ACT announced this morning that it has formalized its deal with 3D-P to distribute 3D-P's equipment monitoring devices to both underground and above ground mining operations. This extends ACT's effective reach above ground, and eventually brings the 3D-P devices underground once MSHA certification is completed.
Currently, the estimated average revenue per ActiveMine deployment is approximately $400k. Management believes that 3D-P extensions could bring an additional 15% to the average total deployment value.
Strategically, the above ground distribution of 3D-P hardware becomes a lead sale to a more comprehensive mesh data network deployment for ACT.
There are likely to be no specific deals pending that are dependent on this relationship. More similar relationships should be announced over the coming months that are likely to help entrench ACT as a near defacto standard data network for mine operators in the US.
Showing posts with label wireless mesh. Show all posts
Showing posts with label wireless mesh. Show all posts
4/22/09
Active Control Technologies (ACT.V): Rubber Hits Road
Finally
Today, ACT announced that it has received certification for the final component of the ActiveMine wireless mesh network from U.S. Federal Mine Safety and Health Administration (MSHA). The certified telephone fills out the final elements of the Two-Way Communications and Electronic Tracking Requirements of the Mine Improvement and New Emergency Response Act (MINER Act) of 2006 (was it that long ago?). Here is a list of approved "wireless" communications technology as published by MSHA today.
Uniquely Positioned
It is difficult not to notice that ACT is the only wireless mesh network approved with both tracking and a telephone device. In addition, it is the only network that offers excess backhaul capacity for additional monitoring, production, and maintenance applications. The Company has announced partnerships already with Motorola (MOT) and an outfit called 3D-P, which provides data collection solutions for mine machinery.
Immediate Potential
As stated in previous posts, the Company has approximately $6.0 million in contracted backlog that is dependent upon MSHA approval. These deployments can now proceed. In addition, the Company has a $60 million unfactored pipeline with an estimated $20 million factored pipeline. The sales team should be immediately closing the factored pipeline deals. There are no decision barriers left.
Good Signs
A good sign of potential came last week when a fairly significant long-term contract was signed with a Kentucky mine operation that may turn out to be its first 7-figure deal. Although the contract was ahead of MSHA approval, the mine operator was probably well assured by MSHA that certification risk was low.
Rubber Hits Road
Notwithstanding the great news item today, after some quick cork-popping tonight, the Company needs regroup and refocus on closing deals, getting P.Os converted and turning potential into cashflow. This means that management needs to focus hard on not only sales management, but also manufacturing processes, deployment, training, and service quality. From this day forward, these are likely to be the new measurement sticks that shareholders will use to prod management with.
Investors Likely Positive
Clearly the stock should react positively to this long awaited news as investors assume that MSHA certification means at least $6 million worth of actual sales potential before the end of FY2009 (July 31 Y/E). FY2010 sales could range in the mid-teens.
Disclosure: I own shares of ACT, I do not own shares of MOT.
Today, ACT announced that it has received certification for the final component of the ActiveMine wireless mesh network from U.S. Federal Mine Safety and Health Administration (MSHA). The certified telephone fills out the final elements of the Two-Way Communications and Electronic Tracking Requirements of the Mine Improvement and New Emergency Response Act (MINER Act) of 2006 (was it that long ago?). Here is a list of approved "wireless" communications technology as published by MSHA today.
Uniquely Positioned
It is difficult not to notice that ACT is the only wireless mesh network approved with both tracking and a telephone device. In addition, it is the only network that offers excess backhaul capacity for additional monitoring, production, and maintenance applications. The Company has announced partnerships already with Motorola (MOT) and an outfit called 3D-P, which provides data collection solutions for mine machinery.
Immediate Potential
As stated in previous posts, the Company has approximately $6.0 million in contracted backlog that is dependent upon MSHA approval. These deployments can now proceed. In addition, the Company has a $60 million unfactored pipeline with an estimated $20 million factored pipeline. The sales team should be immediately closing the factored pipeline deals. There are no decision barriers left.
Good Signs
A good sign of potential came last week when a fairly significant long-term contract was signed with a Kentucky mine operation that may turn out to be its first 7-figure deal. Although the contract was ahead of MSHA approval, the mine operator was probably well assured by MSHA that certification risk was low.
Rubber Hits Road
Notwithstanding the great news item today, after some quick cork-popping tonight, the Company needs regroup and refocus on closing deals, getting P.Os converted and turning potential into cashflow. This means that management needs to focus hard on not only sales management, but also manufacturing processes, deployment, training, and service quality. From this day forward, these are likely to be the new measurement sticks that shareholders will use to prod management with.
Investors Likely Positive
Clearly the stock should react positively to this long awaited news as investors assume that MSHA certification means at least $6 million worth of actual sales potential before the end of FY2009 (July 31 Y/E). FY2010 sales could range in the mid-teens.
Disclosure: I own shares of ACT, I do not own shares of MOT.
3/30/09
A few notables from last week
A few interesting announcements were made last week while I was on my pilgrimmage to Mickey.
Last Monday, Active Control Technologies (ACT.V) revealed that the first partner signed to the recently announced certification program is Motorola (MOT.NYSE) for its MC9090 handheld device, which will be loaded with Snively Inc.'s Safety Tracker bar-code application for MSHA mine compliance and reporting requirements. As posted earlier this month, ACT is positioning to become a defacto standard for data transportation within the US coal mining industry. This announcement marks a first step towards such an objective. As a reminder, the network nodes are already certified by MSHA, so there should be no delays. The relationship with Motorola may be perceived by some investors as an early positive step towards future exit opportunities. As ACT leverages its competitive advantages in the future, the possibility increases that a major communications vendor may take a run at this technology. The stock is up 283% since the beginning of the year and peaked at $0.26 last week. The current run-up in the stock is likely in anticipation of MSHA certification of the phone, which should be considered a positive for its current backlog. However, the long-term traction for the Company is likely more related to the success its own partner certification program. The first announcement with Motorola could be considered a solid corporate development.
Throughout the week, Descartes Systems Group (DSG.TO) made a series of announcements to co-incide with its users conference. Investors should be confident that it remains on track for the "10+2" roll-out in partnership with its clients, which could add 3% - 5% to revenues during FY2009 as a start. As well, it is really beginning to leverage its federated messaging network to provide end-to-end shipping management as a service that is independent of endpoint technology. This data-centric approach is far more scalable and extensible than device-dependent alternatives, which gives Descartes a significant bundling and pricing advantage over potential competitors. New service announcements include Automated Vehicle Locator(tm) (AVL) along with the Wireless Global Logistics Network (wGLN). Continued data-centric service roll-outs (such as the ones announced last week) should further entrench DSG with current clients, and make it highly competitive for new business in the supply chain. Investors appear to like what DSG is doing because the stock is up 36% since it released results on March 10, 2009.
Axia NetMedia (AXX.TO) announced last Tuesday that it had completed a $19.5 million contingent equity financing based on its Intellinet Consortium being awarded a significant broadband network development contract in Singapore. Axia has been showing steady progress in France, and now has a foothold in Southeast Asia with a recent win in Singapore. With infrastructure stimulus budgets announced by governments worldwide, Axia NetMedia is well positioned to benefit from potential government contracts in Australia, the United States, and France among others. The Company has about $16 million or $0.25 net cash per share excluding the potential contingent capital raise. Axia NetMedia is profitable with modest growth in Canada via the Alberta Supernet but with strong emerging growth in France as its subsidiary continues to win and roll-out regional networks. AXX.TO ranks among the Top 30 Small-Cap Tech Stocks. If the consortium is not awarded the Singapore contract, the funds held in escrow will be returned to subscribed investors on pro-rata basis.
Disclosures: I own shares of ACT and DSG. I do not own shares of MOT or AXX
Last Monday, Active Control Technologies (ACT.V) revealed that the first partner signed to the recently announced certification program is Motorola (MOT.NYSE) for its MC9090 handheld device, which will be loaded with Snively Inc.'s Safety Tracker bar-code application for MSHA mine compliance and reporting requirements. As posted earlier this month, ACT is positioning to become a defacto standard for data transportation within the US coal mining industry. This announcement marks a first step towards such an objective. As a reminder, the network nodes are already certified by MSHA, so there should be no delays. The relationship with Motorola may be perceived by some investors as an early positive step towards future exit opportunities. As ACT leverages its competitive advantages in the future, the possibility increases that a major communications vendor may take a run at this technology. The stock is up 283% since the beginning of the year and peaked at $0.26 last week. The current run-up in the stock is likely in anticipation of MSHA certification of the phone, which should be considered a positive for its current backlog. However, the long-term traction for the Company is likely more related to the success its own partner certification program. The first announcement with Motorola could be considered a solid corporate development.
Throughout the week, Descartes Systems Group (DSG.TO) made a series of announcements to co-incide with its users conference. Investors should be confident that it remains on track for the "10+2" roll-out in partnership with its clients, which could add 3% - 5% to revenues during FY2009 as a start. As well, it is really beginning to leverage its federated messaging network to provide end-to-end shipping management as a service that is independent of endpoint technology. This data-centric approach is far more scalable and extensible than device-dependent alternatives, which gives Descartes a significant bundling and pricing advantage over potential competitors. New service announcements include Automated Vehicle Locator(tm) (AVL) along with the Wireless Global Logistics Network (wGLN). Continued data-centric service roll-outs (such as the ones announced last week) should further entrench DSG with current clients, and make it highly competitive for new business in the supply chain. Investors appear to like what DSG is doing because the stock is up 36% since it released results on March 10, 2009.
Axia NetMedia (AXX.TO) announced last Tuesday that it had completed a $19.5 million contingent equity financing based on its Intellinet Consortium being awarded a significant broadband network development contract in Singapore. Axia has been showing steady progress in France, and now has a foothold in Southeast Asia with a recent win in Singapore. With infrastructure stimulus budgets announced by governments worldwide, Axia NetMedia is well positioned to benefit from potential government contracts in Australia, the United States, and France among others. The Company has about $16 million or $0.25 net cash per share excluding the potential contingent capital raise. Axia NetMedia is profitable with modest growth in Canada via the Alberta Supernet but with strong emerging growth in France as its subsidiary continues to win and roll-out regional networks. AXX.TO ranks among the Top 30 Small-Cap Tech Stocks. If the consortium is not awarded the Singapore contract, the funds held in escrow will be returned to subscribed investors on pro-rata basis.
Disclosures: I own shares of ACT and DSG. I do not own shares of MOT or AXX
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