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IDENTILLECT TECHNO COM NPV (OTCMKTS:IDTLF) Is A Hot Cybersecurity Play

IDENTILLECT TECHNO COM NPV (OTCMKTS:IDTLF) Is A Hot Cybersecurity Play
Written by
Jarrod Wesson
Published on
July 14, 2017
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On July 12, 2017, IDENTILLECT TECHNO COM NPV (OTCMKTS:IDTLF), the SaaS company providing email security services, announced the beta release of their Delivery Trust™ plugin for Microsoft Office 365™. Due to this news and the market reaction to it, we decided to have a look at the cyber security products of the company and the direction of the business in general. We found out that company released a large amount of good news over the past two months. Consequently, the market reacted by pushing up the share price in this period.

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In this article, we will review the press releases that cause the share price rebound and assess whether the company is positioned to sustain its growth in the near future.The creation of the groupIdentillect Technologies Corp. is a Canadian public company listed also in the United States. It was founded on July 9, 1987. Identillect Technologies Inc., which is involved in the development of email encryption software solution, Quentin Ventures Ltd. and Identillect Technologies Corp. merged in 2016. They operate the same business and report consolidated financial statements together. This is information that we obtained from the annual report, which helps explain the group.

"On May 18, 2016, Quentin Ventures Ltd. and Identillect Technologies Corp. completed the transaction whereby the Company acquired all of the issued and outstanding shares of Identillect Technology Corp., being 26,157,139 shares, in consideration for securities of the Company on a 1 for 1 basis. After the completion of the transaction, the shareholders of Identillect Technologies Corp. held approximately 77.29% of the Company" Source

ProductsThere is extensive information about the software being sold by Identillect on its website. Three plans are offered: individual starting at $5.95 per month, business for $7.95 per month, and Secure eSign for $10.00 per month. Some of the services that the software provides are the following (Check the website to review them all):

  • Unlimited Secure Emails
  • Restrict Print/Forward
  • Restrict Download
  • Set Message Expiration
  • Secure Email Reporting

The software works for Gmail, Outlook, Office 365, and others. Additionally, users can add more advanced plugins, such as SecureScan eSign, Gmail Plugin, Outlook Plugin, Office 365 plugin or ESign Business.Recent Developments The following news excited the market. On June 20, 2017, it was put out that IDTLF had experienced subscriber growth during April and May. The amount of plans sold were 16% higher than its average monthly growth during Q1 2017. IDTLF's CEO said the following regarding this news:

"We are very pleased to continue building our subscriber base. As it compounds, our high margin, recurring revenue is consistently increasing every month, and as a result we are nearing our goal of being cash-flow positive. We are the leader in multi-platform email security solutions for businesses and individuals, and anticipate further uptake as our resellers and potential clients, see a growing need to secure their corporate and clients’ sensitive data.” Source

On July 11, 2017, another press release put out noted that the subscriber growth continued to rise. The explanation given was that "its solution’s ease of use and robust infrastructure, along with its continuous advancements" were causing the growth. Mr. Sexton also explained using the following words:

“Identillect continues to expand its user base as cybersecurity threats plague businesses across the United States and abroad. With the expansion of our reseller program and the size of the organizations we service, Identillect anticipates continued growth through 2017” Source

Finally, on July 12, 2017, the company announced the beta release of their Delivery Trust™ plugin for Microsoft Office 365™. What's new in this version? The plugin provides a superior level of connectivity for "regulatory compliance and the protection of business professionals". In addition, the software seems to be quite unique for the following reason:

"A pressing issue in the secure email space as more businesses move to O365 is the inability to incorporate plugins to O365’s native mobile app. Identillect has solved this issue by developing software to detect and determine what content requires securing and then routes it through Delivery Trust™, ensuring compliance and security along its path of travel." Source

Cybersecurity - A Hot industry

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Given the large amount of hacker attacks received by big corporations in 2017, cybersecurity stocks are being purchased in the market. Insider Financial has covered some of them recently as the gains have been astonishing and email subscribers demanded some assessment of the industry.According to IDTLF, Global spending is expected to be $1 trillion over the next 5 years. Additionally, the damage that hackers will create in the same period are expected to go above the $24 trillion dollar level. Identity Theft Resource Center says that "breaches involving email are the second most common type of breach incident", which is exactly what IDTLF is trying to prevent. Thus, the company seems to be well positioned to profit from the future situation.Conclusion The market has been paying rewarding the shareholders of Identillect Technologies. The company seems to be growing its software business and communicating very well the new developments. The most recent release was about the Delivery Trust™ plugin for Microsoft Office 365™, but there were many other news that noted an increase in software subscriptions. Additionally, the stock seems to be benefiting from the growing demand for cybersecurity software that we could see in other stocks in the industry. To sum up, this is a stock to follow closely, as it is delivering good returns to investors and looks set to continue doing so.We will updating our subscribers as soon as we know more. For the latest updates on IDTLF, sign up below!Image courtesy of Georgia Business via FlickrDisclosure: We have no position in IDTLF and have not been compensated for this article.

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