NEW YORK, May 24, 2016 /PRNewswire/ -- root9B Technologies (or "the Company") (OTCQB: RTNB) announced today its outlook for certain financial and operating metrics for the year ended December 31, 2016.
For the full year, the Company expects to report net revenue of approximately $48.0 million, an increase of 63% from net revenue of $29.4 million in 2015. Revenue generated by root9B, the Company's cybersecurity solutions business, is expected to grow to more than $14.0 million and comprise 30% of total projected 2016 revenue, up from $3.0 million and 10% of revenue in 2015. Revenue at the IPSA/Business Advisory Solutions segment, which focuses on regulatory risk mitigation, is expected to increase to approximately $33.0 million, up from revenue of $24.6 million in 2015. Revenue generated by the Company's other operations is expected to approximate $1.6 million in 2016.
Operating loss for 2016 is expected to narrow to approximately $7.0 million from an operating loss of $13.2 million in 2015, a 47% improvement. The improvement will be driven primarily by a combination of higher revenue, a higher proportion of cybersecurity revenue, the impact of previously enacted cost cutting initiatives, and the absence of certain expenses that were incurred in 2015. The Company expects to achieve operating profitability in the fourth quarter of 2016.
The Company also announced that it plans to change its corporate name to root9B Holdings, Inc. and relocate the corporate headquarters to New York City. The stock symbol, RTNB, will remain the same.
"Our forecast for 2016 reflects a strengthening of our business fundamentals, and a return on the investments we have made in our business over the past several years," said Joseph J. Grano, Jr., Chairman and Chief Executive Officer of root9B Technologies. "More importantly, it is a manifestation of our commitment to delivering long-term value to our shareholders.
"We are excited about the outlook of our wholly-owned subsidiaries, root9B and IPSA International. Over the last year root9B, in particular, has elevated its industry profile and brand identity in the growing cybersecurity market. Revenue at root9B in 2016 is expected to increase to more than $14.0 million, up approximately 370% from revenue of $3.0 million 2015. In January of this year, root9B ascended to the #1 position on the Cybersecurity 500 ranking of the world's hottest and most innovative cybersecurity companies for 2016; as announced earlier this month, we retained that ranking for the second consecutive quarter. This recognition has helped drive interest in root9B's unique real-time, 24/7 hunt, assessment, and analytic capabilities, and allowed the company to build a solid backlog and a robust pipeline of potential projects. We believe root9B is uniquely positioned to further expand its presence in this industry, which is estimated to grow from $75 billion in 2015 to more than $170 billion over the next five years.
"Our solutions portfolio is further strengthened by the inclusion of IPSA International, a leading, global provider of anti-money laundering, investigative due diligence, enterprise risk management, and litigation support services. IPSA is expected to remain an important contributor to our overall operations."
In commenting on the Company's name change to root9B Holdings, Mr. Grano said, "We believe that adopting this new name is an important step in emphasizing our corporate structure. We expect that it will clarify our profile as a holding company focused on acquiring businesses involved in all aspects of cybersecurity, and commercial risk management and mitigation. Our wholly-owned subsidiaries, root9B and IPSA, are at the forefront of these efforts, and our new name should also serve to minimize any confusion between the corporate entity and our growing cybersecurity business."
Management will host a conference call on Wednesday, May 25, 2016 at 11:00 am ET, to discuss the Company's outlook and general business activities. Interested parties may participate in the call by dialing:
- (877) 407-9753 (Domestic) or
- (201) 493-6739 (International)
The conference call will also be accessible via the Company's web site at www.root9btechnologies.com. For those who cannot listen to the live broadcast, an online replay will be available at www.root9btechnologies.com, or a phone replay will be available through June 25, 2016 by dialing (877) 660-6853 (domestic) or (201) 612-7415 (international) and entering the passcode 13638373.
Forward Looking Statements
Certain information contained in this press release may include certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions. These statements are based on root9B Technologies' current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of root9B Technologies business. These risks, uncertainties and contingencies are indicated from time to time in root9B Technologies filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Further, investors should keep in mind that root9B Technologies financial results in any particular period may not be indicative of future results. root9B Technologies is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.
About root9B Technologies, Inc.
root9B Technologies (OTCQB: RTNB) is a leading provider of Cybersecurity and Regulatory Risk Mitigation Services. Through its wholly owned subsidiaries root9B and IPSA International, root9B Technologies delivers results that improve productivity, mitigate risk and maximize profits. Its clients range in size from Fortune 100 companies to mid-sized and owner-managed businesses across a broad range of industries including local, state and government agencies. For more information, visit www.root9btechnologies.com.
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SOURCE root9B Technologies, Inc.