Narf Industries Wins US$6.8M Contract with US Government Agency DARPA
Why we think this is good
This multi-phase contract with the US government's DARPA agency represents a significant opportunity for Narf Industries. The total contract value of US$6.8 million over 3 years is substantial for a company of Narf's size, and the first phase alone is valued at US$2.6 million. The contract aligns with Narf's core cybersecurity capabilities and is being funded by a reputable government agency, reducing the funding risk. While there are some uncertainties around the timeline and financial details, the overall impact on Narf's earnings is expected to be positive.
Key Points
- 3-year, US$6.8 million multi-phase contract with US Government agency DARPA
- First phase valued at US$2.6 million, with 3 future phases scheduled for 2026-2027
- Contract supports development of Narf's advanced cybersecurity testing system
- Prototypes to be developed in first phase for customer evaluation
Summary
Narf Industries plc (LSE: NARF), a leading cybersecurity group, has secured a US$6.8 million multi-phase contract with the U.S. Government's Defense Advanced Research Projects Agency (DARPA). The 3-year contract, under DARPA's Intelligent Generation of Tools for Security (INGOTS) programme, aims to identify and address high-severity, chainable vulnerabilities before they can be exploited by attackers.
The first phase of the contract is valued at US$2.6 million, with three future phases scheduled to commence in 2026 and 2027 valued at $1.67 million, $1.24 million, and $1.3 million, respectively. Revenue for the future phases is expected to be recognized in the Company's financial year following the completion of each stage. Progression to the subsequent stages is subject to programme and budgetary requirements and successful milestones being achieved.