Netlinkz accelerates new revenue channels after signing $1.1m deal with World Bank sponsored initiative
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Special Report: The latest deal is evidence of strong traction in the Chinese market for Netlinkz’ Virtual Secure Network (VSN) software.
IT company Netlinkz (ASX:NET) continued its steady flow of good news this morning, after announcing a major new deal in China that’s expected to generate ‘material revenues.
The company’s majority-owned subsidiary, iLinkAll, has signed a contract to provide its VSN secure-networking service to a water supply and sanitation project in the Deyang Municipality of the Sichuan Province.
The initiative is being sponsored by the World Bank, and iLinkAll’s software will be used to provide remote connectivity and automate the integrated control systems used in managing the project.
Following a 10-week design and implementation phase, iLinkAll will earn an up-front fee totalling RMB5.5m ($1.1m).
The company will then receive monthly licensing fees for operating the software for the life of the project.
For NetLinkz executive chairman James Tsiolis, the deal is evidence of the trust and recognition iLinkAll’s VSN software has established in key Chinese markets.
The World Bank project is a “major milestone for iLinkAll and recognition of the quality of our product”, Tsiolis said.
The company’s responsibilities in the implementation phase will cover data collection and back-end processes along with the design of the user interface.
Describing the Deyang water sanitation project as a “great responsibility”, ILinkAll president Zen Wang said the deal “highlights the role the company will play in infrastructure and securing the cities of the future in China and abroad”.
Shares in Netlinkz rose earlier in the week after the company said its networking technology will be used to provide remote-working access to help companies in Beijing manage workflow during the coronavirus outbreak.