When Internet of Things chipmaker Sensera announced a deal in October to supply sensors to “animal positioning” company Smartbow, its shares jumped to a six-month high of 40.5c.

But the stock (ASX:SE1) fell all the way back to 23c amid delays on completion of the “multi-million dollar” deal. (Exact commercial terms were not revealed, but Sensera says it will “materially impact sales from FY19”).

News of an extension to the agreement did little to excite investors on Wednesday, though the shares have recovered somewhat to 26.5c since the company “reaffirmed its FY18 revenue guidance of $US6.25 million to $US7.25 million on Tuesday.

Sensera (SE1) share price movements in the past 6 months.
Sensera (SE1) share price movements in the past 6 months.

Under the deal, Smartbow and Sensera agreed “on a technology and cost-reduction roadmap for the supplied devices, based on several thousand dairy farms targeted for deployment in FY19 and FY20”.

The devices capture data from Sensera chips deployed in eartags of cows and transfer information to an analytics system.

Sensera reported revenue of $US2 million for the December half, up 287 per cent on the same period in 2016.

Losses widened from $US2 million to $US3.3 million. The business had $4.5 million left in the bank at the end of December.

“This agreement represents further validation for Sensera’s location awareness technology, and a continued strengthening of our relationship with Smartbow,” Sensera chief Ralph Schmitt told investors.

“Nanotron’s location awareness technology is a key enabler of Smartbow’s farm animal health solution, and this is the result of several years of close cooperation between the companies. This solution can drive superior performance for dairy and beef farms and is also well suited to other farm species.”

While nanotron also has interests in the mining industry, it says the long term potential in cattle is significant, hoping to address what is a total market of 1.4 billion cattle.