Security Networks AG

Analysis

Business Description

Security Networks AG (Secunet) provides solutions and consulting services for information technology (IT) security systems. The company classifies its business operations into two segments: Public Sector and Business Sector.

R&D Overview

Secunet’s R&D arm focuses on enhancing its innovation process, solution, and products, to cater to the needs of the customer base. The company aims to promote innovation by adopting new technologies; it strives to enhance its research activities by partnership and collaborating with suppliers, customers, associations, and universities; and also intends to create market-ready products through innovation management. The company invest EUR1.928 million in R&D in FY2020.

Business Segments
Performance

Reported revenue of EUR48.5 million for FY2020, which decreased 15.1% YoY, and recorded a CAGR of 73.4% during 2018-20. The segment accounted for 17.0% of the company's revenue in FY2020. Decline in revenue is due to decrease in eHealth and consultancy in industrial business segment sales.

Inventore veritatis
Overview

Develops and produces IT security solutions for private companies. The product line offered by the segment includes identity management systems, and qualified mass signature solutions. It serves various industries like automotive, energy and utilities, and telecommunication.

Overview

Offers security solutions and state-of-art products and services to international and national public-sector and defense customers.

Performance

Reported revenue of EUR237.1 million for FY2020, which grew 39.6% YoY, and recorded a CAGR of 26.9% during 2018-20. The segment accounted for 83.0% of the company's revenue in FY2020.

Growth in revenue was due to the products and services geared towards public clients outside Germany and international organization.

Geographical Segments
Performance

Reported revenue of EUR27.0 million for FY2020, which grew 55.8% YoY, and recorded a CAGR of 23.1% during 2018-20. Abroad accounted for 9.5% of the company's revenue in FY2020.

Inventore veritatis
Performance

Reported revenue of EUR258.5 million for FY2020, which grew 23.4% YoY, and recorded a CAGR of 33.3% during 2018-20. Domestic accounted for 90.5% of the company's revenue in FY2020.