Artificial Intelligence
ChinaNet Online Holdings Reports Second Quarter and First Half 2020 Unaudited Financial Results
BEIJING, Aug. 14, 2020 (GLOBE NEWSWIRE) — ChinaNet Online Holdings, Inc. (Nasdaq: CNET) (“ChinaNet” or the “Company”), an integrated online advertising, precision marketing, data analytics and other value-added services provider serving enterprise clients, today announced its unaudited financial results for the second quarter and six months ended June 30, 2020.
Second Quarter of 2020 Financial Highlights
For the Three Months Ended June 30, | |||||
($ millions, except per share data) | 2020 | 2019 | % Change | ||
Revenues | $10.42 | $15.45 | -32.6% | ||
Gross profit | $0.30 | $0.37 | -18.6% | ||
Gross margin | 2.9% | 2.4% | 0.5 pp* | ||
Loss from operations | ($1.02) | ($1.22) | 16.5% | ||
Operating loss margin | -9.8% | -7.9% | -1.9 pp | ||
Net loss attributable to CNET | ($0.97) | ($0.38) | 155.4% | ||
Loss per share | ($0.04) | ($0.02) | 100.0% | ||
*pp: percent points |
- Revenues decreased by 32.6% to $10.42 million for the second quarter of 2020, primarily due to a decrease in revenues from Internet advertising and distribution of the right to use search engine marketing service business categories, as a result of the COVID-19 outbreak during the first quarter of 2020 and slow recovery in the second quarter of 2020.
- Gross profit decreased by 18.6% to $0.30 million while gross margin improved by 0.5 percentage points to 2.9% for the second quarter of 2020.
- Loss from operations improved by 16.5% to $1.02 million for the second quarter of 2020, primarily attributable to a decrease in operating expenses, which was partially offset by the decrease in gross profit during the second quarter of 2020.
- Net loss attributable to CNET was $0.97 million, or $0.04 per share, for the second quarter of 2020, compared to net loss of $0.38 million, or $0.02 per share, for the same period of last year.
Mr. Handong Cheng, Chairman and Chief Executive Officer of ChinaNet, commented, “Our second quarter results highlight continuing impact of the COVID-19 pandemic, despite significant sequential uptick from the first quarter. With growth and profitability remaining elusive, our second quarter results underscore the need for improvement in our existing business model and the need for new strategic initiatives going forward. While we remain fully committed to the blockchain technology initiative and view it as a potential game-changer for us, we are also actively exploring other strategic alternatives to turn around our business.”
First Half of 2020 Financial Highlights
For the Six Months Ended June 30, | |||||
($ millions, except per share data) | 2020 | 2019 | % Change | ||
Revenues | $14.80 | $24.02 | -38.4% | ||
Gross profit | $1.20 | $0.81 | 48.1% | ||
Gross margin | 8.1% | 3.4% | 4.7 pp* | ||
Loss from operations | ($3.30) | ($1.96) | 68.2% | ||
Operating loss margin | -22.3% | -8.2% | -14.1 pp | ||
Net loss attributable to CNET | ($3.28) | ($1.52) | 116.1% | ||
Loss per share | ($0.16) | ($0.09) | 77.8% | ||
*pp: percent points |
- Revenues decreased by 38.4% to $14.80 million for the first half of 2020, primarily due to the decrease in revenues from our Internet advertising and distribution of the right to use search engine marketing service business categories, as a result of the COVID-19 outbreak during the first quarter of 2020 and slow recovery in the second quarter of 2020.
- Gross profit increased by 48.1% to $1.20 million while gross margin improved by 4.7 percentage points to 8.1% for the first half of 2020.
- Loss from operations increased by 68.2%, to $3.30 million for the first half of 2020, primarily attributable to an increase in operating expenses.
- Net loss attributable to CNET was $3.28 million, or $0.16 per share, for the first half of 2020, compared to net loss of $1.52 million, or $0.09 per share, for the same period of last year.
Second Quarter 2020 Financial Results
Revenues
For the Three Months Ended June 30, | |||||
2020 | 2019 | % Change | |||
– Internet advertising and related data service | 2,302 | 3,598 | -36.0% | ||
– Distribution of the right to use search engine marketing service | 7,310 | 11,855 | -38.3% | ||
– Data and technical services | 300 | 0 | NM | ||
Internet advertising and related services | 9,912 | 15,453 | -35.9% | ||
Ecommerce O2O advertisement and marketing services | 504 | 0 | NM | ||
Technical solution services | 0 | 0 | NM | ||
Total revenues | 10,416 | 15,453 | -32.6% |
For the second quarter of 2020, revenues decreased by $5.04 million, or 32.6%, to $10.42 million from $15.45 million for the same period of last year. The decrease in revenues was primarily attributable to the decrease in revenues from the Internet advertising and distribution of the right to use search engine marketing service business categories, as a result of slow business recovery after the COVID-19 outbreak during the first fiscal quarter of 2020.
Cost of revenues
For the Three Months Ended June 30, | |||||
2020 | 2019 | % Change | |||
– Internet advertising and related data service | 2,072 | 3,484 | -40.5% | ||
– Distribution of the right to use search engine marketing service | 7,405 | 11,598 | -36.2% | ||
– Data and technical services | 266 | 5 | NM | ||
Internet advertising and related services | 9,743 | 15,087 | -35.4% | ||
Ecommerce O2O advertisement and marketing services | 375 | 0 | NM | ||
Technical solution services | 0 | 0 | NM | ||
Total cost of revenues | 10,118 | 15,087 | -32.9% |
For the second quarter of 2020, our total cost of revenues decreased by $4.97 million, or 32.9%, to $10.12 million for the second quarter of 2020 from $15.09 million for the same period of last year. The decrease in our total cost of revenues during the second quarter of 2020 was primary attributable to the decrease in costs associated with distribution of the right to use search engine marketing service and cost related to providing Internet advertising services on our ad portals, which was in line with the decrease in the related revenues as discussed above.
Gross profit and gross margin
Total gross profit decreased by $0.07 million, or 18.6%, to $0.30 million for the second quarter of 2020 from $0.37 million for the same period of last year, which was primarily due to gross loss incurred from our core revenue stream, the distribution of the right to use search engine marketing service, as a result of tightened ad investment budgets by our client under the COVID-19 pandemic circumstance, which was partially offset by the increase in gross profit generated from Internet advertising business and our new Ecommerce O2O advertising and marketing services.
Overall gross margin was 2.9% for second quarter of 2020, compared to 2.4% for the second quarter of 2019, primarily due to improvement in gross margin of our Internet advertising business and new revenues generated form Ecommerce O2O advertising and marketing services during the period, which have a relatively higher gross margin than our core businesses.
Operating expenses
Sales and marketing expenses decreased by $0.11 million, or 61.3%, to $0.07 million for the second quarter of 2020 from $0.18 million for the same period of last year. The decrease in sales and marketing expenses was mainly attributable to decreased performance-based salary and bonus expenses. As a percentage of total revenues, sales and marketing expenses were 0.7% for the second quarter of 2020, compared to 1.2% for the same period of last year.
General and administrative expenses decreased by $0.12 million, or 9.3%, to $1.13 million for the second quarter of 2020 from $1.25 million for the same period of last year. The decrease in general and administrative expenses was mainly attributable to the following reasons: (1) the increase in allowance for doubtful accounts of $0.07 million; (2) the decrease in share-based compensation expenses of $0.03 million; and (3) the decrease in general departmental expenses of $0.16 million, due to a cost reduction plan executed by management after the COVID-19 outbreak. General and administrative expenses accounted for 10.9% of the total revenues for the second quarter of 2020 compared to 8.1% for the same period of last year.
Research and development expenses decreased by $0.04 million, or 27.0%, to $0.12 million for the second quarter of 2020 from $0.16 million for the same period of last year. Research and development expenses accounted for 1.1% of total revenues for the second quarter of 2020, compared to 1.0% for the same period of last year.
Operating loss
Loss from operations decreased by $0.20 million, or 16.5%, to $1.02 million for the second quarter of 2020 from $1.22 million for the same period of last year. Operating loss margin was 9.8% for the second quarter of 2020, compared to 7.9% for the same period of last year.
Other income (expense), net
Total other income decreased to $0.04 million for the second quarter of 2020, compared to $0.81 million for the same period of last year, which was primarily due to a decrease in gain from change in fair value of warrant liabilities.
Net loss attributable to CNET and loss per share
Net loss attributable to CNET was $0.97 million, or net loss per share of $0.04, for the second quarter of 2020, compared to $0.38 million, or net loss per share of $0.02, for the same period of last year.
First Half 2020 Financial Results
Revenues
For the Six Months Ended June 30, | |||||
2020 | 2019 | % Change | |||
– Internet advertising and related data service | 3,250 | 5,435 | -40.2% | ||
– Distribution of the right to use search engine marketing service | 9,298 | 18,580 | -50.0% | ||
– Data and technical services | 600 | 5 | NM | ||
Internet advertising and related services | 13,148 | 24,020 | -45.3% | ||
Ecommerce O2O advertisement and marketing services | 1,007 | 0 | NM | ||
Technical solution services | 645 | 0 | NM | ||
Total revenues | 14,800 | 24,020 | -38.4% |
For the first half year of 2020, revenues decreased by $9.22 million, or 38.4%, to $14.80 million from $24.02 million for the same period of last year. The decrease in revenues was primarily attributable to the decrease in revenues from our Internet advertising and distribution of the right to use search engine marketing service business categories, as a result of the COVID-19 outbreak during the first quarter and slow recovery in the second quarter of 2020.
Cost of revenues
For the Six Months Ended June 30, | |||||
2020 | 2019 | % Change | |||
– Internet advertising and related data service | 2,906 | 5,218 | -44.3% | ||
– Distribution of the right to use search engine marketing service | 9,416 | 17,989 | -47.7% | ||
– Data and technical services | 531 | 5 | NM | ||
Internet advertising and related services | 12,853 | 23,212 | -44.6% | ||
Ecommerce O2O advertisement and marketing services | 750 | 0 | NM | ||
Technical solution services | 0 | 0 | NM | ||
Total cost of revenues | 13,603 | 23,212 | -41.4% |
For the first half year of 2020, cost of revenues decreased by $9.61 million, or 41.4%, to $13.60 million from $23.21 million for the same period of last year, which was in line with the decrease in the related revenues as discussed above.
Gross profit and gross margin
Total gross profit increased by $0.39 million, or 48.1%, to $1.20 million for the first half of 2020 from $0.81 million for the same period of last year, as a result of the improvement in gross margin of our Internet advertising business and gross profit generated from our new Ecommerce O2O advertising and marketing services and technical solution services during the first half of 2020.
Overall gross margin was 8.1% for first half of 2020, compared to 3.4% for the first half of 2019.
Operating expenses
Sales and marketing expenses decreased by $0.12 million, or 32.9%, to $0.24 million for the first half of 2020 from $0.35 million for the same period of last year. The decrease in sales and marketing expenses was mainly attributable to the following reasons: (1) staff salary and benefit expenses and general departmental expenses decreased by $0.24 million, due to the COVID-19 outbreak during the first fiscal quarter of 2020 in China, which caused our operating offices closure after the Chinese New Year holiday in February and March 2020, resulted from the epidemic control measures imposed by the local governments where we operate; and (2) the increase in share-based compensation expenses of $0.12 million, related to restricted shares granted and issued to our sales staff during the first fiscal quarter of 2020. As a percentage of total revenues, sales and marketing expenses accounted for 1.6% for the first half of 2020, compared to 1.5% for the same period of last year.
General and administrative expenses increased by $1.87 million, or 90.9%, to $3.93 million for the first half of 2020 from $2.06 million for the same period of last year. The increase in general and administrative expenses was mainly attributable to the following reasons: (1) the increase in share-based compensation expenses of $1.52 million, due to restricted shares granted and issued in the first fiscal quarter of 2020; and (2) the increase in allowance for doubtful accounts of $0.29 million. General and administrative expenses accounted for 26.5% of total revenues for the first half of 2020, compared to 8.6% for the same period of last year.
Research and development expenses decreased by $0.03 million, or 8.3%, to $0.33 million for the first half of 2020 from $0.36 million for the same period of last year. Research and development expenses accounted for 2.2% of total revenues for the first half of 2020, compared to 1.5% for the same period of last year.
Operating loss
Loss from operations increased by $1.34 million, or 68.2%, to $3.30 million for the first half of 2020 from $1.96 million for the same period of last year. Operating loss margin was 22.3% for the first half of 2020, compared to 8.2% for the same period of last year.
Other income (expense), net
Total other income decreased to $0.08 million for the first half of 2020, compared to $0.44 million for the same period of last year, which was primarily due to a decrease in gain from change in fair value of warrant liabilities.
Net loss attributable to CNET and loss per share
As a result of the foregoing, net loss attributable to CNET was $3.28 million, or net loss per share of $0.16, for the first half of 2020, compared to $1.52 million, or net loss per share of $0.09, for the same period of last year.
Financial Condition
As of June 30, 2020, the Company had cash and cash equivalents of $1.06 million, compared to $1.60 million as of December 31, 2019. Accounts receivable, net was $2.52 million as of June 30, 2020, compared to $3.26 million as of December 31, 2019. Working capital was $3.30 million as of June 30, 2020, compared to $4.92 million as of December 31, 2019.
Net cash provided by operating activities was $1.17 million for the first half of 2020, compared to net cash used in operating activities of $2.33 million for the same period of last year. Net cash used in investing activities was $1.27 million for the first half of 2020, compared to $36,000 for the same period of last year. Net cash used in financing activities was $0.43 million for the first half of 2020, compared to $nil for the same period of last year.
Recent Developments
On August 7, 2020, the Company appointed Mr. Charles Chiu to the position of the Company’s Chief Operating Officer and Mr. Mark Li, the current Chief Financial Officer of the Company, to serve as Secretary of the Company, effective immediately. On the same date, Mr. George Chu resigned from the roles of Chief Operating Officer and Secretary of the Company due to personal reasons. Mr. Chu continued to serve as a director of the Board of Directors of the Company.
On June 23, 2020, the Company received a written notice from the Listing Qualifications Staff of The NASDAQ Stock Market (“NASDAQ”) stating that the Company had regained compliance with Nasdaq Listing Rule 5550(a)(2), which set forth minimum bid price continued listing requirement.
About ChinaNet Online Holdings, Inc.
Established in 2003 and headquartered in Beijing, China, ChinaNet Online Holdings, Inc. (“ChinaNet” or the “Company”) offers online advertising, precision marketing, data analytics and other value-added services for enterprise clients. Leveraging its fully integrated services platform, proprietary database, and cutting-edge algorithms, ChinaNet delivers customized, result-driven business solutions for small and medium-sized enterprise clients in China. The Company also develops blockchain and artificial intelligence enabled web/mobile applications and software solutions for general public, enterprise clients, and government agencies. More information about the Company can be found at: www.chinanet-online.com.
Safe Harbor Statement
This release contains certain “forward-looking statements” relating to the business of ChinaNet Online Holdings, Inc., which can be identified by the use of forward-looking terminology such as “believes,” “expects,” “anticipates,” “estimates” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including business uncertainties relating to government regulation of our industry, market demand, reliance on key personnel, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. These forward-looking statements are based on ChinaNet’s current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting ChinaNet will be those anticipated by ChinaNet. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. ChinaNet undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
For more information, please contact:
Tony Tian, CFA
Weitian Group LLC
Email: [email protected]
Phone: +1 732-910-9692
CHINANET ONLINE HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for number of shares and per share data)
June 30, 2020 |
December 31, 2019 |
||||||
(US $) | (US $) | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,055 | $ | 1,603 | |||
Accounts receivable, net of allowance for doubtful accounts of $3,844 and $3,148, respectively | 2,520 | 3,260 | |||||
Prepayment and deposit to suppliers | 5,078 | 6,980 | |||||
Due from related parties, net | 52 | 81 | |||||
Other current assets, net | 959 | 11 | |||||
Total current assets | 9,664 | 11,935 | |||||
Long-term investments | 61 | 35 | |||||
Operating lease right-of-use assets | 7 | 12 | |||||
Property and equipment, net | 73 | 78 | |||||
Intangible assets, net | 1,493 | 1,899 | |||||
Blockchain platform applications development costs | 4,176 | 3,879 | |||||
Long-term prepayments | 909 | – | |||||
Deferred tax assets, net | 691 | 713 | |||||
Total Assets | $ | 17,074 | $ | 18,551 | |||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Short-term bank loan * | $ | – | $ | 430 | |||
Accounts payable * | 395 | 408 | |||||
Advance from customers * | 1,619 | 2,006 | |||||
Accrued payroll and other accruals * | 431 | 491 | |||||
Taxes payable * | 3,258 | 3,214 | |||||
Lease payment liability related to short-term leases * | 177 | 136 | |||||
Other current liabilities * | 446 | 221 | |||||
Warrant liabilities | 39 | 107 | |||||
Total current liabilities | 6,365 | 7,013 |
Long-term liabilities: | |||||||
Long-term borrowing from a director | 124 | 125 | |||||
Total Liabilities | 6,489 | 7,138 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
ChinaNet Online Holdings, Inc.’s stockholders’ equity | |||||||
Common stock (US$0.001 par value; authorized 50,000,000 shares; issued and outstanding 21,691,926 shares and 19,629,403 shares at June 30, 2020 and December 31, 2019, respectively) | 22 | 20 | |||||
Additional paid-in capital | 45,493 | 43,111 | |||||
Statutory reserves | 2,607 | 2,607 | |||||
Accumulated deficit | (39,051 | ) | (35,773 | ) | |||
Accumulated other comprehensive income | 1,572 | 1,505 | |||||
Total ChinaNet Online Holdings, Inc.’s stockholders’ equity | 10,643 | 11,470 | |||||
Noncontrolling interests | (58 | ) | (57 | ) | |||
Total equity | 10,585 | 11,413 | |||||
Total Liabilities and Equity | $ | 17,074 | $ | 18,551 |
CHINANET ONLINE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except for number of shares and per share data)
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(US $) | (US $) | (US $) | (US $) | ||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
Revenues | |||||||||||||||
From unrelated parties | $ | 14,786 | $ | 23,912 | $ | 10,415 | $ | 15,352 | |||||||
From a related party | 14 | 108 | 1 | 101 | |||||||||||
Total revenues | 14,800 | 24,020 | 10,416 | 15,453 | |||||||||||
Cost of revenues | 13,603 | 23,212 | 10,118 | 15,087 | |||||||||||
Gross profit | 1,197 | 808 | 298 | 366 | |||||||||||
Operating expenses | |||||||||||||||
Sales and marketing expenses | 235 | 350 | 70 | 181 | |||||||||||
General and administrative expenses | 3,928 | 2,058 | 1,132 | 1,248 | |||||||||||
Research and development expenses | 330 | 360 | 116 | 159 | |||||||||||
Total operating expenses | 4,493 | 2,768 | 1,318 | 1,588 | |||||||||||
Loss from operations | (3,296 | ) | (1,960 | ) | (1,020 | ) | (1,222 | ) | |||||||
Other income (expenses) | |||||||||||||||
Interest expense, net | (1 | ) | (23 | ) | – | (12 | ) | ||||||||
Other income/(expenses) | 17 | (4 | ) | 18 | (2 | ) | |||||||||
Change in fair value of warrant liabilities | 68 | 471 | 22 | 821 | |||||||||||
Total other income | 84 | 444 | 40 | 807 | |||||||||||
Loss before income tax (expense)/benefit and noncontrolling interests | (3,212 | ) | (1,516 | ) | (980 | ) | (415 | ) | |||||||
Income tax (expense)/benefit | (68 | ) | (6 | ) | 10 | 33 | |||||||||
Net loss | (3,280 | ) | (1,522 | ) | (970 | ) | (382 | ) | |||||||
Net loss attributable to noncontrolling interests | 2 | 5 | 2 | 3 | |||||||||||
Net loss attributable to ChinaNet Online Holdings, Inc. | $ | (3,278 | ) | $ | (1,517 | ) | $ | (968 | ) | $ | (379 | ) |
Net loss | $ | (3,280 | ) | $ | (1,522 | ) | $ | (970 | ) | $ | (382 | ) | |||
Foreign currency translation gain/(loss) | 68 | 24 | (4 | ) | 60 | ||||||||||
Comprehensive loss | $ | (3,212 | ) | $ | (1,498 | ) | $ | (974 | ) | $ | (322 | ) | |||
Comprehensive loss attributable to noncontrolling interests | 1 | 5 | 2 | 2 | |||||||||||
Comprehensive loss attributable to ChinaNet Online Holdings, Inc. | $ | (3,211 | ) | $ | (1,493 | ) | $ | (972 | ) | $ | (320 | ) | |||
Loss per share | |||||||||||||||
Loss per common share | |||||||||||||||
Basic and diluted | $ | (0.16 | ) | $ | (0.09 | ) | $ | (0.04 | ) | $ | (0.02 | ) | |||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic and diluted | 21,044,666 | 16,411,548 | 21,691,926 | 16,412,543 |
CHINANET ONLINE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
(US $) | (US $) | ||||||
(Unaudited) | (Unaudited) | ||||||
Cash flows from operating activities | |||||||
Net loss | $ | (3,280 | ) | $ | (1,522 | ) | |
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities | |||||||
Depreciation and amortization | 415 | 52 | |||||
Amortization of operating lease right-of-use assets | 5 | 87 | |||||
Share-based compensation expenses | 1,987 | 203 | |||||
Provision for allowances for doubtful accounts | 747 | 460 | |||||
Deferred taxes | 11 | 6 | |||||
Change in fair value of warrant liabilities | (68 | ) | (471 | ) | |||
Changes in operating assets and liabilities | |||||||
Accounts receivable | (38 | ) | (866 | ) | |||
Prepayment and deposit to suppliers | 2,090 | (76 | ) | ||||
Due from related parties | 28 | 227 | |||||
Other current assets | (3 | ) | 11 | ||||
Long-term prepayments | (750 | ) | – | ||||
Accounts payable | (9 | ) | (2,153 | ) | |||
Advance from customers | (362 | ) | 1,787 | ||||
Accrued payroll and other accruals | (57 | ) | (232 | ) | |||
Lease payment liability related to short-term leases | 43 | 120 | |||||
Other current liabilities | 326 | (39 | ) | ||||
Taxes payable | 89 | 91 | |||||
Prepaid lease payment | (9 | ) | (10 | ) | |||
Net cash provided by/(used in) operating activities | 1,165 | (2,325 | ) | ||||
Cash flows from investing activities | |||||||
Investment to investee entities | (27 | ) | (36 | ) | |||
Short-term loan to an unrelated party | (944 | ) | – | ||||
Payment for blockchain platform applications development costs | (302 | ) | – | ||||
Net cash used in investing activities | (1,273 | ) | (36 | ) |
Cash flows from financing activities | |||||||
Proceeds from short-term bank loan | – | 442 | |||||
Repayment of short-term bank loan | (427 | ) | (442 | ) | |||
Net cash used in financing activities | (427 | ) | – | ||||
Effect of exchange rate fluctuation | (13 | ) | 23 | ||||
Net decrease in cash and cash equivalents | (548 | ) | (2,338 | ) | |||
Cash and cash equivalents at beginning of the period | 1,603 | 3,742 | |||||
Cash and cash equivalents at end of the period | $ | 1,055 | $ | 1,404 | |||
Artificial Intelligence
nodeQ Launches PQtunnelTM: The Leading-Edge Cybersecurity Solution for Quantum-Safe Communication
The latest application developed by nodeQ simplifies the migration to Post-Quantum Cryptography for both SMEs and large enterprises
YORK, England, May 7, 2024 /PRNewswire/ — The advent of Quantum Computing poses a significant threat to existing public-key cryptosystems. A large quantum computer can break algorithms like RSA or ECDH, which form the backbone of current internet security. Already today, confidential data is in danger: It can be harvested now to be decrypted later when a quantum computer can run Shor’s factorization quantum algorithm on a sufficiently large number of qubits.
This vulnerability exposes a large number of applications to potential security breaches, threatening our trillion-dollar digital economy. Multiple sectors are under threat: Financial Institutions, government entities, telecommunications companies, cloud providers, the healthcare industry, the defense sector, universities and research centers, and virtually any IT-based enterprise that relies on encrypted data.
Companies must transition IT infrastructures to quantum-resistant solutions, such as Post-Quantum Cryptography (PQC). In the US the transition to PQC is set to start in 2024, as a result of Biden’s 2022 Computing Cybersecurity Preparedness Act and the end of NIST standardization.
nodeQ has developed PQtunnel™, a groundbreaking tool designed to assist businesses – ranging from SMEs to large enterprises – in transitioning their end-to-end (E2E) secure communication to PQC. This innovative software application is available in two variants: PQtunnel™ TLS and PQtunnel™ SSH, meeting diverse business requirements.
PQtunnel™ TLS is an enterprise-oriented tunneling application that leverages the Transport Layer Security (TLS) protocol to secure traffic between a client (or a proxy) and the target application. This solution has been thoroughly tested on various enterprise-grade applications, such as GitLab EE, demonstrating its effectiveness and reliability.
On the other hand, PQtunnel™ SSH offers a comprehensive Quantum-Safe SSH server, alongside a client equipped with a user-friendly interface. This software suite is designed for secure shell operations, ensuring the highest level of security and ease of use.
Both PQtunnel™ variants utilize a wide range of PQC algorithms, including the most recent ones under standardization by NIST, and hybrid algorithms. This approach combines the stability of current cryptographic methods with the quantum-safeness of new cryptographic suites, offering unmatched security against emerging cyber threats.
Developed as cloud-native applications, both variants of PQtunnel™ are designed to facilitate easy distribution and provide flexibility in a wide range of scenarios. Secure Post-Quantum tunneling to your GitLab server, quantum-safe data transfer, secure cloud IT management, and PQC benchmarking are just a few of the use cases where PQtunnel™ can be applied, showcasing its versatility and significance for today’s cybersecurity landscape.
Ignazio Pedone, the cybersecurity lead at nodeQ, emphasized the significance of their latest security product, stating, “This security product represents an important step towards a more effective and robust application of quantum-safe cryptography for enterprises.”
Various early customers have already adopted PQtunnel™ to test their readiness to migrate to quantum-safe cryptography. PQC is going to play an important role for telecom operators.
“At Fibraweb, PQtunnel demonstrated our readiness for quantum-security migration,” says Walid Bounassif, CEO of Fibraweb (an Italian telco). “The software created quantum-resistant connections between external clients and our internal servers, showing that post-quantum encrypted communication can efficiently be implemented for remote IT administration and secure file transfer.”
PQC is essential for medium to large enterprises, including educational institutions like universities, where maintaining data confidentiality at various levels is crucial. At the University of York (UK), PQtunnel™ has been deployed for the quantum-safe transfer of documents. This pioneering demonstration, the first of its kind in the world within the education sector, actively involved staff and students from the Department of Computer Science.
“PQtunnel has effectively established high-speed, quantum-resistant connections both within and beyond the campus perimeter,” says Prof Paul Cairns (Head of the Computer Science Department at the University of York, UK). “This technology has clearly demonstrated its capacity for facilitating quantum-secure data transfers, affirming its readiness to enhance our university’s digital infrastructure.”
For additional information about PQtunnel™, nodeQ, and their range of products, the reader can visit their website at www.nodequantum.com.
Key Features
Crypto-Agility: implements all NIST PQC algorithms to counteract the quantum threat.Cross-Platform: available for the most adopted operating systems and hardware architectures.Easy Setup: no need for long or complex installation procedures to get started.On-the-Fly Benchmarking and Optimization: can benchmark and optimize high-level security protocols against all the available combinations of PQC algorithms for key exchange and digital signature.Target Customers
Financial InstitutionsTelecommunications CompaniesUniversities and Research CentersCloud ProvidersHealthcare IndustryGovernment EntitiesDefense SectorManufacturing CompaniesSMEs handling confidential dataAbout nodeQ
At nodeQ, we are pioneering the future of computer networks, leveraging our deep expertise in quantum communication, artificial intelligence, and software-defined networking. Our primary objective is to transition computer networks to quantum security, placing a critical emphasis on maintaining speed, performance, and usability at the heart of this transformation.
Contacts
Stefano [email protected]
Request a demo or a brochure at [email protected] or visit www.nodequantum.com.
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Artificial Intelligence
Simplilearn and Purdue University Online Unveil Cutting-Edge Generative AI Program for Business Transformation
The program provides over 50 hours of live online sessions with industry experts, exploring GenAI tools like ChatGPT, Gemini and Amazon CodeWhisperSuitable for candidates with preferably over 5 years of work experience, proficiency in English and an eagerness to leverage Gen AI to solve real business problemsThe program offers the applications of Generative AI in various business functions like software engineering, sales and marketing, customer service, product research, and more.SAN FRANCISCO, May 7, 2024 /PRNewswire/ — Simplilearn, the world’s leading online bootcamp provider, has strengthened its partnership with Purdue University, renowned for its unwavering commitment to innovation, research, and education. Together, they proudly announced the launch of the Generative AI for Business Transformation program. As the global demand for Generative AI skyrockets, with projections* soaring to $667.9 billion market by 2030, boasting a staggering annual growth rate of 24.4%, this program emerges as a pivotal force in the transformative journey into the Generative AI domain.
The program offers a comprehensive understanding of Generative AI and its applications across business functions such as sales, marketing, software engineering, customer service, data analytics, and product research & development. It empowers learners with the skills to automate tasks, predict trends, generate code, and personalize content using Generative AI and navigate its ethical considerations. From automated copywriting to predictive analytics, the program helps learners foster responsible and effective use of GenAI across diverse domains.
Learners can expect a dynamic learning experience with over 50 hours of live online classes, exposure to prominent Generative AI tools, and masterclasses conducted by the Purdue faculty and staff. Professionals will master the essentials of Generative AI, including LLMs, prompt engineering, ChatGPT, its applications and benefits to drive business outcomes.
Upon successfully completing the program, learners will receive a certificate jointly issued by Purdue University Online and Simplilearn and access to Purdue’s Alumni Association membership for global recognition.
The program is suitable for professionals with over 5 years of work experience, proficiency in English and an eagerness to leverage Generative AI to solve real business problems. The program is designed for a diverse range of professionals, including business Leaders, C-suite executives, mid-senior level managers, functional heads, consultants, technology professionals, data professionals and entrepreneurs.
Speaking about the program, Mr. Anand Narayanan, Chief Product Officer of Simplilearn, said,”Our collaboration with Purdue University Online brings together the excellence of the world’s leading online bootcamp provider and leading academic institution known for its commitment to innovation, research, education, and expertise in the AI and ML fields. This program will empower business leaders, mid-senior level managers, functional heads, and technology professionals with the skills to stay at the forefront of industry advancements. With Gen AI at its core, learners will be equipped to navigate in today’s dynamic AI landscape, fostering responsible innovation, and business transformation ideas.”
Dimitrios Peroulis, Senior Vice President for Purdue University Online, said, “As a beacon of academic excellence, Purdue University Online is excited to partner with Simplilearn in delivering a transformative learning experience through the Generative AI for Business Transformation program. This collaboration reflects our commitment to providing high-quality education and preparing professionals for the challenges and opportunities presented by emerging technologies like Generative AI.”
About Purdue University
Purdue University is a public research institution demonstrating excellence at scale. Ranked among top 10 public universities and with two colleges in the top four in the United States, Purdue discovers and disseminates knowledge with a quality and at a scale second to none. More than 105,000 students study at Purdue across modalities and locations, including nearly 50,000 in person on the West Lafayette campus. Committed to affordability and accessibility, Purdue’s main campus has frozen tuition 13 years in a row. See how Purdue never stops in the persistent pursuit of the next giant leap — including its first comprehensive urban campus in Indianapolis, the new Mitchell E. Daniels, Jr. School of Business, and Purdue Computes — at:
https://www.purdue.edu/president/strategic-initiatives
About Simplilearn
Founded in 2010 and based in San Francisco, California, and Bangalore, India, Simplilearn, a Blackstone portfolio company, is the world’s #1 online Bootcamp for digital economy skills training. Simplilearn offers individuals and businesses worldwide access to world-class work-ready training. The Bootcamps are designed and delivered with world-renowned universities, top corporations, and leading industry bodies via live online classes featuring top industry practitioners, sought-after trainers, and global leaders. From college students and early career professionals to managers, executives, small businesses, and big corporations, Simplilearn’s role-based, skill-focused, industry-recognized, and globally relevant training programs are ideal upskilling solutions for diverse career or business goals.
Simplilearn conducts more than 3,000 live classes monthly, with an average of 80,000 learners who spend more than 500,000 hours on the platform. Its programs allow learners to upskill and get certified in popular domains.
For more information, please visit www.simplilearn.com/
*Fortune Business Insights.
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Artificial Intelligence
NetSuite Awarded Frost & Sullivan’s 2024 Global Company of the Year Award for Leading Innovation in Cloud Business Management Solutions
NetSuite revolutionizes cloud enterprise resource planning (ERP) with its all-in-one cloud business suite that helps drive efficiency and visibility for organizations worldwide
SAN ANTONIO, May 7, 2024 /PRNewswire/ — Frost & Sullivan recently researched the cloud ERP market and, based on its findings, recognizes Oracle NetSuite with the Global Company of the Year Award. NetSuite is an integrated cloud business system that helps businesses simplify core processes, improve productivity, expand insights, and grow more efficiently.
View the full multi-media landing page: https://best-practices.frost.com/oracle-netsuite/
NetSuite’s leadership in the cloud ERP space is evident with more than 37,000 customers across diverse sectors, including education, energy, finance, healthcare, manufacturing, and retail. Additionally, the company adopts a pioneering approach to embedding artificial intelligence (AI), which makes it stand out in the market. Leveraging Oracle Cloud Infrastructure’s advanced supercluster technology, NetSuite provides powerful AI capabilities that deliver actionable insights and increase the speed and accuracy of business processes. By embedding generative AI capabilities across the suite, NetSuite empowers global organizations to maximize productivity and make informed decisions based on real-time insights.
With NetSuite, upgrades are seamlessly delivered so customers are always using the latest version of its software, which improves access to cutting-edge features. Furthermore, the company’s extensive partner and professional services ecosystem significantly enhance the customer experience, enabling businesses to optimize the value of their NetSuite investment.
“Opportunities for AI include automation (data entry, financial analysis, and inventory management), actionable insights (better decision-making using real-time insights and predictions about customers and competitors), human-like interaction (integrating machine learning (ML) and natural language processing), and anomaly detection (enhanced security and detection of unexpected patterns). NetSuite currently has all these elements in its product suite. AI is embedded in business processes within NetSuite and also available in the form of assistants and advisors,” said Sankara Narayanan, Industry Director at Frost & Sullivan.
To address its customers’ growing curiosity about AI and its business implications, NetSuite leverages its Learning Lab events to provide customers and end users with hands-on training and expert guidance on how to effectively integrate AI and automation across operations. With this unique approach, NetSuite guarantees that customers have the knowledge and skills to optimally leverage AI capabilities within their businesses and connect with like-minded innovators in various cities across the U.S. and Canada.
NetSuite’s continuous focus on innovation and customers has made it stand out in the cloud ERP market, and it continues to deliver more features than most of its competitors, whose solutions are less capable than those of NetSuite’s system.
Each year, Frost & Sullivan presents a Company of the Year award to the organization that demonstrates excellence in terms of growth strategy and implementation in its field. The award recognizes a high degree of innovation with products and technologies, and the resulting leadership in terms of customer value and market penetration.
Frost & Sullivan Best Practices awards recognize companies in various regional and global markets for demonstrating outstanding achievement and superior performance in leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analyses, and extensive secondary research to identify best practices in the industry.
About Frost & SullivanFor six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders, and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models, and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.
Contact:Lindsey WhitakerP: +1 (210) 477-8457E: [email protected]
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