Cyberlux Corporation (OTC: CYBL) stock is back in play after posting an exceptionally strong revenue update earlier this month. And investors paid attention, sending the stock higher by double-digit percentages before a wave of weak broader market sentiment pulled shares lower in sympathy. But the good news- lower CYBL prices expose a potentially massive investment opportunity, especially after the company made clear a revenue-generating tailwind is at its back.
Better still, CYBL’s guidance makes the investment proposition even more compelling. They say that in addition to expecting to post $44.8 million in revenues this year, they will reach the gold standard of any publicly-traded company- NET INCOME. Not only that, the evidence supports CYBL’s bullish stance, with its 28% revenue beat announced in February likely the starting point for more appreciable gains in 2022. Hence, while CYBL may trade at “micro-cap” prices, that’s about the only distinction between them and many of its competitors.
Remember, too, CYBL has more than a single shot on revenue-generating goals. They have several. In fact, investors are tuning into the reality that the CYBL mission is designed to add significant shareholder value after diversifying its target markets to capitalize on potentially massive opportunities in the digital transformation evolution 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 has multiple initiatives in place that will target several multi-billion dollar industry opportunities.
The more excellent news, CYBL is approaching those market opportunities from a position of strength after, for the first time in CYBL history, its January revenue results marked the sixth consecutive month of sustained revenue growth. And as noted, guidance is impressive, with CYBL guiding for revenue expansion to continue to trend higher, intending to score positive net income from operations for the full year of 2022.
Strength in Q1/2022 should set the pace and benefit from a reshaping of its revenue-generating strategy to enhance not only Q1 revenues but all of 2022. If so, current valuations offer more than an attractive investment proposition; they provide a compelling one.
Video Link: https://www.youtube.com/embed/fu4-WbVDCPY
Setting The Pace In Q1/2022
What’s different this year? Foremost, CYBL has plans to transform its historically minimal Q1 revenue contribution into a more meaningful contributor to the historically more substantial revenue ramp in quarters two through four. In a typical year, CYBL generally sees revenue build through Q2- Q4. However, CYBL doesn’t intend to keep 2022 “typical.”. Instead, they plan to capitalize on an aggressive acquisition strategy that makes the old revenue-generating expectations virtually obsolete. By the way, consecutive month-to-month revenue growth from all its business units shows that its plan is taking root. Better still, CYBL has the leadership to keep the momentum going.
They added the power 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. That talent is more than impressive; it facilitates CYBL to launch the next phase of its company evolution and tap into and capture its share of an estimated $1 trillion combined global markets revenue-generating opportunity.
Notably, 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 successive performance is impressive, investors may want to pay more attention to how fast revenues are ramping, evidenced by a surge from less than $1 million not long ago to an expected $44.8 million this year. And that’s just for starters- Cyberlux believes it can mature into a $2 billion company over the next several years. It’s an ambitious goal, but CYBL is indeed showing its capability to assemble the infrastructure to transform ambitions into reality.
That’s happening now. In addition to its spike in January revenues, CYBL reached several milestones that could become catalysts for near and long-term growth. In fact, revenue growth, key leadership appointments, strategic partnerships, and sales execution are each value drivers that could deliver significant returns sooner than later. Add to that its role as a client-specific solutions provider and a source of groundbreaking intellectual property, its path to capitalize on multiple market opportunities has never looked better. Acquisitions also stand out.
Acquisitions Enhance The Value Proposition
As a part of its mission to build shareholder value, Cyberlux acquired Digital Automation Solution, LLC (DAS). That included 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’ mission is 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 is that DAS is immediately accretive to its immediate and long-term expansion plan and provides a holistic approach to delivering digital capabilities across the target customer’s enterprise. For clients, it’s a much-needed asset to automate processes, enhance digital experiences, accelerate new products and services, improve time-to-market, and evolve their business models. That’s not all adding value.
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.
In addition, 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, CYBL is simply an opportunity too good to ignore at current valuations.
Of course, pipeline matters, too. And CYBL’s is impressive. Notably, the best part is that while its Q2-Q4 pipeline is strong, a change in business strategy should have Q1 deliver significantly better revenues than historical precedent suggests. As part of its Q1 Plan, CYBL is narrowing down its financial partner list to focus intently on shareholder value creation. In that effort, CYBL is making significant progress with institutionalizing the Cyberlux organization and driving the company forward to take advantage of near-term revenue-generating opportunities. Further, part of its plan to drive higher valuations is to enhance its communications and corporate positioning resulting from strategic guidance from its institutional partners.
And as shown earlier this month, revenue and operational updates can have a significant and positive impact on share prices. So, while broader market weakness has essentially lowered the tide for nearly every listed company, fundamentals will take over. In that respect, Cyberlux has plenty to justify a substantial move higher.
Putting Its 52-Week Highs In The Crosshairs
In fact, targeting and reclaiming its 52-week high of $0.07 is back in the crosshairs. And after recent developments, CYBL is in a better position than ever to reach that level. Thus, selling pressure brought on by broader market declines appears to have exposed an investment opportunity in CYBL at a share price that in no way reflects its near and long-term potential. Hence, paying attention to the details 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 asset 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.
Diversified Divisions Target A Combined $300 Billion Opportunity
Needless to say, 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, while Cyberlux has a revenue-generating arsenal in place to provide next-gen solutions to a discerning client list, it’s diversified, too.
Its 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 while this division can be a revenue-generating game-changer for CYBL, it’s only one division. Others are equally impressive.
Cyberlux’s Advanced Lighting Solutions division can also be a significant value driver leading to transformational 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, and it too puts billions of potential revenue dollars in play.
There’s more to like. 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.
Last but certainly not least, 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, keep in mind, 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. From a market potential perspective, 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 faster than many think.
Thus, it’s the combination of assets that makes the Cyberlux investment proposition compelling. In fact, while a peer company its size would do well by maximizing value from just one division, CYBL will benefit from four. Perhaps 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, Catalysts, And Acquisitions Are In the Queue
Yes, there’s still more to like. While 2021 was transformational for Cyberlux, a newly implemented business strategy called the Operation Alpha Growth Plan intends to make that transformation the starting point for potentially exponential growth beginning this quarter. 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 most transformative periods 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. The military applications can be massive.
Also, in Q3 2021, Cyberlux acquired 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. Again, the value-added can be enormous.
Best of all, while Q3 2021 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.
And a deal made in Q4 of 2021, one of Cyberlux’s most significant acquisitions yet, should fuel already strong momentum. Then, Cyberlux acquired Kreatx SHPK, an experienced developer of SaaS and end-user applications. The acquisition immediately strengthened Cyberlux’s Infrastructure Software Solutions business division, facilitating offering end-to-end SaaS solutions to governments and commercial clients worldwide. Moreover, the Kreatx acquisition will 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, global market expansion should do more than enhance the CYBL footprint; it can drive revenues substantially higher.
Seizing A Disconnect Between Assets And Price
Thus, from an investor’s perspective, 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. But that is likely a short-term situation, especially with CYBL justifying its case to be a breakout star in 2022. Not only that, as CYBL continues to maximize the revenue-generating power inherent to its four divisions, expect that its current share price can become a launchpad for higher prices in the weeks to come.
Therefore, for those evaluating whether Cyberlux is worthy of investment consideration, the answer is pretty straightforward- Absolutely. And because CYBL has scale, product mix, and operational efficiency, taking a position during market weakness may be a wise consideration. After all, when a company is in motion, its share price tends to follow. And Cyberlux is more than in-motion; they are in high gear.
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