Katis Reports 44% YoY Sales Growth in H1... "Expecting Increased Orders in H2"

Katis announced on August 14 that its sales for the first half of the year reached 14.1 billion KRW, marking a 44.0% increase compared to the same period last year. During the same period, the company recorded an operating loss of 1.5 billion KRW.

The growth in sales was driven by new orders in the aviation security sector being reflected in revenue. Katis is currently introducing the Leidos "Provision 3" personnel screening equipment at Terminal 2 of Incheon International Airport. Since 2016, Katis has held exclusive domestic distribution rights for Leidos Provision products and has been expanding sales, primarily targeting airports and similar facilities.

A company representative stated, "The operating loss in the first half of this year was due to increased R&D expenses for expanding our product portfolio and higher labor costs from hiring additional development personnel." The representative added, "These are short-term costs that represent strategic investments, which will lay the foundation for future revenue diversification and improved profitability."

Katis expects the pace of performance growth to accelerate in the second half of the year. This outlook is based on the industry's characteristic tendency for public sector orders to be concentrated in the latter half of the year, which is expected to lead to a higher volume of orders compared to the first half. Currently, Katis supplies industrial infrastructure security platforms to national key facilities classified as "Grade A" under the Integrated Defense Act.

The company also plans to accelerate diversification of its customer base. Katis is expanding into the private security sector with Leidos' new "Provision Ci" product. Additionally, the company is seeking to secure new clients by leveraging its recently launched next-generation quantum security platform "AxiQuant," which is based on post-quantum cryptography (PQC).

A Katis representative commented, "By expanding our product portfolio and continuously investing in the development of security platforms based on post-quantum cryptography, we are achieving results in both quantitative and qualitative aspects, and our performance momentum is steadily strengthening." The representative added, "In the second half, we expect both order volume and sales to increase due to the seasonal characteristics of the public sector, which is a major supply area. Accordingly, we will also pursue a strategy to strengthen profitability through robust external growth."