Cyberlux Corporation (OTC: CYBL) stock is getting a massive boost, up by more than 11% after announcing stronger than expected January revenues and increasing 2022 revenue guidance to $44.8 million. Better yet, those revenues are expected to deliver 2022 "Net Income," which is not only an exceptional accomplishment for a micro-cap company but also a means to drive share prices appreciably higher in the coming weeks. It's been noted many times the only thing "micro" about Cyberlux is its share price. From every other perspective, CYBL is a big-league player.
And investors are responding in kind. After last Thursday's announcement of its 28% revenue beat over expectations, shares of this advanced digital technology platform company surged.
Part of the gains came from posting the $1.9 million in January sales. But, investors also responded well to how the CYBL mission is gaining strength to increase shareholder value by diversifying its target markets to capitalize on new opportunities in the digital transformation evolution across industries with its breakthrough Platform-as-a-Service (PaaS) and Software-as-a-Service solutions, advanced unmanned aircraft systems (UAS), cutting-edge lighting solutions, and renewable energy and infrastructure technology solutions. In other words, CYBL made it clear the company is targeting multiple shots on revenue-generating goals.
The better news, growth is gaining steam. In fact, for the first time in CYBL history, the January revenue results mark the sixth consecutive month of sustained revenue growth. In addition, guidance is impressive, with CYBL expecting its revenue growth trend to continue to achieve the 2022 revenue outlook of $44.8 million, resulting in positive net income from operations for the full year of 2022. Moreover, to accelerate its revenue-generating potential, CYBL management is reshaping its revenue-generating strategy to enhance Q1 revenues. The result can be excellent news for CYBL and its investors.
Enhancing business Mix To drive Q1 Revenues
The goal- make its historically minimal Q1 revenue contribution a more meaningful contributor to the expected revenue ramp in quarters two through four. In a typical year, CYBL generally sees revenue build through Q2- Q4. However, with an aggressive acquisition strategy now in play, the old rules no longer apply, proven by month-to-month revenue growth from all its business units showing acceleration and a significant increase so far in Q1. Leadership counts, too.
And with the addition of the Kreatx team, the DAS team, Igor Stanisavljev as GM of its new Digital Platform Solutions business unit, and Chris Damvakaris as its Chief Revenue Officer, CYBL has successfully and fully launched the next phase of its Cyberlux company evolution to tap into and capture its share of the $1 trillion global markets targeted.
The combination of best-in-class products and team expertise is working. For the sixth consecutive month, CYBL exceeded expected revenue performance. And while its consecutive performance is impressive, more so is the revenue growth over the last six months, evidenced by revenues ramping from less than $1 million to almost $10 million in revenue, setting into motion a plan to build Cyberlux into a $2 billion company over the next several years. It's an ambitious goal, but CYBL shows it is putting the pieces in place to make that expectation a reality.
In addition to excellent January revenue results and growth, CYBL reached several milestones that could become catalysts for near and long-term growth. Revenue growth, key leadership appointments, strategic partnerships, and sales execution are the value drivers. Add to that its role as a client-specific solutions provider and a source of groundbreaking intellectual property, the path to capitalize on those achievements has never looked better. Acquisitions also stand out.
Acquisitions And Strategic Enhancements
Cyberlux acquired Digital Automation Solution, LLC (DAS) and its expert software development knowledge, core intellectual property, and deep industry experience in building Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS), and Mobile applications applicable to all the industries it serves. That deal also expedited the launch of its new Digital Platform Solutions business unit, a combined and transformed organization from its Infrastructure Software Solutions (ISS) unit.
The DPS business unit has an expanded mission to drive end-to-end Platform-as-a-Service and Software-as-a-Service offerings, which are increasingly required by global governments, military and commercial customers. The excellent news there is that DAS is immediately accretive and provides a holistic approach to delivering digital capabilities across the target customer's enterprise, helping to automate processes, enhance digital experiences, accelerate new products and services, improve time-to-market, and evolve their business models. There's more to like.
Cyberlux announced accelerating its software investment strategy to build a global, higher growth, more diversified, and sustainable business portfolio while focusing on the digital platform offerings with immediate scale and relevancy in today's accelerating and evolving digital transformation market.
Better still, CYBL made it clear they intend to make ongoing strategic investments in digital technology platform development and working capital investments for further global business solution expansion across its four business units - Digital Platform Solutions, FlightEye UAS Solutions, Advanced Lighting Solutions, and Infrastructure Technology Solutions. Combining the accretive value of each- Cyberlux is well-positioned to become a leading digital technology growth company. Hence, at current valuations, CYBL is simply too good to ignore.
Moreover, while its Q2-Q4 pipeline is strong, Q1, as noted, is shaping up to deliver better than expected revenues, too. As part of its Q1 Plan, CYBL is narrowing down its financial partner list to stay solely focused on shareholder value creation. In that endeavor, CYBL made significant progress with institutionalizing the Cyberlux organization and continues to drive the company forward to take advantage of near-term revenue-generating opportunities. By the way, part of its plan to drive value higher is to enhance its communications and corporate positioning resulting from strategic guidance from its institutional partners.
As shown last week, revenue and operational updates can have a significant and positive impact on share prices, so that's good news as well.
A CYBL Valuation Disconnect Too Big To Ignore
Thus, as noted, aside from its micro-cap share price of about $0.015 today, CYBL is simply getting too big a value to ignore. And the valuation disconnect gets more exposed after Cyberlux made strategic moves in 2021 and established a detailed plan for 2022 to reach several near-term milestones that could quickly bring its share price back to 52-week highs and beyond. If so, significant gains are in the crosshairs.
In fact, targeting and reclaiming that 52-week high of $0.07 is back in the sights after recent developments put them in a better position than ever to accelerate its revenue-generating plans. Thus, selling pressure brought on by broader market declines may have exposed an opportunity to invest in CYBL at a share price that in no way reflects its near and long-term potential. Hence, paying attention matters.
Doing so allows investors to capitalize on the valuation disconnect and invest in CYBL's mission to provide industry-leading technology solutions to U.S. government agencies, commercial markets, and international customers. Moreover, with a diversified and growing portfolio pushing next-gen technology like unmanned aircraft systems (UAS), advanced lighting solutions, renewable energy, infrastructure technology, and Software-as-a-Service solutions, CYBL is more than timely to the markets; its best-in-class solutions meet client demand that is higher than ever.
And, with Cyberlux perhaps in the best operating position in its history, record-high revenues and higher share prices are indeed an intended result of company efforts.
Four Divisions Targeting A Combined $300 Billion Opportunity
Of course, operational execution matters too. And CYBL is set up well to deliver on that front by positioning itself to drive shareholder value higher through four divisions: FlightEye UAS Solutions, Advanced Lighting Solutions, Infrastructure Technology, and Infrastructure Software Solutions, targeting markets with consistent and critical demand. Therefore, not only does Cyberlux have a revenue-generating arsenal in place to provide next-gen solutions to a discerning client list, it's diversified, too.
Cyberlux's first division, FlightEye UAS Solutions, targets the $27 billion global market with a military-grade hardware and software guidance system platform. The value from this division comes through its ability to offer more outstanding capabilities than many of its competitors. In fact, CYBL's platform may be the best at providing mission-critical capabilities relating to drones and other unmanned aircraft systems, inclusive of enhanced infrared night vision, thermal sensors, eye-in-the-sky monitoring, and LiDAR mapping and perception. Even better, the Q3 2021 acquisition of CTMC Drone Solutions, LLC will allow Cyberlux to quickly expand this division's reach of revenue-generating opportunities. And, this is only their first division.
Cyberlux's Advanced Lighting Solutions division can also be a significant value driver leading to upsized growth in 2022. This division leverages the strength of Cyberlux's patented LED lighting systems, which are used by government agencies such as the U.S. Air Force, National Guard, Special Operations Command, the U.S. Army, and the Defense Logistics Agency. This division is yet another example of the cutting-edge technology offered by CYBL.
For instance, its BrightEye and WhiteEye systems provide a state-of-the-art design using advanced, portable, battery-powered LED lighting systems ideal for special operation actions such as tactical deployments, remote maintenance, and emergency & disaster recovery programs. Another plus, this division offers Cyberlux's NightEye Shelter Lighting System (NSLS), which delivers energy-efficient lighting for semi-permanent shelters. The market for advanced lighting solutions is estimated at $1.8 billion and also comes with a built-in demand level that is expected to provide Cyberlux with consistent revenues from this niche yet important market. And CYBL still has two more divisions targeting industries with abundant, lucrative opportunities.
Cyberlux's Infrastructure Technology Solutions division focuses on providing industry-leading products and services relating to infrastructure hardware, renewable energy, telecommunications technology, and project implementation. The infrastructure technology market is valued at $56 billion worldwide, and Cyberlux has worked efficiently to maximize its market opportunities by acquiring multiple companies that provide this specialized client base with perfectly tailored, next-generation services and solutions.
Lastly, Cyberlux's Infrastructure Software Solutions (SaaS) division is expediting its own revenue-generating opportunities that could bring this micro-cap name into the big leagues. Even better, it synergizes well with the numerous services offered through its FlightEye UAS Solutions division, including UAS guidance system software, UAS service support software, and software applications for telecommunications and data analytics. Thus, revenues could see exponential growth through combined opportunities.
And, remember, too, Software-as-a-Service technology has become an immensely popular asset, experiencing a surge in popularity by its inherent ability to provide easy use by customers and consistent revenues for providers. These advantages have led nearly all enterprise software companies to enhance their focus on including SaaS technology and strategies in their portfolios to strengthen market positions. Between SaaS and the other client-focused applications targeted by this division, Cyberlux is looking to earn its share of a $221 billion global market. And, should everything continue as planned, they could score a big piece of it sooner rather than later.
Hence, one of the biggest takeaways from the Cyberlux investment proposition is that while a peer company its size would do well by maximizing value from just one division, CYBL has four. Moreover, Cyberlux's growing portfolio of products and services target markets that will always need the technologies they offer. The best news of all is that even after transformative moves made in 2021, Cyberlux isn't slowing down. Instead, the company has continued to execute its aggressive acquisition and joint ventures strategies to increase shareholder value. And if the first month of the year is any indication, Cyberlux is locked and loaded to continue to do more of the same in the coming weeks and quarters.
Milestones Reached, Catalysts In the Queue
Indeed, from a company and investor's perspective, 2021 was transformational for Cyberlux. And a newly implemented business strategy called the Operation Alpha Growth Plan intends to make that transformation the starting point for additional growth in Q1 of 2022. The plan stated three goals: Drive growth through aggressive acquisition and development strategies, address core target markets with its newest technologies, and gain immediate business velocity by accelerating its IP development and projects in South America.
So far, Cyberlux posted significant gains on all three of these fronts, with the second half of 2021 being one of the company's best performances in its history. In Q3 of last year, CYBL acquired CTMC Drone Solutions, LLC, which became the foundation of one of its newest business divisions, FlightEye UAS Drone Solutions. This division, which focuses on drone manufacturing and other services, has created an enormous opportunity to expand its development and sales of unmanned aircraft systems (UAS) to government and commercial markets.
Also in Q3 2021 was Cyberlux's acquisition of the FBD Group SHPK, a global telecommunications, infrastructure, software & service provider, and innovator in next-gen technologies such as 5G. Headquartered in Tirana, Albania, FBD Group is one of the region's leading suppliers of fiber optic broadband infrastructure. The acquisition intends to deliver a potentially lucrative new stream of revenues, as the combined team's experienced software developers understand how to properly build secure enterprise-level software solutions to meet the stringent needs of government and large-scale commercial clients. Moreover, FBD Group's experience with 5G technologies will allow Cyberlux to provide their client's top-quality service for emerging and next-gen technologies. The value added can be enormous.
And while Q3 2021 may have ignited a transformative period of growth, Cyberlux carried that momentum even further in Q4, with many of the year's most significant developments happening in December alone. The most impressive takeaway from Cyberlux's performance in 2021 is its increase in revenues, which nearly doubled on a consecutive basis from Q3 over Q4, surging from $2.25 million to $5.1 million. Revenues posted in Q4 2021 were not only the highest per quarter in company history; they also contributed to Cyberlux surpassing its own full-year revenue guidance by $2.5 million. Now, investors can factor in the continued growth in January, which was 28% higher than expected and its sixth consecutive month of growth.
Still, keep in mind, more than just its spike in revenues put Cyberlux in its strongest operating position ever. A deal made in Q4 of 2021 was one of Cyberlux's most significant acquisitions yet: Kreatx SHPK, an experienced developer of SaaS and end-user applications. The acquisition will immediately boost Cyberlux's Infrastructure Software Solutions business division, facilitating the company in offering end-to-end SaaS solutions to governments and commercial clients around the world. The Kreatx acquisition will also serve as the foundation for the company's new Cyberlux Digital Software Platform, which is one of the company's key growth initiatives for 2022. Also, the platform will be a critical component of Cyberlux's plans to expand its operations in North America, South America, and Europe. Hence, new markets more revenues.
Best of all, with Cyberlux's aggressive acquisition strategy showing no signs of slowing down, its assertive posture to build value in 2021 could be the precursor of much more to come.
Exploiting a Valuation Disconnect
The calculus is relatively simple. Cyberlux's current share price appears to be materially undervaluing its assets and near-term potential based on a sum of its parts. And since investors trade on forward-looking multiples, CYBL is more than an attractive proposition; it's a compelling one. Thus, as the company continues to maximize the revenue-generating strengths of its four divisions, its current share price is likely only a springboard to much higher prices in the weeks to come. CYBL has traded substantially higher despite being weaker on an operational comparison. Thus, a steepening of its price curve is justified.
Therefore, is Cyberlux a worthy investment candidate for growth-minded investors? Well, it absolutely is for those who like to invest in companies with scale, product mix, and operational efficiency. And better still, with plans to move to the NASDAQ markets this year, know that management incentives align well with its retail investor base. Moreover, with qualification restraints substantially higher than current levels, the mission at Cyberlux is clear- all hands on deck to increase shareholder value sooner than later.
Investing behind that intention may be more than a great idea; it's a timely one as well.
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