7th Feb 2019 10:59
LONDON (Alliance News) - Tracking system company Starcom PLC said on Thursday it has entered into a new agreement with South African security company Xplosive Solutions Pty Ltd to directly supply Kylos units over a three-year period.
The Kylos units will be used for the monitoring of cattle.
Under the agreement, Xplosive will pay a monthly fee for each Kylos unit, which will go towards the product cost and ongoing software-as-a-service fees. Over the period, Starcom expects to make USD500,000 in revenue.
In 2017, Starcom first entered a supply and support agreement with Xplosive to supply its Kylos units, worth USD4.3 million.
However, in July 2018 the deal was delayed due to waiting on negotiations with local telecom providers and the development of a collar for the cattle. Therefore no revenue was generated under the original agreement.
"Starcom has worked with Xplosive to develop a cost effective and reliable solution to offer security and theft prevention to the South African cattle industry, as well as to speed the process of rounding-up cattle which graze over large tracts of land. This is yet another example for how Starcom can creatively apply its advanced technology to meet tracking and security challenges in various vertical markets," said Chief Executive Officer Avi Hartmann.
Shares in Starcom were up 4.1% at 1.54 pence on Thursday.
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