EATONTOWN, N.J. - Climb Channel Solutions, a subsidiary of Climb Global Solutions, Inc. (NASDAQ: CLMB), has announced a partnership with A-LIGN, a company specializing in cybersecurity and compliance. The collaboration aims to enhance Climb's global distribution network by integrating A-LIGN's expertise in areas such as SOC 2, ISO 27001, HITRUST, FedRAMP, CMMC, and General Data Protection Regulation (GDPR).
Climb's distribution network will now offer A-LIGN's services, which include penetration testing, ransomware preparedness, and social engineering. This move is expected to strengthen the cybersecurity posture of Climb's partners and their customers by providing access to comprehensive compliance programs and addressing the increasing demand for cybersecurity resilience.
The partnership is particularly significant as it will enable Climb to fill a crucial gap in their current offerings, according to Andrew Steioff, Vice President, Global Strategic Alliances at A-LIGN. The joint effort is set to expand both domestically and internationally, with a focus on evolving market trends and top-tier cybersecurity solutions.
Dale Foster, CEO of Climb Channel Solutions, emphasized the importance of compliance in the IT channel, noting that organizations are constantly navigating changing regulations. By partnering with A-LIGN, Climb aims to equip its reseller partners with the necessary tools and resources to transition from audit to strategic compliance without restructuring their current infrastructure amid regulatory changes.
Climb Channel Solutions is known for its specialty in distributing technology related to Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & Application Lifecycle. A-LIGN is recognized for its high-quality, efficient cybersecurity compliance programs and holds leading positions in issuing SOC 2 and HITRUST certifications and as a FedRAMP assessor.
The announcement is based on a press release statement and provides a strategic view into the companies' efforts to address the growing cybersecurity challenges faced by organizations globally.
In other recent news, Climb Global Solutions has witnessed a notable uptick in its second quarter financial performance, with adjusted gross billings and net sales registering a rise of 31% and 13% respectively from the previous year. The acquisition of Douglas Stewart Software (DSS) is anticipated to further strengthen the company's vendor partnerships and foster cross-selling dynamics. The implementation of a new ERP system, along with a focus on organic growth and mergers and acquisitions, are strategic steps aimed at driving future profitability.
Cash and cash equivalents for Climb Global Solutions stood at $48.4 million, with an increase in working capital by $2.8 million. The company also declared a quarterly dividend of $0.17 per share, indicating a strong liquidity position to support upcoming initiatives.
In terms of future prospects, Climb plans to drive organic growth with current partners and add new innovative vendors. The company is actively evaluating mergers and acquisitions opportunities that align with strategic goals and contribute to earnings. The recent acquisition of DSS, which has $5.3 million in EBITDA, is expected to boost the top line and operational efficiency.
Despite the challenges posed by the COVID-19 pandemic, Climb has managed to sustain robust sales in the security sector, demonstrating its agility and adaptability in the market. The new ERP system, expected to be fully operational by the end of the year, is another strategic move that is set to support the company's continued success. These are the latest developments for Climb Global Solutions.
InvestingPro Insights
In light of Climb Channel Solutions' recent partnership with cybersecurity firm A-LIGN, investors may be keen to understand how the company's financial health might support such strategic initiatives. Climb Global Solutions, Inc. (NASDAQ: CLMB) holds a promising financial position, with more cash than debt on its balance sheet, as per InvestingPro Tips. This liquidity could provide the flexibility needed to invest in and expand cybersecurity offerings. Additionally, Climb has been able to maintain dividend payments for 22 consecutive years, suggesting a level of financial stability that could reassure partners and investors alike about the company's long-term prospects.
Looking at Climb's market performance, the company has experienced a high return over the last year, with a 124.29% price total return, and a strong return over the last three months, marked by a 59.5% price total return. These metrics, coupled with a significant 37.69% price total return over the last six months, reflect a robust investor confidence in the company's market strategy and execution. As of the latest data, Climb's market capitalization stands at $431.9 million, and while it trades at a high P/E ratio of 32.03, analysts predict the company will be profitable this year, which could justify the current valuation to some investors.
For those interested in further financial analysis and metrics on Climb, InvestingPro offers additional insights and tips, which can be found at https://www.investing.com/pro/CLMB.
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