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TZ Limited On Course To Meet $8M Revenue Target For FY2014

TZ Limited (ASX: TZL) remains on track to meet its $8 million revenue target for the 2014 financial year and is in the final stages of negotiations on several tenders that could underpin strong revenue growth in fiscal 2015.

Institutional and sophisticated investors have recently demonstrated their support of the company's recent $3.75 million placement, which gives TZ a strong balance sheet to finalise new contracts and build on momentum.

A total of 25,000,000 ordinary shares were issued to these investors at $0.15 per share last week.

Its Packaged Asset Delivery (PAD) business continues to gain momentum with ongoing sales while the roll-out of its A.D.A.M. Parcel Locker Network is picking up pace with new installations in eastern Australia.

Its Infrastructure Protection (NYSEARCA:IXP) business offering micro-security and environmental monitoring solutions is gaining traction with new corporate customers.

Taken together, these provide a solid foundation for the company to sustain growth as awareness in its offerings continue to build.

Third Quarter Summary

TZ reported revenue of $2.2 million in the March 2014 quarter, bringing revenue in the nine months to date to $4.6 million.

Sales performance was impacted by seasonally slower third quarter performance with deployment schedules slipping due to the slowdown in construction activity over the Christmas break and the yearly three week Chinese New Year shut down of its metal fabricator in China.

The backlog of purchase orders remains strong at $4.4 million.

PAD business

TZ Limited's PAD business continues to gain momentum with ongoing sales to the corporate mail sector in the U.S. and strong growth in the Postal and Logistics sectors.

Growth and potential remains significant as Singapore Post continues to accelerate its program for Parcel Locker deployment in the island state while Pos Indonesia and Poste Italiane are set to receive their first Parcel Locker Banks.

Enquiry levels are at an all-time high with requests from Postal, E-commerce and Logistics organisations globally.

In the last quarter alone, TZ has been invited to participate in three new Postal tender submissions, a clear signal that the company is a credible supplier to this sector.

Its corporate PAD business has also seen TZ named as the preferred package delivery system for a significant global technology corporation that is headquartered in California.

It has also seen the placement of repeat purchase orders from a U>S. Government Agency that are each worth more than US$200,000.

A.D.A.M. Parcel Locker Network

TZ has also picked up the pace of its A.D.A.M. Parcel Locker roll-out in Australia with locker installations now at Westfield Bondi Junction, Westfield Hornsby and GPT's Rouse Hill Town Centre, Westfield Parramatta in Sydney and Westfield Chermside in Brisbane.

Additional sites are currently being investigated with a strong emphasis being placed on highly accessible car park locations made available by its property partner Secure Parking.

The company now has A.D.A.M. Parcel Lockers across the east coast of Australia covering Melbourne, Sydney and Brisbane.

IXP

In the last month, TZ saw about 40% of its large A$800,000 order ship with the balance scheduled to be shipped this month.

Specification and sales pipeline remains strong with TZ continuing to gain traction with new corporate customers responding to PCI-DSS requirements.

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