RedSeal Reports Positive Cash Flow and Profitability in its Strongest Quarter to Date

Record Revenue and Gross Margins Propel Cyber Analytics Company's Q3 Momentum


SUNNYVALE, CA--(Marketwired - Nov 7, 2016) - RedSeal (redseal.net), a leader in the cybersecurity analytics market, today announced it closed its third quarter with record revenue, boosted by the close of the company's largest single contract to-date. The company ended the quarter cash flow positive and profitable on a GAAP basis, as year-to-date revenue increased 38 percent over the same period last year and 57 percent over the previous quarter. Year-to-date net income in 2016 was 150 percent above the same period in 2015.

"Our record-breaking quarter shows that digital resilience and cyberattack preparedness is a priority for many global enterprises and government agencies," said Ray Rothrock, chairman and CEO of RedSeal. "The large majority of executives we speak with want real-time information about external threats and the overall health and resilience of their network. Our proven network resilience technology delivers comprehensive and measurable results to the C-Suite and beyond. Measuring cybersecurity effectiveness, mapping visibility and investments to results, and reeling in out-of-control cybersecurity spending are critical to business success, and why we believe the growth RedSeal is experiencing today is just the tip of the iceberg."

RedSeal reported gross margins hit an all-time high and its commercial business grew 100 percent over the previous quarter. In addition to closing the biggest deal in company history, RedSeal achieved a 300 percent increase in growth with existing customers over Q3 2015. This included RedSeal's second largest expansion contract to-date, with one of the world's top consumer electronics companies. Overall, growth came from across government agencies and commercial segments, including a range of technology, professional services, retail, and financial services companies.

To date, RedSeal's network resilience technology is implemented in more than 40 government agencies and hundreds of commercial enterprises, including three new customers from the company's recently opened office in Japan.

About RedSeal
RedSeal puts power in decision makers' hands with the essential cybersecurity analytics platform for building digitally resilient organizations. RedSeal's Digital Resilience Score, modeled after a creditworthiness score, measures how prepared an organization is to respond to an incident and quickly rebound. The company's platform adds value to existing network devices by working with them and building a network model. With this, customers can understand the state of their networks, measure resilience, verify compliance, and accelerate incident response. RedSeal's customers are Global 2000 corporations and government agencies that depend on the most sophisticated security. Founded in 2004, RedSeal is headquartered in Sunnyvale, Calif. and serves customers globally through a direct sales and channel partner network.

RedSeal and the RedSeal logo are trademarks of RedSeal, Inc. All other names and trademarks are the property of their respective owners.

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Contact:
Dean Fisk
Finn Partners
+1 (707) 292-4201