Ottawa-based Leonovus lands deal with big six Canadian bank

digital security

Leonovus (TSX-V:LTV) has made good on the promise of its storage software, announcing Thursday it has broken a long revenue-free streak by landing a big six Canadian bank as a new customer.

The Ottawa-based firm said in a release that it had converted a 10-month proof-of-concept project with a large, unnamed financial institution into a contract.

Leonovus develops software that “shreds” client data before encrypting and storing the information across a hybrid system of cloud and on-premise servers – a process it says increases the security of stored data.

The company tested its solution in the bank’s technology test labs for nearly a year and will now move into a live deployment with the customer data.

“I would like to give kudos to the entire Leonovus team for the speed at which this project closed. To close an enterprise customer of this size from POC to production in ten months is extraordinary work," said CEO Michael Gaffney in a statement.

Landing this customer is a significant milestone for Leonovus, which has undergone a technical reinvention in the past year. After tripling its headcount and posting a net loss of $1.2 million this past quarter, the firm said it expected to resume bringing it revenues in Q3. The company added then that it has an additional 50 proofs of concept currently live, including pilot projects with the federal government, all of which it expects to close.

Shares of Leonovus were up three cents, an increase of 16 per cent, on the TSX Venture Exchange Thursday.