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TZ Limited's Infrastructure Protection Business To Double Revenues In FY14

Mark Bouris' TZL Limited's (ASX:TZL) Infrastructure Protection business is set for a bumper 2014 financial year as revenue guidance is for it to more than double from the previous year with large number of initiatives coming into fruition recently.

This includes a sizeable sales pipeline in the Americas, strong sales expansion in Europe and planned deployments in the Middle East.


In the Americas, the company has a sales pipeline of over 2,300 cabinets consisting of:

- IXP has been specified as the cabinet security solution for New York City's Public Safety Emergency Response data centre. The main tender has been awarded to the lead contractor and procurement is expected to commence in late 2013 and into 2014. When completed, this will represent the largest IXP deployment in the U.S;
- Its infrastructure protection systems have also been successfully installed on high security cabinets in the data centres of a global IT solutions and hardware equipment provider as part of an initial program and are now being considered for the global standard in their data centres moving forward;
- IXP has also been successfully deployed as part of an ultra-high security initiative for a top tier retail bank in North America. The solution represents a new application for the TZ Centurion™ System controlling four integrated TZ SlideHandles™ per cabinet. This initial installation is likely to be replicated in other areas of their banking operations;
- This solution has received strong interest in Defense where the application is underway with a National Defense Agency with similar ultra-high security needs;
- TZ has also been successful in securing deployments at the data centre facilities of a number of State and City Government Agencies in Arkansas, Nebraska, Vermont, Calgary, Georgia and Kansas, principally driven by regulatory requirements such as IRS, PCI, HIPPA and other compliance mandates;
- The first phase of Cerner Healthcare has been implemented in two of their five data centres. The next phase is expected to be deployed in November. Cerner Corporation is one of the largest providers of electronic medical systems in the United States; and
- Initial programs are also underway with a number of other world recognized IT and technology corporations.

Further expansion could come from the Caribbean and Latin America region on the back of successful deployments in South America last year.

The company is currently progressing several large supply proposals to the banking sector and top tier IT OEMs.

Europe, Middle East and Africa

TZ has marked strong sales expansion in Europe with securement of a number of supply contracts with major European based data centre operators and IT service providers.

These include:
- The successfully installation of its TZ Centurion™ System in two of SunGard's major data center facilities to enable enhanced cabinet security for their customers; and
- Supporting the expansion of the ControlCircle security network in the Netherlands region. ControlCircle is standardising on the TZ Centurion™ System and is currently using the system to protect three separate data centres across two European countries.

It has also been specified on a number of major planned deployments in the United Arab Emirates and broader Arabian Gulf after carrying out a successful deployment for a large Middle East central bank.

Notably, the company has received its first IXP purchase order last month for Africa with a sale to Mozambique.

Asia Pacific and Australia

The company has formalised a distribution agreement with BGW Technologies, which is part of the BGW Group of Companies, a large Australian service provider to the Electrical, Plumbing, Home Automation, Security, Home Improvement and Retail industries.

This offers it a unique national channel to market as part of a true turn-key solution offering.

TZI Australia also recently completed the installation of its TZ Centurion™ System at two data centres for a national group that provides entertainment products and services to the Australian market.

IXP has been nominated as the Group's data centre cabinet security solution and will be progressively deployed across their operations.

It this week received the first of two purchase orders for supply of additional products to support the expansion of facilities at our existing customer's data centre operations in Australia. The two purchase orders with a total of around USD$214,000 is in line with plan targets.

Development Progress

The new version of the TZ SwingHandle™ complete with improved mechanical and electronic design will be prototyped this month and tested with our strategic customers in the Australian market before broader geographic release.

The mechanical variant of the TZ SwingHandle™ is scheduled for initial production release by the end of the calendar year with the electronic upgrade package available in 2014 once third party electrical safety and compliance certification such as UL Rating, FCC and C-Tick has been completed.

Looking ahead

With the majority of the market (90%) still heavily based on manual key-lock security, there is potential for IXP sales growth as the audit regimes of the PCI Council, Payment Card Issuers, HIPPA and the myriad of other Government and Industry physical security requirements provide a driver for change.

These security, compliance and governance mandates are now being more rigorously applied and punitive action is being enforced against security deficiencies in the IT environment.


A 50% growth in 2013, then guidance for 100% revenue growth on the higher revenue is significant as
security, compliance and governance mandates are now being more rigorously applied and punitive action is being enforced against security deficiencies in the IT environment.

Which places TZ extremely well as a solution of choice for this sector, leveraging a strong market awareness that has been built over the last three years and for futher growth in the infrastructure protection business.

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