TZ Limited (ASX:TZL) has secured a strategically important purchase order for a Smart Locker System from a major U.S. biotechnology corporation based in the Bay Area of the West Coast worth an initial A$225,000.
The corporation is one of the largest employers on the West Coast with around 10,000 employees on campus. This is the first total turn-key contract to the large U.S. corporate market.
This follows the company securing last week a six-year parcel locker contract with Pos Malaysia.
The Smart Locker System to the biotech comprises the enterprise software development, licenses and the locker deployment.
It represents the first commercial deal undertaken by TZ's U.S. operating subsidiary Telezygology, Inc. that provides a total turn-key and customised hardware and software solution to the large US corporate market.
This approach leverages the success in the Australian market with contracts for Westpac as well as other financial services customers, where its solutions are heavily driven by a customised enterprise software offering.
"This purchase order covers the establishment of a fully integrated TZ Smart Locker System," executive director Kenneth Ting said.
"This should set the standard for mail and parcel distribution across their massive multi-building campus in the Bay Area and for further Locker Bank purchases as the solution becomes part of standard employee utility."
The latest order follows on the recent contract for the supply of electronic parcel lockers to Pos Malaysia Berhad, which covers turnkey supply of TZ hardware and software as well as support and maintenance services over the proof-of-concept, pilot and roll-out phases of the project.
It includes customisation, integration, testing, commissioning and post-implementation support of the lockers and is expected to deliver annuity style revenue.
TZ has also made inroads into the university and residential college market with its recent initial purchase order from the University of Technology, Sydney Housing Service for the deployment of a Parcel Locker System at their Broadway campus.
In addition, the company has delivered its 100th POPStation Locker Bank to Singapore Post and anticipates that the Singaporean postal operator will further expand its network.
Seeking to drive further growth, the company is offering shareholders up to $15,000 worth of shares priced at the lower of a 10% discount to 5-day VWAP or $0.125 each.
Proceeds will be used to deliver further contract wins in its Packaged Asset Delivery (PAD) and Infrastructure Protection (NYSEARCA:IXP) businesses, expand the company's tender team to execute in response to new tender requests and fund the costs of marketing its Day Locker offering to existing accountable mail customers in the U.S.
TZ Limited's growth momentum continues with the first purchase order for an integrated Smart Locker System from a major U.S. (biotechnology) corporation.
Besides the potential for further Locker Bank purchases from other corporations, the order also represents the first commercial deal by Telezygology that provides a total turn-key and customised hardware and software solution to the large U.S. corporate market.
The smart locker system business model has already been successfully implemented in Australia and is a pointer for additional U.S. contracts as well as other markets.
Based on estimated revenues for FY15 as well as incorporating recent contract wins and growing momentum Proactive Investors has recalibrated our valuation and a new price target of $0.25-$0.27 in 12 months.
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