Special Report: Along with a >10pc revenue upgrade, the company also announced a new distribution deal into the Asia-Pacific market.
Virtual Secure Network (VSN) company Netlinkz (ASX:NET) has continued its strong year with a revenue upgrade today.
The company now expects to book receipts from customers of $17m for the 2020 calendar year, up more than 10 per cent from its previous forecast of $15.3m.
Netlinkz shares made a strong start to morning trade following the update, climbing by another seven per cent to 7.6c.
It follows a positive trading result for the September quarter where the company realised q/q sales growth of 89 per cent, underpinned by strong demand for its VSN technology in China, as well as other global markets.
The company also announced a new distribution partnership into the Asia-Pacific region which is targeted to generate a further $15m of sales in its first year.
The company’s VSN device is a unique software solution that allows clients to manage and secure their data flow via mobile devices, rather than a central mainframe.
Importantly, the high-speed transmission can be fitted to existing infrastructure, meaning clients can benefit from the technology without any additional capital investment.
Deal flow
Along with its revenue announcement, Netlinkz also announced another strategic partnership in the Asia-Pacific region, inking a distribution deal with the Japan-based LNS International.
Under the terms of the deal, LNS will contribute a dedicated sales team that brings a local presence and industry knowledge in its core markets across Japan, Malaysia, Singapore, Hong Kong and Thailand.
The group’s distribution expertise will complement Netlinkz’ product offer which encompasses the design, implementation and delivery expertise of its market-leading VSN device.
The partnership is currently participating in tenders exceeding A$600m.
The partnership is “key to Netlinkz’ global expansion and is in line with its objective of bringing its world leading VSN product set to new markets”, the company said.
LNS International CEO John Tan described the partnership as “very strategic” and said the group has already identified a number of sales channels across its network.
“We are targeting to generate $15m of sales for Netlinkz in the first year of the partnership, and expect this to increase over subsequent years,” Tan said.
Netlinkz CEO James Tsiolis said he looks forward to updating the market with the company’s Q4 revenue numbers in due course.
“Our expectation is that partnerships such as the existing successful partnership with iSoftStone, and now with LNS, are the kind that will accelerate Netlinkz’s growth,” Tsiolis said.
This article was developed in collaboration with Netlinkz, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.