Digital Barriers increase revenues by 66%

Security software specialist Digital Barriers (LSE: DGB) has this morning reported a 66% increase in organic revenues in the first half of the year as the company continues to make strong progress. The Group also announced that it had been awarded a contract with a US government agency to begin implementing its ThruVis technology for mass-transit security.

Overall, the company's revenue for the period is expected to be double what it achieved in the same period last year, with total organic revenue increasing 66%. If the September contract is included, the company says it has secured almost 50% of the Board's revenue expectations for the financial year as a whole. 

As well as the $4.6m and $2.2m US contract awards announced last month, DGB this morning reported that it has secured an additional $1.65m contract with a US government agency:

"This contract will see Digital Barriers begin to implement its ThruVis solution to help protect mass transit systems and other public spaces across the US against 'soft target' terrorist attacks. ThruVis is a unique camera technology that can detect objects such as weapons and explosives concealed under clothing.

The technology is mobile, rapidly deployed, and operates without compromising passenger throughput, safety or privacy. The majority of this contract is expected to be delivered in this current financial year."

The latest contract brings the total value of contracts with US federal agencies to $10m, which the company expects to deliver before the end of this financial year.

Zak Doffman, CEO of Digital Barriers said trading remained very positive, with last year's organic revenue growth continuing with strong sales momentum in the period:

"US growth is the major news in the first half, illustrating why the Brimtek acquisition was such a significant step forwards for us. Our US customers, the main agencies across the Departments of Justice, Homeland Security and Defense, continue to invest in our capabilities, giving us an excellent platform for future growth.

Our focus for the remainder of this financial year is clear. We will work to drive continued sales momentum, delivering the revenue growth needed to take the Group to break-even and beyond. We will also focus on further licence deals for the Group's IP which will bring more material recurring revenues into the Group for the first time."