Strikeforce Technologies Inc (OTCMKTS:SFOR) Looks Set For Further Growth

A couple of weeks ago we highlighted Strikeforce Technologies Inc (OTCMKTS:SFOR) as being a stock poised for growth. We noted that we would be watching closely for the company's third quarter financials (we had some estimates that we used as the basis of our presentation at the time) to give us some degree of insight into what's going on on the product side of things, and in turn, what we could expect moving forward into 2017.The company just put out a press release highlighting its Q3 financials, and things look good.Here's a look at the highlights, and our interpretation of the figures.By way of a brief introduction, and before we crunch the numbers, let's get familiar with the company. Strikeforce is a cyber security company and it's got a few core products, all of which are designed to help device users (mobile and desktop) fend off cyber security threats. We said it last time, and we'll say it again, the cyber security market, although large right now, is only a fraction of what it promises to be in terms of annual revenues in twenty years. As such, companies that are establishing themselves now as players in the space have the potential to become billion dollar industry leaders over the next couple of decades. For those that do, it's going to be product driven, and Strikeforce has a great portfolio.Its three products are called ProtectID, GuardedID and MobileTrust.The latter two are pitched as a security suite and are designed to protect against the a range of cyber security threats – keylogging, clickjacking etc – for both desktop and mobile devices. The former, the ProtectID product, is more of a concept application, which uses a configuration of two factor authentication (readers will have come across this if they have used a text message to verify a bank account online login, or similar). There are some ongoing legal disputes surrounding the ProtectID concept, which we went into in detail last time we looked at the company. Those wanting to catch up can do here. Basically, Strikeforce is accusing a number of big name entities – banks, big tech etc. – of piggybacking their security processes on the patent that Strikeforce owns, and that underpins ProtectID. There's potentially millions of dollars' worth of licensing revenues deriving from these suits alone, but we're going to focus on the current revenue streams for the purposes of this discussion.Which brings us to the numbers; what did the they tell us?Well, revenues for the nine months ended September 30, 2016 came in at a little over $392K. This compares to $221K for the same period a year earlier, representing an increase of $171K or more than 177%. The growth came primarily on the back of sales increases for the GuardedID and MobileTrust products.For us this highlights the efficacy of the company's retail strategy. Basically, cash is low, and to avoid forcing considerable dilution on shareholders, Strikeforce is being very selective about its sales and marketing efforts. The company has a range of big name online fronts (Target, Amazon being the two primaries) and its own suite of retail sites, and is working on some deals to build on its brick and mortar presence. This latter element is going to revolve primarily around an upsell type strategy (we expect), whereby a retailer will offer the products as a complimentary product to a customer that is buying a device that warrants protection.Our thesis on this one remains exactly the same. Strikeforce's product portfolio is coming in to its own, and as the latest numbers show, sales are ramping up in line with the forecast industry expansion. There's also litigation windfall potential, with precedence for this potential deriving a Microsoft Corporation (NASDAQ:MSFT) suit conclusion in January this year. Cash isn’t bad at $1.22 million, and if Strikeforce can maintain its targeted marketing strategy, dilution shouldn’t be too much of an issue near term.We will be updating our subscribers as soon as we know more. For the latest updates on SFOR, sign up below!Disclosure: We have no position in SFOR and have not been compensated for this article.