Telos Corporation Achieves StateRAMP High Authorization

Rhea-AI Summary

Telos (NASDAQ: TLS) has achieved State Risk and Authorization Management Program (StateRAMP) High authorization for its Xacta cyber governance, risk and compliance (GRC) platform. This certification validates that the software-as-a-service (SaaS) version of Xacta meets stringent cybersecurity requirements for state and local government agencies.

StateRAMP provides a standardized approach for state and local governments to assess cloud products through its Authorized Product List. The High authorization demonstrates Telos' commitment to data security and positions the company as a trusted partner for government agencies seeking secure cloud-based solutions.

Xacta, which has been trusted by prominent government agencies for over 20 years, offers intelligent workflow, automated control selection and assessment, and continuous compliance monitoring capabilities. This authorization is expected to support Telos' growth in state and local government markets.

Positive

• Achieved StateRAMP High authorization, expanding market access to state and local government agencies
• Xacta platform now included in StateRAMP Authorized Product List, streamlining government procurement process
• Positions company for growth in state and local government markets

Negative

• None.

Insights

Cybersecurity Infrastructure Analyst

The StateRAMP High authorization for Xacta represents a strategic market expansion opportunity for Telos in the $118 billion state and local government IT market. This certification is particularly valuable as state governments increasingly face sophisticated cyber threats and strict compliance requirements.

The High impact level certification - the most stringent StateRAMP offers - positions Xacta advantageously against competitors in the GRC space. Historical data shows that state agencies typically prefer vendors with the highest security certifications, which often translates to accelerated procurement cycles and higher contract values. With only a select few vendors achieving High authorization, Telos gains a significant competitive advantage in a market segment that traditionally has long sales cycles and complex vendor evaluation processes.

For investors, this authorization could catalyze revenue growth through: 1) Faster sales cycles as the pre-certification eliminates lengthy security reviews, 2) Higher win rates in competitive bids where security credentials are weighted heavily and 3) Potential for larger deal sizes as High authorization enables handling of the most sensitive state data. Given Telos' current market cap of $239.5 million, successful penetration of the state/local market could meaningfully impact financial performance.

Government Procurement Specialist

The StateRAMP High certification strategically positions Telos to capture a larger share of state and local government cybersecurity spending. The authorization's timing is optimal, coinciding with increased state-level cybersecurity initiatives and budget allocations for FY2025.

Key market dynamics make this certification particularly valuable:

• States are actively modernizing legacy systems, creating immediate opportunities for cloud-based GRC solutions
• Federal infrastructure funding is cascading to state levels, with cybersecurity as a priority spending area
• State procurement processes heavily favor pre-certified vendors to reduce procurement risks and timelines

From a competitive standpoint, achieving High authorization - versus Moderate or Low - allows Telos to bid on the most sensitive and typically highest-value contracts. This could drive both revenue growth and margin expansion as high-security certifications often command premium pricing in government contracts.

Cyber GRC solution Xacta is now included in the StateRAMP product list at the High impact level, reinforcing Telos’ commitment to cybersecurity for state and local government.

ASHBURN, Va., Jan. 21, 2025 (GLOBE NEWSWIRE) -- Telos Corporation (NASDAQ: TLS), a leading provider of cyber, cloud and enterprise security solutions for the world’s most security-conscious organizations, today announced that it has successfully achieved State Risk and Authorization Management Program (StateRAMP) High authorization, signifying its commitment to robust cybersecurity practices and compliance with the StateRAMP security standards for state and local government agencies.

The software-as-a-service (SaaS) version of Telos' premiere cyber governance, risk and compliance (GRC) platform, Xacta^®, has undergone a thorough evaluation and passed all necessary StateRAMP readiness and security assessments required for secure operation. By attaining High authorization, Telos’ Xacta meets the stringent cybersecurity requirements set by the StateRAMP framework, which are designed to ensure data integrity and confidentiality for state and local government users.

"We are proud to achieve StateRAMP High authorization, demonstrating our unwavering commitment to cybersecurity and our responsiveness to the evolving needs of state and local government agencies," said John B. Wood, CEO and chairman, Telos. "This milestone reinforces our dedication to delivering secure and reliable solutions that protect sensitive data, and positions Telos as a trusted partner for state and local government agencies seeking secure cloud-based solutions that adhere to StateRAMP standards."

StateRAMP, a nationally recognized risk authorization management program, provides a standardized approach for state and local governments to assess cloud products. By leveraging the StateRAMP Authorized Product List, state and local governments can streamline their vendor selection process and quickly find pre-approved vendors that satisfy their security requirements.

Over the last 20 years, Xacta has earned the trust of many of the most prominent government agencies and highly regulated organizations. Xacta addresses the complex challenges of managing cyber risk and security compliance through intelligent workflow, automated control selection and assessment, and continuous compliance monitoring. This StateRAMP High authorization positions Telos’ Xacta for continued growth in the state and local government markets.

To learn more about Xacta, visit www.telos.com/xacta and find Xacta on the StateRAMP product list: https://stateramp.org/product-list.

About StateRAMP
StateRAMP is the premier authority in cloud security standards for state and local governments. By providing a standardized approach to assessing and authorizing cloud services, StateRAMP empowers government agencies to navigate the complexities of cloud security with confidence. Learn more at stateramp.org. 

About Telos Corporation
Telos Corporation (NASDAQ: TLS) empowers and protects the world’s most security-conscious organizations with solutions for continuous security assurance of individuals, systems, and information. Telos’ offerings include cybersecurity solutions for IT risk management and information security; cloud security solutions to protect cloud-based assets and enable continuous compliance with industry and government security standards; and enterprise security solutions for identity and access management, secure mobility, organizational messaging, and network management and defense. The company serves commercial enterprises, regulated industries and government customers around the world. 

Forward-Looking Statements
This press release contains forward-looking statements which are made under the safe harbor provisions of the federal securities laws. These statements are based on the Company’s management’s current beliefs, expectations and assumptions about future events, conditions and results and on information currently available to them. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company believes that these risks and uncertainties include, but are not limited to, those described under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth from time to time in the Company’s filings and reports with the U.S. Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2023, as well as future filings and reports by the Company, copies of which are available at https://investors.telos.com and on the SEC’s website at www.sec.gov.

Although the Company bases these forward-looking statements on assumptions that its management believes are reasonable when made, the Company cautions the reader that forward-looking statements are not guarantees of future performance and that the Company’s actual results of operations, financial condition and liquidity, and industry developments, may differ materially from statements made in or suggested by the forward-looking statements contained in this release. Given these risks, uncertainties and other factors, many of which are beyond its control, the Company cautions the reader not to place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date of such statement and, except as required by law, the Company undertakes no obligation to update any forward-looking statement publicly, or to revise any forward-looking statement to reflect events or developments occurring after the date of the statement, even if new information becomes available in the future. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.

Media: media@telos.com
Investors: InvestorRelations@telos.com

FAQ

What does Telos 's StateRAMP High authorization mean for TLS investors?

The authorization opens up new market opportunities in state and local government sectors, potentially driving growth for TLS by making Xacta more accessible to government agencies seeking pre-approved secure cloud solutions.

What capabilities does Telos' Xacta platform offer to government agencies?

Xacta provides cyber governance, risk and compliance (GRC) capabilities including intelligent workflow, automated control selection and assessment, and continuous compliance monitoring.

How long has Telos' Xacta platform been serving government agencies?

According to the press release, Xacta has been serving prominent government agencies and highly regulated organizations for over 20 years.

What is the significance of StateRAMP authorization for TLS's market position?

StateRAMP authorization validates Telos' cybersecurity capabilities and positions the company as a trusted partner for state and local government agencies, potentially expanding its market reach.