Applied Digital hires new security head for data center safety By Investing.com

Applied Digital Corporation (NASDAQ: APLD), a company specializing in the design and operation of digital infrastructure for High-Performance Computing (HPC) applications, has appointed Gary Smith as its new Senior Director of Physical Security.

Smith, with over four decades of experience in law enforcement and corporate security, will oversee the physical safety measures at the company’s facilities, including security services, access control, and systems technology.

Smith’s extensive background includes a tenure at Digital Realty (NYSE:), a leading data center Real Estate Investment Trust (REIT), where he served as Director of Security and later as Vice President of Portfolio Security, Compliance, and Business Continuity. His role was critical in managing security and business continuity strategies across Digital Realty’s global portfolio.

Wes Cummins (NYSE:), CEO of Applied Digital, expressed confidence in Smith’s capabilities, stating that his experience and track record in the data center industry will be invaluable to the company’s safety operations and commitment to secure infrastructure solutions.

Prior to his corporate security roles, Smith began his career in law enforcement with the DeKalb County (GA) Police Department, where his notable achievements included being named Police Officer of the Year in 1981.

In the private sector, he joined IBM (NYSE:) Security and held various management positions, ultimately serving as Senior Security Manager for Security Systems Strategy and Technical Delivery.

Smith holds advanced degrees in Systems Engineering, Information Systems Security, and Technology Commercialization, as well as certifications in Information Systems Security, Business Continuity, and Risk Management.

Applied Digital’s focus on providing secure and reliable infrastructure solutions is in line with the growing demand for high-performance computing capabilities in fields such as artificial intelligence, machine learning, and other advanced technologies. The company’s purpose-built data centers and Cloud as Service offerings are strategically designed to cater to these high-performance computing needs.

In other recent news, Applied Digital Corporation reported robust fourth-quarter earnings, exceeding expectations due to the swift re-energization of its Ellendale project and the expansion of its GPU operations.

This led to a significant increase in revenue and adjusted EBITDA. The company also secured an additional $25 million from the sale of its Garden City, Texas facility, thereby strengthening its balance sheet for ongoing growth initiatives.

Applied Digital extended its exclusivity agreement with a leading U.S. hyper scaler for the leasing of its upcoming data center campus in Ellendale, North Dakota. Additionally, the company secured a $125 million financing commitment from CIM Group for its High-Performance Computing Campus in Ellendale, and issued a $42.1 million convertible debenture as part of a financing agreement with CIM APLD Lender Holdings, LLC.

Analysts from B.Riley and Roth/MKM have raised their price targets for Applied Digital to $8.00 and $11.00 respectively, maintaining a “Buy” rating. Needham also maintained its Buy rating on Applied Digital, endorsing the company as a top pick for AI/HPC infrastructure.

InvestingPro Insights

As Applied Digital Corporation (NASDAQ:APLD) fortifies its physical security with the appointment of Gary Smith, investors and stakeholders may be interested in the company’s financial health and market performance. According to InvestingPro data, APLD has a market capitalization of $578.88 million, indicating its size and relevance in the sector. Despite a remarkable revenue growth of 252.07% over the last twelve months as of Q3 2024, the company’s gross profit margin remains at 18.09%, which reflects the challenges in maintaining profitability amidst its rapid expansion.

InvestingPro Tips suggest that while analysts expect sales growth in the current year, they also forecast a net income decline. This could be a point of concern for potential investors, as it might indicate that the company’s expenses are increasing at a faster pace than revenue. Moreover, with a price to earnings (P/E) ratio of -6.03, the company’s stock trades with high price volatility, which is a characteristic that risk-averse investors might be wary of. It’s important to note that APLD does not pay a dividend, which might influence the investment decisions of those seeking regular income from their holdings.

For those considering a deeper analysis, InvestingPro offers additional tips on APLD, providing a more comprehensive understanding of the company’s financial and market position. To explore these insights, visit https://www.investing.com/pro/APLD.

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