The earnings season continued this past Friday, and one of the companies that announced its financial results was High Wire Networks Inc. (OTC:HWNI).
The company, which is best known as a worldwide provider of technology enablement and managed cyber security, reported its financial results for the 12-month period that ended on December 31, 2023. It could be a good idea for investors to consider taking a look at some of the key highlights from the performance. High Wire Networks reported revenues of $27 million for the full fiscal year 2023, which reflected an improvement on the previous fiscal year.
During the 2023 fiscal year High Wire Networks had managed to bring about a strategic transition which led to a greater emphasis on the Overwatch cyber security recurring revenues which also carried higher margins. The monthly recurring revenues for the year surpassed $1 million.
The recurring revenues from the Overwatch managed cyber security services went up by 75% to hit $4 million. Recurring revenues also went up for High Wire Networks, and that was mainly brought about by the 106% rise in the total contract value for Overwatch managed cyber security services that amounted to $10.3 million for the fiscal year. It was a considerably higher figure than the $5 million reported for the 2022 fiscal year.
The company also announced that in November 2023 it had put in place a cost reduction and operational optimization initiative that led to the reduction of operating expenses on an annualized basis to more than $3 million.
As many as 8.6 million in common stock equivalents were eliminated during the 2023 fiscal year and that helped in reducing the fully diluted outstanding shares substantially. The total liabilities with High Wire Networks went down by 49% to hit $13.6 million as of December 31, 2023 in comparison to $26.8 million at the end of the previous fiscal year.
