icetana gets a bump from long-awaited SaaS contract win in Singapore
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icetana (ASX:ICE) got a Friday bounce in morning trade after announcing a new purchaser order.
The company’s core product is a SaaS-based video analytics software solution primarily used for security purposes.
This morning the company announced it had scored a new contract for its software platform in the Singapore market.
It follows an extended period of business development in the region that ICE carried out with its local partner Prosegur Singapore Pte Ltd.
The new deal is for a three-year term to supply icetana’s video analytics software to an “integrated resort operation”.
While ICE will supply its SaaS solution to the end-client, the contractual arrangement is between itself and Prosegur.
ICE said it will earn $S550,800 (~$536,000) from the deal, and flagged gross profits (less hardware costs) of around $430,000.
The company ended up on Stockhead’s Top 10 winners’ list this morning with an early gain of around 30 per cent.
CEO Matt Macfarlane said the deal “represents icetana’s largest SaaS based recurring revenue contract to date”.
ICE said the project’s scope only represents around five per cent of the total camera footprint deployed by the resort client — an possible indicator that the initial deal will flow through to more work in the future.
This morning’s rally made for some welcome news for ICE shareholders, after the company’s stock price was treading water following a sharp fall during the March 2020 COVID-19 selloff.
Shares in ICE fell from above 30c to 10c by mid-year. Today’s rally saw the stock climb back to 16c, but it’s still trading below the company’s December 2019 listing price of 20c.
Macfarlane said the Singapore contract was “one of the COVID-19 affected projects that we are very pleased to see progress to an implementation stage”.
icetana said it also won the deal in what was a competitive tender process to install CCTV-based video analytics software for such a large client.