Raonsecure’s sales in the first quarter rose significantly as subsidiaries’ earnings improved. According to the quarterly audit report, Raonsecure recorded KRW 5255 million. This is a 32.8% increase from the same period of the previous year. It’s the largest amount of sales in its first quarter. Improvement in Raonsecure’s subsidiaries’ earnings had a significant impact on this increase in sales.

Raonsecure’s subsidiary, Raon Whitehat, saw sales increase by 378% year-on-year to 1345 million won in the first quarter. Raon SNC’s sales also recorded KRW 575 million. However, Raonsecure did not respond to the exact sales factors of its subsidiaries.

Raon Whitehat is a professional hacker group and has won three major hacking competitions in the world (DEFCON in the US, SECCON in Japan, and HITCON in Taiwan). A white hacker with proven skills evaluates security vulnerabilities in all stages of operation and provides a solution service that provides countermeasures.

Raon SNC is a subsidiary company that is in charge of integrated solution construction and procurement. It became a subsidiary at the end of last year. Last January, it signed a distributor agreement with Raonsecure.

Raonsecure’s annual sales, including its subsidiaries, also increased significantly. Sales in 2017 rose 12.7% from 2016, and increased by 15.9% and 25% in 2018 and 2019, respectively.

Raonsecure’s sales are divided into direct sales, which sell products through direct contracts, and indirect sales channels, where each channel contracts with a mid-sized system integrator for each project or through a channel contract on a yearly or multiyear basis. Raonsecure recorded 1984 million won of direct sales in the first quarter of 20 and 1889 million won in indirect sales. An official from Raonsecure said, “We are trying to balance the direct and indirect sales and are trying to secure various sales channels.”

Meanwhile, Raonsecure’s net profit turned to deficit. The company recorded a deficit as the SG&A expenses increased, which was due to an increase in labor costs due to the expansion of personnel. An official from Raonsecure said, “We are expanding R&D personnel as a whole, not a specific business unit.” He also said, “It was a temporary deficit, but now it is time to look forward to years with preemptive investments.”