The United States Department of Defense (DoD) is aiming to reduce the estimated $600 billion in cybercrime losses impacting the nation’s military supply chain every year by requiring a third-party cybersecurity assessment of contractors with access to federal contract information (FCI) and controlled unclassified information (CUI). The Office of the Under Secretary of Defense (OUSD) will begin a phased rollout requiring contractors to achieve CMMC certification and many Organizations Seeking Certification (OSCs) realize that becoming CMMC certified is not a simple process and requires months of preparation which is driving demand for CMMC readiness services in the market. In addition, there are only a limited number of Authorized C3PAOs able to perform CMMC assessments today, making it a race for organizations to secure a spot in line once these authorized vendors, including Redspin, are eligible to start assessments.
“As the first organization to pass a CMMC assessment, we know first-hand the work it takes to not only evaluate that policies and procedures include provisions around FCI and CUI but that practices are in place and understood at the enterprise level – meaning the entire company in some fashion is involved in being CMMC ready,” says Mac McMillan, CEO and President of CynergisTek. “In recent weeks, we’ve seen an uptick in requests from Defense Industrial Base (DIB) contractors who are feeling the pressure to ensure they are ready to meet changing DoD contract requirements. Many of those starting to prepare for their assessment, are choosing to partner for pre-assessment consulting work to help ready them for a CMMC assessment, while others are scheduling their CMMC Level 1 or Level 3 certification assessments which we anticipate will start next quarter. Our early preparation to meet this demand is showing positive results in driving revenue growth.”
About Redspin
Redspin (www.redspin.com), a division ofCynergisTek, Inc., is a best-in-class cybersecurity company providing security testing, assessments, validation, and consulting services to many Fortune 500 and leading growth companies in highly regulated industries including government, financial, technology, and manufacturing. Redspin’s objective is to improve organizations’ cyber readiness and resiliency through a strategic and proven approach to reduce cyber risks and safeguard sensitive information.
This release contains certain forward-looking statements relating to the business of CynergisTek, Inc. These forward-looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and can be identified by the use of forward-looking terminology such as “believes,” “expects,” “anticipates,” “would,” “could,” “intends,” “may,” “will,” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including but not limited to uncertainties relating to product/services development; long and uncertain sales cycles; the ability to obtain or maintain proprietary intellectual property protection; future capital requirements; competition from other providers; the ability of the Company’s vendors to continue supplying the Company with supplies and services at comparable terms and prices; the Company’s ability to successfully compete and introduce enhancements and new features that achieve market acceptance and that keep pace with technological developments; the Company’s ability to maintain its brand and reputation and retain or replace its significant customers; cybersecurity risks and risks of damage and interruptions of information technology systems; the Company’s ability to retain key members of management and successfully integrate new executives; the Company’s ability to complete acquisitions, strategic investments, entry into new lines of business, divestitures, mergers or other transactions on acceptable terms, or at all; potential risks and uncertainties relating to the existing and ultimate impact of COVID-19, including the geographic spread, the severity of the virus, the duration of the COVID-19 outbreak, actions that may be taken by governmental authorities to contain the COVID-19 outbreak or to treat its impact, and the potential negative impacts of COVID-19 on the global economy and financial markets, and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in the Company’s Form 10-K and Form 10-Q filings with the Securities and Exchange Commission, which are available at http://www.sec.gov. Given the risks and uncertainties, readers should not place undue reliance on any forward-looking statement and should recognize that the statements are predictions of future results which may not occur as anticipated. Many of the risks listed above have been, and may further be, exacerbated by the COVID-19 pandemic, including its impact on the healthcare industry. Actual results could differ materially from those anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties described herein, as well as others not now anticipated. CynergisTek is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
What recent agreements has CynergisTek (CTEK) signed in relation to CMMC services?
CynergisTek has signed nearly $400,000 in new client agreements for its CMMC readiness and assessment services.
How is the Department of Defense impacting demand for CynergisTek's services?
The Department of Defense is enforcing third-party cybersecurity assessments, driving demand for CMMC readiness services as contractors prepare for certification.
When will CynergisTek start conducting CMMC assessments?
CynergisTek anticipates starting CMMC Level 1 and Level 3 certification assessments next quarter.
What financial impact is CynergisTek expecting from increased demand for CMMC services?
CynergisTek expects strong revenue growth due to increased demand for its CMMC readiness and assessment services.
