Starcom forms new contract agreement with WIMC Solutions
Source - SMW
Remote tracking specialist Starcom said it had entered into a new agreement with WIMC Solutions that could improve an initially disappointing level of orders.
Under the previous agreement, only 1,500 of the company's Tetis units were delivered during 2018.
'Although this number of units is less than previously indicated, following successful testing of the Tetis units in the field and acceptance by end customers, the company has entered into a new agreement with WIMC, replacing the previous agreement,' Starcom said.
The new agreement, commencing from March 2019, provided for an increased potential order of up to 30,000 Tetis units over a three-year period.
At the same time, it involved a 'slightly reduced' unit price payable to Starcom.
There was no obligation for WIMC to order any units under the agreement, and therefore no guarantee that it would ultimately order the maximum number of units.
'But WIMC has indicated that it expects order levels for 2019 to be up to 3,400 units, which would have an aggregate value of up to US$660k, excluding ongoing SaaS revenue,' Starcom said.
At 8:25am: (LON:STAR) Starcom PLC share price was +0.03p at 1.28p